Prominent legislative documents in Taxation and Insurance in Vietnam

1. Deadline for Processing VAT Refunds in Vietnam According to New Regulations

Effective from August 13, 2016, the deadline for processing value-added tax (VAT) refunds is implemented according to the regulation stated in Circular 99/2016/TT-BTC. To be specific:

- Tax refund application (Tax refund application) that are eligible for pre-refund, post-audit:

- If the Tax refund application does not fall under eligible conditions or circumstances for a refund or lacks sufficient information, the tax authority will notify the taxpayer within 03 working days from the date of receiving the complete Tax refund application.

- If the conditions for refund are met, the tax authority will issue a tax refund decision within no more than 06 working days from the date of receiving the complete Tax refund application.

- Tax refund application that require pre-audit, post-refund: The tax authority will conduct an audit at the taxpayer's premises and issue a tax refund decision within no more than 40 days from the date of receiving the complete Tax refund application.

- The provincial State Treasury will make the tax refund payment to the taxpayer no later than 03 working days from the date of receiving the refund order or the refund cum offset order of state budget revenue transferred by the tax authority.

Circular 99/2016/TT-BTC replaces Circular 94/2010/TT-BTC, Decision 2404/QD-BTC, Circular 150/2013/TT-BTC.

1. Guidance on Supervising VAT Refund Application in Vietnam

According to Official Dispatch 3124/TCT-KK dated July 12, 2016, from the General Department of Taxation on supervising value-added tax (VAT) refund dossiers (Tax refund application), from July 12 to August 12, 2016, the following Tax refund application must be sent to the General Department of Taxation for supervision:

- Tax refund application that require pre-audit, post-refund according to Clause 18, Article 1 of Law 21/2012/QH13 and guidance at point a, Clause 14, Article 12 of Circular 26/2015/TT-BTC;

- Tax refund application that are not eligible for pre-refund, post-audit according to Clause 3, Article 1 of Law 106/2016/QH13;

- Tax refund application that are eligible for pre-refund, post-audit have to undergo post-audit within 01 year from the date of the refund decision according to Clause 18, Article 1 of Law 21/2012/QH13 and guidance at point b, Clause 14, Article 12 of Circular 26/2015;

- Tax refund application that meet the following cumulative cases at least 12 months from the first month or at least after 04 quarters from the first quarter generating significant un-offset VAT input.

1. New Regulations on Medical Assessment Dossiers for Occupational Accidents in Vietnam

According to Circular 14/2016/TT-BYT that stipulates certain provisions of the Law on Social Insurance in the field of healthcare effective from July 01, 2016, the initial injury assessment dossier due to occupational accidents for claiming social insurance now only requires the following documents:

- An introduction letter from the employer;- A certified copy of the injury certificate issued by the medical facility (where the employee was initially treated);

The dossier no longer requires:

- The occupational accident investigation report; the traffic accident report (in case an occupational accident is identified as a traffic accident);

- Discharge documents; medical documents related to injury treatment in case of non-hospitalization as per Circular 07/2010/TT-BYT.

Furthermore, the Circular provides a list of diseases eligible for a one-time social insurance benefit.

Circular 14/2016/TT-BYT replaces Joint Circular 11/1999/TTLT-BYT-BHXH, Circular 34/2013/TT-BYT, Circular 07/2010/TT-BYT.

1. Encouragement for Participation in Voluntary Supplemental Retirement Program

This is addressed in Decree 88/2016/ND-CP on the implementation of the voluntary supplemental retirement program through the formation of a retirement fund from voluntary contributions by participants and employers in the form of individual retirement accounts, effective from July 01, 2016.

1. Online Registration for Land Use Right Mortgage Effective from August 08, 2016

This new regulation is stated in the Joint Circular 09/2016/TTLT-BTP-BTNMT guiding the registration of land use rights mortgage and assets attached to land, effective from August 08, 2016.

The registration for land use rights mortgage is implemented through the following methods:

- Direct submission.

- Submission via guaranteed postal mail.

- Submission via online registration system applicable to:- Localities that have operational land database systems;

- After receiving guidance documents from the Ministry of Justice and the Ministry of Natural Resources and Environment on online registration for secured transactions using land use rights and assets attached to land.

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