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On February 7, 2020, the Prime Minister issued Official Letter No. 197/TTg-KTTH of exempting import tax on medical masks and hand sanitizer; raw materials for the production of masks, antiseptic water, necessary supplies and equipment in service of the prevention and control of acute respiratory infections caused by corona virus.
On February 7, 2020, the Ministry of Finance issued Decision No. 155/QD-BTC on the list of items exempted from import tax for the prevention and control of acute respiratory infections caused by corona virus.
On March 27, 2020, the Ministry of Finance issued Decision No. 436/QD-BTC to supplement items exempted from import tax to the list in the previous Decision No. 155/QD-BTC.
Document No. 2698/BCT-DTĐL was issued on April 16, 2020 by the Ministry of Industry and Trade on supporting electricity price reduction for customers using electricity affected by Covid epidemic -19.
According to the Decision No. 648/QD-BCT issued on March 20, 2019, the average retail price of electricity is 1,864.44 vnđ/KWh (excluding VAT). With the complicated situation of the Covid 19 epidemic, which has seriously affected the socio-economic life of Vietnam, the Ministry of Industry and Trade has sent a written request to the Department of Industry and Trade of the provinces and cities directly. of the Central Government and Vietnam Electricity Group shall apply the policy of reducing electricity sale prices and reducing electricity charges to individuals and organizations, specifically as follows:
1. Price reduction:
– 10% reduction will apply to the retail rates for commercial customers and industrial customers in Decision No. 648/QD-BCT dated March 20, 2019 for peak, shoulder and off-peak periods.
– 10% reduction will apply to retail rates of level 1 to 4 for residential customers in Decision No. 648/QD-BCT.
– Retail rates for industrial customers will apply to tourist accommodation establishments (according to the 2017’s Law on Tourism and relevant laws) instead of commercial rates.
– Wholesale rates in rural areas, dormitories or residential clusters; wholesale rates for commercial-residential complexes: 10% reduction will apply to residential rates of level 1 to 4; 10% reduction will apply to wholesaling of electricity for other purposes according to Decision No. 648/QD-BCT.
– Wholesale rates for industrial zones and markets: 10% reduction will apply to the wholesaling tariff in Decision No. 648/QD-BCT.
2. Discounts (before tax) for EVN’s customers that participating in Covid-19 control:
– 100% discount will be given to quarantine facilities other than hotels, treatment facilities for suspected cases and confirmed cases of Covid-19.
– 20% discount will be given to health facilities where suspected cases and confirmed cases of Covid-19are examined, tested and treated.
– 20% discount will be given to hotels that are used for quarantine of suspected cases and confirmed cases of Covid-19.
The list of facilities eligible for discounts shall be provided for electricity supply units by National Steering Committee for Covid-19 Control, the Ministry of National Defense, the Ministry of Public Security and the People’s Committees of provinces.
This policy has contributed to reducing financial stress for individuals and businesses, for manufacturing businesses with high demand for electricity, the reduction of electricity prices helps these businesses accumulate costs. contribute to the recovery of business after the disease situation stabilizes
Solar power is a new group of energy industries developed recently in Vietnam. Most solar power projects are concentrated in localities such as Ninh Thuan, Gia Lai, bac Giang, Hai Phong… The development of solar power is receiving many policies to encourage and support the state.
On April 6, 2020, the Prime Minister issued Decision No. 13/2020/QD-TTg on the mechanism to encourage development of solar power in Vietnam, effective on May 22, 2020. Accordingly, organizations and individuals participating in the development of solar power in Vietnam will be applied the new electricity tariff as prescribed in this Decision.
Decision No. 13/2020/QD-TTg has specified the lower power purchase price, the discount price than the old price. All three types of solar power connectors, ground sun and solar power roofs have the same price level, namely the following:
For power projects floating Solar: 1,783 VND/kWh, equivalent to 7.69 UScent/kWh;
For the ground solar power project: 1,644 VND/kWh, equivalent to 7.09 UScent/kWh;
For solar power system roof: 1,943 VND/kWh, equivalent to 8.38 UScent/kWh.
