LEGAL UPDATES VOL.06 (JUNE 2021)

LEGAL UPDATES VOL.06

JUNE, 2021

Dear Value Clients and Partners,

ADK Lawyers would like to introduce to you the Vietnam Law Legal Updates Vol.06 (June 2021) with new legal provisions with notable contents as follows:

1. Guidance on the application of the Prior Agreement on Taxable Price Determination (APA) method in tax administration to enterprises having associated transactions.

Accordingly, Circular No. 45/2021/TT-BTC will come into effect on August 3, 2021 on guiding the implementation of Article 41 of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government on the application of the pre-agreement mechanism on the method of identification. tax assessment (APA) in tax administration for enterprises with associated transactions, to improve the efficiency of tax administration, reduce the cost of tax compliance, determine the associated transaction price of taxpayers following the principles of analysis and comparison with independent transactions and the principles of basic of operation, transactions determine tax obligations to determine the nature of related-party transactions, payable corporate income tax obligations of taxpayers as in the conditions of transactions between independent parties and prevent double taxation and tax evasion and reduce disputes over pricing of related transactions

Transactions proposed to apply APA: transactions of purchasing, selling, exchanging, renting, leasing, borrowing, lending, transferring ofgoods or providing services; loans, financial services, financial guarantees and other financial instruments; buy, sell, exchange, rent, lease, borrow, lent, transfer, transfer of a tangible assets, an intangible assets and an agreement for purchasing, selling, sharing resources such as assets, capital, labour, cost-sharing among related – parties, except for business, transactions for goods and services subject to the State’s price adjustment scope that meet all of following conditions: (i) Actual transactions have arisen in the taxpayer's production and bsiness activities and will continue to take place during the period of application for APA; (ii) Transactions that have a basis for determining the nature of the transaction to determine tax obligations and have a basis for analysis, comparison, and selection of independent comparable; (iii) Transactions are not subject to tax disputes or complaints; and (iv) Transactions are made transparently, not to evade, avoid taxes, or taking advantage of Tax Agreements.

Dossier and information: Application for APA is presented in Vietnamese; In case of application for bilateral or multilateral APA, the English version shall be included. Taxpayers stamp for certification and are responsible for the translation content.

For the application for bilateral or multilateral APA, the taxpayer is responsible for uniformity of the content between the dossier submitted to the tax authority of Vietnam and the dossier submitted by the related party within the scope of the proposal. The APA proposal is submitted to the partner tax authority.

2. 30 types of Fees and charges are reduced to support difficulties due to the impact of the Covid 19 pandemic

From July 1st, 2021 to the end of December 31st, 2021, some fees and charges will be reduced as prescribed in Circular No. 47/2021/TT-BTC issued by the Ministry of Finance to support and remove difficulties for those affected by the Covid-19 epidemic. Specifically,

