21 July 2021
BLawyers Vietnam would lead you on 3 legal issues as follows:
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Details of policies to support employees and employers facing difficulties due to COVID-19 pandemic
On 7 July 2021, the Prime Minister issued Decision No. 23/2021/QD-TTg to specify the application of the policy mentioned in Resolution No. 68/NQ-CP on several supporting policies for employees and employers who are facing difficulties due to COVID-19 pandemic. Some of the specific regulations are:
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Reducing premiums for occupational accident and occupational disease: Employers subject to this policy will be entitled to 0% payment for a period of 12 months from 1 July 2021. The entire amount from the reduction of contributions to the Insurance Fund for Occupational Accidents and Diseases will be used to support employees in the prevention and control of COVID-19 pandemic.
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Suspension of contributions to the retirement and survivorship fund: Employers who fully meet the conditions stated in this Decision may suspend contributions to the survivorship pension fund within 6 months from the date of submitting the application. After the expiration of the term, the employer must continue to contribute to the retirement and survivorship fund and make up for the suspension period.
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Support employees who are suspended from performing the labor contracts, take unpaid leave: Employees who are requested to be suspended from performing the labor contracts, take unpaid leave from 15 days or more from 1 May 2021, and work at places where operations have to be temporarily suspended due to the request of state authorities to prevent and control COVID-19 pandemic, are entitled to a support level depending on the number of days that have been suspended.
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Employers who satisfy the following conditions may borrow capital from the Social Policy Bank to pay salaries for suspended employees:
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There are employees working under labor contracts and participating in compulsory social insurance who are suspended from work for 15 days or more under the case of Article 99.3 of Labor Code 2019 from 1 May 2021;
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Having no bad debt at credit institutions and foreign bank branches at the time of loan application;
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Employers who satisfy the following conditions may borrow capital from the Social Policy Bank to pay employees' salaries when restoring production and business:
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For employers who have to suspend operations due to the request of state authorities to prevent and control COVID-19 pandemic from 1 May 2021 – 31 March 2022:
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Employers must temporarily suspend operations at the request of state authorities to prevent and control the COVID-19 pandemic during the period from 1 May 2021 – 31 March 2022.
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There are employees working under contracts who are participating in compulsory social insurance up to the time of applying for loans.
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Having a plan or plan to restore production and business.
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Having no bad debt at credit institutions, foreign bank branches at the time of loan application.
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For employers operating in the fields of transport, aviation, tourism, accommodation services and sending Vietnamese employees to work abroad under contracts to restore production and business:
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There are employees working under contracts who are participating in compulsory social insurance up to the time of applying for loans.
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Having a plan or plan to restore production and business.
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Having no bad debt at credit institutions and foreign bank branches, completed tax finalization for 2020 at the time of loan application.
The order, procedures, dossier composition and relevant forms for the application of the above policies are specified in this Decision.
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Using invoices and VAT in the provision of services abroad by export processing enterprises
Hanoi Tax Department issued Offical Letter No. 23122/CTHN-TTHT dated 25 June 2021 on the use of invoices and VAT in the provision of services abroad by export processing enterprises with the following contents:
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Free trade zones include export-processing zones, export processing companies, tax-suspension warehouses, bonded warehouses, special economic zones, commercial-industrial zones, and other economic zones established and provided with similar tax incentives as free trade zones according to Decisions of the Prime Minister. The transactions between a free trade zone and an external party are considered export/ import.
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Export Processing Enterprises that provide design services, market research and production management consulting services abroad (outside the territory of Vietnam) are not subjected to VAT.
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Enterprises that provide services abroad will use commercial invoices.
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VAT imposed solar power project
Binh Duong Tax Department issued Offical Letter 1122/CTBDU-TTHT dated 06 July 2021 onVAT imposed solar power project with the following content:
In case the company has an investment project to produce solar rooftops other than the province where it is headquartered, it must declare VAT at the place where the investment project is implemented. In case of not establishing the project management board or branch to manage the project, the Head Office shall temporarily declare and deduct VAT. After the project is established, the new unit completes the business registration and tax registration procedures, the Head Office will summarize the VAT related to the project to hand over to the newly established unit. In case of being subjected to VAT refund for investment projects, it must comply with the provisions of law and the law on electricity activities.
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