Legal answers

Completion of tax obligations before exiting

Answered

On October 19, 2020, the Government issued Decree 126/2020/ND-CP guiding the Law on Tax Administration. Accordingly, this Decree provides for individuals to fulfill their tax obligation before exiting abroad. If the tax obligation has not been fulfilled, the competent person will issue a decision to suspend the exit. Cases of suspension from exit include:

Suspension of exit for individuals, individuals who are the legal representatives of corporate taxpayers who are being coerced to execute administrative decisions on tax administration but have not fulfilled their obligations. Tax payment
Vietnamese people who leave to settle abroad have not fulfilled their tax obligation.
Vietnamese people residing overseas have not fulfilled their tax obligation before exiting.
Before exiting from Vietnam, foreigners have not fulfilled their tax obligation.

After reviewing, comparing and accurately determining tax obligations of taxpayers, the tax administration agency directly managing the taxpayer shall make a list of cases of suspension from exit and make a written submission. Immigration authorities also send taxpayers know to fulfill their tax obligations before leaving. Right on the day of receiving the written suspension from the tax authority, the immigration authority shall implement the suspension in accordance with regulations and post it on the website of Immigration management. If the taxpayer has fulfilled the tax obligation, within 24 working hours, the tax administration agency shall issue a document canceling the suspension of exit.

If the taxpayer continues not to fulfill the tax obligation, before the expiration of the exit suspension period 30 days, the tax authority shall send a written extension of the exit suspension to the immigration authority and send taxpayers to know.

Thus, according to the above provisions, only when the obligation to pay tax to the State is fulfilled can the above cases be allowed to exit abroad.

This Decree takes effect on December 5, 2020.

Banks must provide customer account information and withhold tax as requested by tax authorities

Answered

On October 19th, 2020, the Government issued Decree 126/2020/ND-CP (“Decree 126”) detailing a number of articles of the Law on Tax Administration No.38/2019/QH14. In particular, Decree 126 provides for the responsibilities of commercial banks in providing customer account information and withholding tax on customers’ accounts opened at banks for tax authorities.

Decree 126 provides for the responsibilities of commercial banks as follows:

Provide customer account information for tax authorities

Pursuant to Clause 2, Article 30 of Decree 126, commercial banks are responsible for providing tax authorities with information on taxpayers’ payment accounts opened at banks, including: name of account holder. Account number according to the tax code issued by the tax authority, date of opening of the account, date of account closure. The provision of this account information is done for the first time within 90 days from December 5th, 2020 and account information is updated monthly for 10 days of the following month.
In addition, commercial banks must also provide transaction information through their accounts, balances, and transaction data at the request of the head of the tax authority to serve the purpose of inspection, verification and definition tax payables and taking coercive measures to enforce administrative decisions on tax administration in accordance with the tax law.
Withholding tax on customers accounts opened at banks
Under the provisions of Clause 3, Article 30 of Decree 126, banks are required to withhold and pay tax obligations of an overseas supplier with a permanent establishment in Vietnam that operates e-commerce, doing business on a digital basis with domestic organizations and individuals (hereinafter referred to as overseas suppliers) if the overseas supplier has not yet registered, declared and paid taxes. At that time, a commercial bank shall withhold and pay tax obligations on behalf of the tax law for each product or service that the buyer is an individual in Vietnam pays to the supplier. foreign. The name and website address of the overseas supplier will be provided by the General Department of Taxation to the commercial bank.
In case an individual buys goods or services from a foreign supplier and pays by card or other forms that the commercial bank cannot deduct or pay, the commercial bank shall be responsible track the amount transferred to overseas suppliers and send monthly to the General Department of Taxation.
Although the Decree requires tax authorities to be responsible for the confidentiality of information and to be fully responsible for the safety of information in accordance with the law, however, there are concerns about the possibility of information disclosure of the taxpayer as well as the confidentiality of the bank.

Protection of the employment of whistleblowers who work under labor contracts

Answered

On October 15th, 2020, the Ministry of Labor – War Invalids and Social Affairs issued Circular No.08/2020/TT-BLDTBXH guiding the employment protection of whistleblowers working under labor contracts. This document takes effect from December 1st, 2020.

