CIRCULAR

Supplementary Guidance on Tax Management for the Fishing Industry

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Implementing the Law on Turnover Tax and Income Tax, and the Ordinance on Resource Tax, the Ministry of Finance issued Circular No. 30 TC/TCT dated May 23, 1991, guiding the tax management system for the fishing industry.

After a period of implementation, based on the practical experience in managing tax collection for the fishing industry, the Ministry of Finance supplements and amends some points in Circular No. 30 TC/TCT dated May 23, 1991 as follows:

1- Supplement at the end of paragraph a, point 2, section II of Circular No. 30 TC/TCT dated May 23, 1991 of the Ministry of Finance:

The determination of the quota yield for taxation must be based on the capacity (HP) of the vessel for each type of fishing activity. When determining the quota yield, the Tax Department in provinces and cities with the same fishing grounds need to exchange and agree on the projected quota yield and tax calculation price before announcing the quota yield for taxation to apply uniformly during each period within the same fishing ground.

2 - Amend the regulations on tax collection management and refund of resource tax due to the change of fishing grounds at paragraph b, point 3, section III:

A taxpayer subject to the quota method who moves to another fishing ground may temporarily suspend payment of resource tax and turnover tax registered at their place of household registration and business registration (hereinafter referred to as the place of business registration) for the time required to move to another fishing ground. They must pay resource tax and turnover tax according to the quota at the new location. Income tax is paid at the place of business registration at a rate of 1% of the turnover tax already paid at the new location. Specifically, it is implemented as follows:

a- In cases where the place of business registration only implements the quota tax for each fishing season, and has completed the fishing season, they must pay all taxes due at the local registration place before moving to another fishing ground (no suspension of payment is allowed).

b- In cases where the locality of business registration implements the quota tax for the entire year, the fishing entity may temporarily suspend payment of the remaining resource tax and turnover tax recorded in the books during the time of moving to another fishing ground, but must settle all outstanding taxes before being considered for temporary suspension of tax payment. The decision to temporarily suspend tax payment is made by the Head of the District Tax Office.

The application for temporary suspension of resource tax and turnover tax includes:

+ An application for temporary suspension of tax due to moving fishing grounds from the fishing household (clearly stating the time of moving fishing grounds, the amount of tax due, the amount of tax already paid, the amount of tax still due according to the tax book before moving fishing grounds, and the amount of resource tax and turnover tax requested for temporary suspension).

+ A permit to move fishing grounds (a certified copy by the People's Committee of the ward or commune where the household registration is located).

Upon receipt of the above documents, the ward or commune tax team will review the suspended tax amount of the fishing household due to moving fishing grounds, prepare a list recommending the Head of the District Tax Office to approve and notify the fishing household in writing about the temporary suspension of resource tax and turnover tax, serving as the basis for deducting the tax due from the fishing entity. Within fifteen days from the date of the decision to temporarily suspend tax, the District Tax Office must report to the Provincial Tax Office the amount of resource tax and turnover tax temporarily suspended for fishing entities moving fishing grounds.

After returning from fishing, within thirty days from the end of the period of moving fishing grounds, the fishing entity must present to the ward or commune tax team and the local business registration place the tax receipts for turnover tax and resource tax paid at the fishing location, consistent with the time stated in the permit to move fishing grounds.

Based on the tax receipts submitted by the fishing household, the ward or commune tax team will verify against the application, the decision to temporarily suspend tax, confirm the tax deduction amount of the fishing household, and send the documents to the District Tax Office. The District Tax Office will inspect and decide on the tax amount paid at the fishing location that can be deducted from the tax due at the registration place. The maximum tax deduction at the place of business registration is the actual tax amount shown on the tax receipt at the fishing location, but it cannot exceed the quota tax amount recorded in the tax book at the place of business registration for that period. Within fifteen days from receiving the tax deduction application from the ward or commune tax team, the Head of the District Tax Office must inform the households specifically about the implementation.

All cases of moving fishing grounds, fishing households must register and declare taxes with the tax authority at the new location and the local business registration place. If not declared and paid according to regulations, they will be subject to back taxes and administrative penalties under Decree No. 01/CP dated October 18, 1992 of the Government on the regulation of administrative penalties in the field of tax.

This Circular takes effect from the date of issuance. Other contents not mentioned in this Circular continue to be implemented according to Circular No. 30 TC/TCT dated May 23, 1991 of the Ministry of Finance.

During the implementation process, if there are difficulties or obstacles, units and localities should reflect them to the Ministry of Finance for consideration and resolution.