On April 21, 2022, the General Department of Customs issued Official Letter 1400/TCHQ-TXNK in 2022 on tax treatment of goods rented and borrowed from export processing enterprises (“Dispatch 1400”).
Accordingly, Official Letter 1400 has recorded the guidance of the General Department of Customs related to import tax on goods rented or borrowed from export processing enterprises, the following will be detailed:
Subjects of application: Goods rented or borrowed by domestic enterprises from export processing enterprises in the form of temporary import for re-export to serve processing and production for export.
– Domestic enterprises are not exempt from import tax as prescribed at Point a, Clause 9, Article 16 of the Law on Import Tax and Export Tax No. 107/2016/QH12.
– Domestic enterprises must declare and pay import tax upon temporary import and are not eligible for a refund of paid import tax upon re-export according to the provisions of Point dd, Clause 1, Article 19 of the Law on Import Tax and Export Tax No. 107/2016/QH13 because it is a case of renting and borrowing.
Dispatch 1400 takes effect from April 21, 2022.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On April 21, 2022, the General Department of Customs issued Official Letter 1400/TCHQ-TXNK in 2022 on tax treatment of goods rented and borrowed from export processing enterprises (“Dispatch 1400”).
Accordingly, Official Letter 1400 has recorded the guidance of the General Department of Customs related to customs procedures for goods rented or borrowed from export processing enterprises, the following will be detailed:
Subjects of application: Goods rented or borrowed by domestic enterprises from export processing enterprises in the form of temporary import for re-export to serve processing and production for export.
In case an export processing enterprise leases or borrows goods to a domestic enterprise to serve the production of products for the export processing enterprise itself:
– Export processing enterprises open temporary export declarations, domestic enterprises open temporary import declarations;
– After the lease or loan contract is terminated, the domestic enterprise shall carry out re-export procedures, and the export processing enterprise shall carry out procedures for re-importing the leased or borrowed goods for the production of these exported goods.
Dispatch 1400 takes effect from April 21, 2022.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On May 6, 2022, the Government issued Resolution 64/NQ-CP 2022 related to several solutions to improve quality and speed up planning for the 2021-2030 period (“Resolution 64/NQ-CP”).
Here, let’s learn about specific solutions of the Government in Resolution 64/NQ-CP with Bizlawyer.
a) Allow planning according to the provisions of the Law on Planning and the laws and ordinances that have been amended and supplemented with several articles related to the planning to be made at the same time to ensure the uniformity; The planning which is made and appraised first will be decided or approved first. After the planning is decided or approved, if there are inappropriate contents, the lower planning must be adjusted according to the higher planning, ensuring the hierarchy in the national planning system.
b) Allow adjustment of the planning schedule, focusing on speeding up the formulation, appraisal and approval in 2022 for urgent national-level plans, facilitating the operation and socio-economic development of the country. To complete the master plans under the national planning system in 2023.
c) Allow the planning mentioned at point c, clause 1, Article 59 of the Law on Planning that was decided or approved before January 1, 2019, to continue to be implemented, prolong the period and adjust the contents according to regulations. provisions of relevant laws before the effective date of the Planning Law to meet the requirements of socio-economic development until the national planning, regional planning, and provincial planning period 2021 – 2030 is decided or approved under the provisions of the Law on Planning; consider and integrate relevant contents to include in the planning period 2021 – 2030.
d) Allow ministers, heads of ministerial-level agencies, and presidents of People’s Committees of provinces and centrally-run cities to consider and decide to apply the form of contractor appointment to bidding packages to elaborate national-level planning, regional planning, and provincial planning without selecting a contractor. The appointment of contractors is done under the law on bidding, the contractor selected by the form of contractor appointment must satisfy the requirements on capacity, experience, ensure progress, quality, efficiency, and fight against negativity, corruption, and waste under the law. In case the form of contractor appointment is not applied or the contractor cannot be selected, the person competent to decide on another form of contractor selection for contractor selection shall comply with the law on bidding.
