Monthly Newsletter March, 2019

08 Tasks for HR, Accountant in March 2019

- Deadline: by March 31, 2019 at the latest

- Legal basis: Point d Clause 3 Article 10 of the Circular No.156/2013/TT-BTC

No later than the 90th day as from the ending date of the calendar or fiscal year (for such enterprises choosing the other accounting period than a calendar year), the enterprise shall submit the CIT finalizing documents to the direct managing Tax Branch.

2. Personal Income Tax (PIT) finalization declaration for the year 2018

- Deadline: by March 31, 2019 at the latest

- Legal basis: Point d Clause 1 Article 16 of the Circular No.156/2013/TT-BTC

No later than the 90th (ninetieth) day as from the ending date of the calendar year, the enterprise shall carry out the procedures of PIT finalization whether or not having tax deduction arising during the year and settle on behalf of the authorized persons.

Where there is no salary, wage payable by the enterprise during the period, the enterprise may not carry out the procedures of PIT finalization declaration.

3. Notice of labor changes in February 2019 (if any)

- Deadline: by March 03, 2019

- Legal basis: Clause 2 Article 16 of the Circular No. 28/2015/TT-BLDTBXH dated July 31, 2015.

When there is change (increase/decrease) on the quantity of employees serving the enterprise, it shall, by the 03rd of next month, send a Notice to the Job service center where it is headquartered.

4. Submission of the PIT declaration for February 2019

- Deadline: by March 20, 2019 at the latest

- Legal basis: Point a Clause 3 Article 10 of the Circular No.156/2013/TT-BTC dated November 06, 2013

In each month, if the enterprise has to deduct personal income tax, it must submit personal income tax declaration dossiers to the tax agency directly managing the enterprise, no later than the 20th day of the following month.

Note: The above provisions shall be applied to enterprises using the monthly tax declaration forms; if there is no personal income tax deduction in the month, the enterprise shall not declare for that month.

5. Submission of the report on the use of invoices in February 2019

- Deadline: by March 20, 2019 at the latest

- Legal basis: Article 27 of the Circular No.39/2014/TT-BTC dated March 31, 2014

Every month, the enterprise will report on the use of invoices to the directly managing tax agency (even if there is no invoice used in the period) by the 20th of the following month.

The enterprises that submit reports on monthly use of invoices are:

- Enterprises using self-printed and printed invoices that violate regulations on invoices use being handled for administrative violations of tax evasion or tax fraud.

- Enterprises are in the category of high tax risks that purchase invoices from tax authorities.

Note: The report on the monthly use of invoices shall be made within 12 months from the establishment date or from the date of the change to purchasing invoices of the tax authorities.

6. Submission of VAT declaration for February 2019

- Deadline: by March 20, 2019 at the latest

- Legal basis: Article 15 of the Circular No.151/2014/TT-BTC dated October 10, 2014 and Point a Clause 3 Article 10 of the Circular No.156/2013/TT-BTC dated November 06, 2013.

Every month, if the enterprise has a total turnover from sales of goods and provision of service in the previous year of over 50 billion VND, it must submit a value-added tax declaration for that month, no later than the 20th day of the following month.

7. Deduction for paying Social Insurance, Health Insurance, Unemployment Insurance premium in March 2019

- Deadline: by March 31, 2019 at the latest

- Legal basis: Article 7 of the Decision No.595/QD-BHXH dated April 4, 2017.

By the last day of the month at the latest, the enterprise will deduct from the monthly salary fund of employees for paying the compulsory social insurance, health insurance, and unemployment insurance premium who is participating in compulsory social insurance, unemployment insurance.

At the same time, it shall deduct from the monthly salary of each employee to pay the above insurance premiums according to the prescribed level to submit to the district social insurance agency where the enterprise is headquartered and its branch will submit to the social insurance agency where the branch operates.

8. Deduction for paying Trade Union fees in March 2019

This is the enterprise’s obligation whether or not there is a trade union.

The payment for Trade Union fund is 2% of the salary fund used as a basis for paying social insurance for employees, close at the same time of compulsory social insurance payment for employees.

VAT regulations on export rejected goods

On the 21st of January 2019, Dong Nai Tax Department issued official letter no. 432/CT-TTHT as guidance on tax regulations on export rejected goods.

