Ecovis in Tunisia

VAT refund Vietnam: Update on the current process

06.06.2023

On 14 April 2023, a change in VAT refund in Vietnam came into effect. There are new rules regulating which refunds are possible and which documents must be submitted. The Ecovis experts summarise the most important points on VAT refunds.

The changes to the VAT refund are set out in Circular No. 13/2023/TT-BTC (Circular 13), which regulates the implementation of Decree No. 49/2022/ND-CP (Decree 49) and amends Circular No. 80/2021/TT-BTC.

The points in detail

1. Business establishments eligible for VAT refund for investment projects

Clause 3, Circular 13 totally replaces Clause 3, Article 18, Circular 219/2013/TT-BTC to ensure consistency among regulations. Accordingly, business establishments shall be entitled to VAT refund for investment projects according to the provisions of Clause 3, Article 1 of Decree 49.

In short, Decree 49 removed the requirement for the investment period to last more than a year to receive an annual VAT refund. It also allowed an investment project with conditional business to receive a VAT refund during the investment period if such investment project, as regulated by the investment and governance law, is not required, or has not yet been required to obtain a license/confirmation/approval from the competent authorities to carry out the conditional business.

2. Application for VAT refund

Circular 13 also modifies and supplements Point a.4, Clause 2, Article 28 of Circular 80 on VAT refund dossiers, including a copy of one of the licenses, certificates, or written confirmation or approval of these conditional business lines for investment projects with conditional business lines in the investment stage that have been granted licenses to engage in conditional business lines by the competent authority under the provisions of Clause 3, Article 1 of Decree 49.

Accordingly, from 14 April 2023, VAT refund dossiers for business establishments with conditional business lines will primarily include the following:

• The application form No. 01/HT
• A copy of the Investment Registration Certificate (IRC)/Investment Certificate/ Investment License in the case of mandatory IRC application
• A copy of the Land Use Right (LUR) Certificate/decision on land allocation/land leasing contract issued by a competent authority; or the Construction Permission Certificate for projects with construction works
• A copy of the license/certificate/written confirmation or approval for the conditional business lines
• A copy of the Certificate of Charter capital contribution
• A list of purchase invoices and documents according to Form No. 01-1/HT, unless the relevant electronic invoices are sent to the tax authority
• The decision on the establishment of the project management board/assignment of project management tasks by the project owner
• The organisation and operation regulations of the branch or project management board if the tax refund is applied for by the branch or project management board

For further information please contact:

Nghia Tran, Partner of Tax, Accounting and Consulting, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: nghia.tran@ecovis.com.vn

Malta corporate law: Malta transposes EU Mobility Directive

05.06.2023

On 7 February 2023, Malta transposed Directive (EU) 2019/2121 on cross-border conversions, mergers and divisions, more commonly referred to as the Mobility Directive, into Maltese Law.

The primary aim of the Mobility Directive is to provide a coherent and harmonised legal framework for cross-border movement of limited liability companies across all Member States and therefore enhance the freedom to establish companies. At the same time, a harmonised legal framework for cross-border conversions and divisions will lead to better protection of employees, creditors, and minority shareholders within the internal market.

In short, the Mobility Directive introduces three key changes:

• A harmonised framework governing cross-border conversions
• Clear procedural steps for the implementation of cross-border divisions
• Enhancements to cross-border mergers regulations in alignment with the above

We support you in implementing the mobility directive.

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta

In view of the complexity of cross-border conversions, mergers, and divisions, the Mobility Directive has also introduced a function for national authorities to scrutinise the legality of cross-border operations before they take effect, explain the Ecovis experts. In assessing whether a pre-operation certificate should be granted, authorities shall take into consideration the legal and economic aspects of the proposed cross-border operations, its implications for the employees, such as potential impacts on working conditions, the implications for the future business of the company, as well as the solutions offered to shareholders wishing to exit the company.

The authorities reserve the right to extend the period of assessment or to refuse the pre-operation certificate if they suspect that the cross-border operation is set up for abusive, fraudulent, or criminal purposes.

For further information please contact:

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
Email: malta@ecovis.com

Buying property in Spain after Brexit: Real estate in the Canary Islands

02.06.2023

The Canary Islands is one of the most popular destinations in Spain for foreigners for buying a holiday or retirement home, or even a primary residence. After Brexit, the question often arises as to how the process has changed from both an immigration and taxation perspective. Ecovis expert Natalia Bonilla answers the most important questions.

Ms Bonilla, can people still buy a property in Spain after Brexit?

Of course, everyone can buy property in Spain regardless of their citizenship and whether they are from the EU or not. For the British, the purchasing process remains the same after Brexit.

How long can people stay in the property for?

For 90 days in a period of 180 days, without any need to obtain a tourist visa. For longer periods, British citizens are required to obtain a regular residence visa.

Which visa options are available for Britons wishing to stay for periods exceeding 90 days?

There are different visas covering different personal circumstances: a non-lucrative residence visa (for people who do not plan to work in Spain and have sufficient financial means and full-cover health insurance), a “Golden Visa” (a suitable option for investors, for example those investing EUR 500,000 in real estate, allowing the holder the possibility to work in Spain), a digital nomad visa, etc.

We will be happy to advise you on legal and tax issues relating to the purchase of real estate in Spain or questions on residence permits.

Natalia Bonilla, laywer, partner, ECOVIS Legal Spain – Canary Islands, Spain

What is seen as “sufficient financial means”?

This is linked to an annual index (IPREM), so it changes slightly every year. For 2023, the amount is set at EUR 2,400 per month (EUR 28,800 per year) for the permit holder and EUR 600 per month (EUR 7,200 per year) for each family member accompanying the permit holder.

Is there any possibility to obtain a permanent residence permit?

Of course. The visas referred to above have a limited initial duration (1 to 3 years), but all of them can be renewed for subsequent periods of 2 to 5 years depending on the type of permit. After 5 years of continued residency in Spain, it is possible to obtain a permanent residence permit.

What are the main tax implications?

While nothing has changed in relation to the taxation related to the purchase, there has been an increase in the rate of non-resident income tax (IRNR), triggered by the possession (imputed income) and exploitation of the real estate, from 19% to a 24%.

For further information please contact:

Natalia Bonilla, lawyer, partner, ECOVIS Legal Spain – Canary Islands, Spain
Email: natalia.bonilla@ecovis.es