The Government agrees to greenlight mobile money for two years

LEGAL UPDATES

The Government agrees to greenlight mobile money for two years

1. Ministry of Finance published and collected feedback on the draft of Circular providing guidelines for implementation of a number of Articles of Law on Tax Management and Decree No. 126/2020/ND-CP dated October 19th, 2020 of the Government providing detailed regulations of Law on Tax Management 

Ministry of Finance is collecting feedback on the draft of Circular providing guidelines for implementation of a number of Articles of Law on Tax Management and Decree No. 126/2020/ND-CP dated October 19th, 2020 of the Government providing detailed regulations of Law on Tax Management (hereinafter referred to as “Draft”). 

The outstanding content of the Draft is regulations on tax management of e-commerce activities, digital business of foreign suppliers not having a fixing business establishment in Vietnam. Accordingly, four groups have obligations of tax registration, tax declaration, and tax payment on an e-commerce business and a digital platform business includes:

  • Foreign suppliers not having a fixing business establishment in Vietnam have e-commerce business activities or digital platform business with Vietnamese organizations and Vietnamese individuals;
  • Organizations, individuals in Vietnam purchase goods, service from overseas suppliers;
  • Organizations, tax agents operating under Vietnamese law which is authorized by foreign suppliers to implement tax registration, tax declaration and tax payment in Vietnam;
  • Commercial banks, organization provide intermediary payment services and organizations, individuals having rights and obligations related to e-commerce activities, digital platform business of overseas suppliers.

The Draft also provides guidance on tax registration, tax declaration,  directly calculating tax of foreign suppliers, and regulating a principle of determinating arising turnover in Vietnam to use as the ground for tax declaration and tax calculation.

The Draft is expected to be a useful tool for the Government to manage tax of  cross – border business via e-commerce channels and digital platforms.

2. New regulation on the collection of customs fees

On February 16th, 2021, the Vietnamese Ministry of Finance published the Circular No. 14/2021/TT-BTC regulating details on the collection, remittance, management and use customs fees, fees on transit goods, vehicles in transit (hereinafter referred to as “the Circular No. 14/2021/TT-BTC) with some new points compared to the Circular No. 274/2016/TT-BTC.

The Circular No. 14/2021/TT-BTC extended subjects who must pay customs fees, specifically:

(i)   Organizations, individuals applying for issuance of temporary admission carnet  (ATA Carnet) for temporarily exported for reimportation in accordance with the Decree No. 64/2020/NĐ-CP dated June 10th, 2020 providing guidance on the implementation of temporary admission under Istanbul convention. Customs fees for issuance of ATA Carnet is VND 1,000,000,000 per carnet; fees for re-issuance of ATA Carnet is VND 500,000 per carnet. 

(ii)   Intellectual property right holder who have been protected or legal authorized persons apply to customs agency for inspection, supervision, suspension of customs procedures for exported, imported goods suspected of infringing intellectual property rights in accordance with the law on intellectual property and the law on customs. In this case, the applicant must pay customs fee is VND 200,000 per request.The Circular No. 14/2021/TT-BTC will take effect from April 5th, 2021 and replace the Circular No. 274/2016/TT-BTC.

3. The Government agrees to green-light mobile money for two years

The Prime Minister promulgated Decision 316/ QĐ-TTg on March 9th, 2021 approving the green light to the use of the telecommunications account for payment of goods and services having small value.

Promulgation of this Decision for the purpose of pushing no-cash payment, increasing the approaching and the use of financial services, especially in rural, mountainous, remote, border areas and island of Vietnam.

The Dicision prescribes cleraly scope, subject, execution time, the use limitation and regulations on prohibited atcs. Particularly:

(i)   Execution time: 02 years from the time on which the first piloting enterprise is approved to deploy the Mobile Money service;

(ii)   The Subject of piloting: Enterprises have licenses to provide intermediary e-wallet payment services; licenses for establishment of public terrestrial mobile telecommunications network using radio frequency bands or subsidiaries permitted to use the parent companies’ infrastructure, network and telecommunications data by the parent companies that are licensed for establishing public terrestrial mobile telecommunications network using radio frequency bands;

(iii) Customers: Individual customers registering and using the Mobile Money service must provide their identification cards (Id)/citizen identification cards (CID)/passports that match the information used to register their mobile subscriber numbers, and are identified and authenticated by pilot enterprises according to the Government’s regulations on mobile subscriber registration; and such mobile subscriber numbers must have the period of activating and using continuously for at least 03 consecutive months up to the time of registering to open and use the Mobile Money service. It must be noticed that each customer is allowed to open one Mobile Money account at each piloting enterprise;

(iv)  Limitation for the use of Mobile Money service: a maximum transaction limit is 10 million VNĐ per month for each Mobile Money account for total transactions, including withdrawals, transfers, and payments.

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