Our Vietnam Legal Update #206 would lead you on 03 legal issues:
I. Extending the time limit for payment of value-added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”), and land tax in 2022
The Government issued Decree No. 34/2022/ND-CP dated 28 May 2022 on extending the time limit for payment of VAT, CIT, PIT, and land tax in 2022. Accordingly, enterprises, organizations, households, and household businesses carrying out manufacturing or having the business operation in the following lines of business shall be extended the time limit for payment of VAT, CIT, PIT, and land tax:
- Manufacturing industry group:
- Agriculture, forestry, and aquaculture;
- Food production and processing; textile; production of costumes; manufacture of electronic products, computers, and optical products; manufacture of motor vehicles and other motorized vehicles; manufacture beds, cabinets, tables, and chairs;
- Publishing activities; cinematography activities; TV show production, audio recording, and music publishing;
- Extraction of crude oil and natural gas;
- Construction;
- Manufacture of beverage; printing, copying recordings; manufacture of coke, etc.; and
- Drainage and wastewater treatment.
- Business group:
- Transportation and warehousing; accommodation and catering services; education and training; healthcare and social assistance; real estate business;
- Employment-related services; operation of travel agencies, tourism business, supporting services relevant to tour organization and advertising;
- Composition, art, and entertainment; operation of libraries, archives, museums, and other cultural activities; sports, entertainment, and cinema operation;
- Audio and video broadcasting; computer programming, consulting services, and other computer-related activities; information service activities; and
- Mining ancillary services.
In addition, the extension policy also applies to enterprises, organizations, households, business households, and individuals engaged in the production of supporting industry products prioritized for development; key mechanical products and small and micro enterprises are defined according to regulations.
II. Guidance on several articles of the Law on Supporting Small and Medium Enterprises
The Ministry of Planning and Investment has issued Circular No.06/2022/TT-BKHDT dated 10 May 2022 to give guidance on several articles of the Law on Supporting Small and Medium-sized Enterprises. Some notable contents are as follows:
- Supporting human resource development:
- Small and Medium-sized Enterprises (“SMEs”) are supported with direct training in business start-up and business management, including basic business management training and intensive business management training.
- Online training courses are organized through available online teaching tools such as Zoom Cloud Meeting, Microsoft Teams, Google Classroom, and other similar tools.
- Details of training courses (including regulations on training topics, training duration, target learner, and the minimum number of students/course) are specified in Articles 12 and 13 of this Circular.
- Supporting innovative start-ups for SMEs:
- SMEs must have one of the documents mentioned in Article 14 of this Circular to be selected as an innovative start-up SME to enjoy the support as prescribed by law.
- Students of SMEs participating in domestic and foreign intensive training and basic training are supported with tuition fees, materials, meals, accommodation, and transportation (including air tickets).
- Contents of short-term intensive training courses abroad include product formulation and development; commercialization of products; e-commerce development; call for investment capital; market development; connecting startup networks and other content according to the needs of innovative start-up SMEs.
- This Circular takes effect on 25 June 2022.
III. Frequently asked legal questions category
Question: In which case an FDI Enterprise is required to have a business license for goods trading activities?
Answer: When conducting the following goods trading activities, FDI Enterprise shall apply for issuing business licenses:
- Exercising the retail distribution right, excluding goods excluding lubricants, rice, sugar, visual-recording items, books, newspapers, and magazines;
- Exercising the importation right, and wholesale distribution right of lubricants;
- Performing the retail distribution right rice, sugar, recorded items, books, newspapers, and magazines;
- Providing logistics services; excluding sub-sectors of logistics for which Vietnam has committed to open its market in accordance with the international treaties to which Vietnam is a party;
- Providing services of commercial promotion, excluding advertising services;
- Providing services of commercial intermediary;
- Leasing out goods, other than financial leases; excluding the lease of construction equipment with operators;
- Providing services of electronic commerce; and
- Providing services of organizing tenders for goods and services
For further information, please contact:
Minh Ngo Nhat, Partner, BLawyers
minh.ngo@blawyersvn.com
