The Civil Aviation Authority of Vietnam has submitted detailed plans for flight schedules and requirements for airlines to bring international passengers into Vietnam, awaiting approval from the Ministry of Transport and concerned authorities. According to the aviation authority, there will be nine total inbound flights a week landing in Hanoi and HCM City.

Vietnam Airlines check-in counter at Noi Bai International Airport

Recently, Vietnam has decided to reopen international flights to and from six Asian destinations including Japan, South Korea, China, China’s Taiwan, Laos and Cambodia – six months after the country closed its border on March 22 to battle the spread of the coronavirus. Earlier on September 11, the agency sent letters to their Japanese, Chinese, Taiwanese and South Korean counterparts detailing the plans. The Asian partners all agreed with Vietnam’s plan.

Requirements

• Airlines will only process bookings for passengers who provide all necessary information – including the names and phone numbers of the passengers’ contacts in Vietnam, address and phone number of the quarantine facility they will stay in, and the phone number of the host organisation who will receive the passengers at the airport.

• Vietnamese and foreign airlines can only complete flight procedures for passengers with valid visas.

• Passengers must produce documents to prove they have been allowed to quarantine in facilities such as diplomatic representative’s buildings, factories, business headquarters, hotels or other similar accommodations, or centralised quarantine facilities managed by the military.

To this end, local governments in Vietnam must publicise the list of all certified quarantine facilities in their jurisdiction as well as transportation services that can bring passengers to the quarantine facilities, in addition to the cost of each quarantine option and coronavirus testing. All localities must be uniform in their reception of foreign entries and not introduce separate procedures for flights that have already got permits to operate.

Requirement during check-in procedures

• The airlines ask passengers to present their passport, entry visa, and proofs of a negative SARS-CoV-2 PRC test obtained three days before boarding.

• The negative test must be certified by the Vietnamese diplomatic representative in their country or locality.

• Before boarding, passengers must wear masks, install the Vietnamese contact-tracing app Bluezone and the Vietnam Health Declaration app on their mobile devices, and fill out the health forms. Airlines must carry out temperature checks and deny boarding for anyone with a temperature of more than 37.5 degrees Celsius.

Currently, permitted entries to Vietnam are limited to foreign investors, business executives, experts, highly skilled workers, diplomats, international students – and their family – along with returning Vietnamese and their relatives. International tourists are still not allowed in yet. Meanwhile, Vietnam Airlines and Vietjet have registered with the aviation authority to conduct these flights from September 21. However, as authorities have not fully fleshed out screenings, entry and quarantine protocols, the flights have not been implemented.

Note: Professionals can enter Vietnam less than 14 days without concentrated quarantine requirement

Access to this following article for more detail: https://asiabizconsult.com/.../298-professionals-can...

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On September 25th 2020, the Prime Minister of Vietnam signed Decree 114/2020/NĐ-CP detailing the implementation of Resolution No.116/2020/QH14 of the National Assembly on the reduction of corporate income tax for enterprises, cooperatives, non-business units and other organizations. The effective date of the Decree 114 is from the effective date of Resolution No. 116/2020/QH14 and applies to the corporate income tax period of 2020. In particular, Clause 2 Article 1 of Decree 114/2020 /NĐ-CP clearly states a 30% reduction in corporate income tax for the 2020 corporate income tax period for an enterprise whose total revenue in 2020 does not exceed 200 billion VND.

1. Subjects of application: Enterprise income taxpayers are organizations engaged in the production and trading of goods and services with taxable income (referred to as enterprises) according to the provisions of Article 1 of Resolution 116/2020/QH14, including Enterprises established under the provisions of Vietnamese law; Organizations established under the Cooperative Law; Non-business units established under the provisions of Vietnamese law; Other organizations established under the provisions of Vietnamese law and have income-generating production and business activities.

2. Method for calculation of total revenue in 2020: The above total revenue in 2020 is the total revenue in the enterprise income tax period of 2020 of enterprises including all sales, processing and service fees including price subsidies, surcharges and supplements to which enterprises are entitled under the provisions of the Law on Enterprise Income Tax and its guiding documents.

However, in the case of a newly established enterprise or converting form of enterprises, ownership transformation, consolidation, merger, division, separation, dissolution, bankruptcy, plus in the corporate income tax period of the year 2020 that enterprise has not operated for 12 months, total revenue (TDT) in 2020 is determined as follows (in the 2020 corporate income tax period):

Total revenue in 2020 = (Actual total revenue 2020) /(Actual number of months of operating business activity in 2020) *12 months

In the case of newly established enterprises, converting form of enterprises, ownership transformation, consolidation, merger, division, separation, dissolution or bankruptcy in the month, the operation period shall be counted in full months.

3. The enterprise expects total revenue in 2020 corporate income tax period not to exceed 200 billion VND: In this case, the enterprise shall determine the temporary quarter payment as 70% of the quarterly corporate income tax payment.

