On 31 July 2015, the Ministry of Labour – Invalids and Social Affair issued Circular No. 28/2015/TT-BLDTBXH providing guidance on the implementation of a number of articles of the Law on Employment in relation to Unemployment Insurance (“UI”).

Grant Thornton Vietnam would like to note that employee eligible for the preservation of the contribution period as regulated is responsible for taking procedure to preserve the contribution period of the UI.

General Department of Taxation issued Official Letter No. 3185/TCT-CS dated 10 August 2015 guiding VAT on
transactions among related parties applicable for cases where Vietnamese Companies reduce the selling price for its customers due to defects of the goods.

Tax Department of Hung Yen Province issued Official Letter No. 2184/CT-TTHT dated 31 July 2015 guiding the tax treatment of accrued expenses recording on the accounting account no. 335.

Grant Thornton (Vietnam) would like to note that although the Official Letter No. 1105/CT-TT&HT was issued by the Tax Department of Hai Phong province, currently other local Tax departments also have similar requests and guidance on tax declaration obligation of the employees of the foreign contractor
and the notification obligation of the Company hiring the
foreign contractor. Also, there was a local Tax department that required the Company hiring the foreign contractor to be responsible for the PIT liabilities of the employees of the foreign contractor not declared in Vietnam because this Company did not fully perform the notification obligation as required.