New content on tax payment and tax payment currencies in freely convertible foreign currencies according to Circular 80/2021/TT-BTC?

Hello editors: According to the previous regulations, the currency of declaration, payment of fees and charges is Vietnam Dong. In case taxpayers incur charges and fees in foreign currencies, they must convert them to Vietnam Dong when declaring and paying fees and charges into the state budget. Currently, I heard that Circular 80/2021/TT-BTC has new changes in tax declaration currency, tax payment in freely convertible foreign currency and actual exchange rate. So what are those changes?

Amending and supplementing regulations on declaration and payment in foreign currencies for fees charged by representative missions of the Socialist Republic of Vietnam abroad

Pursuant to Section 2, Appendix 1, issued together with Official Letter 4384/TCT-CS in 2021, introduces the following new contents:

New point: Amending and supplementing regulations on declaration and payment in freely convertible foreign currencies for fees, charges and other revenues charged by representative missions of the Socialist Republic of Vietnam in Vietnam. foreign countries make the collection; charges and fees collected by agencies and organizations in Vietnam in foreign currencies specified in the document on charge and fee collection rates for the convenience of taxpayers without having to transfer fees and charges. change from the currency of collection of fees and charges to the currency of declaration and payment.

Previously: In Circular No. 156/2013/TT-BTC stipulating that the currency of declaration, payment of fees and charges is Vietnam Dong. In case taxpayers incur charges and fees in foreign currencies, they must convert them to Vietnam Dong when declaring and paying fees and charges into the state budget.

New content on tax payment and tax payment currencies in freely convertible foreign currencies according to Circular 80/2021/TT-BTC?

Amendment of regulations on declaration and payment in foreign currencies for revenues from oil and gas prospecting, exploration and exploitation activities

Pursuant to Section 2, Appendix 1, issued together with Official Letter 4384/TCT-CS in 2021, introduces the following new contents:

New point: Amending regulations on declaration and payment in freely convertible foreign currencies for revenues from oil and gas prospecting, exploration and exploitation activities which are foreign currencies used in payment transactions (except for case of crude oil, condensate, natural gas sold in the Vietnamese market or other regulations of the Government) to conform to the provisions of the Law on Tax Administration and facilitate taxpayers in declaring and paying because they do not have to transfer Convert from currency received in payment to currency of declaration and payment. Accordingly, oil and gas prospection, exploration and extraction (except for crude oil, condensate and natural gas sold in the Vietnamese market or otherwise prescribed by the Government) include: natural resources tax, income tax enterprise; surcharge for the part of profit divided when the price of crude oil increases; the host country's oil and gas profits are divided; signature commissions; oil and gas commercial discovery commissions; production commissions; money for reading and using oil and gas documents; compensation for not fulfilling the minimum commitments; corporate income tax on income from the transfer of interests to participate in oil and gas contracts; special tax, surcharges and corporate income tax from the residual oil balance of Vietsovpetro Joint Venture's oil and gas activities at Lot 09.1 shall be declared and remitted into the state budget in freely convertible foreign currencies. used in payment transactions.

Previously: The regulation on tax declaration currency is USD, tax payment currency is in USD (for export) or Vietnam Dong (for sale in the Vietnamese market or the Government has other regulations as guided in Circulars). of the Ministry of Finance).

Supplementing regulations on tax declaration and payment in foreign currencies for revenues from overseas suppliers without a permanent establishment in Vietnam

Pursuant to Section 2, Appendix 1 issued together with Official Letter 4384/TCT-CS in 2021, introduces new contents as follows:

New point:

- Supplementing regulations on tax declaration and payment in freely convertible foreign currencies for revenues from overseas suppliers without permanent establishments in Vietnam when conducting e-commerce business activities, doing business on digital platforms and other services in Vietnam to comply with the new regulations on tax declaration and payment of overseas suppliers in the Law on Tax Administration, Decree No. 126/2020/ND- CP and Circular No. 80/2021/TT-BTC. Overseas suppliers have the right to choose a foreign currency from freely convertible foreign currencies being used in payment transactions as the currency for tax declaration and payment in Vietnam without having to convert between foreign currencies. collected from customers into the currency of tax declaration and payment.

- Remove regulations on exchange rates for determining revenue, expenses, taxable prices and payments to the state budget in order to comply with the provisions of the law on accounting to ensure consistency between regulations on tax administration and regulations. regulations of the accounting law, creating favorable conditions for taxpayers in applying exchange rates to convert revenue, expenses, taxable prices and payments to the state budget in foreign currencies into Vietnam Dong when declaring , pay taxes in Vietnam Dong.

Previously: In Circular No. 26/2015/TT-BTC dated February 27, 2015, Circular No. 56/2008/TT-BTC dated June 23, 2008, Circular No. 22/2010/TT-BTC, Notice Circular No. 176/2014/TT-BTC dated November 17, 2014, Circular No. 36/2016/TT-BTC dated February 16, 2016 of the Ministry of Finance, although there are specific regulations on exchange rate determining revenue , costs, rental rates and payments to the state budget but still as specified in the Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance guiding the corporate accounting regime Therefore, when the law on accounting changes, it is still necessary to comply with the provisions of the above circulars leading to inconsistency between tax regulations and accounting regulations.

 Khanh Linh

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