On 05 October 2018, General Department of Customs promulgate the Document No. 5826/TCHQ-TXNK guiding a number of regulations on the handling of tax on on-spot export/import goods. This Document took effect from the issuance date.
Accordingly, Document No. 5826/TCHQ-TXNK has guided in detail the issue of tax treatment with imported-exported goods in many enterprises as follows:
First, on tax treatment for export processing enterprises outside the export processing zone: Base on regualtion in the paragraph 1 Article 4 The Law on Export and Import Duties 2016 to determine of preferential tax incentives policy, import tax refund policy, import duty exemption policy, in case if not subject to tax for export processing enterprises, not located in the export processing zone, Enterprises have paid import tax on goods imported for production, business but it has put into production of export goods and has exported its products to export processing enterprises, importing enterprises business for export output and made the output product for processing enterprises, processing enterprises are not located in export processing zones.
The customs office shall base on the investment registration certificate or the competent authority’s investment register to determine whether the processing enterprises is the basis for determining the beneficiary of the tax policy of the area tariffs.
Second, tax treatment for enterprises importing goods in the form of export production then exportingint the form of inport-exporting on the spot:
Base on the Paragraph 1 Article 2 Law on Commercial No. 36/2005/QH11; Article 12 Decree No.134/2016/NĐ-CP, Paragraph 3 Article 33 Decree No. 83/2013/NĐ-CP; Article 133 Circular No. 38/2015/TT-BTC. From 01/9/2016, in cases where enterprises import raw materials, materials for production of export goods then sell products made from raw materials, imported goods and supplies for foreign traders but designated by foreign traders to deliver goods to other enterprises in Vietnam, shall not be entitled to tax exemption as prescribed
Where the enterprise is exempt from tax on raw materials, imported materials under the form of export production but then exported according to the type of export and import on the spot, the customs office shall make tax assessment, charge for late payment and handle administrative fines according to regulations. Tax calculation bases, time of tax calculation and tax schedules shall comply with the provisions in Chapter II of the Law on Import Tax and Export Taxes No. 107/2016/QH13.
It can be seen that businesses are still very confused in the application of legal provisions on tax policy in the process of import and export of goods. The detailed guidance of the General Department of Customs is the basis for enterprises to better understand and apply their tax obligations in the course of customs clearance.
On 08 October 2018, the government promulgate Decree No. 140/2018/NĐ-CP amendment and suplement related Decree on business investment condition and administrative procedure under scope of the State management of Ministry of Labor – Invalids and Social Affairs. This Decree took effect from issuance date.
Accordingly, Decree No. 140/2018/NĐ-CP amending some of regualation on conditions, procedures for issuance of license for employment service of enterprise operating in employment service as follows:
– Enterprise that requires to grant the License for Employment service activity submits 01 (one) dossier set to State agencies competent to grant employment service license.
– Form of filing: Enterprises can submit directly or send via postal system. Dossier include:
+ Written request for a license of Enterprises;
+ A copy of the certificate of deposit made as provided for in Article 10 of this Decree;
+ Documentary proof of eligibility for the place in accordance with the law.
– Within 7 working days from enoughly receiving 01 (one) dosier set according to the regualtion in Paragraph 1 this Article, the state agency that have competent to grant the License for Employment service activity for Enterprises. In case not grant, must reply in writing and clearly state the reason
Như vậy, Nghị định số 140/2018/NĐ-CP đã có những sửa đổi phù hợp, tạo thuận lợi cho các doanh nghiệp có thể dễ dàng và nhanh chóng thực hiện các thủ tục cần thiết để kinh doanh. Đồng thời cũng là cơ sở giảm bớt áp lực từ phía cơ quan nhà nước lên doanh nghiệp thực hiện thủ tục.
Therefore, Decree No. 140/2018/NĐ-CP has suitalble amendment, facilitate for Enterprise can easily and quickly conduct necessary procedures to business. At the same time this is a ground to reduce the pressure from State agencies with Enterprises.
On 5th, October 2018, the Government issued Decree No.136/2018/ND-CP amendment to some articles regulating to business investment conditions in natural resources and environment. This Decree will come into force from issued date.
Decree No. 136/2018/ND-CP revises 11 relevant decrees on land, environment, minerals, water resources, hydro-meteorology and cartography. Besides, it also terminate, and amend 102/163 business investment conditions. In particular, terminating 77 conditions; revised 25 conditions; At the same time, this Decree also abolishes, simplifies 9 related administrative procedures. Specifically:
– Land: 17 conditions (abolished 08 conditions, amended 09 conditions);
– Environment: 48 conditions (abolishing 43 conditions, 05 conditions), abolishing 08 administrative procedures;
– Mineral sector: 07 conditions (abolishing 05 conditions, 02 conditions);
– Water resources: 28 conditions (abolished 21 conditions, amended 07 conditions), abolished 01 administrative procedures;
– Meteorological and hydrographical field: 01 condition is amended;
– Fields of measurement and map: 01 condition.