Some outstanding issues when applying the above electricity tariff, businesses should pay attention, specifically:
For electricity projects Grid-connected solar power projects have been decided by competent agencies on investment policies. before November 23, 2019 and have a commercial operation date of the project or part of the project from July 1, 2019 to the end of December 31, 2020, that project or part of that project may be The electricity buying tariff of grid-connected solar power projects shall be applied as above.
For Ninh Thuan province, the purchase price of electricity from grid-connected solar power projects is included in the electricity development planning at all levels and has the date of commercial operation before January 1, 2021 with the total accumulated capacity of zero. exceeding 2,000 MW is VND 2,086 / kWh (exclusive of value-added tax, equivalent to 9.35 UScents / kWh, at the central rate of Vietnam dong and US dollar announced by the State Bank of Vietnam). April 10, 2017 was VND 22,316 / USD), applied for 20 years from the date of commercial operation.
For rooftop solar power systems, it is permitted to sell part or all of the electricity produced to the Buyer being Vietnam Electricity Group or the purchaser is another organization or individual in case of not using the electricity grid. of Vietnam Electricity. Vietnam Electricity Corporation or its authorized member unit shall make payment of the electricity from the rooftop solar power system to the national grid at the above purchase price. This purchase price is applied to rooftop solar power system with the time of generating electricity operation and certification of meter readings from July 1, 2019 to December 31, 2020 and is applied. Use 20 years from the date of commissioning.
In order to implement the Prime Minister’s directing opinions in Document No. 2827/VPCP-KTTH of April 10, 2020 on rice export in the context of epidemics, drought and saltwater intrusion. On April 10, 2020, the Ministry of Industry and Trade issued Decision 1106/QD-BCT announcing export quotas for rice in April 2020 (“Decision 1106 / QD- BCT”).
The main contents of Decision 1106/QD-BCT:
Export quotas for rice: The rice export quota (HS code 10.06) applied in April 2020 is 400,000 tons.
Principles of quota management:
Traders who register the previous customs declaration will be deducted from the previous export quota. The quantity declared on the registered customs declaration will be subtracted from the amount permitted for export in April. In case the customs declaration is no longer valid for carrying out the procedures or the actual export quantity is less than the declared quantity, the overage will be added back to the amount permitted for export in April.
Customs declarations are valid for carrying out customs procedures until the total number of export registrations of declarations reaches 400,000 tons (customs declarations with an amount in excess of 400,000 tons will not be valid for customs procedures). In case the customs declaration is no longer valid for carrying out procedures or the actual export quantity is less than the customs declaration amount, the overage will be added back to the amount permitted for export in April.
Export border gates: Only rice exports are allowed through international border gates (road, rail, sea, waterway and air).
Exporting rice to supply ships on exit (serving the daily life of sailors on board not exceeding 30kg / 1 sailor). export processing enterprises
On-spot import and export or export to export-processing enterprises (serving activities of employees in export-processing enterprises).
Decision 1106/QD-BCT takes effect from 0h April 11, 2020.
On April 9, 2020 the Government issued Decree No.46/2020/ND-CP, effective from 1/6/2020 providing regulations on customs procedures, customs inspection and supervision of goods. transit through the ASEAN customs transit system to implement Protocol 7 on the customs transit system
Protocol 7 on the Customs Transit System was developed with the overall goal of simplifying and harmonizing regulations on movement, trade and customs; establish an effective, optimal and integrated transit system in ASEAN.
This Decree details the goods in transit through the ACTS system. Can understand the ACTS system as follows: “ACTS” means the integrated information technology system developed by Member States of ASEAN for the purposes of connecting and exchanging information to carry out electronic transit procedure, control the movement of goods across the territory of Contracting Parties, assisting customs authorities of Contracting Parties in calculating customs duties and guarantee amounts, and exchanging information for recovery of customs debts under Protocol 7 on Customs Transit System (hereinafter referred to as “Protocol 7”
The transit of goods through the ACTS system must comply with the following provisions:
1. Goods placed under the ACTS procedure which are transported from Vietnam across the territory of a Contracting Party must comply with the provisions on management of goods in transit of that Contracting Party.
