New Policies Take Effect on Nov 1, 2014

The Government of Vietnam issued Decree 83/2014/ND-CP on petroleum business replacing Decree 84/2009/ND-CP dated October 15, 2009. The new ruling takes place on November 1, 2014.

 

According to the new ruling, fuel distributors can buy fuel multiple wholesalers under purchase and sale contracts. Fuel traders will allocate petroleum to their retail agents and pay for them.

 

Besides, petroleum traders are allowed to conduct petroleum business in the form of franchising to retailers.

 

The Government issued Decree 60/2014/ND-CP requiring printing and photocopying establishments to report their operations to authorities. The Decree comes into force on November 1, 2014.

 

Accordingly, newly established printers and photocopiers must report to the District People’s Committee at least 10 days before the official operation.

 

Although their operations are not required licensing, existing photocopiers must report and register their operations to authorities before January 1, 2015.

 

According to Circular 25/2014/TT-NHNN of the State Bank of Vietnam (SBV), short-term loans that are not extended but the outstanding credit remains after one year from the first date of capital withdrawal must be registered with the SBV.

 

In case the plan on capital withdrawal, loan repayment or expense payment is changed within 10 days of registration being certified by the SBV, borrowers must notify the change to the bank at the service where the loan account has been opened and need not register the change with SBV.

 

Foreign loans were made before November 1, 2014 shall be governed by the certified document issued. In case of change after this date, the borrower must register such change in accordance with this circular.

 

The Ministry of Finance issued Circular 133/2014/TT-BTC guiding regulations on the collection, payment, management and use of road use charges by unit of vehicle in place of Circular 197/2012/TT-BTC. The new ruling takes effect on November 1, 2014.

 

According to this circular, levied road users are motor vehicles registered for circulation on road (certified with vehicle registration certificate and vehicle registration plate), including cars, tractors, trailers and semi-trailers, two-wheeled motorised vehicles, three-wheeled motorised vehicles, and similar vehicles.

 

Accordingly, the fee applicable to motor vehicles (excluding electric scooters) with a cylinder of 100cc shall be at most VND100,000 a year (compared with a range from VND50,000-100,000 in old regulations); and to the motorcycles with cylinder more than 100cc is at most VND150,000 a year (compared with a range from VND100,000 to 150,000 in old regulations).

 

The import tariff for the following items will be slashed to 0 percent from the current 2 percent from November 7, 2014.

- Metal lathe (including lathe machining centre) used for dissection of metal

- Machine tools (including movable machining heads) used for drilling, boring, milling, lathing or dissection of metal (excluding lathes).

The regulations are provided in Circular 139/2014/TT-BTC.

 

On October 10, 2014, the Vietnam Social Insurance issued Decision 1018/QD-BHXH on amending decisions on enforcing regulations on management of receipts and expenditures of social and health insurance funds. The decision comes into force on November 1, 2014.

 

A lot of changes will be seen in social insurance profiles of companies, aiming to reduce workloads on records for them. Specially, Form D01-TS and Form D01b-TS applicable to procedures informing the decrease in labour forces, insurance payment suspension and social insurance payment suspension will be removed. The list of insured employees will also be streamlined.

 

- Social insurance and health insurance statements, voluntary social insurance declaration forms and social insurance declaration forms will be replaced by new statements, declaration forms and insured information declaration forms.

- The decision also provides definitions on snapshots and details regulations on non-notarised social insurance documents.

 

According to the Government’s Decree 87/2014/ND-CP, Vietnamese people living abroad and foreign experts participating in scientific and technological activities in Vietnam will be entitled to the following incentives.

- Be issued with multi-entry visa or temporary residence card with a maximum term prescribed by law on entry, exit and residence of foreigners working in Vietnam.

- Be appointed or hired to assume the leadership title of technological and scientific organisation or assigned to be in charge of implementing the scientific and technological tasks, and considered for recognition, appointment of scientific research title or technology titles.

- Be given conditions for accommodation or assisted with accommodation hiring during the time participating in technological and scientific activities in Vietnam; arranged for means of transport if in charge of technological and scientific at national level of particular importance;

- Be entitled to a maximum of tax and expense needed to organise scientific and technological events

- Be allowed to transfer legal incomes to abroad; in case of legal incomes in Vietnamese dong, they may buy foreign currency to be transferred abroad.

The decree comes into effect on November 10, 2014.

 

According to Decree 84/2014/ND-CP on instructions to the Law on Thrift Practice and Waste Combat 2013, any agency or organisation found to have behaviours of waste, depending on the size and extent of effect, will be made public in one of the following forms:

- Announced at the unit meeting and at the headquarters;

- Publicly posted to its electronic information site and electronic portal

- Announced on press publications or other means of mass media.

 

The disclosure contents include name and address of wasteful unit, wasteful behaviour, and treatments to people with acts of waste.

 

This information disclosure must be made within three days after competent authorities announced decisions on treatment.

 

Deputy Finance Minister Do Hoang Anh Tuan officially signed to issue Circular 151/2014/TT-BTC, effective from November 15, 2014, guiding the enforcement of Decree 91 on amendments and supplements to a number of articles of tax decrees.

 

Accordingly, many regulations on value added tax (VAT) have been modified.

 

VAT: The borrower sells mortgaged assets at the authority of the lender to repay secured loan, the VAT is exempt.

 

- Adding instructions on VAT deduction applicable to goods and services purchased in the form deferred payment or payment by instalments which cost VND20 million or more.

Personal income tax: Accommodation benefit in the form of an employer-owned house is exempt from personal income tax in case employees working in industrial zones, or houses located in economic zones, in regions with difficult or especially difficult socioeconomic conditions.

- Individuals and households pay lump-sum tax, they do not have to settle tax on this income.

Tax declaration: Taxpayers who temporarily suspend business operations only need to send notice to only one agency (business registration agency or tax agency), depending on specific cases, instead of having to send notices to both agencies as earlier.

- Taxpayers who are subjected to VAT payment having the total revenue from sale of goods and supply of services in the preceding year from VND50 billion downwards (VND20 billion previously) will be declared on quarterly basis.

- The extension period will be two years (one year previously) in case taxpayers have not received payments from the State Budget.