Several important economic policies will be implemented beginning January 1, 2011. DTiNews gives you the run down.
1. Businesses are allowed to print red invoices on their own
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| Businesses can print red invoices on their own instead of spending much time to get them from tax agencies. |
Businesses can print red invoices on their own instead of spending much time to get them from tax agencies. Under the government’s decree scheduled to take effect from January 1, organisations and individuals can use different forms of invoices, including electronic invoices. Businesses are also entitled to use old invoices which are printed within the first four and six months of 2011 but they have to register with tax agencies.
2. Minimum salary increase of up to VND370,000 per month
Minimum salary for labourers at both domestic and foreign-owned enterprises in Vietnam will be raised by between VND100,000 (USD5) and VND370,000 (USD18.5) beginning January 1, 2011. The minimum salary rise will vary depending on different zone classifications set forth by the government.
Currently, around 10 million labourers now work at businesses in Vietnam, including 1.5 million for foreign companies.
3. Auto import taxes to be cut by 1% - 3%
According to the Ministry of Finance’s newly-issued circular, import taxes on cars of 9 seats and less will be 1%-3% lower from the current levels beginning January 1, 2011. Accordingly, the tariff of 82% will be applied for autos which have nine seats or less and have cylinder capacity of up to 2.5L against the current 83%.
4. Branches of foreign banks in Vietnam will be allowed to mobilise capital in VND
Branches of foreign banks in Vietnam will be treated equally like domestic commercial banks in the application of credit supply and guaranty limits in line with Vietnam’s commitments to WTO. From January, 1, 2011, foreign banks will receive deposits in VND from Vietnamese individuals with whom the banks do not have credit relationships.
5. Telecom firms are allowed to issue charges for inter-provincial fixed phone services
Telecom companies are entitled to set charges for inter-provincial fixed phone services on their own based on their business activities. However, the charges issued by the firms must not exceed 50% compared to basic charge packages. VNTP, which now accounts for around 70% of the local fixed phone market share, has to inform its charge adjustment before putting it in use.
6. Gold export taxes increase to 10%
The Vietnamese Ministry of Finance has issued a circular to increase gold export tax rates to 10% from the current zero beginning January 1, 2011. The move is aimed to limit and stabilise gold exports to regulate the domestic market which experienced record-high gold price hikes of up to VND38.2 million (USD1,910) per tael in November.
7. Environmental taxes to be imposed on petrol and plastic bags
According to the Environmental Tax Law, taxes will be imposed on eight groups of products from January 1, 2011, including petrol and oil, coal, plastic bags and substances for plant protection.
The tax of VND30,000 (USD1.5) and VND50,000 (USD2.5) is for each kilogramme of plastic bags and the figure for petrol and oil is from VND1,000 (USD0.05)-VND4,000 (USD0.2) per litre. Ethanol petrol is spared from the tax.
8. Highest land prices in Hanoi and HCM City will be VND81 million (USD4,050) per square metre.
Hanoi’s land prices in 2011 will be adjusted so that prices of land along several roads will be higher than 2010, while those of others will be maintained. The minimum land price will be VND2.3 million (USD115) per square metre and the highest level VND81 million (USD4,050) per square metre.
In Ho Chi Minh City, the lowest price of urban land in 2011 will be VND1.2 million (USD60) and the highest level will be VND81 million per square metre, equal to 2010.
