09 outstanding policies on taxes, fees, and charges officially applied as of January 1, 2021 in Vietnam

09 outstanding policies on taxes, fees, and charges officially applied as of January 1, 2021 in Vietnam (Internet image) 

1. Resolution 107/2020/QH14: Exemption from agricultural land use tax until the end of 2025 (effective from January 1, 2021)

Specifically, Article 1 of Resolution 107/2020/QH14 stipulates the agricultural land use tax exemption period as follows:

Extending the agricultural land use tax exemption period specified in Resolution 55/2010/QH12 dated November 24, 2010 of the National Assembly on agricultural land use tax exemption and reduction, with a number of amendments and supplements to some articles specified in Resolution 28/2016/QH14 dated November 11, 2016 of the National Assembly until December 31, 2025.

Thus, according to the content of Resolution 107/2020/QH14, subjects exempt from agricultural land use tax specified in Resolution 55/2010/QH12, amended and supplemented in Resolution 28/2016/QH14, are officially exempt from agricultural land use tax until the end of 2025.

2. Circular 94/2020/TT-BTC: From 2021, the fee for right to provide paid television service shall be 0.3% (effective from January 1, 2021)

According to Clause 1, Article 1 of Circular 94/2020/TT-BTC amending Clause 1, Article 4 of Circular 307/2016/TT-BTC, fee for right to provide paid television service shall be 0.3% of revenue generated by provision of paid television service.

- Starting from January 1, 2021, revenue generated from provision of paid television deriving from contracts with paid television subscribers in calendar year must be greater than VND 50 billion (VAT is not included) shall be eligible for determining fee. 

- Starting from January 1, 2022, revenue subject to determination of fee for right to provide paid television service shall be total revenue generated from contracts for providing paid television during (VAT is not included)

3. Decree 146/2020/ND-CP: Land class for calculating agricultural land use tax is extended until the end of 2025 (effective from January 1, 2021)

Decree 146/2020/ND-CP amends the time limit for implementing land categories for calculating agricultural land use tax specified in Article 5 of Decree 20/2011/ND-CP as follows:

Extend the deadline for implementing land classes for calculating agricultural land use tax until December 31, 2025 on the basis of land classes that have been prescribed and implemented in the period from 2011 to the end of 2020;

In case a locality is approved by the Prime Minister to adjust the land class for calculating agricultural land use tax according to regulations, it will comply with that regulation until December 31, 2025.

4. Circular 112/2020/TT-BTC: Reducing the collection of a number of fees and charges until June 30, 2021 to respond to the Covid-19 epidemic (effective from January 1, 2021 to June 30, June 2021)

In order to support and remove difficulties for production and business, ensure social security in response to the Covid-19 epidemic, Circular 112/2020/TT-BTC regulates the reduction of the collection of a number of fees and charges. Fees from January 1, 2021 to June 30, 2021 are as follows:

• Charge for issuance of passports, entry and exit permits, exit permits, AB stamps is 80% of the charge rates specified in Part I of the schedule of fees and charges promulgated together with Circular 219/2016/TT- BTC

• Fee for issuance of citizens identity card is equal to 50% of the charge rates specified in Article 4of Circular 59/2019/TT-BTC;

• Charge for the issuance of an operation license to send workers abroad for a definite term and the fee for verifying papers and documents at the request of a domestic organization or individual is equal to 50% of the fee and charge rates as defined in Clauses 1 and 3, Article 4 of Circular 259/2016/TT-BTC

• Charge for issuance of licenses to manage firecrackers, charge for issuance of licenses to manage weapons, explosives and combat gears is 80% of the charge rates specified in Circular 23/2019/TT-BTC;

• …

More details regardingother reduced fees and charges subject to reduction can be found in Circular 112/2020/TT-BTC.

5. Circular 103/2020/TT-BTC: Annulling nearly 30 legislative documents on taxes, public asset and public debt management (effective from January 10, 2021)

On November 26, 2020, the Ministry of Finance issued Circular 103/2020/TT-BTC on abolishing a number of legal documents in the fields of tax, public asset management and public debt management.

From January 10, 2021, nearly 30 legal documents on taxes, public asset and public debt management issued by the Ministry of Finance will be completely invalidated, specifically see here.

