Notable documents of Vietnam in the previous week (from May 29 to June 4, 2023)

1. Vietnam to promulgate Decree on payroll downsizing, applicable as of July 20, 2023

On June 3, 2023, the Government of Vietnam promulgated Decree No. 29/2023/ND-CP on payroll downsizing.

Decree No. 29/2023/ND-CP comes into force as of July 20, 2023; policies and regulations prescribed in Decree No. 29/2023/ND-CP are applicable until December 31, 2030.

The following Decrees expire as of July 20, 2023:

- Decree No. 108/2014/ND-CP on payroll downsizing policies;

- Decree No. 113/2018/ND-CP on amendments to Decree No. 108/2014/ND-CP;

- Decree No. 143/2020/ND-CP on amendments to Decree No. 108/2014/ND-CP and Decree No. 113/2018/ND-CP on amendments to Decree No. 108/2014/ND-CP.

2. General Department of Vietnam’s Tax Refund Procedure

On May 31, 2023, the General Department of Taxation of Vietnam promulgated a Tax Refund Procedure enclosed with Decision No. 679/QD-TCT (effective as of its date of signing).

According to the Decision, the Tax Refund Procedure is as follows:  

(1) Receipt of applications for tax refund according to Article 32 and Article 43 of Circular No. 80/2021/TT-BTC for the following cases:

- Refunding tax according to tax laws:

+ Applications for VAT refund prescribed in Article 28 of Circular No. 80/2021/TT-BTC (excluding Point g Clause 2 Article 28 of Circular No. 80/2021/TT-BTC).

+ Applications for refund of excise tax on biological gasoline prescribed in Article 29 of Circular No. 80/2021/TT-BTC.

+ Applications for tax refund under Double Taxation Agreements and other International Agreements prescribed in Article 30 of Circular No. 80/2021/TT-BTC.

- Paying and refunding advance tax, VAT refund service fees to commercial banks: refund applications prescribed in Point g Clause 2 Article 28 of Circular No. 80/2021/TT-BTC.

- Refunding tax for cases of transfer of ownership, conversion of enterprises, consolidation, merger, full division, partial division, dissolution, bankruptcy, and shutdown of enterprises:

+ Applications for refund of input VAT that remains after deduction prescribed in Article 31 of Circular No. 80/2021/TT-BTC.

+ Applications for refund of overpayments prescribed Clause 3 Article 42 of Circular No. 80/2021/TT-BTC.

- Refunding personal income tax to individuals directly finalizing tax with tax authorities: tax refund applications are not required as prescribed in Point b Clause 1 Article 42 of Circular No. 80/2021/TT-BTC.

- Refunding other overpayments:

+ Applications for refund of overpayments of other taxes and amounts prescribed in Clause 2 Article 42 of Circular No. 80/2021/TT-BTC.

+ Applications for refund of overpaid personal income tax on income from salaries and remunerations prescribed in Point a Clause 1 Article 42 of Circular No. 80/2021/TT-BTC.

(2) Classification of tax refund applications according to Article 33 and Article 44 of Circular No. 80/2021/TT-BTC:

- Classifying tax refund applications according to tax laws.

- Classifying applications for payment and refund of advance tax and VAT refund service fees to commercial banks.

- Classifying tax refund applications for cases of transfer of ownership, conversion of enterprises, consolidation, merger, full division, partial division, dissolution, bankruptcy, and shutdown of enterprises.

- Classifying personal income tax refund applications for individuals finalizing tax with tax authorities directly.

- Classifying applications for refund of other overpayments.

(3) Settlement of tax refund applications according to Article 35 and Article 45 of Circular No. 80/2021/TT-BTC:

- Settling tax refund applications eligible for refund before inspection.

- Settling tax refund applications subject to inspection before refund.

(4) Appraisal of tax refund applications: the appraisal of applications shall comply with the Regulation on the provision of legal recommendations on draft proposals for the development of legislative documents, draft legislative documents, and appraisal of draft administrative documents issued by tax authorities at all levels enclosed with Decision No. 1033/QD-TCT dated June 1, 2018 of the General Director of the General Department of Taxation of Vietnam and replacement and amendment documents (if any).

(5) Issuance of tax refund decisions:

- Issuing tax refund decisions or decisions on tax refund combined with state budget offsetting and providing notifications of tax refund ineligibility (according to Article 36 and Article 46 of Circular No. 80/2021/TT-BTC).

- Issuing decisions on payments to banks that are VAT refund agents according to Article 36 of Circular No. 80/2021/TT-BTC and Article 21 of Circular No. 72/2014/TT-BTC (amended by Circular No. 92/2019/TT-BTC).

 (6) Issuance of orders for return of state budget revenues or orders for return and offsetting of state budget revenues according to regulations on the implementation of state budget accounting regulations and public services of the Vietnam State Treasury.

(7) Disgorgement of tax refund according to Article 40 and Article 50 of Circular No. 80/2021/TT-BTC.

3. Vietnam to promulgate forms of registration for copyright and related rights

On June 2, 2023, the Minister of Culture, Sports and Tourism of Vietnam promulgated Circular No. 08/2023/TT-BVHTTDL prescribing registration forms of copyright and related rights.

According to the Circular, forms of registration for copyright and related rights include:  
- Form No. 01: Declaration of copyright registration for literature works; scientific works; lessons, speeches, and talks; press works; works of literature and folk art, and other works in the form of writing or other characters;

- Form No. 02: Declaration of copyright registration for applied art works;

- Form No. 03: Declaration of copyright registration for computer programs;

- Form No. 04: Declaration of copyright registration for musical works;  

- Form No. 05: Declaration of copyright registration for applied art works and photographic works;

- Form No. 06: Declaration of copyright registration for cinematographic works and theatrical works;

- Form No. 07: Declaration of copyright registration for textbooks;

- Form No. 08: Declaration of copyright registration for architectural works, diagrams, maps, and drawings related to topography, architecture, and scientific works;

- Form No. 09: Declaration of related rights registration.   

Circular No. 08/2023/TT-BVHTTDL of the Ministry of Culture, Sports and Tourism of Vietnam comes into force as of July 15, 2023 and annuls Circular No. 08/2016/TT-BVHTTDL.

4. General Department of Taxation of Vietnam’s guideline for invoice issuance for implementation of Decree No. 15/2022/ND-CP

On May 29, 2023, the General Department of Taxation of Vietnam promulgated Official Dispatch No. 2121/TCT-CS guiding specific cases of invoice issuance according to Decree No. 15/2022/ND-CP, specifically:

- In case it is required to issue adjustment or replacement invoices for goods or services eligible for VAT reduction according to Decree No. 15/2022/ND-CP due to errors detected after December 31, 2022:

+ In case the error does not affect the amount payable and VAT payable or in case of adjustment to taxable prices, the adjustment or replacement invoice shall apply the VAT rate of 8%;

+ In case the error in the number of goods leads to errors in amount payable and VAT payable, the adjustment or replacement invoice shall apply the VAT rate applicable at the time of issuance of such invoice.

- In case the goods have been purchased before January 1, 2023 with an 8% tax rate but are returned after December 31, 2022 due to improper specifications or quality, the seller shall issue a goods return invoice to adjust or replace the issued invoice with an 8% VAT invoice. The invoice must specific that the seller and buyer may agree the return of the goods.

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