On August 8, 2019, the Ministry of Finance issued Circular 48/2019 / TT-BTC guiding the setting up and handling of reserve fund at enterprises. Circular 48/2019 / TT-BTC (hereinafter referred to as “Circular”) takes effect from 10 October 2019. This Circular expires 03 previous Circulars: Circular 228/2009 / TT-BTC, Circular 34/2011 / TT-BTC, Circular 89/2013 / TT-BTC.
Summary of some new points of the Circular are as follows:
1. Regarding payment of reserve fund for the losses of financial investments:
Enterprises will not be allowed to set up risk provisions for outward investments, only risk for domestic financial investments. Specifically:
– In Clause 4, Article 3 of the Circular stipulates: “Article 3. General principles in setting up provisions: … 4. Enterprises do not set up risk provisions for offshore investments. ”
– At Point a, Clause 1, Article 5 of the Circular stipulates: “1. Securities investments: a) Objectives of making provisions are securities issued by domestic economic organizations in accordance with the law on securities owned by enterprises at the time of making financial statements. in the year, the company satisfies the following conditions: – Being listed or registered for trading on the domestic stock market that enterprises are investing; – Is a securities freely traded in the market and at the time of preparing the financial statement, the actual stock price in the market is lower than the value of securities investment recorded in the accounting book. ”
2. Regarding the setting up of receivable bad debt reserve:
– Like the regulations in the previous documents, the Circular still stipulates that the Debt reconciliation record is one of the documents to prove that the amount of unpaid debt is a basis for enterprises to set up funds. provision, however, this Circular adds: “In the absence of debt reconciliation, a written request for reconciliation of debt or debt collection documents sent by the enterprise (with postmark) electricity or confirmation of the delivery unit); ”This is a new and great remedy for cases where the debtor” refuses “to sign a Memorandum of Debt reconciliation with the Enterprise when it is insolvent.
– In addition, with regard to the provision for doubtful debts, the Circular stipulates that telecom service businesses will have separate provisions, which will be different from those of other businesses. ordinary karma.
3. Regarding the setting up of warranty for products, goods and services of construction works
– Adding the type of “Services” of construction works to objects to be set up for provision, which the previous documents have not mentioned.
From the above analysis, it shows that Circular No. 48/2019 / TT-BTC has brought significant values to Vietnamese enterprises, helping Vietnamese enterprises to solve a lot of difficulties in settling payments. The revenue is directly related to the amount of corporate income tax payable, especially there are more specific and feasible provisions for the reserve fund for doubtful debts. In addition, this Circular has unified all previous regulations which are scattered in many different documents related to deduction for reserve fund for devaluation of inventory, loss of investments, doubtful debts and warranty of products, goods, services and construction works at the enterprise, which creates favorable conditions for enterprises to grasp, understand and apply this provision on reality. Therefore, this Circular is a solid basis for many enterprises to minimize risks and maximize profits in their business processes.
On June 30, 2019, Vietnam and EU signed Vietnam – EU Free Trade Agreement. The Agreement will come into effect after competent authorities of two parties ratify the Agreement.
In Chapter 2 on national treatment and market access for goods of EVFTA, Article 2.15 provides that “Viet Nam shall adopt and maintain appropriate legal instruments allowing foreign pharmaceutical companies to establish foreign-invested enterprises for the purposes of importing pharmaceuticals which have obtained a marketing authorisation by Viet Nam’s competent authorities. Without prejudice to Viet Nam’s schedules included in Annex 8-B (Viet Nam’s Schedule of Specific Commitments), such foreign-invested enterprises are allowed to sell pharmaceuticals which they have legally imported to distributors or wholesalers who have the right to distribute pharmaceuticals in Viet Nam”. According to this Article, investors from EU have the right to establish an enterprise in Vietnam in pharmaceuticals import.
Moreover, according to service commitments of Vietnam in WTO and EVFTA, foreign-invested enterprises cannot distribute pharmaceuticals in Vietnam because this is excluded from these two Free Trade Agreements. Therefore, foreign-invested enterprises only have the right to import pharmaceuticals to sell to distributors according to Article 44.1(d) of Law on Pharmaceuticals 2016.
In the past, foreign-invested enterprises were not able to import pharmaceuticals since Decree No. 102/2016/ND-CP provides that these enterprises had to have the right to distribute pharmaceuticals to do so. However, as the content above, foreign-invested enterprises can not distribute pharmaceuticals.
