Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you.
- Tax payment deadline for domestically manufactured or assembled automobiles to be extended
- 50% cut from automobile registration fees proposed from August 1
- Two-year tax exemption proposed for small enterprises.
- Agricultural land use tax exemption proposed to last through 2030
- PM asks for solutions towards 95 percent of public investment disbursement rate
1. Tax payment deadline for domestically manufactured or assembled automobiles to be extended
Some highlines are as below:
- Under Government Decree No. 65/2024/ND-CP, dated June 17, the deadline to pay special consumption taxes for domestically manufactured or assembled automobiles will be extended, according to a report from the Vietnam News Agency.
- Accordingly, the deadline for May, June, July, August, and September will be extended to November 20.
- The decree takes effect from the date of signing (June 17) till the last day of this year, after which the payment will be carried out in line with current regulations.
- Earlier, the Ministry of Finance had proposed the Government to impose the extension which, according to the ministry, is expected to help 14 local automobile manufacturers to tackle difficulties for recovery and growth.
2. 50% cut from automobile registration fees proposed from August 1
Some highlines are as below:
- The Ministry of Finance (MoF) has proposed to reduce registration fees by 50% for domestically-produced and assembled cars for six months, from August 1.
- The move is expected to help promote consumption and support the domestic automobile industry as car sales have dropped drastically.
- Pressures from inflation, exchange rates and gold price hikes have negatively affected consumers’ psychology, resulting in their tightening expenditure on high value products like cars, according to the MoF.
- From February 1, 2025, the registration fee will continue to be governed by Decree 10/2022/NĐ-CP and current resolutions of the provincial/municipal People’s Councils or decisions of the provincial/municipal People’s Committees on registration fee rates in localities.
3. Two-year tax exemption proposed for small enterprises.
Some highlines are as below:
- The Ministry of Finance (MoF) is proposing a regulation that exempts micro and small enterprises from corporate income tax for two years since they have sufficient income subject to taxation.
- The regulation would be applicable for micro and small businesses which are established from household firms.
- The regulation is one of the proposals made by the ministry in draft amendments to the Law on Corporate Income Tax.
- It is aimed at implementing Party and State policies about the development of the private economic sector; and encourage household firms to establish businesses and develop production and trade.
4. Agricultural land use tax exemption proposed to last through 2030
Some highlines are as below:
- The Ministry of Finance (MoF) has proposed to extend the agricultural land tax exemption policy by five years from January 1, 2026 to December 31, 2030.
- The policy is part of the draft Resolution of the National Assembly on agricultural land tax exemption which is being built by the MoF.
- The policy is aimed to support farmers and encourage investment in agriculture, according to the ministry.
- Particularly, it is expected to help raise the competitiveness of Vietnamese agricultural products in the international market.
- Reviewing the implementation of the policy over the past 20 years, the MoF estimated that the total agricultural land tax reduction and exemption value in the 2021-2023 period was estimated at over VND7.5 trillion ($392 million) per year.
5. PM asks for solutions towards 95 percent of public investment disbursement rate
Some highlines are as below:
- Prime Minister Pham Minh Chinh has asked for breakthrough solutions to fulfil the target of 95 percent in the disbursement rate of public investment capital in 2024.
- Highlighting the significance of public investment as a factor guiding and activating all social resources, the PM said that the Government has formed five working groups and sent 26 working teams to localities for removing difficulties and promoting socio-economic development, including speeding up the disbursement of public investment capital and the implementation of the three national target programs.
- However, despite efforts in the work, the disbursement results have yet to meet requirements, he said, noting that so far, 33 out of 44 ministries and central agencies as well as 28 out of 63 localities have reported disbursement rates lower than the country’s average.
- According to the Ministry of Planning and Investment, to date, the PM has issued two directives, four dispatches and many documents directing the speeding up of public investment capital.