On June 24, 2020 The Goverment issued Decree No.68/2020/ND-CP amending Clause 3, Article 8 of Decree 20/2017/ND-CP providing for tax administration of enterprises having associated transactions.
Accordingly, amending and supplementing regulations on total deductible interest expenses when determining taxable income for enterprises having associated transactions as follows:
Total loan interest expenses (after subtracting deposit interests and loan interests) arising in the period to be deducted when determining taxable income of the enterprise must not exceed 30% of the total net profit from business activities during the period plus interest expenses (after deducting interest on deposits and lending interests) incurred during the period plus amortization costs incurred in the period.
The non-deductible loan interest expense shall be carried forward to the next tax period when determining the total deductible loan interest expense in case the total deductible loan interest expense of the subsequent tax period is lower than the prescribed level. as above. The time for transferring loan interest expenses shall be no more than 05 years from the year following the year the loan interest expenses are not deducted.
The above provision does not apply to loans of taxpayers:
Credit institutions under the Law on Credit Institutions;
Insurance business organizations under the Insurance Business Law;
Official development assistance (ODA) loans;
Preferential loans of the Government shall follow the mode of the Government’s borrowing foreign loans to enterprises;
Loans for implementation of national target program (new rural program and sustainable poverty reduction);
Loans for investment in programs and projects implementing the State’s social welfare policies (resettlement houses, worker houses, students and other public welfare projects).
Decree 68/2020/ND-CP takes effect from June 24, 2020 and applies to the 2019 corporate income tax period.
On June 10, 2020, the Government issued Decree 65/2020 / ND-CP on organization, management and regimes for people staying at accommodation establishments while waiting for their exit. force from June 15, 2020.
This Decree details the management organization and regimes (including diet, clothing, accommodation, daily life, contact, visits, receipt of gifts, medical examination and treatment, burial expenses), for executors of expulsion sentences, foreigners who are subject to administrative sanctions are expulsion and foreigners who have completely served their imprisonment sentences of staying at accommodation establishments of the Ministry of Public Security in waiting time for exit procedures (collectively referred to as residents).
Accordingly, the regime of stay of residents staying at accommodation establishments during the time of waiting for exit is prescribed as follows:
Residents are arranged in a dormitory room by gender (male and female);
Minimum accommodation area is 03 m2/person, in case of having small children, the minimum accommodation area is 04 m2, with enameled tiles or beds, toilets, mats, blankets and curtains.
Residents who are homosexual, transgender, and unidentified people may be arranged separately.
Residents staying in one of the following cases are arranged in separate rooms in isolation rooms:
Residents suffering from Group A infectious diseases and a number of Group B infectious diseases in accordance with the law on prevention and control of infectious diseases (Group A and Group B infectious diseases are detailed in the Law on Prevention and Control of Diseases of Infectious diseases were issued by the 12th National Assembly on November 21, 2007)
People with mental illness or other illness lose their ability to perceive or control their behavior.
On May 27, 2020, the Government issued Decree 58/2020/ND-CP stipulating the level of compulsory social insurance contributions to the Insurance Fund for Occupational Accidents and Occupational Diseases (“Decree 58/2020/ND-CP”). According to the content in Decree 58/2020/ND-CP:
The rates of contribution to the Insurance Fund for occupational accidents and occupational diseases are as follows:
Normal contribution rate shall be equal to 0.5% of the statutory base payroll, which is applicable to employees who are public officials, civil servants or public employees, and members of the armed forces under the control of authorities of the Party and State, socio-political organizations, military, public security forces or public service units funded by the state budget;
The contribution rate equaling 0.3% of the statutory base payroll shall be applicable to enterprises that satisfy the conditions specified in Decree 58/2020/ND-CP.
Conditions for employers to reduce the compulsory social insurance
Enterprises operating in industries with high risks of occupational accidents and diseases shall be entitled to the contribution rate equaling 0.3% of the statutory base payroll if they conform to following eligibility requirements:
Within three years prior to the submission date, they have not been subject to any administrative monetary fine or any criminal prosecution for their violation against laws on occupational safety, hygiene and social insurance;
They have submitted periodic reports on workplace accidents, occupational safety and hygiene in an accurate, sufficient and timely manner within three consecutive years prior to the submission year;
Frequency rate of occupational accidents in the year preceding the submission year must drop by at least 15% of the average frequency of workplace accidents in 3 consecutive years prior to the submission year, or have not had any occupational accident 3 years preceding the submission year.
