On March 16, 2021, the Prime Minister issued Decision 10/2021/QD-TTg regulating the criteria for identifying high-tech enterprises issued by the Prime Minister, which replaces the Decision No. 19/2015/QD-TTg (“Decision 10“).

Here are some highlights of Decision 10:

1. Subjects covered by Decision 10:

Enterprises producing high-tech products and providing high-tech services in Vietnam and related agencies and organizations.

2. Criteria for defining high-tech enterprises:

A high-tech enterprise must satisfy the following criteria:

• Manufacturing high-tech products on the List of high-tech products encouraged for development;
• Apply environmentally-friendly and energy-saving measures in production and product quality management meeting Vietnam’s technical standards and regulations; In cases where Vietnamese standards and technical regulations are not available, the standards of specialized international organizations shall apply.
• Revenue from high-tech products must be at least 70% of the total annual net sales of the business.
• The proportion of total expenditure on research and development of enterprises in the value of total net sales minus the annual input values:

1. For enterprises with a total capital of VND 6,000 billion and total number of employees from 3,000 people or more, it must be at least 0.5%;
2. For enterprises with a total capital of VND 100 billion and the total number of employees from 200 people or more, it must be at least 1%;
3. For enterprises not in points a and b, but must achieve at least 2%.

• Percentage of employees who directly conduct research and development with a college or higher qualification of the enterprise (the number of employees who have signed a labor contract with a term of one year or more or have a contract with no definite term, in which workers with college degrees do not exceed 30%) of the total number of employees:

1. Enterprises with total capital of VND 6,000 billion and total number of employees from 3,000 people or more must reach at least 1%;
2. Enterprises with total capital of VND 100 billion and total number of employees from 200 people or more must reach at least 2.5%;
3. For enterprises not in points a and b, but must achieve at least 5%.

Decision 10 takes effect from April 30, 2021. Enterprises that have submitted their application for a high-tech enterprise certificate before the effective date of Decision 10 and have not yet been issued shall comply with the criteria specified in Decision 10.

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On March 11, 2021, the Government issued Decree No. 18/2021/NĐ-CP amending and supplementing a number of articles of the Government’s Decree No. 134/2016/ND-CP dated September 1, 2016, detailing a number of articles and the enforcement of the Law on Import and Export Tax.

Accordingly, the Decree has added provisions on the cases of not collecting import tax and export tax, specifically as follows:

• Tax is not collected for goods subject to tax refund but tax has not been paid as:

+Tax refund for exported goods that must be re-imported;

+Tax refund for imported goods that be re-exported;

+Tax refund for on machinery, equipment, tools, vehicles of organizations and individuals permitted to temporarily import for re-export;

+Tax refund for goods initially imported for business operation but eventually used for manufacture of exports;

+Tax refund for taxpayers that have paid import tax or export tax but do not have imported or exported goods or import or export less than the taxable import or export goods; No tax refund for the case with the minimum tax amount;

• Tax is not collected for goods not subject to import or export tax as:

+Tax refund for exported goods that must be re-imported;

+Tax refund for imported goods that be re-exported;

This Decree takes effect on April 25, 2021.

On March 11, 2021, the Government issued Decree No. 18/2021/NĐ-CP amending and supplementing a number of articles of the Government’s Decree No. 134/2016/ND-CP dated September 1, 2016, detailing a number of articles and the enforcement of the Law on Import and Export Tax.

This Decree has many new regulations, amended and supplemented regulations related to export and import tax policies applicable to taxpayers. In particular, additional regulations on tax exemption of Goods imported for processing and Processed Goods for export, specifically supplements for Processed Goods for export or exported to non-tariff zones, on-spot exports for organizations and individuals in Vietnam as prescribed by the ordering party will be exempt from export tax, import tax in accordance with the Law on Import And Export Tax.

Accordingly, the condition for Processed Goods for export to be exempt from the above-mentioned export tax is that it must be Goods processed from all imported goods. In case Processed Goods for export are produced from domestic raw materials and supplies with export tax, when exporting, tax must be paid on the value of domestic raw materials and supplies constituentd in exported products at the tax rate of raw materials and supplies.

