Issuance of corporate accounting system
Issuance of corporate accounting system is applicable to all enterprises of all economic sectors nationwide. The system includes four parts as follows:
- The first part: account system
- The second part: financial report system
- The third part: invoice system
- The fourth system: accounting book system
All enterprises, companies and corporations must make their own suitable accounting systems based on the "Corporate accounting system". All amendment and supplement to the first or second level account or financial report must be approved in writing by the Ministry of Finance. Based on the "Corporate accounting system", all enterprises should apply the account lists, invoice systems, accounting books suitable to their business and production fields, management requirements and accounting qualifications.
(According to the Decision No.15/2006/QQÄ-BTC by the Ministry of Finance dated March 20, 2006)
Tax body will collect the VAT and corporate income tax on the difference between the real and the fixed turnover if the business household didn't make declaration on its turnover increase.
The tax body has the right to collect the difference between VAT and corporate income tax on a business household' s real turnover and VAT and corporate income tax on its fixed one if a business household didn't make declaration on its business turnover increase with the tax body. The tax body will also adjust the VAT and corporate income tax rates on the fixed business turnover suitable to the real one applied in the next months.
(According to the Official Letter No. 1122/TCT-DNK by the General Department of Taxation dated March 30,2006)
Business unit shall be entitle to monthly VAT reimbursement if its VAT on exported goods or services arising in the month is more than 200 million dong
A business unit shall be entitle to monthly VAT reimbursement if its input VAT on its exported goods or services that is not deducted in this month is more than 200 million dong. If its input VAT on exported goods or services in the month is lower than 200 million dong, a business unit has not yet been entitle to monthly VAT reimbursement. If in the next month, input VAT on its exported goods or services is more than 200 million dong, a business unit shall be entitle to VAT reimbursement for the two months.
(According to the Official Letter No. 1111/TCT-DNNN by the General Department of Taxation dated March 29, 2006)
Exemption of some fees
On March 22, 2006, the Ministry of Finance issued the Official Letter No.3705/BTC-CST on the exemption of fees on marriage register; register of adoption of children in mountainous areas; birth register for children in poor households; issuance of business registration of equitised enterprises (from the form of State-owned enterprises); issuance of import-export license for non-registered medicines used for prevention of disease, natural calamity and disasters...
Minimum wage rate on labourers working in FDI enterprises
According to the Official Letter No.1005/LLÄTBXH-TL by the Ministry of Labours, War Invalids and Social Affairs dated March 28, 2006, the minimum wage rate on labourers working for foreign invested enterprises in Hanoi and Hochiminh City and suburban of Hanoi and Hochiminh City is 870,000 dong per month and 790,000 dong per month respectively. The minimum wage rate of labourers working in affiliated units which located in suburban under an enterprises operating in Hanoi and Hochiminh City would be 790,000 dong per month or 870,000dong per month according to an enterprise's regulation.
Affiliated unit that employs more than 10 labourers must register its internal working regulation with the local Department of Labours,War Invalids and Social Affairs
An affiliated unit that employs more than 10 laborers, has an independent accounting system and locates in the different area from its mother company must issue internal working regulation and register it with the local labour management office .
(According to the Official Letter No. 1029/LLÄTBXH-LLÄVL by the Ministry of Labours, War Invalids and Social Affairs dated March 29, 2006)
Guidance on import tax rates on textile and garment originated from the EU, the US and Australia
2005's import tax rates on textile and garment batches attached with customs declarations dated from January 1st, 2005 to December 31, 2006 and certificates of origin granted by EU, the US and Australia. The import tax difference between the amount on textile and garment batches attached with customs declarations dated from January 1st, 2006 under the higher rate and the other one under the 2005 import tax rate shall be entitled to reimbursement. If the import tax rate on textile and garment batches is higher than MFN one, MFN tax rate will be applicable.
(According to the Decision No.16/2006/QQÄ-BTC by the General Department of Taxation dated March 24, 2006)
Application of absolute import tax rates on used cars
On March 28, 2006, The Prime Minister issued the Decision No.69/2006/QD-TTg on absolute import tax on second-hand cars. Accordingly, the highest rate is 25,000 USD/car with no more than 5 seats (including driver seat) and more than 5, 000cc. The next is from 7,000 USD to 22,000 USD/car from1.000cc to 5.000cc. The lowest is 3, 000USD/car with no more than 1.000cc. The highest import tax rate on cars from 6 to 9 seats is 20,000USD/car and the lowest is 9,000USD/car. The highest import tax rate on cars from 10 to 15 seats is 15,000USD/car and the lowest is 8, 000USD/car
According to each periods, the Ministry of Finance shall adjust the import tax rate higher or lower than 20% compared to the above ones. If the fluctuation is more than 20%, the Prime Minister will decide the adjusted import tax rates.
Manager of non-refundable ODA project shall be entitle to the VAT reimbursement
VAT on goods and services bought by a non -refundable ODA manager to conduct a non-refundable ODA project shall be reimbursed. Tax body will grant tax code applied to affiliated units to the project's management board if the manager authorizes the project's management board to manage and record input VAT arising in the ODA project's management process. In case the project's management board has its own account and record system but use Vietnamese enterprise's tax code, the project's input VAT shall be entitle to reimbursement.
(According to the Official Letter No.1107/TCT-DTNN by the General Department of Taxation dated March 29, 2006)
CIT on the transfer of capital or assets contributed to FDI enterprises
The income gained from the transfer of shares or capital contributed to a foreign-invested enterprise or business cooperation contract (BCC) that is going to be dissolved shall be corporate income taxable at the rate of 28%. In case the above enterprise or BCC still exists after the transfer, the income gained from the transfer of shares or capital shall be recorded as other income included in total income that is subject to CIT.
(According to the Official Letter No.1123/TCT-DTNN by the General Department of Taxation dated March 30, 2006)
10C Le Dai Hanh Street, Hanoi, Vietnam
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