This Decree shall take effect from July 15, 2020. Regulations laid down in the Government’s Decree No. 44/2017/ND-CP dated April 14, 2017, prescribing the rates of compulsory social insurance contributions to the workplace accident and occupational disease benefit fund, and point b of clause 1 of Article 13 in the Government’s Decree No. 143/2018/ND-CP dated October 15, 2018, providing details about implementation of the Law on Social Insurance, and the Law on Occupational Safety and Hygiene, in terms of compulsory social insurance for employees who are foreign citizens working in Vietnam, shall become defunct from the effective date of Decree 58/2020/ND-CP.
On June 2, 2020 the standing committee of the national assembly issued Resolution No.954/2020/UBTVQH14 changes to personal income tax exemptions. Accordingly, personal income tax exemption redulation in the Law on Personal Income Tax 2007 have been amended and supplemented as follows:
Personal exemption: 11 million VND/month (132 million VND/year). Meanwhile, the deduction level for taxpayers themselves is currently prescribed at VND 9 million/month (VND 108 million/year).
Dependent exemption: 4,4 million VND/dependent/month. Current this deduction is 3,6 million VND/month.
As such, the new regulation at Resolution No. 954/2020/UBTVQH14 has increased the discount on tax payers for more than 2 million VND/month and for each dependent additional 800 thousand VND/month.
For cases where the tax has been paid in accordance with the current deductibles, the personal income tax amount must be filed by the deduction of the scene at resolution 954/2020/UBTVQH14 when settling personal income tax in 2020.
This Resolution takes effect from July 1, 2020 and applies from the 2020 tax period.
On May 25, 2020 the Goverment issued Resolution No.80/ND-CP on visa exemption for foreigners entering Phu Quoc economic zone, Kien Giang province.
Accordingly, the Government stipulates that Phu Quoc Economic Zone, Kien Giang Province is a coastal economic zone, which is applied the visa exemption policy for foreigners upon entry as prescribed in Clause 7, Article 1 of the Amending and Supplementing Law. Supplementing a number of articles of the Law on entry, exit, transit, and residence of foreigners in Vietnam on November 25, 2019.
Specifically, the Law amending and supplementing a number of articles of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam stipulates the conditions for visa exemption as follows: coastal economy is decided by the Government when fully meeting the following conditions: having an international airport; have separate spaces; have definite geographical boundaries, separate from the mainland; It is consistent with the socio-economic development policy and does not prejudice Vietnam’s national defense and security, social order and safety.
Thus, Phu Quoc Economic Zone, Kien Giang Province, is a coastal economic zone that applies the policy of visa exemption upon entry to foreigners as prescribed.
Resolution No. 80/ND-CP officially takes effect from July 1, 2020.
On April 8, 2020, the Government issued Decree No. 44/2020/ND-CP stipulating the Forced execution of judgments against commercial legal entities. This Decree takes effect as from June 1, 2020 providing for the principles, measures, order and procedures for application of coercive measures of judgment execution to commercial legal entities specified in Article 163 of Law on Criminal Judgment Execution.
Measures of coercive judgment execution applicable to commercial legal entities include: Account blockade; property distraint has the value corresponding to the security guarantee enforcement amount (property distraint); custody of documents, vouchers, devices containing electronic data; temporarily seizing or withdrawing seals of commercial legal entities.
According to Decree No. 44/2020/ND-CP, there are 4 types of assets not subject to enforcement of commercial judgment execution including:
Properties banned from circulation as prescribed by law; assets in service of national defense, security and public interests; properties financed by the State budget for agencies and organizations;
Number of medicines in service of prevention and treatment of laborers; food, tools and other assets serving workers’ meals;
Kindergartens, schools, health facilities and equipment, vehicles and other properties of these facilities which are not assets for business;
Equipment, facilities and tools to ensure labor safety, fire and explosion prevention and fighting, and prevention of environmental pollution.
The Decree also states that if the legal entity has no other assets or assets but not enough to execute the sentence, the criminal judgment enforcement agency has the right to distrain and handle the property pledged, mortgage if the value of such property is greater than the guaranteed obligation and the cost of enforcement of the judgment.
