Headlines 28/12/2013 17:37 CH

Significant documents updated last week (Dec. 23 - Dec. 28)

Ms. Huỳnh Như

Reduction in motor vehicle insurance premium paid by insurers, Resolution on Severance tax, guidance on cancellation of uncollectible taxes and fines incurred before July 01, 2007... are some of the new policies introduced last week (December 23 - December 28)

Decree 214/2013/NĐ-CP : Reduction in motor vehicle insurance premium paid by insurers

According to the Decree, insurers shall deduct 1% from the annual revenue from compulsory civil liability insurance premium paid by motor vehicle owners and transfer such amount to Motor Vehicle Insurance Fund (insurers once have to pay at least 2%)

Decree 210/2013/NĐ-CP: Policies on encouraging corporate investment in agriculture and rural areas

According to this Decree, investors will receive a support of 50% - 70% of the cost of activities such as domestic vocational training, researches into new technologies, advertising, etc. as long as they have agricultural projects eligible for incentives, special incentives, or encouragement, regardless of the investment scale.

Resolution 712/2013/UBTVQH13: Severance tax

Standing Committee of the National Assembly has promulgated Resolution 712/2013/UBTVQH13 on severance tax, which comes into force on February 01, 2014.

New rates of tax on some notable resources: Iron: 12%; Gold: 15%; Silver and tin: 10%; Wood in Group I: 35%, etc.

Resolution 63/2013/QH13: Enhancement of crime prevention

Some notable objectives established in the Resolution:

The People’s Supreme Procuracy requests greater cooperation in investigation to strictly and thoroughly settle major cases of financial misconduct, abuse of power, and corruption; reduce the rate of overturned cases that need further investigation; raise the quality of investigators, procurators, inspectors, etc.

The People’s Supreme Court requests that no false convictions be made and no criminals be overlooked; eliminate the exploitation of mitigating circumstances to impose unlawfully lenient sentences; reduce the rate of judgments and decisions that are revoked or amended due to human errors; etc.

Circular 179/2013/TT-BTC: Guidance on cancellation of uncollectible taxes and fines incurred before July 01, 2007

Taxes and fines that are cancelled include:

- Taxes: license tax, revenue tax, value-added tax, special excise duty, export tax, import tax, real estate tax, profit tax, corporate income tax, personal income tax, severance tax, tax on the use of farming land.
- Late payment interests and fines for administrative violations pertaining to taxation.

Decision 582/QĐ-UBDT: List of ethnic and highland hamlets facing extreme difficulties to be invested under Program 135

A list of 3,506 hamlets and villages facing extreme difficulties has been approved.

- 3,445 hamlets among which are invested by central budget;
- 61 hamlets in Hanoi, Can Tho, Vinh Phuc, Quang Ninh, Hai Duong, Dong Nai, Khanh Hoa, Ba Ria - Vung Tau are invested by local budget.

Dispatch 7927/TCHQ-TVQT 2013: Prices of stamps for imported wine

From April 01, 2014, stamps for imported wine will be sold instead of being dispensed free of charged. The price of a stamp for imported wine is 520 VND.

The General Department of Customs requests that Customs Departments of provinces check the amount of unused stamped up to 31/12 and keep using the stamp design in Circular 160/2013/TT-BTC

Dispatch 4536/TCT-TVQT 2013: Prices of stamps for domestic wine

Prices of stamps for domestic wine set by the General Department of Taxation:

- For wine ≥ 20o, stuck automatically by high-speed machines: 37.13 VND/stamp.
- For wine ≥ 20o, stuck automatically by low-speed machines: 453.75 VND/stamp.
- For wine ≥ 20o, stuck manually: 391.88 VND/stamp.
- For wine <20o, stuck automatically by low-speed machines: 474.38 VND/stamp.
- For wine <20o, stuck manually: 391.88 VND/stamp.

The prices above are inclusive of issuance cost and applied nationwide.

Dispatch 17963/BTC-TCT: Guidance on direct statement of VAT before issuance of new Circular

According to 209/2013/NĐ-CP the formula below shall be used to calculate VAT directly:

[Percentage] x [Revenue]

Revenue is the total amount written on the sale invoice, inclusive of VAT and surcharges.

Where a business engages in multiple activities subject to various rates of tax, the highest rate shall apply if such activities cannot be sorted by rate of tax.

This Dispatch comes into force from January 01, 2014.

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