We are pleased to attach our Vietnam Legal and Tax Update for December 2013. In this edition, we highlight the following breaking news.
- AMENDMENT TO LAW ON VALUE ADDED TAX: On 19 June 2013, the National Assembly ratified Law No. 31/2013/QH13 to amend and supplement a number of articles of the Law on Value Added Tax (“VAT”), which shall take effect from 01 January 2014. On 18 December 2013, the Government has issued Decree No. 209/2013/ND-CP to provide detailed guidelines for the Law on VAT and the amended Law. While the Circular has not been released yet, the Ministry of Finance issued Official Letter No. 17557/BTC-TCT dated 18 December 2013 to provide some detailed guidance on registration of VAT declaration method for 2014.
- AMENDMENT TO THE LAW ON CORPORATE INCOME TAX: On 26 December 2013, the Government has released Decree No. 128/2013/ND-CP to provide guidelines for the implementation of the Law on Corporate Income Tax (“CIT) and the amended Law. This Decree shall take effective from 14 February 2014 and be applied for the tax assessment year of 2014.
- FOREIGN EXCHANGE CONTROL: Regarding the control over the use of foreign currency within the territory of Vietnam, recently the State Bank of Vietnam has issued Circular No. 32/2013/TT-NHNN dated 26 December 2013, according to which all transactions, payments, price listing, advertising, quotation, valuation, pricing in contract, agreement or other forms of similar nature of residents and non-residents must not be conducted in foreign currency within the territory of Vietnam, unless it is among some exceptional cases as provided in the Circular. This Circular shall take effective from 10 February 2014.
- AMENDED REGULATION ON INDUSTRIAL ZONES, EXPORT PROCESSING ZONES, AND ECONOMIC ZONES: Decree No. 164/2013/ND-CP was issued by the Government on 12 November 2013 to amend and supplement a number of Articles of Decree No. 29/2008/ND-CP dated 14 March 2008 on Industrial Zones, Export Processing Zones and Economic Zones. This Decree is effective from 1 January 2014.
- LAW ON TAX ADMINISTRATION: The amended Law to the Law on Tax Administration was issued on 20 November 2012 with effect from 01 July 2013. Up to now, the Government has issued Decree 83/2013/ND-CP on 22 July 2013 (effective from 15 September 2013) and the Ministry of Finance has issued Circular 156/2013/TT-BTC on 06 November 2013 (effective from 20 December 2013; the new forms as attached to the Circular will be used from 01 January 2014) to provide detailed guidelines for the Law on Tax Administration and the amended Law.
- TAX ADMINISTRATION VIOLATIONS: On 15 November 2013, the Ministry of Finance issued Circular 166/2013/TT-BTC regulating penalty for tax law violations. This Circular shall take effect from 01 January 2014 and replace Circular No. 61/2007/TT-BTC issued on 14 June 2007, by the Ministry of Finance – Guiding on sanctioning the tax administrative violations.
- NOTICE NO. 4837/TB-BHXH ON CHANGE OF SOCIAL INSURANCE CONTRIBUTION RATE: From 1 January 2014, social insurance contribution rate is 26% of salary and wages, in which, the contribution of employers is 18% and that of employees is 8%.
- TRADE UNION: According to new guideline on Trade Union, all businesses, including foreign-invested enterprises, must pay the Trade Union fees even if the businesses have no trade union. In particular, the monthly Trade Union Fee is equal to 2% of salary fund (this is based on the salary used for statutory social insurance payment for employees).
- NEW REGION-BASED MINIMUM WAGE LEVELS FOR LABORERS: On 16 December 2013, the Ministry of Labour – Invalids and Social Affairs issued Circular 33/2013/TT-BLDTBXH to provide guidance on the implementation of region-based minimum wage for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and other agencies, organizations employing laborers. This Circular is effective from 01 February 2014. The region-based minimum wages and the rules stated in this Circular.
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Legal and Tax Newsletter Dec 2013 VN
Legal and Tax Newsletter Dec 2013