Decree No. 100/2020 / ND-CP dated August 28 th , 2020 of the Government regulating the
business of duty-free goods, specifying the subjects and conditions for buying duty-free goods.
The document takes effect from October 15, 2020
Subjects and conditions for buying duty-free goods are: Persons who leave or transit after
completing exit or transit procedures, passengers on international flights leaving from Vietnam or
People waiting for exit can buy duty-free goods. Include:
(1) people exiting or in transit through international land border checkpoints; International
intermodal rail station border gates, class 1 seaports and international civil airport border gates
may purchase duty free goods at duty-free shops located in isolated areas. (2) People waiting for
exit can buy duty-free goods at local duty-free shops. Duty-free goods are received at the pick-up
counter in the quarantine area at the international checkpoint where the passenger exits. (3)
Foreign tourists traveling in groups by sea, holding a passport or international travel document
are entitled to purchase duty-free goods at a seaport type 1, domestic duty-free shop. In case of
buying duty-free goods domestically, tourists may receive the goods at the receiving counters in
the quarantine area at the class 1 seaport checkpoint where the tourists leave.
In addition to the place of receiving goods specified in this Clause, customers who
purchase goods specified at Points 1, 2 and 3 above (except for customers buying goods on
international flights leaving from Vietnam) may receive goods overseas. This is the new
regulation to be added in Decree 100/2020/ND-CP in 2020.
In addition, other buyers of duty-free goods such as passengers on international flights
departing from Vietnam, persons on entry, and subjects enjoy privileges and immunities in
Vietnam… remain the same as before.
On September 25, 2020, the Government issued Decree No. 114/2020/ND-CP, detailing
the implementation of the National Assembly's Resolution No. 116/2020/QH14 on
corporate income tax (“CIT”) payable in 2020 for enterprises, cooperatives, non-business
units and other organizations (”Decree 114/2020/ND-CP”).
Accordingly, guidance on the declaration of CIT payable reduction in 2020, specifically as
follows:
1. Enterprises shall determine by themselves the reduced CIT amount:
– Enterprises determine by themselves the amount of CIT to be reduced when: temporarily
calculating tax (quarterly) and declaring the CIT payable in the CIT period 2020.
– When making a tax declaration dossier, the enterprise shall declare the reduced CIT on the
declaration forms enclosed with Circular No. 151/2014/TT-BTC dated October 10, 2014 of
the Ministry of Finance and the amended and supplemented documents (if any) and in the
CIT Appendix are reduced according to Resolution No. 116/2020/QH14 issued together
with Decree 114/2020/ND-CP.
2. When enterprises underpay/overpay the quarterly temporary tax amount:
– Underpayment compared to the temporarily paid tax amount (quarterly): The enterprise
must additionally pay the outstanding tax + late payment interest in accordance with the
Law on Tax Administration and its guiding documents.
– Overpayment compared to the payable tax amount of the CIT period 2020: Overpaid tax
amounts shall be handled according to the provisions of the Law on Tax Administration
and guiding documents.
3. Inspection and examination by competent state agencies in the declaration of CIT
payable reduction in 2020:
– Through inspection and examination, the competent authority discovered: (1) Enterprises
are not subject to tax reduction according to the provisions of Decree 114/2020/ND-CP; or
(2) The payable tax amount of the CIT period 2020 is larger than the paid tax amount =>
the enterprise must pay: the outstanding tax + late payment interest from the date of
expiration of the tax payment time limit + fines in accordance with the Law on Tax
Administration and its guiding documents.
– In case enterprises: (1) additionally declaring CIT declaration dossiers for the tax period
2020; or (2) implementing a decision after inspection and examination by a competent
authority => Leading to an increase in CIT payable, the additional CIT is reduced by 30%
in accordance with the Decree. 114/2020/ND-CP.
– In case enterprises: (1) additionally declaring CIT declaration dossiers for the tax period
2020; or (2) implementing a decision after inspection and examination by a competent
authority => Leading to the reduction of corporate income tax payable, the overpaid tax amount (if any) shall be handled according to the provisions of the Law on Tax
Administration and guiding documents.
4. The value of the Decree 114/2020/ND-CP provides:
– It is a supporting policy from the state to help enterprises overcome difficult times due to
the impact of the Covid-19 epidemic;
– It is the capital facilitation for enterprises to develop production and business, improve
competitiveness, expand production scale;
– It is a measure to maintain long-term revenues for the state budget.
Above is the news: Guidance on the declaration of CIT payable reduction in 2020, in
Decree No. 114/2020/ND-CP.
Decree No. 114/2020/ND-CP takes effect from the effective date of Resolution No.
116/2020/QH14 and applies to the CIT period 2020, interpreted as August 3, 2020.
Hope the above information is helpful to The Valued Readers.
Bizlawyer is pleased to accompany with you!
On September 25, 2020, the Government issued Decree No. 114/2020/ND-CP, detailing
the implementation of the National Assembly's Resolution No. 116/2020/QH14 on
corporate income tax (“CIT”) payable in 2020 for enterprises, cooperatives, non-business
units and other organizations (“Decree 114/2020/ND-CP“).