It can be seen that the reduction of investment and business conditions under regulation of Decree 136/2018 / ND-CP is necessary, thereby ensuring and creating conditions for businesses and people.
On 04th, October 2018, the Government issued Decree No.135/2018/CP-ND amendment, supplement to some articles of Decree No.46/2017/ND-CP regulation on investment and operation conditions of education. This Decree will come into force on 20th, November 2018.
The Decree No.135/2018/CP-ND regulation on establishment and operation conditions of independent children group, kindergarten, including:
– Teacher have standard certificates under regulation of law;
– Facilities have room for caring and educating children safely;
– The room must be at least 1.5 m2 for a child;
– Having playing area, fences and gates for children’s safety;
– Eating room should have own kitchen;
– To ensure fire and explosion prevention and fighting, food hygiene and safety;
– Having enough clean water for daily life and enough water for children.
In addition, Decree No.135/2018/CP-ND also regulation on kindergarten networks do not ensure the necessary require, especially taking children to school.
Organization or Individual take care of a group children, have to register to authorities and to ensure the following conditions for registration:
– The maximum number of children in the group is 7
– Facilities ensure that:
+ Caring and education room must be at least 15m2;
+ Having playing area, fences and gates for children’s safety;
+ Having enough equipment and facilities for caring and education for children;
+ Having enough clean water for daily life and enough water for children;
+ Toilet and other equipment suit for children;
+ Guidance for caring and education children.
In summary, Decree No. 135/2018/ND-CP contains regulations and detailed guidance on investment and operation conditions in children education field. Besides, Decree No.135/ND-CP created legal backgrounds for the management of authority and operation of organization, individual.
On 8th, October 2018, the Government issued the Government issued Decree No.138/2018/ND-CP amendment and supplement to some articles of Decree No.65/2016/ND-CP on business conditions of car driving training service and driving test service. This decree will come into force on 1st, December 2018.
The Decree No.138/2018/ND-CP states clearly that,
+ Driving classrooms must have audiovisual equipment for teaching (discs, lights …);
+ Having pictures or drawings illustrate basic driving skills (such as checking driver’s seat, driving position, steering wheel position, etc…);
+ Car training centers provide car for training gear on the spot and reality gear on the street, training yard… (can be located in a separate place);
+ Having a support equipments for driving training.
Relating to training car conditions, car training center must have training car for types of class that approved by authorities;
Car driving training center have a driving test service, based on the time of using the test vehicle for the purpose of testing, they shall be allowed to use the test vehicle to perform the driving test and to train the driver. However, the number of test vehicles used to calculate the training volume shall not exceed 50% of the number of test vehicles used for driving teaching. Driving yard is proprietary of car training center legally.
Besides, Decree No. 138/ND-CP amendment to teacher conditions, including:
+ Car driving training center have teacher for lesson in the class and driving practice under regulation of law;
+ Ensure that at least one driving practical teacher in the training car;
+ The general standards of car driving training teacher ensure similarly to the basic teacher under regulation of vocational education.
+ Teacher in the class have intermediate of higher degree regulated to law, automotive technology, automotive technical technology or other majors contain 30% contents relating to automobile at least. The teachers teach technical driving subject that have driver license similar to training vehicles class.
+ The practical teacher ensures the following standards:
(i) Having driver license similar or higher to car training class, but not lower B2 class;
(ii) The B1 and B2 teacher own driver license more than 03 (three) years, when pass the driving test;
(iii) The C, D, E and F teacher own driver license more than 05 (five) years, when pass the exam;
(iv) Used to train driving practice under program issued by Authorities and granted a certificate of driving practice training.
In summary, Decree No.138/ND-CP contains detailed provisions regulation on business conditions of car training service and driving test service. It opens the door for enterprises that have the best preparation, having all the necessary conditions when engaging in business activities in this field.
On September 28, 1818, the State Treasury issued Announcement No. 4752/TB-KBNN announcing exchange rates for foreign currency transactions in 10/2018. This notice is effective from the date of its issuance.
Accordingly, Notice No. 4752/TB-KBNN states that the exchange rate between VND and foreign currencies is as follows: 1 USD = 22,697 VND; 1 EURO (European common currency) = 26,392 VND; 1 GBP = £ 29.864; 1 JPY (Japanese Yen) = 200 VND; 1 CNY (Chinese Yuan) = 3,299 VND; 1 HKD (Hong Kong Dollar) = 2,902 VND; 1 CHF (Swiss Franc) = 23,160 VND; 1 SGD (Singapore Dollar) = 16,567 VND; 1 RUB (RUB Russia) = 346 VND.
In addition, Notice No. 4752/TB-KBNN also stipulates that the above accounting exchange rate is applied in the following operations: Conversion and accounting of State budget revenues and expenditures in foreign currencies, originated in foreign currency; Conversion and accounting of the State Treasury.