At the end of the 2020 enterprise income tax period, if the total revenue in 2020 of the enterprise does not exceed 200 billion VND, the enterprise shall declare reducing the enterprise income tax of the year 2020 when finalizing the enterprise 2020 income tax in accordance with the regulations.

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On August 31^st 2020, the Ministry of Health has issued the Official Dispatch No. 4674/ BYT-MT which allows professionals and passengers entering Vietnam for diplomatic to enter Vietnam for short business period (less than 14 days) and will not be subject to the 14-day concentrated quarantine requirement, but still have to comply with regulations on COVID epidemic prevention and control.

In order to enter Vietnam for diplomatic or official purposes, professionals and passengers must satisfy the following general requirements:

(i) Holding international health insurance policies or obtaining commitment from entities or organizations inviting professionals and passengers entering Vietnam for diplomatic or official purposes to paying medical costs in case of being infected with COVID-19.

(ii) Professionals are expected to enter Vietnam 1 day before to fulfill regulatory requirements concerning health monitoring

Any person in contact with the aforementioned professionals and passengers must keep track of their health condition and promptly inform local regulatory or medical authorities whenever showing such symptoms as cough, fever, sore throat or breathing trouble.

All the expenses for quarantine, means of transportation, testing of COVID-19 are covered by the specialist inviting unit/organization. People entering with diplomatic purposes will be free of charge (except for the cost of quarantine at hotel as desired).

After 14 days from the date of entry, if professionals and people enter with diplomatic or official purposes have a need to continue staying in Vietnam for work and the SARS-CoV-2 testing result is negative will be allowed to keep working in Vietnam and be free from concentrated quarantine requirement.

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As of June 15th, 2020, the Ministry of Industry and Trade issued Circular No. 11/2020/TT-BTC on rules of origin in EU-Vietnam Free Trade Agreement (EVFTA). It comes into effect on August 01st, 2020. It includes 5 chapters, 42 Articles and 8 Annex. This Circular applies to the issuing authorities of certificate of origin (C/O); Traders; Agencies, organizations, and individuals related to the origin of exported goods and imported goods. This is an important Circular that goods which exported to EU are issued proofs of origin and enjoy the preferential tax when EVFTA takes effect from August 1st, 2020.

1. Type of proofs of origin for goods which are imported into Vietnam, and vice versa

Products originate from EU, when they imported into Vietnam, they shall ve benefited from EVFTA upon submission of any of the following proofs of origin:

-     A certificate of origin (C/O) form EUR.1.

-     An origin declaration made out by an approved exporter within requirements of the Union for any consignment regardless of its value; any exporter for consignments the total value of which does not exceed 6.000 EUR (six thousand euros).

-     A statement of origin made out by exporters registered in an electronic database in accordance with the relevant legislation of the Union after the Union has notified to Viet Nam that such legislation applies to its exporters. 

Products originate from Vietnam, when they imported into EU, they shall ve benefited from EVFTA upon submission of any of the following proofs of origin:

-     A certificate of origin form EUR.1.

-     An origin declaration made out by any exporter for consignments the total value of which shall not exceed 6.000 EUR (six thousand euros).

-     An origin declaration made out by an exporter approved or registered in accordance with the relevant legislation of the Ministry of Industry and Trade.

2. Procedures of issuance of the certificate of origin (C/O) following Vietnam Law

• Application for issuance of C/O

-     An application form for issuance of C/O;

-     Certificate of C/O which is declared according to EUR.1 form;

-     A printed export customs declaration. If exported goods are exempt from customs declaration as prescribed by law, copy of customs declaration shall not be required;

-     A copy of the commercial invoice (stamped as a true copy of the original by trader);

-     A copy of bill of lading or copy of equivalent transport document (stamped as a true copy of the original by trader) in a case where the trader has no bill of lading;

-     A detailed list of exported goods qualifying preferential rules of origin or non-preferential rules of origin using the form prescribed by the Ministry of Industry and Trade;

-     A declaration of origin provided by manufacturer or supplier of originating material or locally produced originating good using the form prescribed by the Ministry of Industry and Trade if such material is used in subsequent stage to produce another good;

-      A copy of good manufacturing process (stamped as a true copy of the original by trader);

-     In exceptional circumstances, the issuing authority shall undertake an inspection visit to the manufacturing facility of trader; or require the applicant to submit copies of the following documents (stamped as a true copy of the original by trader): A customs declaration of materials imported and used in production of exported goods (if imported materials are used in the production process); a sale contract or VAT invoice of locally purchased materials (if locally purchased materials are used in the production process); export license (if any); other documents as deemed necessary.

• The issuing authority

-     The Ministry of Industry and Trade;

-     The Vietnam Chamber of Commerce and Industry and other organizations are authorized to issue C/O of exported goods by the Ministry of Industry and Trade.

