Legal update N1, Octorber 2017
Determine the method of VAT calculation from 05/11/2017
The Ministry of Finance has just issued Circular 93/2017/TT-BTC amending Circular 219/2013/TT-BTC and Circular 156/2013/TT-BTC.
Accordingly, the guideline for filing Form No.06/GTGT shall be abolished when business establishments carry out the following activities:
– Conversion of the method of VAT calculation;
– To register the application of VAT by the deduction method for newly set up business establishments and operating business establishments with a taxable turnover of under VND one billion.
– If the business establishment registers to apply VAT by the deduction method, it shall send the VAT declaration form No. 01 / GTGT and 02 / GTGT to the tax agency.
– If business establishments register for the direct method, they shall send VAT declaration forms No. 03/GTGT and 04/GTGT to tax offices.
VAT declaration forms 01/GTGT, 02/GTGT, 03/GTGT and 04/GTGT attached to Circular 156/2013/TT-BTC – have been amended and supplemented in Circular 119/2014 / TT-BTC and Circular 26/2015/ TT-BTC dated 27/02/2015.
Foreign capital is heavily invested in pharmaceuticals
The phenomenon of foreign investors investing heavily in the pharmaceutical industry in recent years is being observed by the observers.
The survey conducted by Grant Thornton Consulting earlier this year showed that healthcare and pharmaceuticals continue to be among the top three sectors attracting the largest foreign investment into Vietnam, after food, beverages and retail.
Foreign investors are increasing their presence in Vietnam through the acquisition of shares in leading pharmaceutical companies in the country. A number of recent acquisitions have been completed, such as the Abbott Group, which holds a 51.69% share in Domesco Medical Export – Import Joint Stock Company.
Another deal is Taisho, the pharmaceutical group in the top 4 of Japan, has become a major shareholder of Hau Giang Pharmaceutical with a 24.4% ownership.
Mr. Phan Huu Thang, former director of the Foreign Investment Agency under the Ministry of Planning and Investment, Director of the Center for Foreign Investment Studies, said that through the capital contribution channel, foreign investors have access to the Vietnamese market faster because they do not have to apply for investment registration certificates. Therefore, even when investing in this form at the time of high share prices, higher costs are not wasted because of time savings and early profit to make up for.