Accordingly, job protection of the protected person is understood as a competent agency considering and issuing a decision on application of necessary measures specified in Clause 2, Article 57 of the Law on denunciation to job protection for the protected person.

The order is as follows:

When there are grounds specified in Clause 3, Article 47 of the Law on Denunciation, the denunciator or the denunciation-settler shall send a written request to the competent agency to apply measures to protect the protected person’s employment;
In urgent cases, the denouncers can request in person or by phone to request the person settling the denunciation to apply protective measures immediately, but then the request must be presented in writing.
In case the request for protection is found to be grounded, the competent agency shall issue a decision to apply the protected person’s employment protection measures according to regulations.
In case the request for protection is unfounded or deems it unnecessary to apply the protection measure, the competent authority shall issue a notice not to apply the protection measure as prescribed.

Employee’s retirement age

Answered

On November 18, 2020, the Government issued Decree No.135/2020/ND-CP on retirement age, this document takes effect force as of January 1st, 2021.
Accordingly, the regulation on the retirement age of the employee is as follows:
Firstly, for the employee working under normal working conditions, the retirement age for male employees is full 60 years and 03 months and for the female employee is full 55 years and 04 months; thereafter, every year an increase of 3 months for male workers until they reach full 62 years of age by 2028 and each year an increase of 4 months for female workers each year until they reach 60 years of age by 2035.
Retiring at a lower age than the retirement age in normal working conditions, Employees in the following cases may retire at a lower age but not more than 05 years of age compared to the regulations at the time of retirement, except for some other cases:
Having at least 15 years doing heavy, hazardous, dangerous occupations or jobs or extremely heavy, hazardous or dangerous occupations on the list issued by the Ministry of Labor – War Invalids and Social Affairs promulgate.
Having worked 15 years or more in regions with extremely difficult socio-economic conditions, including the period of time working in areas with regional allowance coefficient of 0.7 or more before January 1, 2021
The employee suffers a working capacity decrease of 61% or more.
Have a total working time of heavy, hazardous, dangerous or extremely heavy, hazardous or dangerous occupations or work, and have worked in a socio-economic area with extreme difficulty for 15 years or more.
At the same time, this Decree also defines time points to apply the transitional regulations such as: For male employees born in December 1960 and female employees born in December 1965, working in normal working conditions. then the retirement period ends on December 31th, 2020, and the time for pension enjoyment starts on January 1st, 2021.

Legal News No. 17/2020

Answered

Conditions for applying preferential tax rates to exported goods under the EVFTA Agreement

Answered

On September 18, 2020, the Government issued the Decree No. 111/2020/ND-CP on Preferential Export Tariffs and Special Preferential Import Tariffs of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and European Union in the period 2020 – 2022.

This Decree applies to taxpayers according to the provisions of the Import Tax and Export Tax Law; Customs authorities, customs officers; organizations and individuals have rights and obligations related to imported and exported goods.

Goods exported from Vietnam to which the preferential export tax rates are applied must satisfy the following conditions:

Imported into the territories under the EVFTA Agreement, including:

Members of European Union prescribed in Appendix III hereto appended;
United Kingdom and Northern Ireland.

2. There is a transport document showing destination as member territories of the European Union or the United Kingdom or Northern Ireland;

3. Having the import customs declaration of the export consignment of Vietnamese origin imported into the member territories of the European Union or the United Kingdom or Northern Ireland.

The provisions applying the preferential tax rates only apply to goods exported from Vietnam to the United Kingdom and Northern Ireland during the period from August 1, 2020 to the end of December 31, 2020.

For customs declarations of exported goods registered from August 1, 2020 to before the effective date of this Decree, if all regulations are met to enjoy tax rates If Vietnam’s exports of special preferences in this Decree have been paid at a higher tax rate, the overpaid tax amount shall be handled by the customs office in accordance with the law on tax administration.

This Decree comes into force from September 18, 2020.