However, the right to import pharmaceuticals of foreign-invested enterprises only mentions in EVFTA but other Free Trade Agreement. Moreover, Law on Pharmaceuticals 2016 only provides about “importer not having the right to distribute pharmaceuticals” (i.e importer who is foreign-invested enterprise). Therefore, it seems that pharmaceuticals import market is only opened to EU investor.
On August 29, 2019, the Ministry of Transport issued Circular No. 31/2019 / TT-BGTVT providing regulations on speed and safe distance of motor vehicles and special-use vehicles participating in road traffic. This Circular takes effective from October 15, 2019.
According to the above provisions, the maximum speed allowed for motor vehicles (except for those specified in Article 8 of this Circular) to join traffic in densely populated areas (except highways).
Double track; one-way roads with two or more motor lanes of 60 (km / h);
A two-way street; one-way roads with one motorized lane of 50 (km / h).
Explain the concept of motor vehicles, according to the provisions of Clause 18, Article 3 of the 2008 Road Traffic Law: “Motor vehicles include cars; tractor; trailers or semi-trailers pulled by cars or tractors; two-wheel motorcycles; three-wheel motorcycles; motorbikes (including electric motorbikes) and the like ”.
According to Article 8 of Circular No. 31/2019 / TT-BGTVT: “Maximum speed allowed for special-use vehicles, motorbikes (including electric motorbikes) and similar vehicles on roads (except roads highways for special-use motorbikes, mopeds (including electric motorbikes) and the like when participating in traffic with the maximum speed of not exceeding 40 km / h ”.
Besides, according to the provisions of Circular No. 06/2016 / TT-BGTVT: “Promulgating the national technical regulation on road signs”
“3.39. Motorbikes (also called motorbikes) are two- or three-wheeled motor vehicles and the like, driven by engines with a cylinder capacity of 50 cm3 or more, with a vehicle self-weight not exceeding 400 kg for 2-wheel motorbikes or the permitted transportable volume determined according to the certificate of technical safety and environmental protection inspection of road motor vehicles from 350 kg to 500 kg for 3-wheel motorbikes . This concept does not include motorcycles mentioned in Clause 3.40 of this Article ”.
“3.40. Motorcycle means a motor-powered vehicle with two or three-wheelers and the maximum design speed not exceeding 50 km / h. If the drive is a heat engine, the working capacity or equivalent capacity should not be larger than 50 cm3 ”.
Thus, according to the above concept, motorbikes and mopeds are two different concepts, according to which, there is now some information that people are worried about that two-wheeled motorbikes can run at no more than 40km/h is incorrect
On September 16, 2019, the Prime Minister issued Decision No. 28/2019 / QD-TTg on amending and supplementing Article 2 of Decision No. 45/2017 / QD-TTg dated November 16, 2017, amending and supplementing the Prime Minister’s Decision No. 36/2016 / QD-TTg of September 1, 2016, defining the application of ordinary tax rates to imported goods.
Specifically, the Prime Minister amended and supplemented the Appendix of the List of common import tax rates table prescribed in Article 2 of Decision No. Article 2 of Decision No. 45/2017 / QD-TTg of November 16, 2017. 2017. Whereby:
– Reduction of the ordinary import tax rate of crude oil goods item code 2709.00.10 from 5% to 0%;
– Amending description of commodity code 4907.00.10 from “Banknotes (banknotes), legal but not yet circulated into” Banknotes, legal documents “and keeping the tax rate unchanged 5%;
– To amend the description of goods item code 8457.20.00 from “Single-position processing machine” to “Single-piece structure machine (one processing position)” and maintain the tax rate of 5%;
– Amending description of commodity code 8457.30.00 from “Multi-position shifting processing machine” into “Multi-position shifting processing machine” and maintaining the tax rate of 5%.
Previously, maintaining the import tax rate of 5% for crude oil made petrochemical refineries suffer losses, reducing the efficiency of processing petroleum products.
The Government’s reduction of crude oil import tax is an opportunity for domestic refineries to access imported crude oil at competitive prices.
