Announcement of the list of 47 valuation originations eligible to provide enterprise valuation service in 2006 (the first batch)
On December 30th, 2005, Minister of Finance issued the Decision No.5257/QQÄ-BTC issuing the list of 47 valuation originations eligible to provide enterprise valuation service in 2006 (the first batch). Accordingly, since January 1st, 2006, 47 valuation organizations nationwide are eligible to provide enterprise valuation service, of which there are 9 securities companies, 31 auditing companies and other seven ones. These organizations are permitted to provide valuation services on the transfer of State-owned enterprises to Joint Stock ones in accordance with the Decree No.187/2004/NNÄ-CP dated November 16, 2004.
Business units shall be entitled to the tax reimbursement monthly or quarterly depending on the input VAT amount
A newly established enterprise, which received business registration license and registered tax payment under the tax deduction method but has not operated and has not produced output VAT, if having investment duration of more than one year, shall be entitled to the input VAT reimbursement annually. If an enterprise's reimbursed input VAT on an invested asset is more than 200 million dong, it shall be subject to input VAT reimbursement quarterly. In case an enterprise has great business capital, long investment duration, big monthly input VAT amount shall be subject to input VAT reimbursement monthly if having the approval of the Ministry of Finance.
(According to the Official Letter No. 77/TCT--ÄTNN by General Department of Taxation dated January 6th, 2006).
Services provided to export processing enterprises are applicable to the VAT rate of 10%
Goods and services sold to export processing enterprisesand export processing zones such as insurance, banking, post and telecommunication, consultancy, auditing, accounting, logistics, loading, houses, offices or warehouses for rent, consumer goods and services for laborers, petroleum for transportation vehicles are not considered as exports. For this reason, the above goods and services shall be subject to VAT rate of 10%.
(According to the Official Letter No.06/TCT-DNK by the General Department of Taxation dated January 3rd, 2006)
Guidelines on making records of support to expenses and marketing; and promotional bonus
Enterprises should use VAT invoices of goods and products for internal use, promotion and advertisement in order to promote business and production of goods and services subject to VAT to make records. These invoices must clearly state that these goods and products are used for internal purpose, promotion and advertisement free of charge. If enterprises give support to expenses, marketing or promotional bonus in cash, their invoices must clearly state that the cash paid used for support to expenses, marketing or promotional bonus. These invoices must be signed by all parties, responsible payers and shall be recorded as reasonable expenses pursuant to the law.
Enterprises that receive the supportive cash must make receipts and record received cash for calculation of corporate income tax.
(According to the Official Letter No.73/TCT-PCCS by the General Department of Taxation dated January 6th, 2006)
Guidelines on making invoices and records of lending and borrowing of goods and materials
Lending activities of materials, goods are considered as business transactions. Enterprises that make these activities must make VAT invoices and be levied VAT. In case materials and goods were subject to the exemption of import tax, special consumption tax (if any) and VAT in import period, importers must pay the above exempted amount when lending these materials and goods. When returning these materials and goods, enterprises must make VAT invoice and be subject to VAT.
Invoices and records of lent materials and goods made in accordance with the other legal documents shall not be adjusted.
(According to the Official Letter No.72/TCT--ÄTNN by General Department of Taxation dated January 6th, 2006)
Guidelines on training of labor safety and labor sanitary
On December 29, 2005, the Ministry of Labors, War Invalids and Social Affairs issued the Circular No. 37/2005/TT-BLLÄTBXH providing guidelines on labor safety and labor sanitary. Accordingly,employershave responsibility for training their permanent and part-time laborers. After being trained, all laborers have to sign in the Training Following Book.
Laborers who change jobs, are in the situation of equipment and technology renovation or go to work after more than 6 months of off work shall be trained in labor safety and sanitarybefore getting new jobs.
The above Circular takes effect after 15 days since it is published in the Official Gazette.
Enterprises' exports shall be subject to VAT deduction and reimbursement if liquidation is made via banks
In case exporting enterprises have selling contracts signed with foreign individuals or organizations, customs declarations approved by customs body and VAT invoices but importers' payment is not made via banks or not from their deposit accounts opened in Vietnam, they shall not be entitle to the VAT reimbursement.
(According to the Official Letter No.04/TCT-DNK by General Department of Taxation dated January 3rd, 2006).
Conditions for gifts to be subject to import tax exemption
Only foreign individuals or organizations' gifts presented to Vietnamese individuals and organizations and gifts presented for humanity or science research can be subject to import tax exemption.
(According to the Official Letter No.07/TCHQ-KTTT by General Department of Taxation dated by January 03rd, 2006)
Corporate income tax calculation for aided money from overseas mother companies
From January 1st, 2006, money receivable from overseas mother companies' aid has been fixed according to the following principles:
-Aided money used for support to advertisement or promotion without the Vietnamese enterprises' obligations shall be recorded into other income of Vietnamese enterprises.
-Aided money with the Vietnamese enterprises' obligations including product guarantee, maintenance, consumption or advertisement or marketing for mother companies shall be recorded into income.
(According to the Official Letter No.40/TCT--ÄTNN by General Department of Taxation dated January 04th, 2006).
Issuance of the Ordinance on Foreign Exchange
Socialist Republic of Vietnam implement foreign exchange management policy to create favorable conditions and ensure legal interest of individuals and organizations participating in foreign exchange activities, contributing to boost economic development, implementing the national monetary policy's objectives, improving convertibleness of Vietnamese dong, implementing the State's commitments in international economic integration roadmap, strengthening the State's management effectiveness on foreign exchange and perfecting Vietnam's foreign exchange management system. The above objectives are stated in the Ordinance on Foreign Exchange approved by National Assembly's Standing Committee on December 16, 2005.
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