dd) Permit the use of capital for recurrent expenditure under the law on the state budget for elaboration, appraisal, approval, publication of urban planning, rural planning, planning of a technical and specialized nature which has not been allocated capital, and the adjusted plannings at Points a and b, Clause 1, Article 2 of this Resolution. To be allowed to mobilize and use socialized capital sources, to ensure compliance with regulations on formulation, appraisal, approval, announcement and adjustment of plannings of the Planning Law.
e) The content of the national master plan determines the distribution orientation and spatial organization of socio-economic activities; orientations on defense, security and environmental protection of national and international importance and strategic inter-regional nature in the territory, including the mainland, islands, archipelagos, sea areas, sky. Point n, Clause 2, Article 22 of the Law on Planning has not yet been implemented on the list of important national projects and the order of priority for implementation.
g) The adjustment of national planning, regional planning, and provincial planning for the period 2021 – 2030 in case the lower planning is approved in advance but has contents not suitable with the higher planning => not establish planning tasks and reduce some procedures for planning adjustment.
h) Assign the Government to study regulations on responsibilities and authority of planning agencies making, appraising and approving planning to ensure independence, based on increasing responsibilities at all levels, shortening administrative procedures, without causing trouble and incurring costs, under the provisions of the Law on Government Organization and the Law on Organization of Local Government.
i) Assign the Government to assess the impact of the abolition of development investment plannings specific goods, services, and products to determine the volume and quantity of goods, services, and products produced, and consumed as prescribed at Point d Clause 1 Article 59 of the Law on Planning; research and restore necessary and strategic product plans, ensuring that they are not contrary to international commitments that Vietnam has signed.
Resolution 64/NQ-CP takes effect from May 6, 2022.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On April 28, 2022, the Ministry of Finance issued Circular No. 25/2022/TT-BTC stipulating the collection rate, mode of collection, payment, management, and use of several fees in the securities sector (“Circular 25”), replacing Circular No. 272/2016/TT-BTC dated 14/11/2016.
Accordingly, some main contents are amended and supplemented as follows:
(1) Adjusting the provisions on fees for licensing the establishment and operation of companies in the securities sector to be in sync with the Securities Law 2019 and Decrees detailing the Law. Specifically:
– On November 26, 2019, the National Assembly passed the Law on Securities No. 54/2019/QH14 (replacing the Law on Securities in 2006) and took effect from January 1, 2021.
– Then, on December 31, 2020, the Government issued Decree No. 155/2020/ND-CP detailing the implementation of several articles of the Law on Securities, Decree No. 158/2020/ND-CP on derivative securities and derivatives market.
Some highlights of the new regulations:
* Regulations on several new types of securities (derivative securities, covered warrants);
* Amendment of some licenses and certificates of securities activities compared to the previous regulations).
(2) Reduce by more than 90% the management fee of unlisted and unregistered public companies. Accordingly, the fee is collected and paid once at the time the company is certified by the Securities Commission to complete the registration of a public company with a fee of VND 830,000.
Circular 25 takes effect from July 1, 2022.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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From April 1, 2022, Circular 05/2022/TT-BTC of the Ministry of Finance officially takes effect (“Circular 05”), the content of Circular 05 is the guidance: (1) Restructuring enterprises that are not eligible for equitization and; (2) Transferring lots of shares with receivables of enterprises in which 100% charter capital is held by the State and has the function of buying, selling and handling debts issued by the Minister of Finance.
According to Circular 05, the Enterprise restructuring process to transform into a joint-stock company includes the following basic steps:
1. Formulate restructuring plan: Implement a restructuring plan, transforming state-owned enterprises into joint-stock companies; Complete the restructuring plan and submit it to the owner’s representative agency for approval.
