Summary of Newly-issued Legal Documents (24 February-1st March, 2006)

Business units have to issue VAT invoices for goods used for promotion and advertising for VAT taxable products and services. These invoices must clearly state that the above goods are used for promotion and advertising. All goods bought and produced by business units for VAT taxable products and services' promotion and advertising shall be entitled to input VAT deduction.

 

Enterprise implemented public works which are beyond its production space and used by the community are not its fixed assets. For this reason, the above enterprise is not permitted to make fixed asset depreciation from public works. All expenses for completing these works must not be calculated into reasonable ones.

(According to Official Letter No.704/TCT--ÄTNN by the General Department of Taxation dated February 24,2006)

Organizations that pay tax on land use late shall be imposed a fine of 0.02% of the late paid amount. The maximum fine level is 100,000,000 VND. Heads of Department of Taxation's Branches have the right to impose a fine up to 10,000,000 VND and heads of Departments of Taxation have the right to impose a fine up to 100,000,000 VND

(According to Official Letter No.709/TCT-PCCS by the General Department of Taxation dated February 24,2006)

 

Property which is used for business operation of business registered individuals and organizations but is not registered for ownership shall not be subject to registration fees. In case the above property is sold to other individual, he or she has to pay registration fees when registering the property's ownership and use right.

(According to Official Letter No.713/TCT-TS by the General Department of Taxation dated February 24, 2006)

 

Laborers who move from an independent enterprise to another under the labor contracts not because of their enterprises' merging, unifying, dividing and separating shall be on the dole if they sign labor contracts with an enterprise after quitting job in another.

(According to Official Letter No.621/LLÄTBHX-LLÄVL of the Ministry of Labours, War Invalids and Social Affairs dated February 28,2006).

Imported goods shall be entitled to CEPT tax rates if meeting all the following conditions:

-Being in goods' list and Vietnam's special preferential import tax rate for CEPT/AFTA implementation.

-Being imported from ASEAN countries

-Meeting all ASEAN's requirements on the origin of goods

-Being transported directly from ASEAN's member country to Vietnam

(According to Official Letter No.14/TT-BTC by the Ministry of Finance dated February 28,2006)

 

Goods, equipment, machines, professional tools which are temporarily imported serving for conferences or science researches in the duration of 90 days shall be entitled to import and export tax exemption and not subject to VAT. After ending conferences and science researches, these above products must be re-exported. In case they are not re-exported, they shall be subject to import, export and value added taxes.

(According to Official Letter No.787/TCHQ-KTTT by the General Department of Customs dated February 28,2006)

Goods from inland to warehouses are exports kept in warehouses, goods from warehouses to be processed inland and goods must be re-exported. The customs procedures on the above goods are implemented as ones on imported goods.

SaoViet Consultancy Joint Stock Company
10C Le Dai Hanh Street, Hanoi, Vietnam
Email: sao-viet@vnn.vn
Website: http://asa.com.vn

10C Le Dai Hanh Street, Hanoi, Vietnam