• Declaration and issuance of C/O

-     An applicant for issuance of C/O shall fill in the electronic application form available in the electronic C/O issuance system at the address www.ecosys.gov.vnor another website of the issuing authority designated by the Ministry of Industry and Trade.

-      If the applicant attaches an application for issuance of C/O to the electronic C/O issuance system at the address www.ecosys.gov.vn or another website of the issuing authority designated by the Ministry of Industry and Trade, the issuance of C/O shall follow the steps below:

• The applicant attaches electronic documents of the application for issuance of C/O. These documents shall be certified by the digital signature issued by the competent authority. It is not necessary to submit hard copies of these documents to the issuing authority;
• Within 6 working hours since an adequate and valid electronic application is submitted, the issuing authority shall inform the processing result in the system;
• Within 2 working hours since an application for issuance of C/O and a hardcopy of C/O which has been filled completely and validly is received, the issuing authority shall give a hardcopy of processing result to the applicant.

-     If the applicant submits the application for issuance of C/O in person at the head office of issuing authority, the issuance of C/O shall follow the steps below:

• The applicant submits hard copies of documents of the application for issuance of C/O;
• Within 8 working hours from an adequate and valid application, the issuing authority shall inform the application processing result.

-      If the applicant submits the application for issuance of C/O by post, the processing time limit is 24 working hours since the issuing authority receives the adequate and valid application according to the date stamped on the envelope.

• C/O issued retrospectively

-     A C/O is issued after exportation of the products in specific situations:

• It was not issued at the time of exportation because of errors, involuntary omissions or other valid reasons.
• The exporter demonstrates to competent authorities that C/O was issued but it was not accepted at the time of exportation because of technical reasons.
• The final destination of the productions was not determined at the time of exportation, it may only be determined during their transportation, storage or after splitting of consignments.

-     In order to be issued after the date of exportation of the products, the exporter shall indicate in his application the place and the date of exportation of the products to which the C/O relates, stating the reasons for his request.

-     Certificates of origin shall be endorsed with the following phrase in English: “ISSUED RETROSPECTIVELY".

• Issue of a duplicate C/O

-     In the case of theft, loss or destruction of a C/O, the exporter submits a request for issuance of a duplicate made out on the basis of the export documents to the competent authorities.

-     The duplicate issued in this way must be endorsed with the following phrase in English: "DUPLICATE".

-     The duplicate must indicate the date of issuance of original C/O, taking effect as from that date.

3. Making out an origin declaration for products

-     The exporter is entitled to self-certification of the origin of goods when they have the root of EU or Vietnam and meet the other requirements of EVFTA.

-     The self-certified exporter must indicate the origin of goods on the invoice, the delivery note or any other commercial documents (an accompanying delivery note, a pro-forma invoice or a packing list) which describe sufficient information of concerned products to identified, ty typing, stamping or printing in the content of the written declaration of the goods’ origin.

-      The self-certified document may be issued after exportation provided that it is presented in the importing Party no later than 2 years or after goods into the territory of importing party in the specified period accordance with legislation of Member State.

4. The validity of the proof of origin

-     The proofs of origin shall be valid 12 months from the date of issuance in the exporting Party and shall be submitted to customs authorities of the exporting Party within this period.

-     After the valid period, if the exporter can not submit the proof of origin to customs authorities of importing Party in the valid period due to force majeure or other valid reasons beyond exporter’s control, the proofs of origin shall still be accepted for purpose of applying preferential tariff treatment of EVFTA.

-     In other cases of belated presentation, the customs of the importing Party may accept proofs of origin of products that have exported within the period of validity.

5. Submission of proof of origin

For the purpose of claiming preferential tariff treatment of EVFTA, proofs of origin shall be submitted to the customs authorities of the importing Party in accordance with regulations of this Party. Those authorities may request a translation if proofs of origin are not issued in English.

6. Preservation of proof of origin and supporting documents

-     The exporter making out an origin declaration or applying the issuance of a C/O shall keep at least 3 years a copy of this origin declaration or of the C/O as well as of other documents.

-     Authorities, organizations of the exporting Party issuing C/O shall keep at least 3 years the application form.

-     Customs authorities of the importing Party shall keep at least 3 years the proof of origin submitted to them.

-     Each Party shall permit, in accordance with that Party's laws and regulations, the exporter archive documentation or records under any form or medium, provided that the documentation or records can be retrieved and printed.

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Since July 15th, 2020, the Ministry of Finance promulgated Circular No. 69/2020/TT-BTC on applications and procedures for debt settlement according to Resolution No. 94/2019/QH14 which stipulates tax debt relief and cancellation of late payment fines and interest for insolvent taxpayers. It is made on the basis of the provisions of the Law on tax administration, satisfying regulations of bankruptcy, enterprises and banks. Moreover, it has to ensure the feasibility of the legal practice, being consistent with the reality of socio-economic life. Circular No. 69/2020/TT-BTC comes into force from July 01st, 2020 and is implemented within 03 years from its effective date.