6. Circular 101/2020/TT-BTC: Promulgating the Schedule of fees and charges for veterinary work applicable from January 11, 2021 (effective from January 11, 2021)

Issued together with Circular 101/2020/TT-BTC is a schedule of fees and charges in veterinary work applicable from January 11, 2021, for example some fees are as follows:

• Fees for issuance of quarantine certificates for terrestrial animals and animal products; Imported seafood, transit, temporary import for re-export (including bonded warehouses), border gate transfer: 40,000 VND/time;

• Fee for issuance of veterinary service practice certificate: 50,000 VND/time;

• Clinical examination fee for buffaloes, cows, horses, donkeys, mules, goats, sheep, and ostriches: 50,000 VND/car/specialized vehicle;

• Pig clinical examination fee: 60,000 VND/car/specialized vehicle;

• Quarantine supervision fee for breeding animals (including aquatic products): 800,000 VND/shipment;

• Quarantine monitoring fee for commercial animals (including aquatic products): 500,000 VND/shipment;

• Quarantine fee for exotic frozen animal products

• Price: 200,000 VND/shipment;

• …

Currently, the fees according to the new fee schedule and fees in veterinary work remain unchanged compared to the current regulations in Circular 285/2016/TT-BTC and Circular 44/2018/TT-BTC.

View the full schedule of fees and charges in Circular 101/2020/TT-BTC.

7. Circular 105/2020/TT-BTC: From January 17, 2021, apply new instructions on tax registration (effective from January 17, 2021)

Recently, the Minister of Finance issued Circular 105/2020/TT-BTC providing guidance on tax registration, which will officially apply from January 17, 2021, replacing Circular 95/2016/TT-BTC.

For detailed instructions on tax registration, customers and members please see more here.

8. Circular 106/2020/TT-BTC: Promulgating fees for appraisal and issuance of electricity activity licenses from January 22, 2021 (effective from January 22, 2021)

Circular 106/2020/TT-BTC stipulates the fee for assessment and issuance of electricity activity licenses as prescribed in the Fee Schedule issued with this Circular, specifically:

- Hydroelectric power plants, wind power plants, solar power plants:

• Installed capacity under 10MW: 10,600,000 VND;

• Installed capacity from under 10MW to under 30MW: 15,000,000 VND;

• Installed capacity from 30MW to less than 100MW: 18,000,000 VND;

• Installed capacity from 100MW to under 300MW: 24,500,000 VND;

• Installed capacity of 300MW or more: 28,800,000 VND;

- Thermal power plant projects (coal, gas, oil, biomass, solid waste):

• Installed capacity under 50MW: 17,800,000 VND;

• Installed capacity from 50MW to less than 100MW: 21,900,000 VND;

• Installed capacity of 100MW or more: 28,800,000 VND;

• …

Note: Organizations and individuals pay the fee for appraisal and issuance of electricity operating licenses directly in cash to the fee collection organization or by transfer to the fee collection organization's account opened at the State Treasury.

9. Circular 15/2020/TT-NHNN: From February 1, 2021, applying additional service fees for international payments in EUR (effective from February 1, 2021)

The State Bank Transaction Department and State Bank branches in provinces and centrally-run cities will be the units collecting fees for conducting money transfer transactions abroad or receiving money from abroad in the future. In case of payment in the European Common Currency (EUR). Specifically, the fees in case of payment in the European Common Currency (EUR) are:

• 0.15% of transfer amount: Minimum 2 EUR/item; Maximum 200 EUR/dish;

• 0.05% of transfer amount: Minimum 1 EUR/item; Maximum 100 EUR/dish.

At the same time, the State Bank of Vietnam still maintains the fee for transferring money abroad and the fee for receiving money from abroad to pay in US Dollars (USD) as the old regulations in Circular 26/2013/TT- SBV with the following levels:

• 0.05% of the transferred amount (Minimum 1 USD/item; Maximum 100 USD/item);

• 0.05% of the transfer amount (Minimum 1 EUR/item; Maximum 100 EUR/item).

Above are all 09 outstanding tax policies that will be applied from January 1, 2021. Hopefully this article can best support the work of our valued customers and members.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE