November 2002

Official Letter 3438 TCT/NV6 dated September 12, 2002 of the General Department of Taxation on providing instructions on use of invoices. 

According to this Official Letter, where a value added tax invoice issued by a seller is not acceptable to the buyer due to an error in the tax rate applied, the quantity of the goods, the price and so forth, the seller may issue another invoice for replacement of the incorrect invoice after both parties have made minutes specifying the error and the date of the incorrect invoice, and have attached the original incorrect one to the minutes.

Decree 76/2002/ND-CP dated September 13, 2002 of the Government on amendments and additions to a number of provisions on Value Added Tax 

Under this Decree, humanitarian aid and non-refundable aid, gifts to state bodies, social, and political organisations, hand luggage within duty-free limits, goods and services to be sold to international organisations and foreign individuals for humanitarian aid and non-refundable aid for Vietnam, and projects using non-refundable ODA funds and so forth are still not liable for value  added tax except for goods and services sold to those entitled to diplomatic immunity under the Ordinance on Diplomatic Immunity. 
In addition, this Decree adds construction and installation services performed abroad or to export processing enterprises to the list of goods and services currently subject to a value added tax rate of zero per cent. 
In order to enjoy this tax rate, enterprises must comply with the requisite procedures for exports and receive payments through a bank. In particular, enterprises paying value added tax in accordance with the credit method shall be entitled to deduct input VAT at the rate of 1 per cent on the price of goods and services purchased without VAT invoices instead of at the rate of 2 or 3 per cent as previously stipulated.  

Decision 998/2002/QD-NHNN dated September 13, 2002 of the State Bank of Vietnam on foreign exchange control with respect to securities transactions effected by foreign individuals and organisations through Securities Transaction Centres. 

This decisions make provisions for the purchase and sale by foreign individuals and organisations of securities listed on the Vietnamese stock market including the regulations on remittance of money into Vietnam for purchase and sale of securities, foreign currency exchange to Vietnam Dong, opening and use of accounts for securities transactions and remittance of money abroad.
According to this Decision, foreign enterprises, foreign citizens, overseas Vietnamese not residing in Vietnam, and foreign investors in foreign invested enterprises are allowed to purchase and sell securities at Securities Transaction Centres.
Foreign investors wishing to deal in securities listed on the Vietnamese stock market are required to open accounts in Vietnam Dong for securities transactions and accounts for depositing securities at foreign depository organisations.
After fulfilling tax obligations, foreign investors are entitled to use the amounts in securities transaction accounts to purchase foreign currencies at foreign depository organisations for repatriation.
Foreign investors may only transfer their investment capital abroad one year after the date on which the capital is transferred in Vietnam Dong to the securities transaction account. However, this restriction does not apply to investment profits, dividends and interest on bonds. 

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