1. Entities eligible for debt settlement

Entities eligible for debt settlement have to satisfy two criterions as follows:

-     A taxpayer is unable to pay outstanding tax, late payment interest or fine that is incurred before July 1^st, 2020.

-     The taxpayer submits a dissolution decision to the tax authority or business registration authority, the business registration authority has posted a notice on the national business registration portal but the taxpayer has not completed the dissolution procedures.

2. Debt settlement measures

-     Tax chargeoff;

-     Cancellation of tax, late payment interest and fines.

3. Tax chargeoff

• The criterions of tax chargeoff

-     The tax chargeoff is applied since July 1^st, 2020. The chargeoff date is the day on which the business registration authority posts the notice on the national business registration portal.

-     The conditions of tax chargeoff: The taxpayer has a dissolution decision or a notice issued by the business registration authority. The content of this notice is that the taxpayer has not completed the dissolution procedures.

• The dossier of tax chargeoff

-     The information of taxpayers’ name and tax identification number; the time for posting a notice that taxpayers are undergoing the procedure of dissolution on the national business registration portal; the tax authority’s notice which the taxpayer’s business operation is suspended and the taxpayer is carrying out the procedure for TIN deactivation; The business registration authority, the competent authority granting practice certificates issue notification of the status of the enterprise undergoing dissolution process (the original or copies cum signature and stamp of tax authorities);

-     Dissolution decision or written notice of dissolution;

-     Notification of tax debts, fines and late payment or written confirmation of the tax amount, taxpayer’s fines and late payment which are calculated to June 30^th, 2020.

• Publishing tax chargeoff

-     The debt management department or the department assigned debt settlement shall enter the tax chargeoff decision on tax administration application within 5 (five) working days since the day that the tax chargeoff decision is issued.

-     In no later than 5 working days starting from the date tax chargeoff decision is issued, Departments of Taxation, Departments of Customs, Post Clearance Audit Departments post the tax chargeoff decision on websites of Departments of Taxation, Departments of Customs, General Department of Vietnam Customs.

4. Cancellation of tax, late payment interest and fines

• The criterions of cancellation of tax, late payment interest and fines

-     Cancellation of late payment fines and interest accrued by July 01st, 2020 for insolvent taxpayers.

-     Conditioms of cancellation of tax, late payment interest and fine: the taxpayer has a dissolution decision or a notice received from business registration authority regarding completion of the dissolution procedures on the national business registration portal must be provided.

• The dossier of cancellation of tax, late payment interest and fines

-     The written request for tax debt cancellation prepared by the supervisory tax authority;

-     Documents which are requested in the dossier of tax chargeoff;

-     The written certification with content that the taxpayer does not carry out business activities at the registered address is issued by the People’s Committee of the commune where taxpayers registered operating activities address.

-     If taxpayers are the branch, affiliated unit, representative office, business locations, their dossiers must include written certifications of the People’s Committee of the commune where taxpayers registered operating activities address. The content of the certification is that the taxpayer does not carry out business activities at the registered address or taxpayer received tax debt relief decisions of headquarter.

-     The method of the taxpayer’s debt settlement at the time when the dissolution decision is issued.

-     The document which publishes the list of taxpayers proposed cancellation of tax.

• Publishing cancellation of tax, late payment interest and fines

-          In no later than 5 (five) working dáy starting the date from tax debt relief decisions issued, the tax administration authorities publish tax debt relief decisions in their website as follows:

• In case of tax cancellation under the competence of the chairperson of a provincial-level People’s Committee, the tax debt relief decisions are posted on the website of Departments of Taxation, Departments of Customs, General Department of Vietnam Customs.
• In case of tax cancellation under the competence of The Director of the General Department of Taxation, The Director of the General Department of Customs, the Minister of Finance, the Prime Minister, the tax debt relief decisions are posted in the website of General Department of Taxation, Departments of Taxation, General Department of Vietnam Customs, Departments of Customs.

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On August 10th, 2020, the Primer Minister granted Decision No. 22/2020/QĐ-TTg on the reduction in land rents in 2020 for entities affected by the Covid-19 epidemic according to Resolution No. 84/NQ-CP which is issued by the Government on May 29th, 2020. It plays an important role to struggle with difficulties in the business operations aimed at maintaining economic growth, strive to achieve socio-economic development objectives and tasks specified by the National Assembly.

1. Regulated entities

Enterprises, organizations, households and individuals are being directly rented land by the State following decisions and contracts of competent authorities in form of annual rents that must suspend business operations because of the Covid-19 pandemic (hereafter called the land lessee). 

2. Land rents reduction

The land lessee is reduced by 15% of the payable land rent in 2020. However, the provisions of land rent reduction are not applied to outstanding debts of land rents in the previous years of 2020 and late land rents (if any).

