Reducing VAT on many goods and services; guidance on corporate income tax with the basis of socialization and not yet arrears… are new economic policies that will take effect from November.
Reduced value-added tax on many goods and services
The National Assembly Standing Committee has just issued Resolution No. 406/NQ-UBTVQH15 on a number of solutions to support businesses and people affected by the COVID-19 epidemic.
Accordingly, from November 1, 2021 to the end of December 31, 2021, value added tax (VAT) will be reduced for the following goods and services:
(1) Transport services include transport railway, water transport, air transport, other road transport; Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours;
(2) Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services for creation, art, entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.
Some transportation services, including transportation, are eligible for VAT reduction from November
Note: Goods and services in group (2) do not include publishing software and goods and services produced and traded in the form of online.
Depending on the tax calculation method, the value-added tax reduction is applied as follows: Enterprises and organizations calculate value-added tax according to the deduction method for production and trading of goods and services specified in Clause 1 of this Article. this item is entitled to a 30% reduction in the value-added tax rate; Enterprises and organizations that calculate value-added tax according to the percentage method on the turnover of production and trading of goods and services specified in this Clause are entitled to a reduction of 30% of the percentage rate for calculating value-added tax.
Guidance on corporate income tax for establishments performing socialization without arrears
From November 1, 2021, Circular 71/2021/TT-BTC guides on corporate income tax for establishments performing socialization which have not yet arrears in accordance with Resolution 63/NQ-CP dated 25/5/ 2014, came into force.
Establishments performing socialization (referred to as establishments) established before July 22, 2016, earning income from socialization activities, are responsible for fulfilling corporate income tax obligations as follows:
(1) Facility that is entitled to corporate income tax incentives for the remaining time in accordance with regulations on corporate income tax from the time of meeting the conditions under the Prime Minister’s decisions from time to time include:
+ Decision 1466/QD-TTg dated 10/10/2008.
+ Decision 693/QD-TTg dated 06/5/2013.
+ Decision 1470/QD-TTg dated July 22, 2016.
(2) Establishments that do not satisfy the conditions specified in the above decisions shall make additional declarations of the amount of corporate income tax missing (if any), calculate the amount of corporate income tax to be paid by themselves, or tax authorities shall collect arrears until the time the conditions in the above decisions are satisfied.
– On the above basis, if there is corporate income tax arising in item (2), there will be no penalty for tax violations and no late payment interest calculated on the amount of corporate income temporarily not arrears until 1 November 2021.
From November 2, 2021, if the establishment has not paid the corporate income tax, which has not been temporarily collected, it must pay a late payment interest calculated on the unpaid tax amount and impose penalties for tax violations (if any).
Deadline to receive support money under resolution 116
According to the Prime Minister’s Decision No. 28/2021/QD-TTg, after receiving the list of employees eligible for support sent by the social insurance agency, and finding it necessary to adjust information, by the end of November 10, 2021, enterprises must complete the adjustment of information to return the list to the social insurance agency, enclosed with documents proving the adjusted information according to regulations.
Within 20 days from the date of receipt of the adjusted list, ie around November 30, 2021, the social insurance agency must pay support to employees at the enterprise.
On the side of employees working at enterprises, but have not received the support money by November 30, 2021, the employees must do the procedures by themselves through the VssID application, through the Public Service Portal of the company. Vietnam Social Insurance or directly to the social insurance agency, as in the case of people who have quit their jobs.
Thus, both businesses and employees need to pay attention to the above timelines to ensure benefits.
Procedures for granting a license to import raw gold for FDI enterprises
The State Bank of Vietnam promulgates Circular 15/2021/TT-NHNN amending and supplementing a number of articles of Circular No. 16/2012/TT-NHNN dated May 25, 2012 of the Governor of the State bank, guiding a number of articles of the Government’s Decree No. 24/2012/ND-CP dated April 3, 2021 on the management of gold trading activities.
The Circular adds Clause 1b after Clause 1a, Article 15 on procedures for granting Business License to buy and sell gold bars; License to export raw gold; License to import raw gold for foreign-invested enterprises (foreign-invested), enterprises investing abroad in the field of gold mining: For the case of enterprises foreign-invested If there is a need to import raw gold for the production of gold jewelry and fine art, and apply for a license under the national single-window system, they shall send the dossier specified in Article 12 of this Circular to the national single-window portal for approval. granted a license to import raw gold.
Procedures for granting licenses to import raw gold for FDI enterprises have changed since November
In addition, the Circular also adds Clause 5 to Article 15 guiding the implementation of procedures for granting a license to import raw gold for enterprises with foreign investment capital to produce gold jewelry and fine arts under the one-to-one mechanism. national door.
This Circular takes effect from November 20, 2021.
