Decree No. 44/2017/ND-CP guiding Social Insurance (“SI”) contribution rate for Labour Accidents and Occupation Diseases Fund
On 14 April 2017, the Government released Decree No. 44/2017/ND-CP guiding SI contribution rate for Labor Accidents and Occupation Diseases Fund. According to the Decree, the contribution rate to the mentioned Fund will be decreased from 1% to 0.5%, which is applicable from 01 June 2017 to 31 December 2019. Further adjustments shall be considered by the Government from 01 January 2020 depending on the balance of the Fund.
Decree No. 47/2017/ND-CP on adjustment of basic salary for officials, public servants and armed forces
On 24 April 2017, the Government released Decree No. 47/2017/ND-CP providing adjustment of basic salary for officials, public servants and armed forces. According to this Decree, the monthly basic salary (also known as general minimum salary) will be increased from VND 1,210,000 to VND 1,300,000 from 01 July 2017.
Circular No. 02/2017/TT-BKHDT guiding the mechanism to handle investment registration and enterprise registration certificates for foreign investors
On 18 April 2017, the Ministry of Planning and Investment released Circular No. 02/2017/TT-BKHDT providing guidance on mechanism to handle investment registration and enterprise registration certificates for foreign investors as prescribed under Article 24 of the Decree 118/2015/ND-CP. Accordingly the foreign investors is entitiled to decide whether to apply one application dossier for both certificates or apply for them under separate procedures.
This Circular is effective from 15 June 2017.
Circular No.37/2017/TT-BTC amending and supplementingguidance on invoicing
On 27 April 2017, the Ministry of Finance (“MoF”) issued Circular No. 37/2017/TT-BTC ameding and supplementing Circular No.39/2014/TT-BTC dated 31 March 2014 and Circular No.26/2015/TT-BTC dated 27 February 2015 of the MoF. According to this Circular, the deadline for tax authorities to respond upon request on the company’s invoice usage and that to submit notification on invoice issuance were amended to favor the enterprises, detailed as below:
- The deadline for tax authorities to respond upon request (in writing) on using self-printed invoices and pre-printed invoices is reduced from 05 to 02 working days;
- The deadline to submit notification on issuing invoices to tax authories is also reduced from 05 days to 02 days before using invoice; and
- The requirement on submitting notification on invoices issuance within 10 days after it is signed is abolished.
This Circular is effective from 12 June 2017.
Official Letter No.74109/CT-TTHT on Value Added Tax (“VAT”) for software services
According to Official Letter No. 74109/CT-TTHT issued by Hanoi Tax Department (“HTD”) on 08 December 2016, if the company outsources a third party to provide software installation and training services to its customers, such outsourcing service shall be subject to VAT rate of 10%.
Official Letter No. 74703/CT-TTHT on deductibie expense in case of Foreign Contractor Tax (“FCT”) collection
According to Official Letter No. 74703/CT-TTHT issued by HTD on 06 December 2016, if the company is subjected to CIT collection which is paid on behalf of the foreign contractor and if the revenue is agreed net of CIT; such collected CIT amount shall be considered deductible expense for CIT purpose.
Official Letter No. 1522/TCT-CSon CIT for health sponsorship via Non-governmental organizations (“NGO”)
According to Official Letter No. 1522/TCT-CS issued by General Department of Taxation (“GDT”) on 20 April 2017, if the company actually incurs expenses for health sponsorship via NGO and supported by sufficient supporting documents in compliance with the current CIT regulations, such expenses shall be deductible for CIT purpose.
Official Letter No. 1615/TCT-CSon the Personal Income Tax (“PIT”) for commercial discount in cash for business person
According to Official Letter No. 1615/TCT-CS issued by GDT on 25 April 2017, if the individual as an agent receiving commercial discount from the company in cash (instead of being deducted directly on the invoices), such discount shall be subject to PIT rate of 1%.
BEYOND THE GAAP
No. 110. For the second time in its history, the IASB has launched a rapid-turnaround consultation with a comment period of just 30 days – the minimum permitted by its Due Process Handbook.