In addition, the State Treasury also requests financial institutions, State Treasury offices in provinces and cities and state budget beneficiaries to base themselves on the announced exchange rate to account and report the collection. Payment of foreign currency according to the prescribed regime.
The announcement of the exchange rate is very important in the exchange activities, revenue and expenditure of state budget in foreign currency, thereby contributing to these activities are accurate and consistent. with the national financial situation as well as the international monetary exchange rate.
On 01/10/2018, the Government issued Decree No. 132/2018/ND-CP amending and supplementing a number of articles of Decree No. 16/2016 / ND-CP on management and use of development assistance Official (ODA) loans, preferential loans of foreign donors. This Decree takes effect from the date of its promulgation.
Accordingly, as from 01/10/2018, the expenditure control and payment will be applied in accordance with the current regulations as with the state budget, specifically:
State treasuries at all levels shall control the payment dossiers of projects or project components allocated by the State budget; The project shall apply partial allocation mechanism, partial re-lending of loans and re-lending projects of the provincial-level People’s Committees. Re-lending agencies authorized by the Ministry of Finance to control the payment dossiers of projects or project components shall apply the mechanism of re-lending fully.
The expenditures made before and after ODA loan projects and preferential capital shall be examined and certified by the competent agencies before and after the project owners withdraw capital for payment to the contractors, beneficiary.
Post-expenditure control shall apply to cases of payment from advance accounts to contractors or suppliers, except for advance accounts managed by the Ministry of Finance for account control. To transfer money from advance accounts to custody accounts for payment of independent auditing expenses after the advance account is closed; Transfer of advances from advance accounts to second-level accounts for multi-level projects.
Within 30 days after the withdrawal of capital, the project owner shall complete the payment dossier and send it to the expenditure control agency for certification as the basis for the next payment. In case of necessity, the project owners may reach agreement with the contractors on the mode of expenditure control in advance and send them to the spending control agency for coordinated implementation.
Thus, it can be seen that Decree 132/2018/ND-CP was issued to overcome shortcomings after two years of implementation of Decree 16/2016/ND-CP, especially in spending activities. The project will use ODA loans and preferential loans, thus contributing to the efficient management and use of Official Development Assistance (ODA) and preferential loans of foreign donors.
On September 27, 1818, the Ministry of Industry and Trade issued Circular 28/2018/TT-BCT regulating the operation of the competitive electricity generation market. This Circular takes effect on November 15,
Accordingly, the Circular No. 28/2018/TT-BCT contains new noteworthy, details as follows:
1. Regarding types of power plants participating in the electricity market:
– A power plant with a capacity of more than 30 MW connected to the national power system shall have to join the electricity market 30 days after the date of operation;
– A power plant with a capacity of up to 30 MW, a grid connection with a voltage of 110 kV or higher may opt to join the electricity market;
– Non-participating power plants include: BOT Power Plant; Non-hydro power plants using non-renewable energy; The power plant in the IP only sells part of the output to the national power grid.
2. Regarding procedures for registration of participation in the electricity market:
– Within 20 days after commencing commercial operation, the electricity-generating unit shall complete the dossier for registration of participation in the electricity market.
– A dossier of registration for participation in the electricity market comprises:
+ Registration of participation in the electricity market;
+ A copy of the permit for electricity activities in the field of electricity generation;
+ Acceptance documents put into operation of the systems;
+ A copy of the electricity trading contract;
+ A copy of the minutes to the unit offering price instead of the group of terraced hydropower plants.
Thus, it can be seen that the State is increasingly improving the legal provisions on the field of exploitation and trading of electricity and energy, contributing to attracting investment of potential investors. this field; At the same time, promoting the economic development.
On 1st, October 2018, Ministry of Industry and Trade issued Circular No.30/2018/TT-BCT detailing some articles of Decree No.107/2018/NĐ-CP on 15/08/2018 regulation on rice export business. This Circular will come into force on 15th, November 2018.
Accordingly, the Circular No.30/2018/TT-BCT regulation on type of reports related to the enterprises is in rice export business. That reports must be abided by the enterprises firmly, including:
– Report on the situation of signing and performance rice export contract on 20th every month. The report complies with the form set in Appendix I of the Circular No.30/2018/TT-BCT;
– Report on the quantities of paddy and actual rice in the storage for each on Thursday every week. The report show the data statistic for the management work and complies with the form set in Appendix II of the Circular No.30/2018/TT-BCT;
– Quarter’s periodic report before on 20th of the first month of the next quarter and annual report before on 20th, January of the next year to Ministry of Industry and Trade. The reports comply with the form No.04 attached in Decree No.107/2018/ NĐ-CP;
– Unannounced report was set in Clause 4, Article 24 of Decree No.107/2018/ NĐ-CP when Ministry of Industry and Trade require for reporting to situation export market, product, price, business…
In summary, Ministry of Industry and Trade regulate all of the reports that are abided by enterprises in rice export and build a legal system to ensure for the activities of enterprises under the regulation of law. Besides, it also enhances effective management of the State in this field.