2. Organize the implementation of the restructuring plan.
3. Complete the transformation of the enterprise into a joint-stock company: Hold the first General Meeting of Shareholders and register the enterprise; Organize the settlement and handover between the restructured enterprise and the joint-stock company. Handling unsold shares.
Circular 05 takes effect from April 1, 2022. Replace Circular 69/2018/TT-BTC and Circular 50/2019/TT-BTC.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On April 1, 2022, Circular 02/2022/TT-BKHDT issued by the Ministry of Planning and Investment officially took effect (“Circular 02″), Circular 02 guides the supervision and assessment of foreign investment activities in Vietnam
In Circular 02, the content of the assessment of foreign investment activities in Vietnam is specified as follows: Including closing assessment, impact assessment, and unexpected evaluation
I. Content of closing assessment
1. Progress of capital contribution to the charter capital of foreign-invested economic organizations, legal capital (for industries requiring legal capital), investment capital contribution of foreign-invested projects; the mobilization and use of mobilized capital in accordance with the provisions of law.
2. The project implementation progress is compared with the schedule specified in the Decision approving the investment policy or the Investment Registration Certificate.
3. The project’s land use and labor use; compliance with legal regulations on environmental protection.
4. The performance of financial obligations towards the State.
5. Evaluation of the results of the implementation of the objectives, mobilized resources, implementation progress, and project benefits.
6. Proposals and recommendations.
II. Content of Impact Assessment
1. Evaluation of the implementation of the investment objectives and scale (the compliance with the planning, in accordance with the contents of the Decision approving the investment policy or the Investment Registration Certificate, specialized legal regulations).
2. Evaluation of the completion level (according to the registered contents and progress; the content and progress are specified in the Decision approving the investment policy or the Investment Registration Certificate).
3. Evaluation of investment efficiency (using labor and land; payment to the state budget; investment rate; transfer of science, technology, and experience, management, and business skills) on the basis of comparing costs and actual results achieved in the process of exploitation and operation.
4. Assessment of production technology level, science and technology transfer, technology and experience, management, and business skills.
5. Assessment of the implementation of the reporting regime for state management agencies according to regulations.
6. Proposals and recommendations.
III. Content of unexpected evaluation
1. Conformity of project implementation results in investment objectives.
2. The degree of completion of the workload compared with the provisions in the Decision approving the investment policy, the Investment Registration Certificate.
3. Identify unexpected occurrences (if any) and causes.
4. Impact of unexpected occurrences on the project implementation and the project’s ability to complete the objectives.
5. Proposals and recommendations.
Circular 02 takes effect on April 1, 2022, and replaces Circular 09/2016/TT-BKHDT dated June 30, 2016.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On April 1, 2022, Circular 02/2022/TT-BKHDT issued by the Ministry of Planning and Investment officially took effect (“Circular 02“), Circular 02 guides the supervision and assessment of foreign investment activities in Vietnam
The following are the main contents of Circular 02:
1. Regarding supervision of foreign investment activities in Vietnam: Mainly in monitoring activities, specifically:
* The Investment Registration Agency monitors the following contents:
a) The investor’s implementation of the reporting regime;
b) Summarize the project implementation situation;
c) Summarize the exploitation and operation of the project;
d) Summarize the implementation of requirements on environmental protection, land use, and use of mineral resources of the project;
d) The handling and observance of handling measures by investors and economic organizations;
e) Report and propose plans to handle difficulties, problems, and issues beyond their competence.
* The State Management Agency in charge of investment shall monitor the following contents:
a) The implementation of the reporting regime by the investment registration agency;
b) The observance of handling measures by the investment registration agency;
c) The contents of the monitoring regulations of the Investment Registration Authority above.
** How to conduct follow-up: Regular, thematic.
2. Regarding the assessment of foreign investment activities in Vietnam: Including closing assessment, impact assessment, and unexpected assessment (details are specified in Articles 20, 21, and 22 of Circular 02, interested readers can read more, so you can refer to it for more details).
