Vietnam Tax & Legal Update - Aug&Sep 2012
We are pleased to enclose here with our Vietnam Tax and Legal Update for August and September 2012 in which we spotlight among else: the implementation of the import, export rights of the Export Processing Enterprises; new regulation on Stricter controls over foreigners working in Vietnam and other matters...
- Circular providing guidance on a number of tax policies to help organizations and individuals with financial difficulties. The Ministry of Finance has released a Circular in August 2012 to provide further guidance (particularly on tax administration) on tax relief policies in 2012 which had previously been granted under Resolution 29/2012/QH13 and Decree 60/2012/ND-CP.
- Circular on the financial regulations of insurance business. The new Circular has made a number of amendments to the financial regime applicable to insurers, reinsurance businesses, insurance brokers and branches of foreign non-life insurers.
- Circular on recognition of corporate valuation service providers. This Circular provides specific guidance on the standards, conditions and procedures for recognition of enterprises providing corporate valuation services to 100% state-owned companies under the equitization process.
- Implementation of the import, export rights of the Export Processing Enterprises. An Official Letter from the Ministry of Industry and Trade has clarified some concerns of export processing enterprises regarding permissible activities around the implementation of import, and export rights.
- Resident individuals deducting tax paid in the country which has a Double Taxation Avoidance Agreement with Vietnam. An Official Letter from the General Department of Taxation has provided two methods for an individual to claim back tax paid in a country which has signed a Double Taxation Avoidance Agreement with Vietnam.
- Instructions for specific sanctions for violation of certain administrative issues and use of invoices. Enterprises which are late in submitting a report on the usage of invoices or issue invoices before the submission of notification on invoice circulation shall be subject to penalty prescribed in Decree 51/2011/ND-CP.
- Stricter controls over foreigners working in Vietnam. This is an alert to foreigners working in Vietnam as the Ministry of Labor, War Invalids and Social Affairs has now specifically requested the provincial People’s Committees to review all foreigners working here with a view to stricter enforcement of violations, as well as clarifying the responsibilities of the agencies involved.
- Reduction and exemption of Tax on the use of non-agricultural land. The Ministry of Finance has confirmed in an Official Letter in September 2012 that individual households within communes which have special difficulties under Program 135, Phase II, but are not included in the list of areas with (extreme) socio-economic difficulties as provided in a previous Decree, shall not be entitled to any reduction and exemption of tax on non-agricultural land use.