Announcement of the list of 17 supplementary auditing companies eligible to audit balance sheets in 2005 and 2006
On 6 December 2005, the Ministry of Finance announced the list of 17 supplementary auditing companies qualified to audit balance sheets (together with 64 auditing companies announced at the first batch under the Official Letter No 14700/BTC-CDKT dated November 18, 2005 by the Ministry of Finance). Of which, there are 10 limited companies, 2 joint stock companies and 5 partnership companies.
(According to Official Letter No 15805/BTC-CDKT dated December 6, 2005 by the Ministry of Finance).
Issuance of moral standards for accounting and auditing profession in Vietnam
On December 1st , 2005, Minister of Finance issued Decision No 87/2005/QD-BTC on moral standards for accounting and auditing profession in Vietnam. Accordingly, these standards are applied to all individuals and enterprises practicing the accounting and auditing profession. Of which, the basic principles are required as follows: independence, straightforwardness, objectiveness, professional competence, cautiousness, confidentiality, professional behavior and compliance with the professional standards.
All the above standards are specifically regulated in Vietnam’s Accounting Standard System accompanied by this Decision.
Transport of goods with all-in price from Vietnam to overseas countries and vice versa shall not be subject to value added tax
International transport includes the transport of goods and passengers from Vietnam to overseas countries and vice versa and the transport of goods among overseas ports of foreign and local transportation units. Accordingly, transport of goods with all-in price including packaging, inland transport and international transport from Vietnam to overseas countries and vice versa following such forms as door-to-door, port-to-port and door-to-port shall not be subject to value added tax. For this reason, transportation units shall not be entitled to the deduction or reimbursement of input value added tax related to international transport with all-in price. These units have to calculate the input expenses into their business expenses.
(According to the Official Letter No. 4503/TCT-PCCS by the General Administration of Taxation dated December 9, 2005)
Announcement of value added tax rate on film trading
Enterprises importing video films from overseas countries or buying video produced by local units and then sold to Television Stations to be broadcasted shall be subject to the value added tax rate of 5 per cent. In case enterprises exchange video films for advertisement broadcasting time, which is then sold to others, money gained from selling shall be subject to the value added tax rate of 10 per cent.
Registration fee on automobiles under 7 seats of individuals and organizations that transport passengers
Organizations and individuals who own passenger transport automobiles under 7 seats have to pay registration fee of only 2 per cent if filing all necessary documents including legal buying invoices and business licenses or copies of certificates of passenger transport registration granted by the State authority to the tax body.
(According to the Official Letter No.4489/TCT-TS by General Department of Taxation dated December 3rd, 2005)
Discount goods and services must be stated in the value added tax invoice
Enterprises must clearly state the discount rate before VAT (discounted selling price), VAT and total price after VAT in invoices of discount goods and services. If the discount is based on the specific amount of bought goods and services’ quantity or turnover, total discounted amount of money shall be calculated in selling invoices at the latest buying time or in the next period. Invoices must have clear number and state discounted amount of money.
Conditions for the deduction of high depreciation of fixed assets
In the Official Letter No.4442/TCT-DNK dated December 5th, 2005, General Department of Taxation regulated that high-efficient enterprises would be subject to the deduction of high depreciation no more than 2 times as much as straight line depreciation in order to renovate technology quickly. Fixed assets subjected to the deduction of high depreciation include: machines and equipment; measurement and experimental tools; transportation equipment and vehicles; management tools; animals; perennial orchards. In order to be subject to the deduction of high depreciation, enterprises have to ensure making profit and register applied depreciation method of fixed assets with the direct tax body before the depreciation deduction.
Bases of entering laborers’ wages into reasonable expenses
On December 5th, 2005, General Department of Taxation issued the Official Letter No.4439/TCT-PCCS. Accordingly, wages must be paid for laborers based on labor contracts or collective labor agreements. Annually, business units must register total wage fund with the tax body. The total wage fund must be written in the Wage Plan Registration attached to corporate income tax declaration. In case members of Management Boards (or Boards of Members) directly manage business and production, if completing all necessary procedures regulated by the Ministry of Finance and having monthly timekeeping sheets and signed monthly wages sheets, wage expenses shall be entered into reasonable expenses which are bases for calculation of corporate income tax.
Method of making vouchers on promotional expenses
Business units having internal, promotional or advertising products used for producing and trading goods and services being subject to VAT must make VAT invoices which clearly state that they are internal products used for production, business, promotion or advertisement without paying money. In this case, business units have to use invoices to make entering vouchers.
(According to the Official Letter No.4501/TCT-PCCS by General Department of Taxation dated December 9, 2005).
The Government encourages FDI enterprises to apply the minimum wage rate higher than general stipulated ones
From July 1st, 1999, the general minimum wage rate and others stated in labor contracts of laborers working in FDI enterprises have been calculated in Vietnamese Dong. The above minimum wage rate is the lowest ones on which employers pay for employees who have simple works in normal working conditions. The Government encourages FDI enterprises to apply the minimum wage rate higher than general stipulated ones according to the negotiation between employers and employees.
(According to the Official Letter No.4212/LLÄTBXH-TL by Ministry of Labor, War Invalids and Social Affairs dated December 8th, 2005).
Income items being entitled to personal income tax of laborers who left work
On December 7th, 2005, General Department of Taxation issued the Official Latter No. 4471/TCT-TNCN providing guidelines on laborers’ income items being entitled to personal income tax. Accordingly, severance, jobless or monthly allowances; annual bonus, Tet (Lunar New Year) bonus and allowances on day-off working are regular income items being entitled to personal income tax.
Arrangement of Vietnam’s days off
Laborers are allowed to enjoy eight days off for Vietnamese holidays. If the holiday and the weekend are the same, laborers have the right to be absent from work on the next days. For this reason, employers should arrange weekends on every Sundays or other specific days. Accordingly, employers have to follow their arrangement to fix days off in compensation when the holiday and weekend are the same.
(According to the Official Letter No.4108/LLÄTBXH-ATLLÄ by Ministry of Labor, War Invalids and Social Affairs dated December 2nd, 2005).
Land renting prices for foreign invested forms in Vietnam in 2005
On December 7th, 2005, the General Department of Taxation issued the Official Letter No. 4461/TCT-TS provided guidelines on rental fees on land, water surface, and sea surface applied to foreign invested forms in Vietnam. Accordingly, 2005 rental fees must be calculated as follows:
· Prices for all land rental contracts signed before July 1st, 2004 and within the stable duration of 5 years shall be calculated following the prices stated in the contracts.
· Prices for all land rental contracts signed after July 1st, 2004 and all land rental contracts signed before but out of stable 5-year duration shall be calculated by the Provincial People’s Committees.
April 24–25, 2026
Kinh Bac Cultural Center, Bac Ninh Province
Vietnamese