2. Goods placed under the ACTS procedure which are transported across the territory of a Contracting Party and imported to Vietnam must comply with the provisions on management of goods in transit of that Contracting Party and the relevant provisions on management of imports of Vietnam.
3. Goods placed under the ACTS procedure which are transported across the territory of Vietnam must comply with the provisions on management of goods in transit laid down in relevant laws.
4. Based on the result of classification of customs declarations on the ACTS and provided information relating to the goods in transit (if any), Directors of Customs Sub-departments shall decide to carry out the examination of customs dossiers and/or the physical inspection of goods. The physical inspection of goods shall be carried out with machinery and other technical devices. If the Customs Sub-department does not have sufficient machinery and technical devices or the inspection of goods by using machinery and technical devices is not sufficient for determining the actual conditions of goods or any violations are suspected, the customs officials shall carry out the physical inspection of goods.
5. Charges which may be incurred in Vietnam in respect of goods placed under the ACTS procedure shall be paid in accordance with regulations of the law on fees and charges.
In addition, this Decree prescribes the priority regime for enterprises conducting goods transit through the ACTS System such as:
1. Free many journeys
2. Exemption from the requirement to present the TAD and the goods at the customs authority, except for the case of the ACTS failure.
3. Exemption from the examination of customs dossiers and physical inspection of goods at the customs authority of departure, except for the cases of suspected violations.
4. Use of the special seal approved by the customs authority.
5. The validity period of authorisations shall be 36 months from the date of issue of the decision on recognition of authorized transit trader status.
Decree No. 46/2020/ND-CP was issued, contributing to creating a legal basis for implementing the application of customs modernization for goods in transit between ASEAN countries and Vietnam, while contributing to reducing spending fees and facilitate businesses in the transit of goods between Vietnam and ASEAN member countries, ensuring the requirements of administrative procedure reform and customs modernization.
April 3, 2020, the Government issued Decree No. 38/2020/ND-CP detailing the implementation of the Law on Vietnamese laborers going to work abroad under contracts (“Decree 38/2020/ND-CP”). Decree 38/2020/ND-CP details about areas and lists of jobs that workers laborers are not allowed to work abroad. Specifically:
Areas that laborers are not allowed to work abroad
The areas are at wars or at risk of wars;
The areas are contaminated;
The areas are poisoned;
The areas are at particularly dangerous epidemics.
(Article 3 of Decree 38/2020/ND-CP)
Lists of jobs that laborers are not allowed to work abroad:
Massaging in the restaurants, hotels or entertainment centers;
The work must be in constant contact with explosives, toxic substances in the metallurgy of non-ferrous metals (copper, lead, mercury, silver and zinc), regular contact with manganese, mercury dioxide;
The work must be in contact with open radioactive sources, exploiting radioactive ores of all kinds;
The production and packaging must be in constant contact with the chemicals of nitric acid, sodium sulfate, carbon disulfide, pesticides, herbicides, rat poison, antiseptic, and anti-termite with strong toxicity;
Hunting for wild animals, crocodiles and sharks;
Regular work in places where there is lack of air, high pressure (underground, in the ocean);
Shrouding, burial corpses, cremating corpses, exhuming graves.
(Appendix I of Decree 38/2020/ND-CP)
The contents related to the areas and lists of jobs that laborers are not allowed to work abroad under Decree 38/2020/ND-CP will replace the previous adjusted contents in Decree 126/2007/ND-CP.
Decree 38/2020/ND-CP takes effect from May 20, 2020.
Currently, the Covid epidemic chain is having many complicated and unpredictable developments affecting the economies of most countries in the world. In VietNam, the Covid epidemic has had many negative impacts on the business investment activities of many businesses. Enterprises, cooperatives and business households must suspend production and business activities or reduce production scale, thus reducing labor. In order to help and share difficulties in the pandemic, the Government has issued many regulations to support people, businesses and workers.
