Nghị quyết 63/NQ-CP

RESOLUTION

ON A NUMBER OF SOLUTIONS TO TAX IN ORDER TO REMOVE DIFFICULTIES AND PROBLEMS AND PROMOTE DEVELOPMENT OF BUSINESSES

THE GOVERNMENT

Pursuant to the Law on organization of Government dated December 25, 2001;

Pursuant to Decree No. 08/2012/ND-CP dated February 16, 2012 of the Government issuing the working regulation of the Government;

On the basis of Report of the Ministry of Finance (Report No. 95/TTr-BTC dated July 28, 2014), the discussion of Government members and conclusion of the Prime Minister at the regular meeting held on 30, 31, July, 2014.

DECIDES:

I. SOLUTIONS TO TAX IN ORDER TO REMOVE DIFFICULTIES AND PROBLEMS AND PROMOTE DEVELOPMENT OF BUSINESSES UNDER THE AUTHORITY OF THE GOVERNMENT AND THE PRIME MINISTER:

1. Extending the time limit for tax payment no more than 60 days for VAT of machinery and equipment imported to create fixed assets of the investment project with the total import value from 100 billion dong or more. The Ministry of Finance will direct the tax bodies to carry out tax refund prior to inspection within 05 working days, from the day the tax bodies receive dossier to request tax refund from businesses.

2. Extending the time limit for tax payment no more than 02 years, from the end day of time limit for tax payment for investment projects that have not been paid the basic construction investment capital specified in the state budget state. The amount of tax extended must not exceed the unpaid amount of the state budget and the extended time must not exceed the time of unpaid state budget.

3. Businesses may include the expenditures of welfare nature directly paid to laborers of which businesses have the prescribed invoice or document in the deductible expenditure; the total expenditure is not more than 01 average salary month of actual implementation.

4. For licensed investment projects of which the dossier for first registration of investment sent to the licensing body with the registered investment capital, investment phase and specific progress, the investment projects licensed to carry out the investment for the subsequent stages of actual cases of implementation are regarded as the component projects of investment projects licensed for the first time and entitled to preferential business income tax at the preferential rate currently applicable to the investment projects firstly invested. For the investment projects licensed prior to January 01, 2014, the preferential tax entitled for the remaining preferential time is calculated from January 01, 2014 (No application of actual implementation prior to January 01, 2014);

For businesses entitled to the preferential business income tax of period 2009-2013 with their regular investment in machinery and equipment during production and business, then they will be entitled to the preferential business income tax for the additionally increased income (no re-settlement to cases which have been implemented).

5. Industrial parks entitled to the preferential business income tax include industrial parks in districts of special grade urban areas or first grade urban areas directly under the central government and urban centers directly under provinces newly established from districts from January 01, 2009.

6. No inclusion of taxable income of personal income for the benefits as housing built and provided by employers free of charge for employees working in industrial parks, housing built by employers in economic zones or areas with difficult or extremely difficult social economic conditions for free provision to employees.

7. For transfer of real estate, individuals may choose method of calculation and tax payment by 25% on income of each transfer or 2% on selling price of each transfer.

8. For transfer of securities, individuals may choose the method of calculation and tax payment by 25% on annual income and tax finalization at the end of year; or calculation and tax payment by 0.1% on the selling price of securities of each transfer without tax finalization at the end of year.

9. Individuals and business households that have income from their business and paid tax by the method of tax presumption and individuals as insurance agent, lottery agent, multi-level marketing deducted their personal income tax by income paying organization will not have to finalize their tax.

10. Businesses may declare and be deducted the input VAT in case of having no non-cash payment voucher as the time of payment under contract is not due.

11. Taxpayers having revenue of less than 50 billion dong/year will declare VAT quarterly.

12. Taxpayers will declare annual tax finalization and temporarily pay their business income tax quarterly. In case where the total amount temporarily paid is less than 20% or more compared with the amount of income to be paid by businesses under the finalization, the businesses will have to pay the interest of late payment for the difference of 20% or more between the amount temporarily paid with the finalized amount from December 31 of the tax declaration year to the day of actual payment of outstanding tax compared with the finalization.

13. The Ministry of Finance will coordinate with the Ministries and sectors concerned to request the Prime Minister to modify or supplement the detailed List of type, scale criteria and standard of establishments implementing the socialization in the field of education – training, vocation, health, culture, sports and environment will be entitled to the policies on encouraged socialization development consistently with reality.

Pending the modification or supplementation of detailed List of type, scale criteria and standard of establishments implementing the socialization, the arrears of business income tax will not been collected.

14. The Ministry of Finance will coordinate with Vietnam Social Insurance to have solution to reduce at least 50% of amount of time to pay social insurance, health insurance or unemployment insurance.

II. SOLUTIONS TO TAX IN ORDER TO REMOVE DIFFICULTIES AND PROBLEMS AND PROMOTE DEVELOPMENT OF BUSINESSES UNDER THE AUTHORITY OF NATIONAL ASSEMBLY:

1. Businesses having investment projects will be entitled to preferential business income tax under regulations of law on business income tax at the time of issuing investment certificate or license. Where the law on business income tax is modified, the businesses have the right to choose or be entitled to the preferential business income tax at the rate of entitlement as prescribed by law at the time of licensing or by the law newly modified or supplemented for the remaining time if meeting the conditions for tax preference as prescribed by regulations of the law newly modified or supplemented from the effective date of the law on business income tax newly modified or supplemented.