In addition, the Decree has additional provisions on the basis for determining tax-exempt goods such as:

• The basis for determining the quantity of imported goods used for the process of goods already exported abroad or exported to non-tariff zones exempt from import tax is the actual quantity of imported goods used for the process of exported goods;

• Goods imported for processing, scrap formed during export process paid to foreigners ordered for processing are exempt from export tax or import tax;

• The basis for determination of imports used for the process of on-spot export goods exempt from import tax is the actual goods used for the process already exported on the spot if the on-spot exporter notified the customs office of the customs declaration of the corresponding on-spot imported goods that has completed the import procedures in 15 days from the date of customs;

• Taxpayers or organizations/individuals that receive re-processed taxation shall have the right to own or use the processing establishments, machinery and equipment at the processing establishments in the Vietnamese territory and must notify the processing and re-processing establishments; process contracts, re-process contracts, appendixes of process contracts, appendixes of re-processed contracts to customs authorities in accordance with the customs law;

• On-spot imported goods registering customs declarations under the type of importation exempt from import tax if the on-spot importer has a process contract, the taxpayer or the organizations/individuals receiving the re-process for taxpayers has the right to own or use the processing establishments, machinery and equipment at the processing establishments in the Vietnamese territory and must notify the customs agency.

This Decree takes effect on April 25, 2021.

On December 31, 2020, the State Bank of Vietnam issued Circular No. 21/2020/TT-NHNN amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30, 2016. of the Governor of the State Bank of Vietnam providing for the management, operation and use of the national banking electronic payment system.
Accordingly, this Circular has adjusted the working time of the interbank payment system (“IP System”), specifically as follows:
a) Time to start receiving high-value payment orders, low-value payment orders and netting results from other systems: 8:00 am of working days;
b) Time to start receiving foreign settlement orders: 9.00 am of working days;
c) Time to stop receiving low-value payment orders, time to stop receiving requests for handling of netting results from other systems: 4.30 pm of ordinary working days; 5.00 pm of 02 working days at end of month;
d) Time to stop receiving high-value payment orders, foreign payment orders: 5.00 pm of ordinary working days; 5.45 pm of 02 working days at end of month;
dd) Time to complete the handling of payment orders in the settlement queues (if any): 30 minutes at the time that IP System stops receiving payment order;
e) Time to perform end-of-day tasks (checking of comparison conditions, data comparison and verification with the National Payment Service Center): promptly after the time prescribed in point dd of this clause.”.
This document takes effect from April 1, 2021.

On December 18, 2020, the Government issued Decree 04/2021/ND-CP stipulating the sanctioning of administrative violations in the field of education (“Decree 04“). Accordingly, Decree 04 has increased the fine for the group of violations on using and publishing diplomas and certificates in contravention of regulations. As follows:

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:

• a) Using diplomas and certificates of others;
• b) Letting others use their diplomas or certificates;
• c) Using diplomas and certificates which have been erased or corrected to falsify the contents.

       2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:

• a) Disclosing inadequate information about the granting of diplomas and certificates on the unit’s website;
• b) Inaccurate publicity of information about the diploma and certificate issuance on its website.

        3. A fine of between VND 20,000,000 and 40,000,000: For the act of not disclosing information about the degree or certificate issuance on the unit’s website.

        4. Additional sanction: Confiscation of material evidence being diplomas and certificates erased, corrected, falsified the contents for acts of using erased diplomas or certificates, falsifying the contents.

         5. Remedial measures:

• a) Forcible publicity as prescribed
• b) Forcible correction of information

Previously, the penalty for the group of violations on the use and publicity of diplomas and certificates in contravention of regulations is specified in Article 16 of Decree 138/2013/ND-CP, specifically as follows:

1. A fine of between VND 1,000,000 and 2,000,000 shall be imposed for failure to update and publicize information on the issue of diplomas or certificates on their website.
2. A fine of between VND 2,000,000 and 8,000,000 shall be imposed for acts of using diplomas or certificates of others or using certificates that have been erased, erased or modified.
3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for acts of buying, selling or using fake diplomas or certificates.
4. A fine of between VND 20,000,000 and 40,000,000 shall be imposed for acts of forging diplomas or certificates.
5. Forms of additional sanctions: Confiscation of material evidences and means of administrative violations

Decree 04 was born, replacing Decree 138/2013/ND-CP. Decree 04 takes effect from March 10, 2021.

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