Welcome to the latest edition of our regular legal update from the A&P Vietnam office.
This week, we feature new tax guidance for companies which had to suspend their operations during COVID-19, and highlight some important upcoming decrees and circulars.
To learn more about one of these changes, just contact our office for more information.
Tax Guidance for Companies which Suspended Operations
The Government of Vietnam has issued new guidelines to enterprises which had to suspend their operations during the recent COVID-19 pandemic. Decree No. 126/2020/ND-CP (“Decree 126”), issued on 19 October and effective from 5 December, details a number of articles of the Law on Tax Administration 2019.
Decree 126 stipulates that companies which had to suspend their operations for a full calendar month, quarter or year are not required to submit a tax declaration for that period. It also regulates that, while their business operations were suspended, companies should not use invoices unless approved to do so and, as a result, do not need to file a report on their use. Meanwhile, tax agencies could reassess the liabilities and obligations of companies who have suspended their operations during recent times.
Decree 126 also provides detailed guidance on cases where individuals – whether Vietnamese, foreigners or overseas Vietnamese – can be suspended from leaving Vietnam.
New Implementing Regulations in the Pipeline
With a range of important legislation coming into force soon, such as the new Labour Code 2019 and the new Law on Investment 2020, several new decrees and circulars are in the process of being drafted in order to guide their implementation. These new regulations include:
- A decree on off-shore investment in accordance with the new Law on Investment 2020;
- A circular guiding the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) trade remedies;
- A circular detailing the content of labour contracts under Articles 21.1, 21.2 and 21.3 of the new Labour Code 2019, and;
- A decree on the management of construction expenses to replace Decree No. 68/2019/ND-CP dated 14 August 2019.
The team at Audier & Partners will monitor these regulations and keep our readers updated as soon as texts become available.
For more information about investing or doing business in Vietnam, contact our office on contact@apflpartners.com. And don’t forget to sign up for our newsletter to receive the latest insights on Vietnam’s legal news.