These provisions also apply to case where land lessees execute different business activities but they only suspend business activities the land areas which are being directly leased by the State.

3. The dossier of reduction in land rents

-        Application form of the reduction in land rents

-        Land lease decision or contract of competent authorities (copy)

4. Procedure for reduction in land rents

-     The land lessee submits 01 sets of application which request the reduction in land rent to the tax authority, Management boards of industrial parks, hi-tech zones, economic zones and other authorities from August 10th, 2020 to the end of December 31st, 2020; the case of where the land lessees submit the application from January 01st, 2021 onwards, they will not reduce land rents.

-     With the basis of the dossier of reduction in land rents provided by the land lessee, the competent authorities determine an amount of reduced land rents and issue the decision of reduction in land rents in accordance with provisions of collection of land rents.

-     In the case where the land lessees are determined reduction in land rents by the competent authorities, but inspection discloses that the tenants exclude from the reduction in land rents, they must refund reduced land rents and the late payments interest calculated according to reduced land rents to the State budget.

-     In the case where the land lessee submits land rents in 2020, however, after the regulatory authority determine and decide the reduction in land rents, an excess of land rents is arisen, therefore, it will be deducted from land rents in the following period or following year; In the case where land leases must not pay the land rents in the next period, authorities shall refund or offset against overpaid amount.

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The Ministry of Finance issued Circular No. 92/2019/TT-BTC amendments to Circular No. 72/2014/TT-BTC dated May 30^th, 2014 on refund of value-added tax on goods carried by foreigners and overseas Vietnamese upon their exit from Vietnam. It comes into effect on July 1^st, 2020. This Circular includes many important changes in provisions of refund of value-added tax on goods carried by foreigners upon their exit from Vietnam. Foreigners shall be entitled to VAT refunds if they obey regulations in Circular No. 92/2019/TT-BTC and Circular No. 72/2014/TT-BTC.

1. Regulated objects

Foreigners and overseas Vietnamese (except for members of the flight crews and members of the ship’s crews) whose passports or exit and entry permits issued by the foreign authorities are valid and used to enter or leave Vietnam, to buy goods in Vietnam and to bring goods out of Vietnam through the tax refund border checkpoints.

2. VAT-refunded goods

Goods will be refunded VAT if they meet all criterions as follows:

-     Goods are not included in the List of goods banned from export, the List of goods to be exported according to export license issued by the Ministry of Industry and Trade or the List of goods put under specialized administration.

-     Goods are taxable objects.

-     Goods can be carried on airplanes.

-     Goods are not included in VAT-refunded goods with regard to the diplomatic missions, consular offices and the representative agencies of the international organizations in Vietnam.

-     Good must be bought at certified retailers of VTA-refunded good, in brand-new and full-package conditions. They must be sold with the VAT invoice cum tax refund declaration issued within the maximum duration of 60 days prior to the date the foreigner leaves Vietnam.

-     Goods are bought at a single shop in one day, whose value written on the VAT invoices (including the total payment of all invoices of goods issued by the single shop in one day) is at least VND 2 million.

3. The procedures for the refund of value-added tax

-     When foreigners buy goods, they shall present their valid original passports or exit and entry permits issued by foreign authorities to certified retailers of VTA-refunded good. The retailers shall make VAT invoice cum tax refund declaration accordance with the information in the passports or exit and entry permits and the goods that foreigners actually purchase. The foreigners shall check the information that the retailers write on such VAT invoices. If the information is inaccurate, they request retailers to correct it. If the information is correct, they shall sign such VAT invoice cum tax refund declaration.

-     At the examination counters of VAT invoices and goods, the foreigners shall present the customs authorities passports or exit and entry permits; VAT invoice cum tax refund declaration; goods.

-     After the VAT invoice cum tax refund declaration of foreigners is inspected, they must present the commercial banks at the tax refund counters with the airplane or ship tickets; the original VAT invoice cum tax refund declaration which has been defined, calculated VAT refunds and stamped by customs authorities.

4. VAT refund fees, amount and currency

-     Any commercial bank can receive a VAT refund fee accounting for 15% of the total amount of VAT of the VAT-refunded goods that foreigners take them when they leave Vietnam through the tax refund border checkpoints.

-     Any foreigner is entitled to an amount of VAT refunds that accounting for 85% of the total amount of VAT of the VAT-refunded goods that foreigners take them when they leave Vietnam through the tax refund border checkpoints.

-     VAT refund currency is VND. If foreigners want to exchange the tax refunds in VND for convertible foreign currency, they can buy foreign currency at the commercial banks.

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Europe-Vietnam Free Trade Agreement (EVFTA) was signed on June 30^th, 2019. It was approved by the European Parliament on February 12nd, 2020 and by Vietnam on June 8^th, 2020. This agreement will come into effect on August 1^st, 2020.