On September 5, 2019, the Ministry of Finance issued Circular 62/2019 / TT-BTC amending and supplementing a number of articles of Circular No. 38/2018 / TT-BTC providing for goods origin determination. import Export. Accordingly, Circular 62/2019 / TT-BTC has some noticeable new points related to the determination of the origin of exports and imports to apply special preferential tax rates within the framework of the Agreement Comprehensive and Progressive Trans-Pacific Partnership (“CPTPP Agreement”) is as follows:
Firstly, supplement the provisions on documents certifying goods origin to apply special preferential tax rates under the CPTPP Agreement. Accordingly, this document must contain all 09 minimum information and must be issued in paper or electronic form. In case documents are not in English, customs declarants must translate them into Vietnamese or English and take responsibility for the contents of the translations.
Secondly, regarding the time of submission of documents certifying goods origin to apply special preferential tax rates, Circular 62/2019 / TT-BTC guides customs declarants to submit to customs offices at the time of point of customs procedures for importing one of the following documents: 01 original copy of the certificate of origin of goods issued by the exporter or manufacturer (the document of self-certification of origin of goods); 01 original copy of the Certificate of Origin (C / O) issued by the competent authority of the exporting member country.
In order to apply the special preferential tax rate in the absence of declaration to apply the special preferential tax rate at the time of import customs clearance, the declarant is responsible for clearly stating the origin of goods and slow declaration of documents certifying goods origin on the customs declaration of import at the time of carrying out customs procedures. At the same time, the declarant additionally submits and submits 01 original copy of the certificate of origin within 12 months from the date of registration of the customs declaration.
Thirdly, in the event that a CPTPP member country informs that the certification of origin of goods issued only by the competent authority or the exporter or producer is approved by the CPTPP, Within 01 working day from the date of receipt of sufficient information from the exporting member country, the General Department of Customs will notify the Customs Departments of provinces and cities about the application of documents. the above-mentioned certificate of origin, the list of agencies competent to issue certificates of origin of goods of the exporting member country, the list of approved exporters, producers and other relevant information (if any).
This Circular takes effect from October 21, 2019. The promulgation of Circular 62/2019 / TT-BTC supplementing a number of new regulations guiding the determination of the origin of export and import goods to apply special preferential tax rates under the CPTPP Agreement is an effort. The Ministry of Finance and the General Department of Customs in implementing the commitments in the CPTPP in the field of customs.
On September 16, 2019, the Ministry of Finance issued Circular 65/2019 / TT-BTC regulating the content of training, exam and recognition of certificates of insurance auxiliary. This Circular takes effect from November 1, 2019.
Circular 65/2019 / TT-BTC states that the types of certificates of insurance auxiliary specified in this Circular include:
1. Certificate of insurance consultancy;
2. Certificate of insurance risk assessment;
3. Certificate of insurance loss assessment;
4. Certificates of support of insurance compensation settlement.
The Ministry of Finance prescribes that the Insurance Research and Training Center is the unit organizing the examination of insurance subsidy certificates prescribed in this Circular. Exam format is focused exam.
According to the Circular, registration for the contest is done online on the website of the Center for Insurance Research and Training. Training institutions are responsible for registering candidates who are students of the training institution. Candidates are free to register directly with the center.
Exam papers on insurance ancillary are given as a test. Each test consists of general knowledge and professional knowledge. The number of questions related to the general knowledge section accounted for 40%, the number of questions related to the knowledge section accounted for 60% of the total number of questions per exam.
Within 5 working days from the end of the exam, the exam results will be announced on the website of the Center and the website of the Department of Insurance Supervision and Management.
The Insurance Administration and Supervision Department will be responsible for issuing regulations on exam certification for insurance subsidies; to build a bank of questions for the examination of insurance auxiliary certificates according to the provisions of this Circular; inspect and supervise the organization of examination, grant and revocation of certificates of insurance auxiliary.
The Insurance Administration and Supervision Department is also the agency that recognizes certificates of insurance subsidies issued by overseas training institutions and publicly announces the list of holders of insurance auxiliary certificates issued by establishments. Overseas training is recognized in Vietnam on the website of the Insurance Administration and Supervision Department.
In addition, the Circular also stipulates 05 cases of revocation of certificates of insurance auxiliary:
– Individual who is granted a certificate but does not take the certificate of insurance auxiliary or fails to pass the examination of certificate of insurance auxiliary organized by the Center;
– Certificate holders have forged or cheated on declared information;
– The certificate holder asks another person to do the exam;
– Exam results of candidates’ test are not enough to pass;
– Certificate holders let others use certificates.
