On 1 October 2020, Decree No. 91/2020/ND-CP on anti-spam text messages, emails and calls ("Decree 91"), which was issued on 14 August 2020, took effect. It replaces Decree No. 90/2008/ND-CP against spam which was enacted 12 years ago. Decree 91 was issued to take into account current advertising realities.
Key changes are:
- Unlike the former decree, Decree No. 91 now expressly captures phone calls within the scope of spam. "Spam calls" are now defined as advertising phone calls made without the prior consent of the recipient or in violation of the law.
- Decree 91 introduces a "Do-Not-Call" registry and a blacklist of brand names developed and operated by the Authority of Information Security ("AIS") under the Ministry of Information and Communications.
- Decree 91 introduces a "National Brand Name Management System". Developed and operated by AIS at tendinhdanh.ais.gov.vn, this system is intended to be used to manage and store brand names worldwide. It allows organisations and individuals to register the brand names that would be used for advertising via messages or calls. Advertisers may only send advertising messages or make advertising calls after they have registered their brand name in the system.
On 19 June 2020, the National Assembly voted to approve Resolution No. 116/2020/QH14 regarding the reduction in corporate income tax payable in 2020 by enterprises, cooperatives, public service providers and other organisations ("Resolution 116"). Resolution 116 came into operation on 3 August 2020. On 25 September 2020, the Government issued Decree No. 114/2020/ND-CP to implement Resolution 116.
Subjects that are eligible for the reduction in corporate income tax include: (i) enterprises established under Vietnamese law; (ii) organisations established under the Law on Cooperatives; (iii) public service providers; and (iv) other organisations established in accordance with Vietnamese law. These enterprises and organisations must earn income from business operations to be eligible for the reduction in corporate income tax.
Specifically, corporate income tax payable in 2020 shall be reduced by 30% for enterprises whose total revenue in 2020 does not exceed 200 billion VND.
The EU-Vietnam FTA ("EVFTA") came into effect on 1 August 2020.
The EVFTA is expected to pave the way for greater trade between the EU and Vietnam. Over a 10-year roadmap, it provides nearly 99% of the elimination of customs duties between the EU and Vietnam. Pursuant to the EVFTA, import taxes on nearly 100% of Vietnam exports to the EU will be eliminated. This is the highest level of commitment that a trading partner has ever given to Vietnam.
The EVFTA also provides for the liberalisation of certain service sectors or the relaxation of business restrictions for European investors – wider in scope than those laid out in the World Trade Organisation ("WTO") Commitments. For example, in the logistics sector, restrictions have been lifted to allow for 70% foreign ownership in transport services. For retail trading services, there will be a gradual phasing out of Economic Needs Test ("ENT") requirements for establishing retail outlets. There has also been general encouragement of clean energy businesses in the country.
On 13 June 2019, the National Assembly approved the Law on Tax Administration No. 38/2019/QH14. This law came into force from 1 July 2020.
Among other changes, the new law introduces new measures to address tax collection for Vietnam-generated income by foreign e-commerce organisations. Particularly, such organisations that carry on business through online platforms would need to register, declare and pay tax on Vietnam-sourced income, either directly or through an authorised representative. Furthermore, commercial banks would be empowered to withhold and pay taxes on behalf of the organisations. These new measures will come into effect from 2022.
The law also mandates the use of electronic invoices for all enterprises from November 2020 onwards.