To realize Vietnam’s commitment to opening commodity market in EVFTA, the Ministry of Finance (Vietnam) is drafting a Decree on Vietnam’s preferential export tariff schedule, specific preferential import schedule tariff for implementation the Free Trade Agreement between the Socialist Republic of Vietnam and European Union for the period of 2020-2022.

1. The preferential export tariff schedule

Schedule of preferential export tariff is prescribed in Appendix I attached in the Draft Decree on Vietnam’s preferential import-export tariffs for implementation of EVFTA. Preferential export tariff rates are separated into three periods, in 2020, 2021 and 2022.

• The contents of Appendix I:

The Appendix I stipulates 19 groups of commodities which are enjoyed the preferential export tariff schedule accordance with EVFTA as follows:

-        Plants and parts of plants; Hydrogen and rare gases are enjoyed the lowest tax rate (0%).

-     The tax rate of synthetic rubber and substitute for rubber is 1% and does not change during the duration from 2020 to 2022.

-     5% and 10% are tax rates applied to raw hides of animals. They remain unchanged over three years.

-     There are three levels of tax rates applied to wood and articles of wood, wood charcoal. They are 0%, 5% and 10%; However, the tax rate of sleepers of wood reduces from 18.1% (in 2020) to 14.5% (in 2022); the average tax rate of wood sawn or chipped lengthwise is 5%; the tariff schedule of other commodities in this group fluctuates from 14.5% to 20%, depending on each commodity and each year in the stage of tax reduction.

-     The tax rate of diamonds ranges from 5% to 10%; the tax rate of precious stones and semiprecious stones is 5% and 10%.

-     The tax rate of articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal is 0% and 2%, depending on each good in this group.

-     Metals are imposed the high tax, except for some types of metals of which tax rates are 0%; The tax rate of waste and scrap of metals is highest in this group and can reach 20.6%.

-     Compared with the above commodities, minerals are imposed the highest tax; Tax rates of some commodities reach 40%

• Subjects shall be eligible for the preferential export tariff schedule under the EVFTA

-     Goods exported to EU members or territories under the EVFTA, including the United Kingdom of Great Britain and Northern Ireland; Territories which are members of Europe Union, except for Ceuta and Melilla.

-     Goods are not specified in the schedule of preferential export tariff in Appendix I but they are specified in export tariff of the List of taxable commodity headings regulated in Decree No. 125/2017/ND-CP, hence, they have still applied export duty 0% when they are exported to EU members countries and above-mentioned territories.

• The criterion for application of preferential export tax rate under the EVFTA:

-     Goods imported into EU members and territories according to regulations.

-     Transport documents (copy) showing that members of the European Union and prescribed territories are the destination.

-     Customs import declarations of export consignment originated from Vietnam, importing to EU member countries and territories (copy and English or Vietnamese translation where the language used on the declaration is not English).

• Procedures for applying preferential export tax rate under the EVFTA:

-     Firstly, declarants shall declare tax in the export declaration, applying export tariff rate, calculating the tax payable themselves, paying tax according to the schedule of the import tariff in Directory for taxable products in Decree No. 125/2017/ND-CP.

-     Secondly, within 1 year since the date declarants fill export declarations, they must adequately submit commodities records (01 copy) and provide supplementary tax documents to apply preferential export tariff rates according to EVFTA.

-     Thirdly, customs authorities conduct the verification of dossiers and tax rates. If commodities address the criterion for application of preferential export tax rate accordance with EVFTA, customs authorities will refund the difference to declarants following the provisions of Law on tax administration.

2. The specific preferential import tariff schedule

Vietnam’s schedule of specific preferential import tariffs for the implementation EVFTA is stipulated in Appendix II attached at the end of the Draft Decree on Vietnam’s preferential import-export tariffs for implementation of EVFTA.

• The contents of Appendix II:

Appendix II stipulates 97 groups of commodities which are enjoyed the specific preferential import tariff schedule accordance with EVFTA as follows:

-     The tax rates of the type of commodities are 0%. They are Live animals, Products of animal origin; Vegetable plaiting materials; Salt, sulfur, earth and stone; plastering materials, lime and cement; Furskins and artificial fur; Pulp; Textile materials and textile products; Other base metals; Aircraft, spacecraft, and parts thereof; Musical instruments, parts and accessories of such articles.

-     Some commodities are imposed the average tax rates such as Preparations of cereals, flour, starch or milk; pastrycooks' products; Preparations of vegetables, fruit, nuts or other parts of plants; Miscellaneous edible preparations; Articles of leather,...

-     Meat and edible offal of the poultry; Beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes are commodities imposed the highest tax rate in Appendix II. Specifically, the tax rates of cigars are very high. In the stage of tax reduction, it is reduced from 126.5% (in 2020) to 111.8% (in 2021) and 109.6% (in 2022).

-     The remaining items have low tax rates, from 0% to 20.4%. Their tax rate obeys the clear stage of tax reduction through three years (2020, 2021, 2022).

