Important policies of Vietnam take effect from the beginning of November 2021

1. Guidance on enterprise income tax for establishments implementing socialization in Vietnam

Circular 71/2021/TT-BTC of Vietnam providing guidance on enterprise income tax for establishments carrying out socialization that has not yet been collected under Resolution 63/NQ-CP, effective from November 1, 2021.

According to the Circular, the basis for implementing socialization (referred to as the Establisments) established before July 22, 2016, earning income from socialization activities, are responsible for performing EIT obligations as follows:

(1) Socialization establishments are entitled to corporate income tax incentives in accordance with the law and the Prime Minister's decisions from time to time, specifically:

- According to the provisions of the EIT law since meeting the conditions under Decision 1466/QD-TTg dated 10/10/2008.

- According to the provisions of the EIT law since meeting the conditions under Decision 693/QD-TTg dated May 6, 2013.

- According to the provisions of the EIT law since meeting the conditions under Decision 1470/QD-TTg dated 22/7/2016.

(2) Establishments that do not meet the conditions specified in the above decisions shall make additional declaration of the missing EIT amount (if any), calculate the payable EIT amount or the tax authority shall collect arrears. up to the time of meeting the conditions in the above Decisions.

(3) Establishments with EIT arising in item (2) will not be penalized for tax violations and will not be charged late payment interest on the amount of EIT that has not been temporarily collected until November 1, 2021.

From November 2, 2021, establishments that have not yet paid the temporarily uncollected EIT amount must pay a late payment interest calculated on the unpaid tax amount and impose penalties for tax violations (if any).

2. Reduced value-added tax for many goods and services from November 1, 2021

This is the content of Resolution 406/NQ-UBTVQH15 of Vietnam on solutions to support businesses and people affected by the COVID-19 epidemic.

From November 1, 2021 to the end of December 31, 2021, value-added tax (VAT) will be reduced for the following goods and services:

(1) Transportation services (rail transport, water transport, air transport, other road transport); Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours;

(2) Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services for composing, art, and entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.

Note: Goods and services in group (2) do not include publishing software and goods and services produced and traded in the form of online.

Depending on the tax calculation method, the VAT reduction is applied as follows:

- Enterprises and organizations that calculate VAT by the credit method are entitled to a 30% reduction in the VAT rate;

- Enterprises and organizations that calculate VAT according to the percentage method on revenue are entitled to a 30% reduction of the percentage rate to calculate VAT.

Resolution 406/NQ-UBTVQH15 of Vietnam takes effect from October 19, 2021.

3. Level of expenditure for care and nurturing at social assistance establishments in Vietnam

This is the content of Circular 76/2021/TT-BTC of Vietnam guiding Clauses 1 and 2, Article 31 of Decree 20/2021/ND-CP on funding for regular social assistance policies, effective from November 1, 2021.

Specifically, the content and level of expenditure for care and nurturing of subjects at social assistance establishments are specified in Clause 4, Article 25 of Decree 20/2021/ND-CP as follows:

- Fees for common medicines: The amount of expenditure according to the actual invoices and documents generated, not more than 100,000 VND/person/month;

- Items for daily living, blankets, mosquito nets, mats, summer clothes, winter clothes, underwear, face towels, shoes, slippers, toothbrushes; Monthly personal hygiene fee for female subjects of childbearing age and essential items for daily living: Based on the norm prescribed in Circular 02/2018/TT-LDTBXH, Heads of social assistance establishments shall decide on expenditures based on actual local prices;

- School supplies and textbooks for students who are going to school: the content and spending levels are applied according to regulations on academic support for secondary school students in Clause 6, Article 2 of Joint Circular 109/2009/TTLT /BTC-BGDDT of Vietnam.

Other expenses (if any): The level of payment of lawful invoices and spending documents and the head of the establishment shall decide within the scope of the assigned estimate.

4. Guidelines for grading class III ophthalmic refraction officials in Vietnam

This is a notable content in Circular 14/2021/TT-BYT of Vietnam stipulating codes, standards for professional titles and salary classification of refractive ophthalmologists.

Specifically, the salary classification of professional titles of refractive ophthalmology (class III), code V.08.11.30 is regulated as follows:

- Occupational titles of refractive ophthalmology class III are applied the professional salary table for officials and public employees in non-business units of the State (Table 3) promulgated together with Decree 204/2004/ ND-CP of Vietnam;

The salary coefficient of the A1 public employee is applied, from the salary coefficient 2.34 to the salary coefficient 4.98.

- The change of salary ranking for public employees from the professional titles currently held by medical professionals to the professional titles of refractive ophthalmology prescribed in Circular 14/2021: comply with the guidance in Clause 2 Section II of Circular 02/2007/TT-BNV and according to current regulations of law.

Circular 14/2021/TT-BYT of Vietnam takes effect from November 1, 2021.

Bao Ngoc

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