Circular 02 takes effect on April 1, 2022, and replaces Circular 09/2016/TT-BKHDT dated June 30, 2016.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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From April 1, 2022, Circular 05/2022/TT-BTC of the Ministry of Finance officially takes effect (“Circular 05”), the content of Circular 05 is the guidance: (1) Restructuring enterprises that are not eligible for equitization and; (2) Transferring lots of shares with receivables of enterprises in which 100% charter capital is held by the State and has the function of buying, selling and handling debts issued by the Minister of Finance.
According to Circular 05, the restructuring of enterprises must ensure the following 04 principles:
– First: The restructuring plan is implemented on the principle of consensus between the agency representing the owner of the restructured enterprise and the Vietnam debt trading one-member limited liability company (hereinafter referred to as Vietnam Debt Trading Company) and/or creditors participating in the restructuring (making minutes of agreement between the parties). Vietnam Debt Trading Company has the right to actively negotiate debt purchase with creditors and propose a plan to restructure the enterprise in accordance with the provisions of law.
– Second: Vietnam Debt Trading Company only decides to buy debt after reaching an agreement with the owner’s representative agency and negotiating results on debt purchase with the creditors of the restructured enterprise. Debt purchase and sale plans for enterprise restructuring must ensure feasibility, effective capital recovery, and sufficient sources of difference between the cost of debt purchase and the book value of the debt for financial handling, successfully converting the enterprise into a joint-stock company according to regulations.
– Third: If the debt purchase plan for corporate restructuring is not feasible and effective, the Equitization/Restructuring Steering Committee shall report to the owner’s representative agency for consideration and decision on the form of transfer according to the provisions of law.
– Fourth: In addition to the contents specified in Circular 05, restructuring enterprises, Vietnam Debt Trading Company, and relevant agencies shall comply with the provisions of Decree No. 126/2017/ND-CP, Decree No. 140/2020/ND-CP, Decree No. 129/2020/ND-CP, and amendments and supplements (if any).
Circular 05 takes effect from April 1, 2022. Replace Circular 69/2018/TT-BTC and Circular 50/2019/TT-BTC.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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On March 28, 2022, the Prime Minister issued Decision No. 08/2022/QD-TTG, in which regulations on the implementation of policies to support rent for employees returning to the labor market. As follows:
1. Objects of support: Employees who are working in enterprises, cooperatives, business households with business registration in industrial parks, export processing zones, or key economic areas.
Conditions of support: Employees in the above categories are supported when they fully meet the following conditions:
– Renting, and lodging in the period from April 1, 2022, to June 30, 2022.
– Have an indefinite-term labor contract or a definite-term labor contract of 01 month or more signed and performed between April 1, 2022, and June 30, 2022 (except for the labor contract concluded in the continuation of the labor contract signed and performed previously).
– Being participating in compulsory social insurance (named on the list of participating in compulsory social insurance of the social insurance agency) in the month immediately preceding the time the employer prepares the list of proposed employees offering rent assistance.
– In case: (i) the employee is not subject to compulsory social insurance (as prescribed in Clause 4, Article 2 of Decree No. 115/2015/ND-CP dated November 11, 2015, of the Government); (ii) newly recruited employees who have entered into a labor contract but are not on the list of compulsory social insurance participation of the social insurance agency: they must be on the employer’s salary list of the month preceding the time the employer makes a list of employees requesting rent support.
2. Support level: 1,000,000 VND/person/month.
3. Support period: Up to 03 months.
4. Payment method: Monthly
5. Dossier to request support:
– List of employees who request rent support certified by the social insurance agency (made according to the form).
– A copy of the salary list of the month immediately preceding the time the enterprise makes a list of employees requesting housing rent support (In case there are employees on the list who are not subject to the compulsory social insurance participation; newly recruited employees who have entered into labor contracts but are not on the list of compulsory social insurance participation by the social insurance agency).
This Decision takes effect from March 28, 2022.