• Subjects shall be eligible for preferential import tariff schedule under the EVFTA

Commodities are imported to Vietnam from:

-     Members of EU, except for Ceuta and Melilla;

-     Principality of Andorra;

-     The Republic of San Marino;

-     United Kingdom of Great Britain and Northern Ireland;

-     The Socialist Republic of Vietnam (Commodities are imported from the non-tariff zones to the domestic market).

• The criterion for application of preferential import tax rate under the EVFTA:

-     Goods present in the list of special preferential import tariff schedules which prescribed in Appendix II of the Draft Decree;

-     They are subjects applied special preferential import tax rates under the EVFTA;

-     They meet rules of origin, having the certificate of origin according to EVFTA.

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Business license fees are stipulated in Decree No. 139/2016/ND-CP and Decree No. 22/2020/ND-CP on amendments to the Government’s Decree No. 139/2016/ND-CP dated October 04th, 2016 on business license fees. They are guided by Circular No. 302/2016/TT-BTC on guidelines for business license fees and Circular No. 65/2020/TT-BTC on amendments, supplements to several articles of the Ministry of Finance’s Circular No. 302/2016/TT-BTC dated November 15th, 2016 on guidelines for business license fees. Enterprises must comply with the above legislative documents for their business license fees.

1. Business license fee payers

Enterprises; Branches, representative offices and business locations of the enterprises must pay business license fees, except for cases where enterprises, branches, representative offices and business locations of the enterprises are exempted from business license fees in the first year from the date of establishment or official commencement of production/business.

2. The cases of exemption from business license fees

New organizations (issued with new TINs/enterprise ID numbers) are exempted from the business license fee in the first year from the date of establishment or official commencement of production/business (from January 01^st to December 31^st).

During the exemption period, if the enterprise establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the business license fee for the same exemption period granted to the enterprise.

In a case where a new enterprise was established before February 25th, 2020 and its branches, representative offices or business locations were from February 25th, 2020 forward, thus, its branches, representative offices or business locations are not exempted from business license fees and must pay them for tax authority according to current law.

3. Rate of business license fees

• The rate of business license fees for the newly-established enterprise:

If the organizations, branches, representative offices, business locations (that is eligible to be exempted from the business license fee in the first year from the date of establishment or official commencement of production/business) are established, issued with tax registration certificates, tax codes and business codes within the first 06 months of the year, they shall be paid the business license fees of the entire year; If they are established, issued with tax registration certificates, tax codes and business codes within the last 06 months of the year, they shall be paid the business license fees of 50% of the rate of business license fees of the entire year.

• The rate of business license fees for the operating enterprise:

The amounts of annual business license fees for the operating enterprise as follows:

-     The enterprise with charter capital and investment capital of greater than VND 10 billion: VND 3,000,000;

-     The enterprise with charter capital and investment capital of less than or equal to VND 10 billion: VND 2,000,000;

-     Branches, representative offices, business locations and other business entities: VND 1,000,000.

The rate of business license fees for the organizations is based on the charter capital written in the certificate of the business registration or the certificate of enterprise registration. In case of the absence of charter capital, it is based on the investment capital written in the certificate of investment registration or decision on investment policies.

The organization changes its charter capital or investment capital, the ground for determining the amounts of business license fees is their charter capital or investment capital of the preceding year of calculation of business license fees.

If the charter capital or investment capital written in the certificate of the business registration or the certificate of enterprise registration is in currency, it shall be converted into Vietnamese dong. This is a ground for determining the amount of business license fees following the buying rate of commercial banks or credit institutions where business license fee payers open their accounts at the time they make payment to the state budget.

• The rate of business license fees for the enterprise in case of enterprise suspension:

The business license fee payers shall send a written notification of enterprise suspension to supervisory tax authority or business registration authority in the calendar year (from January 1^st to December 31^st). They shall not pay the amount of business license fee in this year if they provide a written notification of enterprise suspension to tax authority before the prescribed time limit of business license fees payment (January 30^th every year) and they have not paid the business license fees in the enterprise suspension year. Where the procedure of enterprise suspension does not meet the above criteria, the business license fee payers must pay business license fees for the entire year.

4. Declaration and payment of business license fees

• Declaration payment of business license fees

The declaration of business license fees is done once when the fee payers newly start their business activities. If the organizations change their charter capital or investment capital, the business license fee payers do not submit the business license fee declaration. Currently, there is a mechanism for exchanging enterprise information between the National Enterprise Registration Information System and the Tax Administration information system.

• Business license fee declaration

The business license fee declaration is the Declaration of license fees.

• Payment of business license fees

The business license fee payers submit the Declaration of business license fees to the supervisory tax authority.