In case the export company had already declared VAT, and their application for VAT refund for exported goods had been settled by Tax Department. Afterwards, overseas customer returned the exported goods as a result of non-conformance. Effective date of interest payable on disallowed VAT refund is deemed as:

• If the return occurs within specified time frame as per contract, interest on disallowed VAT refund shall be charged from the date when customs procedures for importing of export rejected goods are completed.
• If the return occurs beyond the time frame specified in the contract, interest on disallowed VAT refund shall be charged from the date when State Treasury approves and signs Refund order of State Revenue or Refund cum Offsetting order of State Revenue to the date when the company submits revision of tax declaration.

08 Human Resources & Accounting items to be done in April 2019

- Deadline: By April 3, 2019

- Legal basis: Clause 2, Article 16 of Circular 28/2015/TT-BLDTBXH dated July 31, 2015

Upon any change (increase/decrease) of the number of employees before the 3rd day of the following month, the Company shall notify the Employment Center on the head office where it is located.

2. Report the use of tax withholding certificates

- Deadline: By April 30, 2019

- Legal basis: Article 5 of Circular 37/2010/TT-BTC dated March 18, 2010

For computer-printed withholding certificates, in case the Company is currently in operation, provide the tax agency a report on the use of tax withholding certificates where the quarterly withholding certificates are registered no later than the 30th day of the first month of the following quarter.

3. Pay provisional corporate income tax (CIT) on a quarterly basis

- Deadline: By April 30, 2019

- Legal basis: Article 17 of Circular 151/2014/TT-BTC dated October 10, 2014

The company shall quarterly pay a provisional CIT not later than the 30th (thirty) day of the following quarter in which the tax liability arises; the Company only needs to pay the provisional tax but a tax declaration.

The payable tax amount is entirely subject to the Company's determination on the basis of CIT in the previous year and the projected income statement in the current year.

4. Pay social insurance, health insurance and unemployment insurance in April 2019

- Deadline: By April 30, 2019

- Legal basis: Article 7 of Decision 595/QD-BHXH dated April 14, 2017

No later than last day of the month, the Company shall deduct from the compulsory social insurance, health insurance and unemployment insurance premiums on the employee's monthly salary who is subject to compulsory social insurance, health insurance and unemployment insurance.

The monthly salary shall be also deducted for the payment of such insurance premiums of each employee under the prescribed rate to the district social insurance agency where the Company and its branch are located.

5. Pay Trade Union funds in April 2019

- Deadline: By April 30, 2019

This is the Company's obligation whether the trade union is established or not.

The rate of Trade Union fund is 2% of the salary as a basis for payment of the employee's social insurance.

6. Submit PIT declarations in March 2019

- Deadline: By April 20, 2019

- Legal basis: Point a, Item 3, Article 10 of Circular 156/2013/TT-BTC dated November 6, 2013.

If the Company withholds the personal income tax in the month, it’s required to directly submit the personal income tax declaration to the tax agency no later than the 20th day of the following month.

Note: The aforementioned provisions are applicable to a Company applying the form of monthly tax declaration; if there is no personal income tax deduction in the month, it’s not required a tax declaration for the month from this Company.

7. Submit reports on the use of invoices in March 2019

- Deadline: By April 20, 2019

- Legal basis: Article 27 of Circular 39/2014/TT-BTC dated March 31, 2014.

The Company shall directly make monthly reports on the use of invoices to the tax agency (even if the invoice is not used in the period) by the 20th of the following month.

The Companies shall make monthly reports on the use of invoices are:

- Companies using self-printed or purchased invoices against invoice requirements shall be handled for administrative violations of tax evasion or tax fraud.

- Companies under high tax risks subject to the purchase of invoices from tax agencies.

Note: The report on the use of monthly invoices shall be made within 12 months from the date of establishment or transfer to the purchase of invoices from the tax agencies.

8. Submit VAT declarations in March 2019

- Deadline: By April 20, 2019

- Legal basis: Article 15 of Circular 151/2014/TT-BTC dated October 10, 2014 and Point a, Item 3, Article 10 of Circular 156/2013/TT-BTC dated November 6, 2013.

Monthly, the enterprise having goods and services sales in the previous year is more than VND 50 billion shall submit a value-added tax declaration for such month not later than the 20th day of the following month.