Vietnam: 11 things that Accountants and HR persons must do right before the Lunar New Year 2021

1. Report on changes in working employees in December 2020 (if any)

According to Clause 2 Article 16 of the Circular No. 28/2015/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, before every 3rd of a month, the employer shall send a notification of changes in working employees (if any, of the previous solar month) to the employment service center where its headquarters is located.

Thus, before January 03, 2021, enterprises must complete the report on changes in working employees in December 2020.

2. Report on the situation of participation in unemployment insurance

According to Article 32 of the Decree No. 28/2015/NĐ-CP of Vietnam’s Government and Article 28 of the Circular No, 28/2015/TT-BLĐTBXH, before January 15 annually, employers shall report to the Services of Labour, Ward Invalids and Social Affairs on the situation of participation in unemployment insurance in the previous year.

Thus, before January 15, 2021, enterprises must submit the report on the situation of participation in unemployment insurance in 2020 to the Services of Labour, Ward Invalids and Social Affairs.

3. Submit invoice use report in December 2020

According to Article 27 of the Circular No. 39/2014/TT-BTC of the Ministry of Finance of Vietnam, Clause 4 Article 5 of the Circular No. 119/2014/TT-BTC and Section 10 of the Official Dispatch No. 1839/TCT-CS, no later than January 20, 2021, enterprises facing high risk of tax or enterprises using self-printed invoices or ordered invoices commits any violation on invoices that are handled for administrative violations of tax evasion or fraud, must report the use of invoices to the tax authorities directly managing them.

Note: Electric invoices are not compulsory in 2021 in Vietnam.

Specifically, according to Clause 3 Article 59, Clause 1 Article 60 of the Decree No. 123/2020/NĐ-CP of Vietnam’s Government, enterprises, economic organizations, other organizations, business households and individuals are not required to complete the implementation of e-invoices and e-invoices with the tax authority's code from November 01, 2020 which will delay the mandatory deadline for applying e-invoices from July 01, 2022. However, in case the tax authority announces that the business establishment applies e-invoices before July 01, 2022 and the business establishment meets the conditions for information technology infrastructure, it is required to apply e-invoices before July 01, 2022.

4. Submit personal income tax declaration of December 2020

According to Clause 3 Article 10 of the Circular No. 156/2013/TT-BTC of the Ministry of Finance of Vietnam, in each month, if the enterprise has withheld personal income tax, it must submit the personal income tax declaration dossier at the tax agency directly managing the enterprise, no later than the 20th day of the following month.

Thus, no later than January 20, 2021, enterprises must complete the submission of personal income tax declaration of December 2020.

Note: The above regulation only applies to enterprises applying the form of monthly tax declaration, if in the month the enterprise does not incur personal income tax withholding, it is not necessary to submit that month's declaration.

5. Submit value-added tax declaration for December 2020

According to Point a Clause 2 Article 11 and Point a Clause 3 Article 10 of the Circular No. 156/2013/TT-BTC of the Ministry of Finance of Vietnam, enterprises with total revenue from selling goods and providing services of over VND 50 billion in the preceding year, must submit a monthly value-added tax declaration, no later than the 20th of the following month.

Thus, no later than January 20, 2021, these enterprises must complete the submission of value-added tax declaration for December 2020.

6. Pay the corporate income tax (CIT) of the fourth quarter of 2020

According to Article 12a of the Circular No. 156/2013/TT-BTC, supplemented by Circular No. 151/2014/TT-BTC of the Ministry of Finance of Vietnam, according to business result, the taxpayers shall make the payment of CIT in the quarter within 30 days of quarter succeeding the quarter in which tax is incurred.

Thus, right in the fourth quarter of 2020 or at the latest on January 30, 2021, enterprises must pay the CIT of the fourth quarter of 2020.

7. Deduction for payment of social insurance, health insurance and unemployment insurance premium in January 2021

According to Clause 1 Article 7, Article 16 and Clause 1 Article 19 of the Decision No. 595/QĐ-BHXH of Vietnam Social Security, every month, no later than the last day of the month, the employers shall make deductions from the monthly salary fund of participants in compulsory social insurance to pay for compulsory social insurance contributions, health insurance and unemployment insurance; and simultaneously make deductions from monthly salary as the basis for payment of compulsory social insurance, health insurance and unemployment insurance of each employee at prescribed rate and transfer them at the same time to the collecting account opened at the state banks or treasuries by the social insurance authorities.

Thus, no later than January 31, 2021, enterprises must complete the deduction and payment of social insurance, health insurance and unemployment insurance of January 2021 for employees.

8. Declare and pay licensing fees

According to Clause 1 Article 10 of the Decree No. 126/2020/NĐ-CP on the elaboration of the Law on Tax Administration of Vietnam, the obligation of payment of licensing fees is specified as follows:

- New businesses (except household businesses and individual businesses, including medium and small enterprises converted from household businesses) and existing businesses that establish new dependent units or business locations shall submit the licensing fee declaration by January 30 of the year preceding the establishment or inauguration year.

- In case capital is changed during the year, the licensing fee payer shall submit the declaration by January 30 of the year succeeding the year in which the change occurs.

Particularly, household businesses and individual businesses are not required to submit licensing fee declarations. Tax authorities shall determine the licensing fees payable according to their tax declaration dossiers and tax administration database and inform them in accordance with regulations.

Thus, no later than January 30, 2021, enterprises must complete the obligation of declaration and payment of licensing fees.

9. Report on the use of self-printed withholding certificates

According to Article 5 of the Circular No. 37/2010/TT-BTC of the Ministry of Finance of Vietnam, an income-paying organization using withholding certificates printed out of computers by itself shall make and send quarterly reports on the use of withholding certificates not later than the 30th of the first month of the subsequent quarter.

Thus, no later than January 30, 2021, enterprises must complete the report on the use of self-printed withholding certificates printed out of computers of the fourth quarter of 2020.

10. Pay trade-union fee in February 2021

According to Clause 2 Article 6 of the Decree No. 191/2013/NĐ-CP of Vietnam’s Government, enterprises, whether or not they have a trade union organization, must also pay trade union fees once a month at the same time as paying compulsory social insurance for employees, the remittance level shall be 2% of salary fund which are used as the basis for social insurance payment for employees.

Thus, no later than February 28, 2021, enterprises must complete the payment of trade union fees at the accounting department of the district labor union where the enterprise registers its business.

11. Submit the salary scale and payroll to the Department of Labor - Invalids and Social Affairs (if any)

At the session on August 05, 2020, the National Salary Council voted with the option: “Continue to implement the monthly region-based minimum wage until the end of 2021 (no adjustment in 2021). Concurrently, the minimum hourly wage in 2021 has not been issued to synchronize with the monthly minimum wage”. This plan has been submitted to the Government for consideration and decision. Accordingly, it is expected that the region-based minimum wage in 2021 will remain unchanged compared to 2020.

Thus, the regional minimum wage in 2021 is expected to remain the same as in 2020 and comply with the provisions of Decree No. 90/2019/NĐ-CP of Vietnam’s Government stipulating region-based minimum wages applied to employees working under labor contracts.

Thus, if at the beginning of 2021, enterprises may not amend and supplement the salary scale and payroll as every year (changing according to the region-based minimum wage level), then they may not have to submit the salary scale and payroll to the competent authorization.

In case the enterprise formulates, amends or supplements the salary scale and payroll, it must consult the representative organization of the collective of employees at the enterprise and publicly announce it at the workplace of the employees before execution. At the same time, the enterprise shall send it to the district-level labor State management agency where the enterprise's production base is located.

Le Vy

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