Reviewing a number of violations and the level of administrative penalties in the field of Customs

Answered

On October 19, 2020, the Government issued Decree No.128/2020/ND-CP regulates the sanctioning of administrative violations in the field of Customs, the document takes effect from 10/12/2020.

Let’s take a look at a number of violations and the fine levels for administrative violations in the Customs domain:

Export, import, temporary import, re-export, transit, and transfer of counterfeit Vietnamese goods.

Male The fine level for this act is from 10,000,000 VND to 100,000,000 VND, in addition, the additional penalty is confiscation of exhibits of violation and taking remedial measures that are forcible destruction of material evidences that are goods or articles and forcible remittance of an amount equal to the value of the material evidences that have been sold, dispersed or destroyed in contravention of the provisions of law

Violations of regulations on export Import, export, transport into Vietnam goods banned from export, import, temporarily suspended from export or import

The fine level for this act is from 3,000,000 VND to 100,000.000 VND, in addition to applying additional penalties is confiscation of material evidence of violation and application of remedial measures that are forced to take out of the territory of Vietnam; forcible destruction of material evidences that are goods or articles, and forcible payment of an amount equal to the value of the material evidences which have been sold, dispersed or destroyed in contravention of law provisions.

Violation of regulations on import and export of goods on the list of designating exporters and importers

The fine level for this act is from 30,000,000 VND to 50,000,000 VND. In addition, applying the remedial measure is forcible taking out of the Vietnamese territory and at the same time forcing to pay back an amount equal to the value of material evidences that have been consumed, dispersed or destroyed in contravention of law

Violations against regulations on transit, border-gate transfer

The fine level for this act is from 10,000,000 VND to 80,000,000 VND, in addition to applying additional penalties is confiscation of material evidence of violation and application of remedial measures that are forced to take out of the territory of Vietnam; forcible destruction of material evidences that are goods or articles, and forcible payment of an amount equal to the value of the material evidences which have been sold, dispersed or destroyed in contravention of law provisions

Above is the content of a number of violations and administrative penalties in the field of Customs, please refer to Decree 128/2020 / ND-CP to have the next adjustment and review to avoid violations in the course of operation and business.

Increase the fine level for violations of cosmetic advertising regulations through the form of seminars, conferences, events

Answered

On September 28, 2020, the Government issued Decree No. 117/2020/ND-CP regulating the sanctioning of administrative violations in the health sector, replacing Decree 176/2013/ND-CP (“Decree No. 117/2020/ND-CP”).

Accordingly, Decree No. 117/2020 / ND-CP has increased the fine level for violations of regulations on cosmetic advertising through the form of seminars, conferences and events. As follows:

Acts and fine levels are specified in Decree 176/2013/ND-CP:

At Points a, d, dd, Clause 2, Article 49 of Decree No. 176/2013/ND-CP stipulates:

“Article 49. Violations against regulations on information about pharmacy, cosmetics, and medical equipment

Any of the following violations shall carry a fine of from VND 5,000,000 to VND 10,000,000:

c) Holding a conference or event to introduce cosmetics that is inconsistent with the application granted by a competent authority;

d) Holding a conference or event to introduce cosmetics using expired contents; Holding a conference or event to introduce cosmetics before the application is granted;

dd) Failing to notify the Service of Health of changes in the time and location of the conference or event for cosmetic introduction, which has been approved by Services of Health;”

Thus, the fine level under Decree 176/2013/ND-CP is only from 5,000,000 VND to VND 10,000,000 for violations of cosmetic advertising through seminars, conferences, groups Event (this is where the penalty for individuals, the penalty for the organization will be 2 times).

2. Acts and fine levels are specified in Decree No. 117/2020/ND-CP:

In Article 69 of Decree 117/2020/ND-CP stipulates:

Article 69. Violation of regulations on advertising cosmetics through the form of seminars, conferences, events

A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for one of the following acts of organizing seminars, conferences, or cosmetic introduction events:

Failure to notify the competent authority prior to the organization as provided for by law.
Not in accordance with the content notified to the competent agency according to the provisions of law.