-     The case where the business license fee payers have their subordinate units (Branches, representative offices, business locations) which carry on their business in the same provincial-level locality, the business license fee payers shall submit the business license fee declaration of such subordinate units to the tax authority in charge of the business license fee payers;

-     The case where the fee payers have their subordinate units (branch, representative office, business location) that carry on their business in the different provincial-level locality where the head office of business license fee payers is located, the subordinate units shall submit the business license fee declaration to the tax authority in charge of the subordinate units.

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1. Cases in which temporary residence cards are issued and symbols of temporary residence cards

-     Foreigners who are members of diplomatic missions, consular missions, representative offices of international organizations affiliated to the United Nation, intergovernmental organizations in Vietnam and spouses, children under 18 years of age and helpers accompanying missions shall be issued with temporary residence cards. The symbol of temporary resident cards for this subject shall be granted NG3.

-     Foreigners making entries on LV1, LV2, LS, DT1, DT2, DT3, NN1, NN2, DH, PV1, LD1, LD2 and TT visas shall be issued with temporary residence cards. Temporary resident cards for the foreigners shall be granted symbols similar to visa symbols.

Visa symbols are explained as follow:

• LV1 - Issued to people who come to work with units affiliated to Vietnam’s Communist Party; the National Assembly, the government, Central Committee of Vietnamese Fatherland Front, the People’s Supreme Court, the People’s Supreme Procuracy, State Audit Agency, Ministries, ministerial agencies, Governmental agencies, the People’s Councils, the People’s Committees of provinces.

• LV2 - Issued to people who come to work with socio-political organizations, social organizations, Vietnam Chamber of Commerce and Industry.

• LS – Issued to foreign lawyers practicing in Vietnam.

• DT1 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 100 billion or more or investing in business lines benefitting from investment incentives, in administrative divisions benefitting from investment incentives decided by the Government.

• DT2 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 50 billion to less than VND 100 billion or investing in business lines benefitting from investment incentives treatment decided by the Government.

• DT3 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 3 billion to less than VND 50 billion.

• NN1 - Issued to Managers of representative offices or projects of international organizations and foreign non-governmental organizations in Vietnam.

• NN2 - Issued to heads of representative offices, branches of foreign traders, representative offices of other foreign economic, cultural, professional organizations in Vietnam.

• DH - Issued to people who come to study or serve internship.

• PV1 - Issued to journalists who have permanent residences in Vietnam.

• LD1 – Issued to foreigners working in Vietnam and certified of eligibility for work permit exemption, unless otherwise specified by international agreements to which Vietnam is a signatory.

• LD2 – Issued to foreigners working in Vietnam requiring the work permit.

• TT – Issued to foreigners that are spouses or children under 18 years of age of foreigners issued with LV1, LV2, LS, DT1, DT2, DT3, NN1, NN2, DH, PV1, LD1 or LD2 visas or foreigners that are parents, spouses or children of Vietnamese citizens.

2. Procedures for issuance of temporary residence card

-     A dossier for the temporary residence card consists of:

• A written request from the inviting entity;

• A declaration bearing a picture;

• The passport;

• Documents prove eligibility for issuance of NG3 temporary residence cards.

-     Procedures for issuance of temporary residence:

• The diplomatic mission, consular office, or another agency authorized by the foreigner in Vietnam shall send the application for the NG3 temporary residence card to a competent authority of the Ministry of Foreign Affairs;

• The inviting entity shall directly submit the application for issuance of the temporary residence card to the foreigner to the immigration authority in the same administrative division in which the inviting entity is based or residing;

• Within 05 working days from the receipt of sufficient documents, the immigration authority or the competent authority of the Ministry of Foreign Affairs shall consider issuing the temporary residence card.

3. Duration of temporary residence cards

-     The duration of a temporary residence card is at least 30 days shorter than the remaining duration of the passport.

-     The duration of DT1 temporary residence cards does not exceed 10 years.

-     The duration of NG3, LV1, LV2, LS, DT2 and DH temporary residence cards do not exceed 5 years.

-     The duration of NN1, NN2, DT3 and TT temporary residence cards do not exceed 3 years.

-     The duration of LD1, LD2 and PV1 temporary residence cards do not exceed 2 years.

-     An expired temporary resident card shall be considered for issuance anew.

4. Charges

-     Charge of temporary residence card is valid from 01 years to 02 years: 145 USD/card;

-     Charge of temporary residence card is valid from 01 years to 02 years: 145 USD/card;

-     Charge of the temporary residence card to the foreigner which is issued LD, DT visas for the duration more than 01 year many times by Vietnamese diplomatic missions oversea: 5 USD/card.

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Please contact us for any further concerns related to the topic of this article.

About Us

Asia Business Consulting is a boutique consulting firm specializing in corporate establishment, legal and business advisory, tax and payroll compliance, HR administration, market research to multinationals investing in Vietnam. For further information or to contact the firm, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or download the company brochure. You can stay up to date with the latest business and investment news in Vietnam by subscribing to our newsletters.