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On 15 November 2016, Ministry of Finance issued Circular 302/2016/TT-BTC to guide the fees and charges of business license tax. Accordingly, there are some remarkable modifications:
- Business license tax exemption:
- The level of business license tax charges:
1. For organization of production and business of commodities and services:
2. For individuals, group of individual and business households which manufacturing and trading commodities and services:
- Deadline of paying business license tax charges is no later than 30th January of the year. If organizations set up new business establishment or provide new production and business activities, the deadline of paying business license tax charges is the last day of submitting the dossier for BLT declaration as prescribed in Clause 1, Article 5 of Decree No. 139/2016/ND-CP of the Government regulations dated 04.10.2016 about business license tax charges.
This circular has taken effect from 01 January 2017.
On 14 November 2016, Government issued Decree No. 153/2016/NĐ-CP which regulated on regional minimum wage rates workers under employment contracts. Accordingly, the rates are specified as follows:
- The rate of 3,750,000 VND/ month for enterprises in Region I (increased by 250,000 VND/month)
- The rate of 3,320,000 VND/ month for enterprises in Region II (increased by 220,000 VND/month)
- The rate of 2,900,000 VND/ month for enterprises in Region III (increased by 200,000 VND/month)
- The rate of 2,580,000 VND/ month,for enterprises in Region IV (increased by 180,000 VND/month)
These rates above are the lowest ones as a basis that both enterprises and employees agree, ensuring that:
- No less than the regional minimum wage rates paid to employers with simple works.
- Higher than at least 7% of the regional minimum wage rates paid to employers with trained skills and knowledges.
In addition, the Decree has some changes on regions applied to the rates of regional minimum wage as follows:
- Tan Thanh District ( Ba Ria – Vung Tau Province) will switch from Region I to Region II;
- Song Cong City and Pho Yen Town ( Thai Nguyen Province), Tra Vinh City ( Tra Vinh Province);
- Hoi An City ( Quang Nam Province) will switch from Region III to Region II;
- Que Son District, Thang Binh (Quang Nam Province) and Duyen Hai Town ( Tra Vinh Province) will switch from Region IV to Region III;
- Giang Thanh District (Kien Giang Province) will switch from Region III to Region IV.
The Decree comes into effect on 01 January 2017 and replaces Decree No. 122/2015/NĐ-CP also on the rates of regional minimum wage
Regulations on electronic transactions in the field social insurance, medical insurance and unemployment insurance
On 24 December 2016, the Government issued Decree No 166/2016/ND-CP about electronic transactions in the field of social insurances, medical insurance and unemployment insurance, which include registration; providing social insurance books, health insurance card; settlement; payment of those insurances; assessment and payment of medical examination and treatment expenses; exchanging information which related to implementing policies of insurances.
Accordingly, agencies, organizations and individuals must make sure following conditions when implementing electronic transactions of social insurances:
- Having a valid digital certificate, which provided digital signature certificates as regulations. If individuals have no digital certificate, they are allowed to use the code of electronic transaction authentication provided by Vietnam Social Insurance department.
- Having the ability to access and use the Internet.
- Having stable E-mail address contact registered with the Vietnam Social Insurance.
The procedures of registering for electronic social insurance transaction methods are prescribed following:
Agencies, organizations and individuals involved in electronic social insurance transactions need to make the registration declaration of registering for electronic social insurance transaction methods according to set Form No. 01/DK-GD issued together with this Decision, and sent softcopy to portal or hardcopy to Vietnam Social Insurance department.
Within 3 working days from receiving the declaration, Vietnam social insurances department will announce and provide account to implement electronic transaction via E-mail address of agencies, organizations and individuals involved in electronic social insurance transaction.
Besides, Decree provides the regulations of changing procedures, adding registration information and stopping using electronic transaction methods.
This decree has taken effect from 1 March 2017.
On July 30, 2015, Tax Department of Bac Ninh province issued Official Letter No. 1559/CT-TTHT providing guidance on determination of permanent resident establishment. Accordingly, in case, Company A is the resident permanent establishment in Korea, signs contracts with Company B in Vietnam, and authorizes B to deliver/receive goods to/from enterprises in Vietnam under on-sport imports and exports. A is considered to have a resident establishment in Vietnam, and not exempted from FCT under double tax avoidance agreement between Viet Nam and Korea. The income received from A for providing goods to other company in Vietnam must be imposed on FCT.