On April 9, 2020 the Government issued Resolution No. 42/NQ-CP regulation assistance for people affected by Covid-19 pandemic. The resolution takes effect from the date of its promulgation and has provided for Specific support levels and levels of support are as follows:
The employee working under the labor contract regime must agree to postpone the performance of the labor contract, take a leave without pay for 01 month or more (because businesses are troubled by the Covid-19 pandemic, no have turnover or have no financial source to pay salaries), they are entitled to the following support levels:
Support level: 1.8 million/person/month
Support time: Calculated according to the actual time of temporary deferment of the labor contract, leave without pay, on a monthly basis, depending on the actual situation of the evolution of the epidemic, as of April 1, 2020 and not more than 3 months.
An employer who is facing financial difficulties and have paid at least 50% of suspension allowance for their employees during the period from April to June 2020 are entitled to the following assistance:
Method of support: Lending without collateral up to 50% of the regional minimum wage for each employee according to the actual pay period but not more than 3 months with 0% interest rate, maximum loan term up to 12 months at Vietnam Bank for Social Policies to pay the remaining salary and disburse monthly directly to the unemployed.
A household business that earns an annual revenue of under 100 millions VND/year and has to suspend business operation from April 01, 2020:
Support level: 1 million/household/month
Support time: According to monthly, depending on the actual situation of the epidemic changes but not more than 3 months.
The employee has a labor contract or employment contract terminated but is not eligible for unemployment benefits; an employee who does not enter into a labor contract and loses employment:
Support level: 1 million/person/month
Support time: According to the monthly, depending on the actual situation of the epidemic changes, but not exceeding 3 months at most. Application period is from April to June 2020.
A person with meritorious services to the revolution who is receiving monthly benefits:
Support level: Additional support of 500,000 VNĐ/person/month
Support time: 3 months, from April to June 2020 and paid in lump sum.
A social protection beneficiary who is receiving monthly benefits:
Support level: Additional support of 500,000 VNĐ/person/month
Support time: 3 months, from April to June 2020 and paid in lump sum.
A poor or near-poor household according to the national poverty standards by December 31, 2019:
Support level: 250,000 VND/ household/month
Support time: 3 months, from April to June 2020 and paid in lump sum.
The Government has stipulated 07 groups of state-supported subjects during the impact of Covid pandemic. This is a positive measure to share difficulties and contribute to ensuring life for people.
On April 8, 2020, the Government issued Decree No. 44/2020/ND-CP providing for enforcement of judgments against commercial legal entities. Accordingly, in cases where a commercial legal entity fails to abide by or does not fully comply with the court’s legally effective judgments or decisions, the competent criminal judgment-executing agency or the state management agency For commercial legal entities and other relevant agencies, organizations and individuals, coercive measures shall be applied. Specifically, these measures include:
Distraint of property with a value equivalent to the security guarantee enforcement amount (property distraint);
Temporarily seizing documents, vouchers, devices containing electronic data;
Temporarily seizing or withdrawing seals of commercial legal entities.
When a competent state agency applies coercive measures to judgment enforcement against a commercial entity, it must comply with the following principles:
Only implemented when there is a written enforcement decision of the competent criminal judgment enforcement agency;
Based on the penalties and judicial measures applicable to commercial legal entities, the content, nature, extent, conditions of execution of enforcement decisions and the actual situation in the locality;
The time limit for application of coercive measures to ensure the execution of a sentence does not exceed the time limit for serving the penalties under the legally effective judgments or decisions of the Court; The time limit for ensuring the execution of judicial measures is determined when the judicial measures are completed;
Commercial legal entity may be subject to one or several coercive measures at the same time if the application of a coercive measure is not sufficient to ensure the judgment execution;
Ensuring the lawful rights and interests of commercial legal entities, organizations and individuals involved in the enforcement of sentences.
Decree No.44/2020 / ND-CP of the Government officially takes effect from June 1, 2020.
On April 8th , 2020, the Government issued Decree No. 41/2020/ND-CP stipulating the deadline for tax payment and land rent extension. This Decree takes effect from the date of signing.
