TAX NEWS – ACCOUNTING – FINANCE MARCH & 04/2021
In this Newsletter for March and April, 2021, we would like to introduce to you new policies related to tax, corporate law, labor and other regulations including:
- Extension of deadlines for payment of value-added tax, corporate income tax, personal income tax, and land tax in 2021
- Install the application of social insurance, health insurance VssID
- There is no penalty for the delay in changing tax registration information when renewing chip-based citizen identification
- Promote the level of electronic transaction accounts in the tax field for individuals
- Expenses for support and funding for the prevention and control of the Covid-19 epidemic are deductible when determining taxable income
- Invoices and vouchers for goods imported and circulated on the market
- New point Circular No. 01/2021/TT-BKHDT dated March 16, 2021, on business registration
1. Extension of time limit for payment of value-added tax, corporate income tax, personal income tax, and land tax in 2021
Decree No. 52/2021/ND-CP stipulating the extension of the deadline for tax payment and land rent for businesses, organizations, business households, and individuals negatively impacted by the Covid-19 epidemic.
Taxpayers subject to extension send a one-time extension request for all tax periods to be extended together with the time of filing tax returns. The deadline for applying for an extension is July 30, 2021.
2.Install the application of social insurance, health insurance VssID
Following the direction of the People's Committee of Ho Chi Minh City (City People's Committee) in Official Dispatch No. 1388/UBND-VX dated May 5, 2021, on the installation and use of the application VssID - Social Insurance No. In the city, the City People's Committee requires all civil servants, public employees, employees at the unit, and people in the area to install, register and use the VssID application on smart mobile devices. Personal, completed by July 31, 2021.
Using VssID software, participants of social insurance and health insurance know where they have been participating in social insurance and health insurance, and how much they pay. In addition, users can also see: How much money has been paid by the user for medical examination and treatment (with health insurance card), etc. This application will also replace paper social insurance books, paper health insurance cards.
Therefore, individuals participating in social insurance and health insurance should download and register this application immediately. Because social insurance is currently supporting people, they do not need to go directly to the social insurance agency to be granted a login password. At the end of the support period, users must register themselves at the social insurance agency.
3. There is no penalty for the delay in changing tax registration information when renewing chip-based citizen identification
Information on this issue, the Provincial Tax Department said, to create favorable conditions for taxpayers (NNT) in this change of CCCD with electronic chips, in Clause 6, Article 11 of Decree No. 125/2020 of the Government. The government mentioned the following cases:
Non-business individuals who have been granted a personal income tax code are slow to change information about their ID cards when they are issued with a CCCD card; If the income-paying agency is late in notifying the change of information about ID card when personal income taxpayers are individuals authorized to finalize personal income tax and are issued CCCD cards, they will not be penalized.
4. Promote the level of electronic transaction accounts in the tax field for individuals
The General Department of Taxation has just issued Official Letter 377/TCT- DNNCN promoting the organization of granting electronic transaction accounts (TKGDDT) in the tax field for individuals.
To expand the deployment of electronic tax declaration and payment services for individuals nationwide, creating favorable conditions for taxpayers (NNTs) when conducting electronic transactions with tax authorities, ensuring that The targets set by the Government and the Ministry of Finance, and at the same time create favorable conditions for taxpayers in the implementation of personal income tax finalization in 2020, the General Department of Taxation proposes to the Directors of Tax Departments of provinces and cities. Direct the relevant departments of the Department of Taxation and the Sub-department of Taxation to focus on organizing the issuance of e-accounts for individuals by the provisions of Circular 110/2015/TT-BTC.
Under the direction of the General Department of Taxation, the Tax Departments shall develop plans and propaganda contents at tax authorities at all levels to encourage taxpayers who are individuals with tax identification numbers without digital signatures to be granted e-accounts and perform tax services. Electronic tax services with tax authorities, especially individuals with e-accounts declare and submit personal income tax finalization documents on electronic tax services to reduce congestion when submitting paper documents at tax authorities, according to The contents have been guided in the official dispatch of the General Department of Taxation. The General Department of Taxation noted that propaganda information must be regular and continuous in many forms, ensuring that all taxpayers can access and understand the process, order, and procedures for the registration of e-accounts.
5. Expenses for support and sponsorship of businesses and organizations for Covid-19 prevention and control activities are deductible when determining corporate income taxable income.
Decree 44/2021/ND-CP Guiding the implementation of deductible expenses when determining corporate income taxable income for expenditures to support and sponsor enterprises and organizations for prevention activities, Fight against Covid-19. Decree 44/2021/ND-CP takes effect from the date of signing and applies to the 2020 and 2021 CIT tax periods.
6. Invoices and vouchers for goods imported and circulated on the market
On May 8, 2015, the Inter-Ministry of Industry and Trade, the Ministry of Finance, the Ministry of National Defense, and the Ministry of Public Security issued Joint Circular No. 64/2015/TTLT-BTC-BCT-BCA-BQP (Joint Circular No. 64/2015/TTLT-BTC-BCT-BCA-BQP) No. 64) stipulating the invoice and document regime for imported goods circulating in the market.
Joint Circular No. 64 stipulates the invoice and voucher regime for imported goods circulating on the market, including Imported goods in transit; On sale; Stored at warehouses, wharves, yards, at establishments producing and trading imported goods or at other places (collectively referred to as imported goods circulating on the market); Guiding the handling of violations of regulations on invoices and documents for imported goods circulating on the market; Rights, obligations and responsibilities of relevant agencies, organizations and individuals.
Joint Circular No. 64 also stipulates details of invoices and documents for imported goods transported from the import border gate to the inland as well as imported goods circulating in the domestic market; Guidance on handling administrative violations; Competence to sanction administrative violations; Responsibilities of agencies that inspect and handle violations; Responsibilities and rights of establishments producing and trading imported goods; Coordination obligations of agencies, organizations, individuals, etc.
7.Basic new point of Circular No. 01/2021/TT-BKHDT dated March 16, 2021, on business registration
On March 16, 2021, the Minister of Planning and Investment signed and promulgated Circular No. 01/2021/TT-BKHDT guiding business registration. Circular No. 01/2021/TT-BKHDT takes effect from May 1, 2021, and will replace Circular No. 20/2015/TT-BKHDT dated December 1, 2015, and Circular No. 02/ 2019/TT-BKHDT dated January 8, 2019, of the Minister of Planning and Investment. Forms of documents used in business registration, business household registration issued in the Appendix attached to Circular No. 01/2021/TTBKHDT will be used uniformly nationwide from the effective date of this Circular Force.