2. Income of businesses from the implementation of new investment projects making products named in the List of industrial products given priority for development will receive the tax rate of 10% in 15 years and be exempted from tax in 04 years and reduced by 50% of tax to be paid in 9 subsequent years; in case of investment to expand the making of products named in the List of industrial products given priority for development specified in this Clause if meeting one of three criteria on expansion investment specified in the Law on business income tax No. 32/2013/QH13, the businesses may choose to be entitled to tax preference (tax rate and time of exemption or reduction) of the active projects for the remaining time (if any) or be exempted tax for 04 years and reduced 50% of tax payable in 09 subsequent years for the additionally increased income from expansion investment.

The Government specifies the List of industrial products given priority for development.

3. Tax exemption or reduction or no collection of tax for the income of Vietnamese businesses invested abroad when transferred back to the country. The Prime Minister will make a decision on it.

4. Investment project with investment capital scale of at leat 12,000 billion dong (twelve thousand billion dong) with disbursement within 05 years from the time of being granted the investment license will be entitled to preferential tax rate of 10% in 15 years, tax exemption in 04 years and reduction in 50% of tax payable in  09 subsequent years for the income of businesses from implementation of investment project in the field of production (except projects producing goods items subject to special consumption tax or mineral mining projects). In case of special attraction of investment, the time of application of preferential tax rate of 10% will be considered but not exceeding 15 years.

5. Application of tax rate of 20% in 2014 and 2015 for businesses operating in the agricultural regularly employing over 300 laborers and implementing the exclusivity of harvested products for laborers not in the difficult or extremely difficult social-economic areas. From January 01, 2016, the income of such businesses is subject to the tax rate of 17%.

6. The control expenditure specified at Point 2.m, Clause 5, Article 1 of the Law on business income tax No. 32/2013/QH13 is applied only to advertising expenditure.

7. Exemption from personal income tax for income from salary or wage of Vietnamese laborers as seamen working for foreign carriers or Vietnamese carriers of international transport.

8. Exemption from personal income tax for income from boat owners from the supply of direct services for offshore fishing activities.

9. The personal income tax specified at Point c, Clause 6, Article 3 of the Law on personal income tax only applies to the income from prize winning in the form of betting.

10. Goods purchased or imported to create fixed assets of the socialization project in the field of education – training, vocation, health, culture, sports and environment are deducted or refunded input VAT.

11. Boat owners fishing are refunded VAT of boats used for fishing for newly-built or upgraded boats with the total power of main engine from 400 HP or more.

12. No collection of natural resource tax for natural water used for agriculture, forestry, fishery and salt production.

13. Businesses will determine revenues, expenditure, taxable price and taxes payable to state budget (except cases of paying tax in foreign currency as prescribed by the Government) in Vietnam dong. In case of generation of revenues, expenditures, tax price in foreign currency or the taxpayers are obliged to pay tax in foreign currency but are permitted to pay tax in Vietnam dong by the competent authorities, such businesses will convert foreign currency into Vietnam dong at the actual exchange rate at the time of payment.

14. Foregiveness of fine for late payment of tax incurred prior to July 01, 2013 of businesses having objective difficulties and having paid the original tax debt prior to December 31, 2014. The authority of tax foregiveness will comply with the provisions in Clause 22, Article 1 of the Law on amending and supplementing a number of articles of the Law on tax administration. The Government will specify the businesses having objective difficulties and receiving the foregiveness of fine for late payment of tax mentioned above.

15. Based on the reality and conditions for equipment of information technology, the Government will specify that the taxpayers will not have to submit documents of tax declaration and payment, customs, tax refund…which the tax or customs authorities already have.

III. IMPLEMENTATION ORGANIZATION:

1. The Ministry of Finance will coordinate with the Ministry of Justice, Government Office and the Ministries and bodies concerned:

a) To request the Government to issue the Decree amending and supplementing Decrees: No. 65/2013/ND-CP dated June 27, 2013, No. 83/2013/ND-CP dated July 22, 2013, No. 209/2013/ND-CP dated December 18, 2013, No. 218/2013/ND-CP dated December 26, 20013 of the Government and request the Prime Minister to issue other relevant legal document to implement solutions specified in Section I of this Resolution in quarter III OF 2014 in order and simplified procedures.

b) To complete the draft Resolution of the National Assembly on solutions specified in Section II of this Resolution. The Ministry of Finance, by the order of the Prime Minister and on behalf of the Government will submit it to the XIII National Assembly, 8^th session for consideration and decision.

c) To boost the information, propagation of solutions to tax, remove difficulties and problems and promote the development of businesses in this Resolution for people and businesses’ monitoring supervision and implementation.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairman of People's Committees of provinces and centrally-run cities according to assigned functions and duties will focus on directing, guiding and implementing and coordinating the implementation of solutions in this Resolutions to promptly remove difficulties for business and production and market support; strengthen the inspection and monitoring of process of duty implementation of agencies, organizations, individuals; give timely commendation and strict discipline of assigned duties; closely follow the reality, proactively monitor and evaluate the situation to have flexible and timely measures of handling or recommend timely and effective solutions of direction./.