New regulations of Vietnam on tax and fee in effect as of August 2016

1. Amendment to appraisal fee on scheme on discharge of wastewater into water sources

Circular No. 94/2016/TT-BTC dated 27 June 2016 regulates the appraisal fee for the scheme and reports on discharging less than 5,000 m3 of wastewater per full day into water sources and the scheme and reports on wastewater discharge on aquaculture. Details are as follows:

– The appraisal fee for the scheme and report on discharging 3,000 to less than 5,000 m3 of wastewater per full day into water sources is VND 8,500,000 per application.

– The appraisal fee for the scheme and report on wastewater discharge in aquaculture is VND 8,400,000 to VND 16,000,000 per application.

Circular No. 94/2016/TT-BTC comes into force as of 11 August 2016.

2. Regulations on time limit to register information of tax payers

According to Circular 95/2016/TT-BTC dated 28 June 2016 providing guidance on tax registration, business entities and individuals are obliged to register information of tax payers in the following time limit:

– For entities: 10 working days as from:

+ The issuance date of incorporation license or decision, registration certificate (GCNĐK) of subsidiary unit or any substitute issued by competent authority; or

+ The issuance date of business registration certificate issued by the countries sharing land border with Vietnam, allowing the entities to buy, sell and exchange goods at border markets, border gates  or markets in border gate economic zones of Vietnam; or

+ The date when arising the responsibility for tax payment and tax deduction on behalf of contractor or foreign sub-contractor; or for tax payment on behalf of individual in accordance with contract or business cooperation agreement; or

+ The signing date of contract agreement in case of direct tax declaration and payment by contractor or foreign sub-contractor.

+ The signing date of agreement or contract on oil and gas.

– For individuals:

+ The same as the time limit of first submission of tax return.

+ The issuance date of business registration certificate (if any).

The Circular takes effect as from 12 August 2016 and replaces Circular 80/2012/TT-BTC dated 22 May 2012.

3. New guideline for refund of value added tax (VAT)

Pursuant to Circular No. 99/2016/TT-BTC (in effect as of 13 August 2016), the time limit for processing of VAT refund claims of entities eligible for receiving pre-inspected tax refund is defined as follows:

– If the application for tax refund (ATR) does not match the regulated entities and conditions for tax refund or provides insufficient data, the tax authority shall send a written notice to the tax payer in 03 working days upon receiving the entire application.

If providing insufficient data, the tax payer shall be held responsible for explaining and supplementing information and documents in 10 working days upon receiving the written notice of the tax authority. If no reply is made within the said time limit, the tax authority shall put the ATR under inspection prior to refund.

– If conditions for tax refund are met, the tax authority shall issue a decision to refund tax in at most 06 working days upon receiving the entire ATR.

– The provincial branch of the State Treasury shall disburse the tax refund to the tax payer in at most 03 working days upon the receipt date of the order of refund from state budget revenue or the order of deduction from state budget revenue sent by tax authority.

Circular No. 94/2010/TT-BTC dated 30 June 2010, Decision No. 2404/QD-BTC dated 27 September 2012 and Circular No. 150/2013/TT-BTC dated 29 October 2013 shall lose force when Circular No. 99/2016/TT-BTC takes effect.

4. Circular No.98/2016/TT-BTC dated 29 June 2016, in effect as of 13 August 2016, add Artemia cysts into the list of imports eligible for preferential rates of import duty under Chapter 98 of the Preferential Import Tariff enclosed to the Circular No. 182/2015/TT-BTC dated 16 November 2015.