Thus, the fine level under Decree 117/2020/ND-CP from VND 30,000,000 to VND 40,000,000 for violations of cosmetic advertising through the form of seminars, conferences, and organizations. event (this is where the penalty for individuals, the penalty for the organization will be 2 times).

Thus, we can see that, Decree No. 117/2020/ND-CP has increased the fine level for violations of regulations on cosmetic advertising through the form of seminars, conferences and events.

Decree No. 117/2020/ND-CP takes effect from November 15, 2020.

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Adding many violations related to alcohol and beer in the new Decree on sanctioning administrative violations in the health sector

Answered

Accordingly, Decree No. 117/2020/ND-CP has added many violations related to alcohol and beer, which were not previously regulated in Decree 176/2013/ND-CP.

Including 8 articles, from Article 30 to Article 37 of Decree No. 117/2020/ND-CP, specifically including:

Article 30. Violation of regulations on drinking alcohol, beer and places where alcohol or beer is not being consumed
Article 31. Violations of regulations on sale and supply of alcohol and beer
Article 32. Violations of regulations on alcohol and beer promotion
Article 33. Violations of regulations on advertising for alcohol and beer
Article 34. Violation of regulations on responsibilities of heads of agencies and organizations in the prevention and control of harmful effects of alcohol and beer
Article 35. Violation of regulations on liability of alcohol and beer trading establishments
Article 36. Violation of regulations on information, education and communication on the prevention and control of harms from alcohol and beer
Article 37. Violations of regulations on sponsorship of alcohol and beer

Thus, we can see that, Decree No. 117/2020/ND-CP has added many violations related to alcohol and beer, which were not previously regulated in Decree 176/2013/ND-CP.

Decree No. 117/2020/ND-CP takes effect from November 15, 2020.

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Tighter in monitoring infectious diseases in Vietnam

Answered

Accordingly, Decree No. 117/2020/ND-CP has provided stricter regulations on monitoring infectious diseases in Viet Nam, specifically as follows:

All violations in monitoring infectious diseases were fined

Previously, according to the provisions of Article 6 of Decree 176/2013/ND-CP, the warning penalty was still considered as the main penalty for 01 act: Failure to report when detecting a person with an infectious disease belong to group A.
However, in Article 7 of Decree No. 117/2020/ND-CP the form of warning has been removed, and instead only applies a fine to the group of violations on monitoring infectious diseases.

2. Application of higher fines, more dissuasive

Previously, according to the provisions of Article 6 of Decree 176/2013/ND-CP, the fine level for violations in monitoring infectious diseases: From VND 200,000 to VND 1,000,000 for an individual (2 times higher for an organization).
However, in Article 7 of Decree No. 117/2020/ND-CP, the fine level for violations in monitoring infectious diseases: from VND 500,000 to VND 20,000,000 for individuals (2 times higher for an organization).

3. Adding the acts are considered administrative violations in monitoring infectious diseases.

In Article 6 of Decree 176/2013/ND-CP only stipulates: 3 groups of behaviors.

The failure to report sufferers of group A diseases;
Concealment of the development of group A diseases of oneself or of other people;
Failure to take the test for group A diseases at the request of a competent authority.

In Article 7 of Decree No. 117/2020/ND-CP stipulates: 7 groups of behaviors.

Acts of concealing, failing to report or making untimely reports when detecting another person suffering from an infectious disease as prescribed by law;
Failure to test at the request of a competent health authority during infectious disease surveillance;
Failing to report or reporting inadequately on infectious disease surveillance as prescribed by law;
Concealing, failing to report or not promptly reporting the current state of their infectious disease;
Concealing, failing to report or reporting in no time the current state of group A infectious diseases of themselves or of another person suffering from a group A infectious disease;
Deliberately giving false information on group A infectious diseases;
Intentionally spreading a agent of group A infectious diseases.

Thus, we can see that, Decree No. 117/2020/ND-CP issued tighter regulations in monitoring infectious diseases in Vietnam.

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