From 01 January 2022, some new polices on tax, insurance and labor will be effective. Crowe Vietnam would like to present below some notable policies including:
- Circular 80/2021/TT-BTC – New guidance on tax administration;
- Decree 102/2021/ND-CP – New guidance on penalty for administrative violation;
- Circular 120/2021/TT-BTC – Adjustment to some fees and charges;
- Compulsory social insurance for foreigner; and
- Increase in retirement age for employee in 2022.
1. CIRCULAR 80/2021/TT-BTC (“CIRCULAR 80”) – NEW GUIDANCE ON TAX ADMINISTRATION.
On 29 September 2021, the Ministry of Finance had issued Circular 80/2021/TT-BTC, guiding the implementation of 2019 Law on Tax Administration and Decree 126/2020/ND-CP. The introduction of Circular 80 replaced a series of previous tax administration regulation, including:
- Circular 71/2010/TT-BTC;
- Circular 156/2013/TT-BTC;
- Circular 208/2015/TT-BTC;
- Circular 99/2016/TT-BTC;
- Circular 06/2017/TT-BTC;
- Circular 31/2017/TT-BTC; and
- Circular 79/2017/TT-BTC.
Besides, the tax declaration forms prescribed under Circular 80 will be applicable to tax periods starting from 01 January 2022 onward. These forms will also be used for the tax finalization for tax year 2021.
(For more detail information, please refer to Crowe Vietnam’s newsletter on Circular 80).
2. DECREE 102/2021/ND-CP (“DECREE 102”) – NEW GUIDANCE ON PENALTY FOR ADMINISTRATIVE VIOLATION
On 16 November 2021, the Government had issued Decree 102/2021/ND-CP, amending and supplementing many regulations related to penalties for administrative violations on invoicing under Decree 125/2020/ND-CP, with some highlights are as follows:
- Statute of limitation for administrative penalty on invoicing issue shall be 02 years;
- Fines from VND 20 millions to VND 50 millions shall be imposed for the act of giving or selling invoices (with some exceptions);
- Fines from VND 4 millions to VND 8 millions shall be imposed for the loss, burnt or damaged invoice which was issued but not yet declared for tax purpose.
- No late payment fines will be charged during the period of consideration and decision to reduce or exempt fines.
- Etc.
In addition, Decree 102 also amends and supplements a number of articles specified in Decree No. 98/2013/ND-CP; Decree No. 128/2020/ND-CP; Decree No. 63/2019/ND-CP and Decree 41/2018/ND-CP.
(For more detail information, please refer to the Decree 102/2021/ND-CP here).
On 24 December 2021, the Ministry of Finance has issued Circular 120/2021/TT-BTC, to support and remove difficulties for those affected by the Covid-19 epidemic. Accordingly, from 01 January 2022, the several fees and charges are reduced as following:
3. CIRCULAR 120/2021/TT-BTC (“CIRCULAR 120”) – ADJUSTMENT TO SOME FEES AND CHARGES FOR ORGANIZATION AND INDIVIDUAL AFFECTED BY COVID-19
On 24 December 2021, the Ministry of Finance has issued Circular 120/2021/TT-BTC, to support and remove difficulties for those affected by the Covid-19 epidemic. Accordingly, from 01 January 2022, the several fees and charges are reduced as following:
- 50% reduction in the fee for granting certificates of capacity for construction activities to organizations and the fee for granting professional certificate for construction to individuals as prescribed under Circular 172/2016/TT -BTC;
- 50% reduction in the fee for appraisal of investment projects of construction and the fee for appraisal of basic design as specified under Circular 209/2016/TT-BTC;
- 50% reduction in the fee for issuance of operation permits to send workers working abroad for a limited period of time as prescribed under Circular 259/2016/TT-BTC;
- Circular 120 also provides adjustment to other fees and charges related to industries, professions and fields seriously affected by the Covid-19 epidemic.
(For more detail information, please refer to the Circular 120/2021/TT-BTC here).
4. COMPLUSORY SOCIAL INSURANCE FOR FOREIGNER
The regulation under Article 9, Article 10 and Clause c Article 13 of Decree 143/2018/ND-CP elaborating on law on social insurance and law on occupational safety and hygiene regarding compulsory social insurance (“SI”) for foreigner employee working in Vietnam, will be effective from 01 January 2022, including:
- Foreign employee, participating in SI, will be entitled to one-time social insurance benefits in some cases such as reaching pension age but not yet paid SI for 20 years, eligible for pension but not live in Vietnam anymore, etc.
- From 01 January 2022, in addition to the 3% monthly contribution to the sickness and maternity fund, the employer will have to pay 14% to the retirement and death gratuity fund on the foreign employee's monthly salary fund. (The corresponding contribution rate for foreigner employee is 8%).
It is expected that the SI contribution will continue to be adjusted in 2022. The enterprise should closely monitor new policies from the insurance agency to make the most appropriate adjustments.
5. INCREASE IN RETIREMENT AGE FOR EMPLOYEE IN 2022
According to Clause 2 Article 169, of 2019 Labor Code:
“Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.
From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.”
Therefore, the retirement age in 2022 will be adjusted as follows:
- For male employees: an increase of 3 months (to 60 years and 6 months); and
- For female employees: an increase of 4 months (to 55 years and 08 months).