JANUARY 2019

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1. INVOICE

Official Letter 4585 / CT-TTHT dated January 28th 2019 of Ha NoiTax Department on the issue of tax department invoice for the enterprise liquidating the assets

In case the Company is carrying out the tax finalization procedure with the Tax Agency and has submitted the notice of the invoice cancellation result but has liquidated the assets, the Company must request the Tax Officer to issue the Tax Departmentinvoice (form No. 3.4 Appendix 3 that was issued together with Circular No.39/2014/TT-BTC as mentioned above).

Based on the application for the tax department invoice, the Tax Agency will givethe Companythe instructionsto determine the payable tax amount, then the Company must pay thatfull payable tax before the Tax Agency issues the tax departmentinvoiceas requested.

The tax department invoice is the sales invoice so that the Company can deliver it to the property purchaser as prescribed by laws.

2. VALUE ADDED TAX

Official Letter 4837/TCT-CS dated December 4th 2018 of the General Department of Taxation on the value added tax and invoiceforthetransfer of investment projects

Under the provisions of Clause 4, Article 5 of Circular 219/2013/TT-BTC,in casethe project transfer activities are in the investment phase underthe conditionthat theinvestment lawis metand the transferee continues to perform the project in accordance withthe original purpose, thattransferred project is not subject to VAT declaration, calculation and payment.

However, when transferring, the transferor must still issue the invoice in which the selling price is equal to the payment price and the line of tax rate, value added taxamount must not berecorded and be crossed outinstead.

Official Letter No. 2979/CT-TTHT dated January 18th, 2019 of Ha Noi Tax Department on supplementary declaration to increase the taxamount proposed to be refunded

According to the instructions at Official Letter No.2035/TCT-KK datedMay 13th, 2016, in case the Company arisesthe refundable VAT amount of the previous quarter thathas not requested torefundyet, if beforethe expirationdate of tax declaration ofthe nextquarter and the Company has not transferred this tax deduction into the official declaration of the nextquarter, it will be supplementarilydeclared to requestthe refund

Specifically, the Company increasesthe taxamountproposed to be refunded on the supplementary declaration of the previous quarter (at item No.42 inform No.01/GTGT), and at the same time, decreases the tax amount proposed to be refunded into the item No. 37 on the official declarationof the nextquarter.

3.  PERSONAL INCOME TAX

Official Letter No. 85040/CT-TTHT dated December 27th, 2018 of Ha Noi Tax Department on the registration of dependant tax code

According to regulations on issuingand registering tax code(MST), each individual is only granted 01 single tax codefor lifetime use.

For dependant tax codeused to register family deduction, it is also used to declare and pay taxes if the dependanthasincome to pay taxes(point b,clause 1,Article 5,CircularNo. 95/2016/TT-BTC).

In case the employeemoves to another workplace, hemust re-registersand re-submitsthe documents to prove the dependants, but continuesto use the old tax codeto register (point i,clause 1,Article 9,CircularNo. 111/2013/TT-BTC).

Official Letter No. 85048/CT-TTHT dated 27/12/2018 of Ha Noi CityTax Department on tax policy for transferofshares of individuals in joint stock companies

In case someonetransferscapital in joint-stock companies under the regulationof the Enterprise Law and the Securities Law, it is defined as income from securities transfer whereby he/shedeclaresand paystax at the tax rate of 0.1% on transfer price as guided in Article 16 and Article 21 of Circular 92/2015/TT-BTC dated June 15th, 2015 of the Ministry of Finance.

In case he/shereceivesdividends in stock or receive bonuses in shares, he/shedoesnot have to pay tax at the time of receiving, but when individuals transfer shares of the same type, he/shehas todeclare tax andpay tax on the following principles:

+ When transferring the shares received as dividends, he/shehas topay PITon income from capital investment and income from securities transfer.

+ When he/shereceivesbonusbyshares from employers, he/shedoesnot have to pay PITfrom salaryand wage. When he/shetransfersthese shares,he/shehas to declare PITfrom stock transfer and incomefrom salaryand wage.

The taxpayers make declaration forms as guided in Appendix No. 02 issued together with Circular No. 92/2015/TT-BTC.

4. OTHERS

Official Letter No. 337/LDTBXH-PC dated January 15th, 2019 of the Ministry of Labor, War Invalids and Social Affairs on the maximum overtime hours in a month.

According to the Ministry of Labor, War Invalids and Social Affairs, the above Law is still in effect, so the regulation on overtime hours whichwillnot exceed 30 hoursper month, 200 hours peryear (except for some special cases not exceeding 300 hours peryear) is still applicable.

Currently, the Ministry of Labor, War Invalids and Social Affairsis being assigned to draft the renewalLabor Law,including amending the regulations on maximum overtime hours proposed by many enterprises and associations, but this issue only inresearchanddiscussion.

For overtime regulations, many enterprisesand associations are proposing to increasemaximum overtime limit and abandon the monthly overtime limit to create flexibility in overtime agreements to improve production and business efficiency for enterprisesand increase income for employees.