In this Decree, there are provisions on subjects entitled to tax payment extension and extension. For individuals and businesses that have been subject to extension, one of the items that individuals and businesses are most interested in during the Covid – 19 period is probably the tax payment extension. Pursuant to Article 3 of Decree 41/2020/ND-CP stipulating the deadline for tax payment extension, specifically as follows:
1. VAT (except VAT paid upon importation of goods)
a) VAT incurred by the enterprises and organizations mentioned in Article 2 of this Decree during March, April, May, June of 2020 (for taxpayers declaring tax monthly), first and second quarter of 2020 (for taxpayers declaring tax quarterly) may be deferred for 05 months from the deadlines for VAT payment prescribed by tax administration laws.
Enterprises and organizations eligible for tax deferral shall submit their monthly or quarterly VAT declarations in accordance with applicable laws and may postpone payment of the VAT declared. Deferred deadlines:
Deadline for payment of VAT incurred in March 2020 is deferred to September 20, 2020.
Deadline for payment of VAT incurred in April 2020 is deferred to October 20, 2020.
Deadline for payment of VAT incurred in May 2020 is deferred to November 20, 2020.
Deadline for payment of VAT incurred in June 2020 is deferred to December 20, 2020.
Deadline for payment of VAT incurred in the first quarter of 2020 is deferred to September 30, 2020.
Deadline for payment of VAT incurred in the second quarter of 2020 is deferred to December 30, 2020.
b) In case an enterprise or organization mentioned in Article 2 of this Decree has a branch or affiliated unit that declares VAT separately to its supervisory tax authority, the branch or unit is also eligible for VAT deferral. The branches and units of the enterprises and organizations does not have production and business activities in the extended economic sector the branch or affiliated unit shall not be eligible for VAT deferral if none of their business lines is eligible for deferral.
2. Corporate income tax (CIT)
a) CIT declared in the 2019’s annual statement and CIT declared in the first and second quarters of 2020 by organizations and enterprises subject to tax payment extension will be deferred for 05 months form the deadline for CIT payment prescribed by tax administration laws.
b) In case an enterprise or organization mentioned in Article 2 of this Decree has a branch or affiliated unit that declares CIT separately to its supervisory tax authority, the branch or unit is also eligible for CIT deferral. The branches and units of the enterprises and organizations subject to tax payment extension shall not be eligible for CIT deferral if none of their business lines is eligible for deferral.
3. VAT and personal income tax (PIT) of household and individual businesses
The deadline for paying VAT and CIT incurred in 2020 of household and individual businesses in the business lines subject to tax payment extension is deferred to December 31, 2020.
On February 5, 2020, the Government issued Decree No. 17/2020 / ND-CP on amending and supplementing a number of articles of decrees related to business investment conditions in the field under state management of Ministry of Industry and Trade. This Decree takes effect from March 22, 2020.
Regarding wine commerce, the Government’s Decree No. 17/2020 / ND-CP amended and supplemented a number of articles and clauses of the Government’s Decree No. 105/2017 / ND-CP of September 14, 2017, on wine commerce.
Accordingly, the management of alcohol must adhere to the following principles:
1. Liquor business is on the list of sectors and trades subject to conditional business investment. Organizations and individuals engaged in liquor trading activities must comply with the provisions of the Law on Prevention and Control of Alcohol and Beer Harm and the provisions of this Decree.
2. Traders of industrial liquor, manual liquor production for the purpose of trading, distributing wine, wholesaling liquor and retailing alcoholic beverages of 5.5 degrees or higher must have a permit; liquor traders with an alcohol content of 5.5 degrees or higher for on-spot consumption, liquor traders with an alcohol content of less than 5.5 degrees must register with the Economic Department or the District Economic and Infrastructure Division; households and individuals manually producing liquor with an alcoholic content of 5.5 degrees or more and selling it to establishments having liquor production licenses for re-processing must register with the commune-level People’s Committees of the localities where the production establishments are located. export.
3. In the process of distributing, wholesaling and / or retailing liquors, traders must abide by the law provisions on environmental protection, food safety, fire prevention and fighting. In the process of selling on-the-spot consumer liquor, traders must comply with the regulations on fire prevention and fighting and environmental protection in accordance with law.
The promulgation of Decree 17/2020 / ND-CP is necessary in the current context. Because, the strong socio-economic development takes place not only within the national and international scope but also leading to guidelines on the management of conditions in certain business areas that must change to satisfy the current situation.