Tax policies coming into force from November 2018

1. Change to tax on transfer of cars by owners eligible for legal immunity

According to Circular No. 93/2018/TT-BTC taxes on transfer of motor vehicles are changed as follows:

– The basis for calculation of import duty is the dutiable value, duty rate and exchange rate applicable on the date of transfer.

– The date of transfer shall be determined in accordance with Clause 2 Article 1 of Decision No. 10/2018/QĐ-TTg(previously Point c Clause 4 Article 9 of Decision No. 53/2013/QĐ-TTg dated September 13, 2013).

– Dutiable value shall be determined in accordance with Point a Clause 2 Article 17 of Circular No. 39/2015/TT-BTC(previously Clause 1 Article 20 of Circular No. 205/2010/TT-BTC dated December 15, 2010).

– Duty rates are import duty rates on used motor vehicles specified in Decree No. 122/2016/NĐ-CP and Decree No. 125/2017/NĐ-CP.

Current import duty rates:

+ Motor vehicles having up to 15 seats (including the driver’s seat) are currently applying the import duty rates on used motor vehicles specified in the Prime Minister’s Decision No. 36/2011/QĐ-TTg and Decision No. 24/2013/QĐ-TTg.

+ Motor vehicles having more than 15 seats (including the driver’s seat) are currently applying the import duty rates on motor vehicles having more than 15 seats specified in the concessional import tariff schedule that is applicable on the date of transfer.

Circular No. 93/2018/TT-BTC comes into force from November 20, 2018.

2. Institute of Tax Training to be merged into Institute of Financial Training

On September 25, 2018, the Prime Minister promulgated Decision No. 41/2018/QĐ-TTg defining functions, tasks, entitlements and organizational structure of General Department of Taxation, which is an affiliate of the Ministry of Finance.

According to the Decision, the Minister of Finance has the responsibility to complete the merger of Institute of Tax Training (“Trường Nghiệp Vụ Thuế”) into Institute of Financial Training by 2025, and:

– Reduce the number of Sub-departments of taxation of districts to 420 by 2020.

– Execute layoffs in affiliates of General Department of Taxation and Provincial Departments of Taxation in accordance with Resolutions of the Communist Party and Action Programs of the Government.

Decision No. 41/2018/QĐ-TTg comes into force from November 15, 2018 and replaces Decision No. 115/2009/QĐ-TTgdated September 28, 2009.

3. Changes to tax enforcement decision forms

Circular No. 87/2018/TT-BTC amending Circular No. 215/2013/TT-BTC on enforcement of tax decisions will come into force from November 15, 2018.

4. Rotation mechanism for allocation of rice export quotas

This is a notable content of Circular No. 30/2018/TT-BCT which elaborates some Articles of the Government’s Decree No. 107/2018/NĐ-CP on rice export and comes into force from November 15, 2018.

According to the Circular, the leading traders applying the rotation mechanism may directly export 20% of the amount of rice specified in the centralized contract. To be specific:

– Leading traders who sign the centralized contract may supply 2/3 of 20% of the amount specified in the centralized contract.

– Leading traders who do not sign the centralized contract may supply 1/3 of 20% of the amount specified in the centralized contract.

Circular No. 30/2018/TT-BCT annuls Circular No. 44/2010/TT-BCT.

5. Digital signature security

Decree No. 130/2018/NĐ-CP which comes into force from November 15. 2018, provides guidelines for regulations /digital signatures and authentication thereof in the Law on Electronic transaction.

According to the Decree, a digital signature is considered secured if the following conditions are satisfied:

– The digital signature is created during valid period of the digital certificate and can be inspected by the public key recorded on such digital certificate.

– The digital signature is created by the private key corresponding to public key on a digital certificate issued by one of the following organizations:

+ Root Certification Authority;

+ Specialized certification authority of Government;

+ Public certification authority;

+ Specialized certification authorities of agencies and organizations issued with certificates of eligibility for special-use digital signature security mentioned in Article 40 of the Decree.

– The private key is only under the control of the signer at the time of signing.

6. Compulsory education to have full-day school schedules

On September 21, 2018, the Government promulgated Decree No. 127/2018/NĐ-CP on state management of education.

According to the Decree, the People’s Committees of provinces have the responsibility to prepare for organization of full-day school schedule in compulsory education and the following tasks:

– Organize admission of officials to educational institutions of the national education system and employment of these officials;

– Prepare adequate land are for educational institutions according to local education development plans and strategies;

– Reorganize public educational institutions under their management;

– Take responsibility for education activities, education quality, management of officials, public employees, school workers and students under their management, etc.

Decree No. 127/2018/NĐ-CP comes into force from November 15, 2018 and replaces Decree No. 115/2010/NĐ-CP.

7. Artistic portrayal of smoking in films to be permitted

The Ministry of Culture, Sports and Tourism has promulgated Circular No. 25/2018/TT-BVHTTDL on restriction on portrayal of smoking in films.

According to the Circular, portrayal of smoking is only permitted in films if it is meant to:

– portray a historical character;

– depict a specific historical time period;

– criticize smoking;

– serve other artistic purposes accepted by competent authorities on the basis of the appraisal council’s request.

Circular No. 25/2018/TT-BVHTTDL comes into force from November 15, 2018.