No.	Type of Fees and Fees	Charge rate
1	Fee for exploitation and use of environmental data	Equal to 70% of the charge rate specified in the schedule of charge rates for exploitation and use of environmental data issued together with Circular No. 22/2020/TT-BTC.
2	a) Fee for issuance of establishment and operation licenses of banks	Equal to 50% of the charge rate specified at point a Section 1 of the fee collection schedule specified in clause 1 Article 4 of Circular No. 150/2016/TT-BTC
	b) Fee for establishment and operation licenses of non-bank credit institutions	Equal to 50% of the fee rate specified at point b Section 1 of the fee collection schedule specified in clause 1 Article 4 of Circular No. 150/2016/TT-BTC.
3	a) Fee for issuance of construction operation capacity certificates to organizations	Equal to 50% of the fee rate specified in clause 1 Article 4 of Circular No. 172/2016/TT-BTC.
3	b) Fee for grant of construction practice certificates to individuals
4	a) Charge for appraisal of construction investment projects	Equal to 50% of the charge rate specified in Section 1 of the charge schedule for appraisal of construction investment projects, the basic design appraisal fee issued together with circular No. 209/2016/TT-BTC.
	b) Fee for appraisal of basic design	Equal to 50% of the charge rate specified in Section 2 of the charge schedule for appraisal of construction investment projects, the basic design appraisal fee issued together with circular No. 209/2016/TT-BTC.
5	a) Technical design appraisal fee	Equal to 50% of the charge rate specified in the fee schedule issued together with Circular No. 210/201 6/TT-BTC.
5	b) Construction estimate appraisal fee
6	a) Appraisal and issuance of international travel service business licenses and domestic travel service business licenses	Equal to 50% of the charge rate specified in clause 1 Article 4 of Circular No. 33/2018/TT-BTC.
6	b) Appraisal for issuance of tour guide card	Equal to 50% of the charge rate specified in clause 2 Article 4 of Circular No. 33/2018/TT-BTC.
7	Fee for appraisal of permits for exploration, exploitation, and use of water resources; discharge of wastewater into water sources and practice of drilling water on the ground by central agencies	Equal to 80% of the charge rate specified in the fee schedule for appraisal of permits for exploration and exploitation of water resources, the practice of drill groundwater and discharge wastewater into water sources promulgated together with Circular No. 270/2016/TT-BTC.
8	Fee for exploitation and use of hydro-meteorological information and data	Equal to 70% of the charge rates specified in the schedule of charge rates for exploitation and use of information and hydro-meteorological d a promulgated together with Circular No. 197/2016/TT-BTC.
9	a) Fee and charges in the field of securities (except for 02 Fee and charges specified at Points b and c below)	Equal to 50% of the charge rates and charge specified in the schedule of Fee and charges in the field of securities issued together with Circular No. 272/2016/TT-BTC.
	b) Fee for new issuance, renewal, and re-issuance of securities practicing certificates (certificates) for individuals practicing securities at securities companies, securities investment fund management companies, and securities investment companies	Applying the fee rate specified in point 20 Section I of the schedule of Fee and charges in the field of securities promulgated together with Circular No. 272/2016/TT-BTC.
	c) Fee for supervision of securities activities	Applying the charge rate specified at point 2, Section II, the rate of Fee and charges in the field of securities promulgated together with Circular No. 272/2016/TT-BTC.
10	a) Fee for appraisal of non-business documents for issuance of publishing licenses	Equal to 50% of the charge rate specified in clause 1 Article 4 of Circular No. 214/2016/TT-BTC.
	b) Fee for issuance of non-business publication import permit	Equal to 50% of the charge rate specified in clause 2 Article 4 of Circular No. 214/2016/TT-BTC.
	c) Fee for registration of publication imports for business	Equal to 50% of the charge rate specified in clause 3 Article 4 of Circular No. 214/2016/TT-BTC.
11	a) Fee for appraisal of trading in restricted goods and services in the commercial sector; expenses for appraisal and trading of conditionally traded goods and services in the commercial sector, for business subjects being organizations and enterprises; expenses for appraisal of conditional business goods and services in the commercial field, for business owners being business households and individuals
	a.1) In centrally-runtimes urban areas and provincial towns	Equal to 50% of the charge rate specified at points a, b a, and c clause 1 Article 4 of Circular No. 168/2016/TT-BTC.
	a.2) In other areas	Equal to 50% of the corresponding charge rate specified at point a.1 of No. 11.
	b) Fee for issuance of a license to establish the Goods Exchange
	b.1) In the centrally-run city area and the city or provincial town area.	Equal to 50% of the charge rate specified at point d clause 1 Article 4 of Circular No. 168/2016/TT-BTC.
	b.2) In other areas	Equal to 50% of the corresponding charge rate specified at point b.1 of No. 11.
12	Registration fee (confirmation) using the foreign barcode number	Equal to 50% of the charge rate specified in clause 2 Article 4Circularular No. 232/2016/TT-BTC.
13	Industrial property Fee	Equal to 50% of the fee rate specified in Section A of the industrial property charge rate schedule issued together with Circular No. 263/2016/TT-BTC.
14	Fee for franchising and operating airports and air airports	Equal to 90% of the charge rate specified in Article 4 of Circular No. 247/2016/TT-BTC.
15	Fee for access to airports and air airports for foreign flights to Vietnamese airports	Equal to 90% of the fee rate specified in clause 1 Article 4 of Circular No. 194/2016/TT-BTC.
15	Customs Fee	Equal to 90% of the fee rate specified in clause 2 Article 4 of Circular No. 194/2016/TT-BTC.
16	a) Fee for appraisal of the grant of certificates, licenses and certificates in civil aviation activities; issuance of permits for access to restricted areas at airports/air airports (except for the contents collected in the numbers: 4.1, 4.2, 4.3, 4.4, 4.5.1, 5, 6 Section VI Part A The schedule of charge rates and charges applicable to the corresponding charge rates specified in Section VI Part A of the schedule of Fee and charges in the aviation sector issued together with Circular No. 193/2016/TT-BTC)	Equal to 80% of the charge rate specified in Section VI Part A of the schedule of Fee and charges in the aviation sector issued together with Circular No. 193/2016/TT-BTC.
