Headlines 28/06/2016 14:31 CH

New regulations on taxation and salary, in effect as of July 1st

Thu Hiền

THƯ VIỆN PHÁP LUẬT hereby presents some new details of 4 laws, in force as of July 01, 2016, with regard to taxation and salary.

1. Fine rate on late payment of taxes reduced to 0.03% per day

Law No. 106/2016/QH13 on amendments to some articles of tax laws, in effect as of April 06, 2016, regulates the following new point:

- The fine rate on late payment of taxes is reduced to 0.03% per day on the unpaid tax.

- Business establishments are no longer eligible for a refund of input value added tax (VAT) that is not completed deducted after at least 12 months or 4 quarters from the month or the quarter in which the un-deducted VAT arises.

- The VAT that has not been deducted shall not be refunded and instead be carried forward to the next period in the following cases:

+ The investment project does not have adequate charter capital as registered; engages in conditional business lines while the corresponding conditions have not been fully satisfied or the fulfillment of such conditions is not maintained throughout its operation;

+ The project is a natural resource extraction project or mineral extraction project licensed from July 01, 2016 or a manufacturing project where the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price.

2. Salary for professional servicemen and national defense workers

In the Law No. 98/2015/QH13 dated November 26, 2015 on professional servicemen, national defense workers and employees, the following salary, allowance and housing for professional servicemen, national defense workers and employees are defined:

- Salary is based on training level, job titles, job position in accordance with the special nature and duty of the army.

- Allowances:

+ Seniority pay, based on existing salary and service time in the standing force of the army.

+ Allowances and benefits similar to those granted to state officials and employees working under similar conditions.

+ Allowances and benefits corresponding with the particular activities of the army.

+ Housing allowance exclusively granted to professional servicemen:

- Housing: social housing support and renting of official residences.

3. Online filing of lawsuits

This option is, for the first time, defined in the Law No. 93/2015/QH13 dated November 25, 2015 on administrative procedures.

- Plaintiffs, defendants and persons with related interests and obligations can provide their email addresses, if available, in the petition.

- Plaintiffs can lodge the petition, documents and evidences online to the competent Court through the e-portal of the Court (if available).

- The date of institution of the lawsuit is the date of delivery of the petition.

- When receiving a petition lodged online, the Court shall print it out and record it in the petition register. Moreover, the Court shall publish information on its e-portal while sending a notification to the plaintiffs' email address.

4. International treaties inferior to the national Constitutional

Law No. 108/2016/QH13 dated April 09, 2016 on international treaties defines the following prominent details:

- International treaties signed and implemented must comply with the national Constitution.

- If there are differences between the national Constitution and an international treaty that Vietnam engages in, the national Constitution shall prevail.

- An international treaty shall be published on the official gazette and e-portals of the recommending agency and the Ministry of Foreign Affairs:

+ In 15 days from the date of the official gazette agency’s receipt of the copies of the treaty in effect from the Ministry of Foreign Affairs.

+ In 5 days from the date of the recommending agency’s receipt of the copies of the treaty in effect from the Ministry of Foreign Affairs.

+ In 5 days from the date of the Ministry of Foreign Affairs’ certified copying of the treaty.

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