The Ministry of Industry and Trade’s Circular No. 10/2020 / TT-BCT of June 15, 2020, repealed Circular No. 03/2014 / TT-BCT of January 25, 2014 of the Minister of Industry and Trade , cast iron and steel production equipment.
Circular No. 10/2020/TT-BCT dated 15/06/2020 of the Ministry of Industry and Trade has abolished the requirements related to technology, equipment in the cast iron, steel industry at Circular No. 03/2014/TT-BCT dated 01/25/2014.
Previously, according to Circular No. 03/2014/TT-BCT, the cast iron and steel production facilities, Including: coking coal, sintering, cast iron and steel furnace, electric arc furnace, induction steel furnace and rolling steel must meet the following technology and equipment requirements:
Comply with provisions of the law on investment, construction and management of work quality.
Technology and equipment used in such manufacturers must ensure synchronism and confirm to provisions of the law on effective and economic use of energy.
Ensure safety of fire and explosion prevention.
Comply with national technical regulations and standards for environmental protection.
When preparing the project for investment in establishment of steel manufacturers and cast iron manufacturers specified in Clause 1 Article 1 herein, the organization or individual (the investor) must provide a representation about technology and equipment used in such project in conformity with regulations herein and send it to the competent authority for inspection and certificate issuance as per provisions of the law on investment. If the project is approved to be run, the investor shall send a report on the implementation result according to the one provided in Appendix IV issued thereto to the Heavy Industry Administration, Ministry of Industry and Trade and Department of Industry and Trade before January 31 each year.
Accordingly, the above requirements in Circular No. 03/2014/TT-BCT will be abolished as soon as Circular No. 10/2020/TT-BCT takes effect. It is understood that technological requirements, treatment of exhaust gas, waste and wastewater in cast iron, steel industry are no longer compulsory.
Circular No. 10/2020/TT-BCT takes effect from July 31, 2020.
On November 12, 2018, the Ministry of Industry and Trade issued Decision No. 4244/ QD-BCT on maintaining the application of anti-dumping measures on some galvanized steel products originating from China and Korea.
Pursuant to Clause 1, Article 58 of the Government’s Decree No. 10/2018/ND-CP of January 15, 2018, detailing a number of articles of the Law on Foreign Trade Management regarding trade remedies measures, September 13 In 2019, the Ministry of Industry and Trade made a public announcement on its website and the Department of Trade Remedies (Investigation Agency) on the official receipt of the application for review from related parties. After receiving the application for review from related parties, pursuant to Clause 1 Article 82 of the Law on Foreign Trade Management, dated December 27, 2019, the Ministry of Industry and Trade issued Decision No. 3859/QD- MOIT on the first review of the application of anti-dumping measures on some galvanized steel products under HS code: 7210.41.11; 7210.41.12; 7210.41.19; 7210.49.11; 7210.49.12; 7210.49.13; 7210.49.19; 7210.50.00; 7210.61.11; 7210.61.12; 7210.61.19; 7210.69.11; 7210.69.12; 7210.69.19; 7210.90.10; 7210.90.90; 7212.30.11; 7212.30.12; 7212.30.13; 7212.30.14; 7212.30.19; 7212.30.90; 7212.50.13; 7212.50.14; 7212.50.19; 7212.50.23; 7212.50.24; 7212.50.29; 7212.50.93; 7212.50.94; 7212.50.99; 7212.60.11; 7212.60.12; 7212.60.19; 7212.60.91; 7212.60.99; 7225.92.90; 7226.99.11; 7226.99.91 is from China and Korea (case code: AR01.AD02).
Under the provisions of Point d, Clause 4, Article 82 of the Law on Foreign Trade Management, the time limit for a review is 6 months from the date of the decision to review, in case of necessity, it may be extended once but not exceeding 03 months.
In order to ensure a harmonious review of opinions and interests of related parties, on June 19, 2020, the Ministry of Industry and Trade issued Decision No. 1629/QD-BCT to extend the first review deadline for additional 03 months. Accordingly, the time limit for issuing the review conclusions is extended to September 27, 2020.
Decision No. 1629/QD-BCT takes effect from the date of signing.