16	b) Fee for registration of security transactions for aircraft (except for the contents collected in the order no. 4 Section VIII Part A of the schedule of charge rates and charges specified in Section VIII Part A of the schedule of Fee and charges in the aviation sector issued together with Circular No. 193/2016/TT-BTC.	Equal to 80% of the charge rate specified in Section VIII Part A of the schedule of Fee and charges in the aviation sector issued together with Circular No. 193/2016/TT-BTC.
17	a) Security transaction registration fee	Equal to 80% of the charge rates specified at Points a, b and d, Section 1 of the toll rates in Article 4 of the Circular No. 202/2016/TT-BTC; and equal to 80% of the charge rate specified at point c, point d Section 1 of the charge rate schedule in Article 1 of Circular No. 113/2017/TT-BTC.
17	b) Fee for provision of information on transactions secured by real estate (except for aircraft), seagoing vessels	Equal to 80% of the charge rate specified in Section 2 of the Toll Schedule in Article 4 of the Circular No. 202/2016/TT-BTC.
18	Appraisal of business the conditions in technical inspection of occupational safety; training of occupational safety and sanitation	Equal to 70% of the charge rate specified in Article 1 of Circular No. 110/2017/TT-BTC issued together with Circular No. 245/2016/TT-BTC
19	a) Fee for issuance of operation licenses for bringing workers abroad for a limited time	Equal to 50% of the fee rate specified in Section 1 of the collection rate schedule in Circular4 of circular No. 259/2016/TT-BTC.
19	b) Verifying papers and documents at the request of domestic organizations and individuals	Equal to 50% of the charge rate specified in Section 3 of the Charge Rate Schedule in Circular4 of circular No. 259/2016/TT-BTC.
20	a) Fee for grant of protection certificates or grant of certificates of registration of industrial property right transfer contracts	Equal to 50% of the fee rate specified at point 1 Section I of the fee schedule in the field of cultivation and forestry varieties issued together with circular No. 207/2016/TT-BTC.
	b) Fee for submission of application for intellectual property protection	Equal to 50% of the fee rate specified at point 2 Section I of the schedule of Fee and charges in the field of cultivation and forestry varieties issued together with circular No. 207/2016/TT-BTC.
	c) Fee for issuance of industrial property representation practice certificates, announcement and registration of industrial property representations	Equal to 50% of the fee rate specified at point 3 Section I of the schedule of Fee and charges in the field of cultivation and forestry varieties issued together with circular No. 207/2016/TT-BTC.
	d) Plant variety protection fee: - the Maintain validity of plant variety protection certificate: From 1st to 3rd year; from the 4th to the 6th year; from 7th to 9th year. the - Maintain validity of plant variety protection certificate: From the 10th year to the 15th year; from the 16th year to the expiration of the validity period of the Protection Certificate.	Equal to 80% of the corresponding charge rate specified at point 3 Section III Fees the list of Fee and charges in the field of cultivation and forestry varieties issued together with circular No. 207/2016/TT-BTC. Equal to 70% of the corresponding charge rate specified at point 3 Section II Fees the list of Fee and charges in the field of cultivation and forestry varieties issued together with circular No. 207/2016/TT-BTC.
21	Fee for issuance of passports, passports, departure permits, AB stamps	Equal to 80% of the fee rate specified in Section I of the fee and fee schedule issued together with Circular No. 25/2021/TT-BTC.
22	a) Fee loan for issuance of artillery management permit	Equal to 80% of the fee rate specified in Section III of the Charge Rate Schedule in Circular1 of circular No. 23/2019/TT-BTC.
22	b) Fee for issuance of licenses for management of weapon, explosives and supporting tools	Equal to 80% of the fee rate specified in Section IV of the Charge Rate Schedule in Article 1 of the Circular No. 23/2019/TT-BTC.
23	a) Fee for settlement of independent requests of people with related rights and obligations.	Equal to 50% of the charge rate specified at point a clause 2Circular 4 of circular No. 58/2020/TT-BTC.
23	b) Fee for appraisal of dossiers of exemption in settlement of competition cases.	Equal to 50% of the charge rate specified at point b clause 2Circular 4 of circular No. 58/2020/TT-BTC.
24	Inspection fee for fire prevention and fighting means	Equal to 50% of the charge rate specified in the fire prevention and fighting vehicle inspection fee schedule issued together with Circular No. 02/2021/TT-BTC.
25	Charge for appraisal and approval of fire prevention and fighting design	Equal to 50% of the charge rate calculated as prescribed in Article 5 and the rate of chargeable rate for appraisal and approval of fire prevention and fighting design issued together with Circular No. 258/2016/TT-BTC.
26	Fee for issuance of citizen identification cards	Equal to 50% of the fee rate specified in Article 4 of circular No. 59/2019/TT-BTC.
27	Fee in the medical field	Equal to 70% of the charge rate specified in Article 1 of circular No. 11/2020/TT-BTC; and equal to 70% of the charge rate specified in Section II; Section III; points 2, 3, 5, 6, 7, 8, 9 Section IV; Section V schedule of toll rates in the medical field issued together with Circular No. 278/2016/TT-BTC.
28	Use of collecting roads for automobiles in transport business of transport enterprises, transport business cooperatives, transport business households
	a) Passenger transport business cars (passenger cars, public passenger transport buses)	Equal to 70% of the toll rate specified at points 1, 2, 3, 4, 5 Section 1 of the road toll rate schedule issued together with Circular No. 293/2016/TT-BTC.
	b) Trucks, special-use vehicles, tractors	Equal to 90% of the toll rates specified at Points 2, 3, 4, 5, 6, 7, 8, 1, the road toll rate schedule issued together with Circular No. 293/2016/TT-BTC.
29	Fee for food safety and hygiene	Equal to 90% of the fee rate specified in the fee schedule in food safety and hygiene promulgated together with Circular No. 75/2020/TT-BTC.
30	Fee for conditional business appraisal in the field of feed and environmental improvement treatment products used in aquaculture	Equal to 90% of the charge rate specified at point 3 Section II of the schedule of Fees and charges in the field of quality management of aquaculture supplies issued together with Circular No. 284/2016/TT-BTC.