How much tax on gold business should a gold bar business have to pay in Vietnam?

How much tax on gold business should a gold bar business have to pay in Vietnam?

Pursuant to Clause 1, Article 11 of Decree 24/2012/ND-CP, conditions for obtaining the License to trade gold bars are as follows:

1. Enterprises are eligible for the License to trade gold bars when the following conditions are satisfied:

a) Being established and operated under law provisions.

b) Having the charter capital of 100 billion VND and above.

c) Having 2-year experience in gold trading or more.

d) Having paid the tax on gold business of 500 (five hundred) million VND/year or above during the two latest successive years (upon verification of the tax authority).

đ) Having branches and sale offices in 3 (three) provinces and centrally-affiliated cities or more in Vietnam.

Thus, the enterprise needs to have the paid tax on gold business from 500 (five hundred) million VND/year or above during the two latest successive years (upon verification of the tax authority) and meet other conditions as specified above in Vietnam.

What does application for License to trade gold bullion submitted by an enterprise in Vietnam comprise?

Pursuant to Article 9 of Circular 16/2012/TT-NHNN as amended by Clause 2, Article 1 of Circular 03/2017/TT-NHNN stipulating dossier of request for granting a gold bar trading license as follows:

1. The application for License to trade gold bullion submitted by an enterprise includes:

a) The application for License to trade gold bullion (using the template stated in the Appendix 2 enclosed herewith);

b) The list of locations registered as gold bullion trading locations (head office, branches or business locations);

c) Certificate of enterprise registration, Certificate of registration of branch’s operation and documents proving that locations registered as gold bullion trading locations according to the list mentioned in Point b of this Clause have been registered with or reported to the competent business registration agency under effective regulations of law;

d) Certificate granted by the tax agency to certify the amount of tax arisen from gold trading activities paid within 02 (two) previous years.

2. The application for License to trade gold bullion submitted by a credit institution includes:

a) The application for License to trade gold bullion (using the template stated in the Appendix 3 enclosed herewith);

b) The list of locations registered as gold bullion trading locations (head office, branches or transaction offices);

c) Certificate of enterprise registration, Certificate of registration of branch’s operation and documents proving that locations registered as gold bullion trading locations according to the list mentioned in Point b of this Clause have been registered with or reported to the competent business registration agency under effective regulations of law.

According to the above regulations in Vietnam, this dossier requires an application for License to trade gold bullion, a list of locations registered as gold bullion trading locations, a Certificate of enterprise registration, and a Certificate of registration of branch’s operation and other documents as prescribed above.

What are regulations on procedures for granting gold bar trading licenses in Vietnam?

Article 15 of Circular 16/2012/TT-NHNN is amended by Clause 13, Article 1 of Circular 38/2015/TT-NHNN and Clauses 1 and 2, Article 1 of Circular 15/2021/TT-NHNN as follows:

1. An enterprise or a credit institution having demand to trade in gold bars; a foreign-invested enterprise having demand to import gold material in order to manufacture gold jewelry and art crafts; an enterprise making offshore investment in gold mining and having demand to import gold material exploited overseas by itself; or a enterprise with licensed gold mining having demand to export gold material exploited by itself shall submit directly or by post 1 (one) dossier set as prescribed in Article 9, 12, 13 or 14 of this Circular to the State Bank (the Foreign Exchange Management Department) to be granted a gold bar trading license or a gold material import or export license.

1a. In case of issuance of the License for gold bullion trading, after the State Bank of Vietnam receives the satisfactory application submitted by an enterprise or credit institution, the State Bank of Vietnam shall request the branch of the State Bank of the province to inspect the enterprise’s legal documents proving its right to ownership or right to enjoyment of the business location, and availability of necessary equipment for the trading of gold bullion at the registered location. Within 07 (seven) working days from the date on which the report submitted by the State Bank of Vietnam is received, the branch of the State Bank of the province shall submit a report on the inspection results to the State Bank of Vietnam (the Foreign Exchange Management Department).

1b. In case a foreign-invested enterprise wishes to import gold material for manufacture of jewellery and applies for licensing using the national single-window system, the application for licensing import of gold material prescribed in Article 12 of this Circular shall be sent to the National Single-window Information Portal.

2. Based on provisions on conditions, dossiers and procedures in the Decree No. 24/2012/ ND-CP and this Circular, the Foreign Exchange Management Department shall propose the Governor of State Bank to consider and license the gold bar trading.

3. Based on the objectives of the monetary policy and gold supply and demand in each period and provisions on conditions, dossiers and procedures in the Decree No. 24/2012/ ND-CP and this Circular, the Foreign Exchange Management Department shall propose the Governor of the State Bank to consider and license the export and import of gold material.

4. Within 30 (thirty) working days after receiving a complete and valid dossier from an enterprise or a credit institution, the State Bank shall grant or refuse to grant (clearly stating the reason) a gold bar trading license; gold material export license or gold material import license (made according to the form in Annex 13, 14 or 15 of this Circular). The gold bar trading license granted by the State Bank to a credit institution is an integral part of the credit institution's establishment and operation license.

5. Procedures for issuing the license to import gold material to a foreign-invested enterprise for manufacture of jewellery using the national single-window system:

Rules for declaring, sending, receiving, returning, exchanging, providing information about the application for issuing the license to import gold material to a foreign-invested enterprise for manufacture of jewellery

- Digital signature shall be used for the electronic application submitted to the National Single-window Information Portal. Information shall be sent using digital signature on the National Single-window Information Portal and the specialized processing system of SBV according to Decree No. 85/2019/ND-CP and its amending or replacing documents (if any);

- In case the National Single-window Information Portal or SBV’s specialized processing system is not functional or otherwise cannot receive or send electronic information, information shall be exchanged by post or in person at the reception department of SBV.

- Documents in the electronic application shall be scanned copies of originals or original documents (in PDF, TIF, JPG formats), except the application form which is submitted on the National Single-window Information Portal. Physical documents shall be originals or copies that are extracted from master registers or certified true copies prescribed by law or copies enclosed with originals for comparison. In case the applicant submits copies enclosed with originals for comparison.

b) Procedures for issuing the license to import gold material to a foreign-invested enterprise for manufacture of jewellery:

- The enterprise shall prepare and submit 01 application to SBV according to Clause 1b and Point a of this Clause;

- Within 15 working days from the day on which the satisfactory application is received according to Article 12 of this Circular, SBV shall decide whether to issue the license or reject the application (and provide explanation) according to the form in Appendix No. 15 hereof and send it to the enterprise according to Point a of this Clause. In case the application is unsatisfactory, SBV shall notify the enterprise.

According to this Article, procedures for granting gold bar trading licenses in Vietnam are regulated in accordance with the above law.

Best Regards!