Accordingly, some notes on the reduction of CIT payable in 2020, specifically as follows:
1. Notes on the reduced CIT amount:
– The reduced CIT amount of the CIT period 2020 is calculated on the entire income of the
enterprise, including the incomes specified in Clause 3, Article 18 of the Law on CIT.
– The reduced CIT amount specified in Decree 114/2020/ND-CP is calculated on the
payable CIT amount of the CIT period 2020, after deducting the CIT amount that
enterprises are enjoying preferential treatment according to the provisions of the Law on
CIT and its guiding documents.
2. Notes on the CIT period:
– The CIT period is determined according to the calendar year, if the enterprise applies a
fiscal year different from the calendar year, the CIT period is determined according to the
fiscal year specified in the Law on CIT and its guiding documents.
– In case the first tax period is 2019 (for a newly established enterprise) or the last tax period
is 2021 (for an enterprise transforming enterprise type, form of ownership, consolidation,
merger, division, dissolution, bankruptcy), for a period of less than 03 months => then this
tax period is added to the CIT period 2020 (Note: Determination of total revenue and the
reduced tax in this case only applies to the CIT period 2020 within 12 months).
3. The value of the Decree 114/2020/ND-CP provides:
– It is a supporting policy from the state to help enterprises overcome difficult times due to
the impact of the Covid-19 epidemic;
– It is the capital facilitation for enterprises to develop production and business, improve
competitiveness, expand production scale;
– It is a measure to maintain long-term revenues for the state budget.
Above is the news: Some notes on the reduction of CIT payable in 2020, Decree No.
114/2020/ND-CP.
Decree No. 114/2020/ND-CP takes effect from the effective date of Resolution No.
116/2020/QH14 and applies to the CIT period 2020, interpreted as August 3, 2020.
Hope the above information is helpful to The Valued Readers.
Bizlawyer is pleased to accompany with you!
On September 25, 2020, the Government issued Decree No. 114/2020/ND-CP, detailing
the implementation of the National Assembly’s Resolution No. 116/2020/QH14 on
corporate income tax (“CIT”) payable in 2020 for enterprises, cooperatives, non-business
units and other organizations (“Decree 114/2020/ND-CP“).
Accordingly, enterprises that meet the following conditions will receive a 30% reduction
in CIT payable in 2020, specifically as follows:
1. Conditions on subjects eligible for tax reduction policy:
– Enterprises established in accordance with Vietnam’s law;
– Organizations established in accordance with the Law on Cooperatives;
– Public service providers established in accordance with Vietnam’s law;
– Other organizations established in accordance with Vietnam’s law and earning income
from business operation.
2. Conditions on total revenue in 2020 eligible for tax reduction policy:
The enterprises whose total revenue in 2020 do not exceed 200 billion VND. Specifically:
– Total revenue in 2020 is the total revenue in the CIT period 2020 of the enterprise
including all sales, processing and service charges including price subsidies, surcharges,
and extra which enterprises are entitled to under the provisions of the Law on CIT and its
guiding documents.
– In case of a newly established enterprise, enterprise transforming the form of enterprise,
ownership, consolidation, merger, division, separation, dissolution or bankruptcy in the
CIT period 2020 less than 12 months of operation: Total revenue in 2020 is determined by
the total actual revenue in the CIT period 2020 divided (:) by the number of months the
enterprise actually operates in the CIT period 2020 multiplied (x) by 12 months. In case a
newly established enterprise or enterprise transforms the form of enterprise, ownership,
consolidation, merger, division, separation, dissolution or bankruptcy in a month, the
operation period shall be counted for the full month.
– If the enterprise expects total revenue in the CIT period 2020 to not exceed VND 200
billion, the enterprise shall determine quarterly temporary payment equal to 70% of the
payable CIT amount of the quarter.
– At the end of the CIT period 2020, if the total revenue in 2020 of the enterprise does not
exceed VND 200 billion, the enterprise shall declare and reduce the CIT of the year 2020
When finalizing CIT according to regulations.
3. The value of the Decree 114/2020/ND-CP provides:
– It is a supporting policy from the state to help enterprises overcome difficult times due to
the impact of the Covid-19 epidemic;
– It is the capital facilitation for enterprises to develop production and business, improve
competitiveness, expand production scale;
– It is a measure to maintain long-term revenues for the state budget.
Above is the news: 30% reduction of CIT payable in 2020 in Decree No. 114/2020/ND-
CP.
Decree No. 114/2020/ND-CP takes effect from the effective date of Resolution No.
116/2020/QH14 and applies to the CIT period 2020, interpreted as August 3, 2020.
Hope the above information is helpful to The Valued Readers.
Bizlawyer is pleased to accompany with you!
On September 22, 2020, the Ministry of Industry and Trade issued Official Letter No.
7088/BCT-DL in 2020 guiding the implementation of rooftop solar power development.
This Official Letter takes effect from the date of its issue.
