TAX NEWS – ACCOUNTING – FINANCE JANUARY&FEBRUARY 2021
In this Newsletter January and February 2021, we would like to introduce to you new policies related to tax, corporate law, labor, and other regulations including:
- Instructions for finalization of personal income tax in 2020
- Instructions for payment of land use levy debt from March 1, 2021
- New point of Decree 01/2021/ND-CP on business registration
- Summary and analysis report of the 2019 financial statements of foreign-invested enterprises of the Ministry of Finance
- New point of Decree 145/2020/ND-CP on conditions and labor relations
- New point on tax registration in Circular 105/2020/TT-BTC
- Notice of conversion of VAT declaration period from a month to quarter
1. Finalization of personal income tax 2020
The tax finalization for the tax period 2020 shall comply with the provisions and instructions in Law on Personal Income Tax No. 04/2007/QH12; Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019, of the National Assembly, effective from July 1, 2020; Resolution No. 954/2020/NQ-UBTVQH dated June 2, 2020, of the National Assembly Standing Committee on adjusting the reduction of family circumstances on personal income tax; Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government detailing several articles of the Law on Tax Administration effective from December 5, 2020, and guiding documents.
2. Payment of land use levy from March 1, 2021
From March 1, 2021, according to new regulations in Decree 79/2019/ND-CP, households and individuals must pay the outstanding land use levy according to the policy and the land price at the time of payment. Owe. According to the old regulations of Decree No. 45/2014/ND-CP, the land use levy is debited according to the land price at the time of issuance of the Certificate (“pink book”). The land price at the time of debt repayment is issued by the Provincial People's Committee for each period, so it can increase many times compared to the land price at the time of issuance of the Certificate.
If the property is owned, the land use fee is debited, it should be considered before February 28, 2021, to enjoy a payment rate many times lower than the payment rate is determined according to the current or future land price list Upon transfer.
3. New point in Decree 01/2021/ND-CP on business registration
Some new highlights in Decree 01/2021/ND-CP on business registration (effective from January 4, 2021) compared to the old regulations in Decree 78/2015/ND-CP And Decree 108/2018/ND-CP
– 05 cases of revocation of business registration certificate
– 06 notes when naming a business
– Business code
– Cases where business registration is granted
– Establishment of more business registration office
– Enterprises will be refunded the fee for announcing business registration contents if the enterprise registration certificate is not granted
– Business location of the household business
– There is no limit on the duration of business suspension for business households
– Notice of business termination
– Clear regulations on the legal status of enterprises in the National Database of Business Registration
– More cases of revocation of operation registration certificates of branches and representative offices
– More cases of not being registered, notification of changes in business registration content
4. Summary and analysis report of the 2019 financial statements of foreign-invested enterprises of the Ministry of Finance
The Ministry of Finance has just reported the results of the synthesis and analysis of the 2019 financial statements of foreign-invested enterprises (FDI) to the Prime Minister. This annual report of the Ministry of Finance is used by the Government to consider and adjust policies on attraction, incentives, and selection of foreign investors such as land, tax incentives, industry incentives, etc. Local incentives, incentives according to the size of investment…
5. New point of Decree 145/2020/ND-CP on conditions and labor relations
On December 14, 2020, the Government issued Decree 145/2020/ND-CP detailing and guiding the implementation of several articles of the 2019 Labor Code on working conditions and relationships between Labor
6. New points on tax registration in Circular 105/2020/TT-BTC
Regarding tax registration, on December 3, 2020, the Ministry of Finance issued Circular No. 105/2020/TT-BTC providing detailed instructions for businesses to comply with regulations. The Circular includes 4 Chapters, 25 Articles and officially takes effect from January 17, 2021. Accordingly, there will be many regulations to be adjusted, amended, and supplemented compared to the current Circular 95/2016/TT-NTC dated June 28, 2016.
7. Notice of conversion of VAT declaration period from a month to quarter
According to Decree 126/2020/ND-CP dated October 19, 2020, of the Government, enterprises determine their own VAT calculation period on a monthly or quarterly basis and apply stably for the whole calendar year. If you are making a monthly declaration and are eligible for a quarterly declaration, you must send a Notice of change of tax declaration period to the tax authority, made according to form 01/DK-TDKTT, to the tax authority before January 31 of that year. However, form 01/DK-TDKTT has not been issued yet.