Persons who have their insurance ancillary certificate revoked in the above-mentioned cases (except for the case of revocation due to examination results) must not take the exam of insurance auxiliary within 12 months from the date of There is a decision to revoke the certificate.
The introduction of Circular No. 65/2019 / TT-BTC is extremely necessary in the context of Vietnam’s rapidly growing and diversified insurance market; creating an important legal basis, contributing to ensure the provisions of the law on insurance business.
On September 16, 2019, the State Auditor General issued Decision No. 03/2019 / QD-KTNN on the responsibility to send financial statements, budget settlement reports to the State Audit Office of the units. be audited. Decision 03/2019 / QD-KTNN takes effect from October 31, 2019. Whereby:
Budget estimating units of level I shall send the State budget revenue and expenditure settlement reports to the SAV before October 1 of the following year.
Provincial People’s Committee:
Send the local budget settlement report to the SAV before October 1 of the following year;
Send local budget finalization to SAV within 05 working days from the date on which the provincial People’s Council approves;
The Ministry of Finance sends the State budget settlement report to the SAV within 14 months after the end of the budget year.
State enterprises, parent companies, state corporations holding dominant shares:
Ending the fiscal year, preparing and sending a financial statement, a statement of budget revenues and expenditures within its management to the SAV within 90 days from the end of the annual accounting period;
In cases where there are other provisions on the time of preparing and issuing financial statements, reports on final settlement of budget revenues and expenditures, they shall be sent to the SAV after the time of elaboration and issuance according to separate regulations.
In summary, the promulgation of Decision 03/2019 / QD-KTNN creates a clear legal corridor for units to grasp the implementation, creating unity and efficiency in the state management.
On August 21, 2019, the Ministry of Finance issued Circular 55/2019 / TT-BTC guiding the handing over of debts and excluded assets when transforming state enterprise.
This Circular provides for the principle of handing over, receiving debts and eliminating assets as follows:
– Debts and assets transferred and received must ensure sufficient documents (for debts) and in kind (for properties). In case the debt does not have sufficient documents and the property is no longer in kind, the Debt Managment Company shall send a written request to the owner representative agency and the business notify the reason for not accepting the enterprise to continue managing, monitoring or handling according to the current regulations on business ownership transformation.
– To be implemented based on the decision to announce the enterprise value of the owner representative agency in accordance with the law on enterprise ownership transformation. This decision must specify the value of the debt and the excluded assets, as a basis for the debt repayment Fair to receive.
– In case the owner representative agency decides to announce the adjustment of enterprise value:
a) If the enterprise has not signed a Handover Agreement of debts and excluded assets with Debt Managment Company, then hand over debts and excluded assets according to the decision on announcement of value adjustment. enterprise.
b) If the enterprise has signed Handover Agreement and assets excluded from Debt Managment Company under the decision on corporate value announcement, the owner representative agency shall issue a written request to the debt financing agency to notify the current status of the excluded debts and assets. received under Handover Agreement according to the criteria: processed, withdrawn and not yet processed, revoked before announcing the decision to adjust the enterprise value.
– The owner representative agency, Debt Managment Company and enterprises must prepare Handover Agreement, with the signatures of the parties. The owner representative agency may authorize (in writing) the Chairman of Member’s Counsil/ Director/Enterprtise’s representative according to the law of the enterprise with the debt and the excluded assets to hand over to the debt financing agency.
– Debt Managment Company inherits all rights and obligations of creditors and property owners as prescribed from the signing date of Handover Agreement, and the enterprise is responsible for informing debtors and relevant agencies of the transfer of rights creditors to Debt Managment Company of commercial banks (within 10 days),
– For debts and excluded assets received under the designation of the Prime Minister (if any), owner representative agency, Debt Managment Company and enterprises shall hand over, receive and handle debts and assets as for with debt, assets excluded from the value of the converted enterprise ownership and in accordance with the direction of the Prime Minister. In case of any problems, Debt Managment Company report to the Ministry of Finance for consideration and settlement of rights or report to the Prime Minister for decision.
– Enterprises shall handle financially for debts and excluded assets according to the provisions of law for each form of ownership arrangement and conversion.