Currently, there are quite a few questions about understanding what is Rooftop solar
systems, or on what basis the regulation “photovoltaic panels installed on the roof of a
building” is determined on. This has caused many difficulties and shortcomings in the
application to determine the appropriate electricity purchase and sale price. The
promulgation of Official Letter No. 7088/BCT-DL specifically guides the above issues.
what is Rooftop solar systems?
Under Clause 5, Article 3 of Decision No. 13/2020/QD-TTg is defined as follows:
“Rooftop solar system” refers solar system in which solar panels are installed on the roof
of the construction with no more than 1 MW in power and directly or indirectly connected
to power grid with up to 35kV of the Buyers.”
However, in order to be more detailed and ensure that the Rooftop solar system
development is carried out in accordance with the spirit of the policy, in Official Letter
7088/BCT-DL, the conditions for the Rooftop solar system should meet, in particular:
– Rooftop solar power systems must be installed on rooftops of constructions with
independent functions;
– The roof of a construction work must be the roof of the building and the roof of the house-
type structure.
– The roof of a construction work must be suitable to its function and use purpose.
Application of electricity purchase price and signing of Power purchase agreement:
Official Letter 7088/BCT-DL also provides guidance, in some specific cases, the
application of electricity purchase prices and signing agreements are as follows:
– In the case where the investor takes advantage of the roof of the office, operator, kitchen,
employee motels, garage, factory, material warehouse, on the premises of solar power
projects to invest in rooftop solar power and request to install separate meters, sign power
purchase agreement for rooftop solar system, the Electricity of Vietnam (EVN) may sign a
power purchase agreement if it is found in accordance with the regulations on rooftop
solar system.
– In case of solar power with a capacity of not more than 01 MW and not installed on the
roof of a construction with independent functions, when signing a power purchase
agreement, the electricity price for rooftop solar system is not applied according to the
law.
– In the following cases, each rooftop solar system may sign a separate power purchase
agreement and be exempt from the electricity activity license, including:
+ An investor acquires multiple power systems adjacent roof solar panels, with a total
capacity of over 01 MW;
+ Many rooftop solar systems with a total capacity of more than 01 MW (each system with a
capacity of not more than 01 MW) per 01 location (on the same plot of land or roof of the
industrial park) are directly connected. or indirectly, of one or more investors.
Thus, Official Letter 7088/BCT-DL issued has contributed to solving problems and
difficulties for individuals and organizations with rooftop solar systems, as well as more
specific guidance for power buyers – EVN in the application of and determine the purchase
price of electricity.
On September 24, 2020, the Prime Minister issued Decision 28/2020/QD-TTg regulating
the List of scrap permitted to be imported from abroad for use as raw production materials.
Accordingly, this category includes:
This decision takes effect from November 15, 2020 and replaces Decision No.73/2014/
QD-TTg of December 19, 2014 of the Prime Minister specified list of scraps permitted
imports from abroad as raw materials for production.
Types of scrap permitted to be imported from abroad under the Certificate of eligibility for
environmental protection in import of scrap for use as raw production materials issued by
a competent authority in accordance with the law may continue to import password to the
end of the validity of the Certification.
On June 17, 2020, the National Assembly promulgated the Enterprise Law 2020
stipulating the establishment, management organization, reorganization, dissolution and
operation. related business, including limited liability companies, joint stock companies,
partnerships and private enterprises; regulations on group of companies.
Accordingly, the Enterprise Law 2020 allows a private enterprise to be directly converted
into a joint stock company under the decision of the owner of a private enterprise if the
following conditions are met:
The Enterprise Law 2020 takes effect from January 1, 2021.
On July 9 th ,2020, the Government issued Decree No.81/2020/ND-CP mendments to the
government’s decree no. 163/2018/nd-cp dated december 04 th , 2018 on issuance of corporate
bonds, the document takes effect from September 1 st , 2020.
One of the adjustments and supplements that are considered outstanding is the conditions
for issuing non-convertible bonds or bonds without warrants. Accordingly, in addition to the
conditions specified in Decree 163/2018/ ND-CP, Decree 81/2020/ND-CP has added the
following conditions:
(1) It has signed a consulting contract with a consultancy organization providing
consultancy on bond issuance dossiers as prescribed in Clause 3 Article 15 hereof, unless
the issuer is licensed to provide consultancy on bond issuance dossiers as prescribed by law.
(2) Total outstanding debt on corporate bonds issued through the private placement at the
time of issuance (including the planned amount of bonds to be issued) does not exceed 05
times the owner’s equity stated in the financial statements of the latest quarter preceding the
time of issuance approved by a competent authority.
(3) Each bond issue must be completed within 90 days from the date of publishing of
information before the bond issue; the interval between two issues must be at least 06
months; bonds issued in an issue must have the same terms and conditions.
(4) Credit institutions issuing bonds are not required to satisfy the requirements laid down
in item (2) and item (3) of the above conditions.
Thus, the conditions for issuing corporate bonds have been specified and stricter than the
current regulations in order to continue operating and developing a safe and sustainable corporate
bond market.
