Sat. May 18th, 2024

Tobacco, temporary imports and tax targeted

The Government is drafting a decree on sanctioning administration violations of copyright and related rights.

Under the draft decree, the highest fines applied for sanctioning administration violations in the field of copyright and related rights will reach up to VND250 million (US$12,500) for individuals and VND500 million ($25,000) for organisations.

Besides the two major administrative sanctions: a warning or monetary fine, other supplementary sanctioning forms would be applied such as: (i) confiscating commodities which infringe copyright and related rights, raw materials, materials, means and implements used for manufacturing and trading commodities infringing copyright and related rights; (ii) imposing a halt of 3-6 months on business activities, consultancy and services; (iii) confiscating the certificate of copyright registration, the certificate of related rights registration and other related papers and documents that are erased or forged, or have their validity annulled; (iv) abrogating the right to use the professional practice permit of an appraiser of copyright and related rights.

In addition, administration violations may make an organisation and individual subject to the application of one or many other consequences or remedies.

This draft decree is in the process of collecting comments for the final version. It is anticipated that the new decree will formally come into effect on July 1 and replace Decree No.47/2009/ND-CP dated May 13, 2009 and Decree No.109/2011/ND-CP dated December 2, 2012.

New rules on tobacco labeling

The Ministry of Health and the Ministry of Industry and Trade jointly issued circular No.05/2013/TTLT-BYT-BCT on February 8, guiding the labeling and printing of health warnings on tobacco packages.

Under this joint circular, health warnings must be displayed on tobacco packages which are imported into and manufactured in Viet Nam for consumption in Viet Nam.

There are six forms for health warnings stipulated in an annex promulgated with the joint circular. Such forms must be printed on the main face of a tobacco packets, in front and behind, and must not be hidden or obscured by any materials, pictures or other information, except for the tobacco stamp as stipulated by law.

This joint circular will come into force on May 1 and annul regulations on labeling and printing health warnings on tobacco packages under Decision No.02/2007/QD-BYT dated January 15, 2007.

Tightening the law on temporary importing for re-export

Subsequent to Directive No.23/CT-TTg by the Prime Minister, dated September 7, 2012, strengthening controls on the business of temporary importing for re-export, the Ministry of Industry and Trade (MOIT) issued circular No.05/2013/TT-BCT, dated February 18, 2013, regulating the process applicable for domestic traders.

Circular 5 imposes tougher conditions for businesses involved in temporary importing for re-export. Under Circular 5, only domestic traders which have been established for at least two years and which have been engaged in the import and export business previously are qualified to conduct the business of temporary importing for re-export.

The deposit amount of VND5 billion ($241,000) required for the registration of the business of temporary importing for re-export is an increase from the previously regulated VND2 billion ($96,500).

The certificate of business code shall be granted for business of temporary importing for re-export, individually for each group of goods, including frozen goods, secondhand goods and goods subject to special assumption tax, and shall expire in three years from the date of issuance.

In respect to procedures, while secondhand goods, apart from the certificate of business code, are required to obtain another license from MoIT, named as the licence for temporary import for re-export, before each temporary import, traders in frozen goods and goods subject to special assumption tax, having obtained the corresponding certificate of business code, shall be exempt from the same.

Circular 5 also contains the regulation on the ocean bill-of-lading, the time limit for goods to remain in Viet Nam and overseeing the goods during the period they remain in the country.

Circular 5 shall take effect from April 4 and repeal Circular No.33/2010/TT-BCT dated September 11 2010, Circular No 21/2011/TT-BCT dated May 20 2011 and Decision No.5737/QD-BCT dated September 28 2012.

Tax extension for enterprises to overcome difficulties

On February 8, the Ministry of Finance issued Circular No.16/2013/TT-BTC guiding implementation of the Government’s Resolution No.02/NQ-CP of January 7, on a number of solutions to remove difficulties for business production, market support and settlement of bad debts with the following material contents.

Circular 16 repeats the regulations on prolonging the duration of enterprise income tax payments for six months applying to payable enterprise income tax amounts of quarter 1 and prolonging the duration of enterprise income tax payments for three months, applying to payable enterprise income tax amounts of quarter 2 and quarter 3 of 2013.

In addition, Circular 16 also stipulates more details: (i) in the case of small or medium-sized enterprise being a company organised under the model of a mother company, subsidiary company and these companies meeting labour criterion (using less than 200 labourers working full-time), with a revenue in 2012 not exceeding VND20 billion ($960,000) and not doing business in fields not permitted when prolonging the tax payment time limit, such enterprise shall be entitled to prolong the corporation income tax (CIT) payment time limit; (ii) in cases where enterprise with more than 300 workers organised under the model of mother company, subsidiary companies, the labour quantity as the basis for defining a mother company entitled to prolong the tax payment time limit shall exclude labourers of subsidiary companies and vice versa; (iii) the payable CIT amounts arising in quarter 1, quarter 2 and quarter 3 in 2013 of enterprises subject to being entitled to prolong tax payments are temporarily calculating CIT amounts of quarter 1, 2 and 3 in 2013.

Furthermore, Circular 16 also stipulates the regulations and further guides on prolonging by six months the value added tax (VAT) payment time limit for amounts arising in January, February and March of 2013 with the following details: (i) the prolonged VAT amounts exclude VAT amounts payable at the import stage; (ii) an enterprise defined as small or medium-sized with branches or affiliated units located in provinces other than the place where its head office is located (excluding units operating extra-provincial mobile construction, installation or goods sales business declaring temporarily calculated VAT under the rate of 1% or 2%), and implementing the separate VAT declaration to the direct tax administration agencies of branches and affiliated units are also subject to the entitlement to prolong the VAT payment time limit; (iii) if an enterprise subject to being entitled to prolong VAT payment time limit has declared and paid the payable VAT amount arising in January 2013, it is required to apply for supplementation and adjustment. After declaration and adjustment, if it has paid more that the tax amount required, it is entitled to apply to balance its account through the payable VAT of another activity or the next taxation period, or request a tax refund.

Circular 16 takes effect on March 25 2013. bizconsult law LLC

By vivian