On May 21st, 2021, the Government issued Decree 53/2021/ND-CP on preferential export tariff Vietnam’s special preferential export tariff schedule for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland in the 2021-2021 period.
Accordingly, this Decree stipulates the conditions for applying preferential export tax rates and special preferential export tax rates under the UKVFTA Agreement, specifically as follows:
- Preferential export tax rates
Exported goods from Vietnam to apply the preferential export tax rates specified in Appendix I to this Decree must satisfy the following conditions:
- They are imported to the United Kingdom of Great Britain and Northern Ireland.
- They are supported by transport documents (copies) on which the country of destination is the United Kingdom of Great Britain and Northern Ireland.
- There are import declarations proving that goods are exported from Vietnam to the United Kingdom of Great Britain (copy and translation in English or Vietnamese in case the language used on the declaration is not English).
- Special preferential export tax rates
Imported goods eligible for special preferential import tax rates under the UKVFTA Agreement must fully satisfy the following conditions:
- They are included in the special preferential import tariff schedule in Appendix II enclosed herewith.
- They are imported to Vietnam from:
- a) The United Kingdom of Great Britain and Northern Ireland; or
- b) The Socialist Republic of Vietnam (goods imported from free trade zones to the domestic market).
- Meet the regulations on origin of goods and have proof of origin according to the provisions of the UKVFTA Agreement.
This Decree takes effect from the date of issue.
On March 29, 2021, the Government issued Decree No. 38/2021/ND-CP stipulating penalties for administrative violations in the field of culture and advertising.
Accordingly, this Decree has several new regulations on sanctioning for acts of violating advertising on billboards, banners, specialized advertising screens, specifically as follows:
- For acts of “Incorrect notification of advertising content on billboards and banners to the competent state agency where the advertisement is performed” has increased the fine from 5,000,000 VND to 10,000,000 VND (compared to the regulations of the Government). Previously, this act was only fined from VND 1,000,000 to VND 2,000,000).
- The additional sanction for the act of “Not dismantling billboards and banners that are torn, torn or unsightly“: from VND 2,000,000 to VND 5,000,000.
- The additional sanction for the act of “Failing to notify about advertising content, time, location, number of billboards and banners“: from VND 10,000,000 to VND 15,000,000.
This Decree takes effect from June 1, 2021.
Pursuant to the Government’s Resolution 71/NQ-CP 2020 issued on May 14, 2020 on the approval of the proposal to develop a Decree regulating the National Insurance Database, dated March 31, 2021 The Government has officially issued Decree 43/2021/ND-CP regulating the National Insurance Database (“Decree 43”). The following are notable points in Decree 43:
- Decree 43 creates a legal framework for the National Insurance Database (“Database”):
Since June 1, 2021, the National Insurance Database has officially been deployed in Vietnam. Here are the two main contents of the Insurance Database specified in Decree 43:
- Firstly: The Database is the national database that stores information on social insurance, health insurance, unemployment insurance and information on health and social security that is recognized by competent authorities and ensures the rights and obligations of citizen insurance.
- Secondly: The Database is the Government’s database built uniformly across the country, shared by agencies, organizations and individuals; in order to provide accurate and timely insurance information; according to it serves the state management, meets the requirements of socio-economic development and the legitimate requirements of agencies, organizations and individuals.
2. Expectations for Decree No. 43:
- Firstly: Decree No. 43 can create a legal basis for the construction, collection, update, maintenance, exploitation, use and management of the Database;
- Secondly: The Database will be a practical tool for state management, organizing the implementation of social insurance, health insurance and unemployment insurance policies, and at the same time meeting the needs of agencies, organizations and individuals.
- Thirdly: The Database contributes to promoting administrative procedure reform; Strong application of information technology, providing online public services in the field of social insurance, is one of the important foundations in building an e-Government, towards a government that creates, serves, and benefits the people and businesses.
Decree 43 takes effect from June 1, 2021.
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On March 31th, 2021, the State Bank of Vietnam issued Circular No. 02/2021/TT-NHNN instructs foreign currency transactions on the foreign currency market by credit institutions licensed to conduct foreign exchange operations.
Accordingly, this Circular prescribes the type and scope of transactions permitted for transactions between credit institutions engaging in foreign exchange transactions:
- Credit institutions are allowed to conduct spot transactions, period transactions, swap transactions, option transactions with other authorized credit institutions.
- Credit institutions are allowed to conduct spot transactions, period transactions, swap transactions, sale option transactions with economic organizations.
- Credit institutions are allowed to conduct spot transactions and period transactions with residents being other organizations and individuals.
- Credit institutions are allowed to conduct spot transactions with non-residents being organizations and individuals and term sale foreign currency transactions with non-residents.
- Credit institutions are allowed to conduct sale foreign currency transactions with non-residents being foreign investors owning Government bonds issued in Vietnam Dong in the domestic market to prevent exchange rate risk for an investor’s investment bond.
This document takes effect from May 17, 2021.
On March 19, 2021, the Government issued Decree 23/2021/ND-CP guiding Clause 3, Article 37 and Article 39 of the Law on Employment regarding employment service centers and employment service enterprises (“Decree 23”).
In order to guide the Education Law 2019, on March 23, 2021, the Government issued Decree 24/2021/ND-CP regulating the management in preschool and public general education institutions. (“Decree 24“).
Accordingly, Articles 5, 6 and 7 of Decree 24 have new regulations on the management of educational activities, specifically as follows:
- For enrollment activities:
– The educational institution enrolls according to the requirements of universal preschool education for children 5 years old, compulsory education for primary education, requests the universalization of lower secondary education according to regulations of the Law.
– The educational institution is free to determine the enrollment method, the enrollment quota, the enrollment subject, and the enrollment area.
2. Organize educational activities
– Educational institutions may decide on the methods and forms of organizing educational activities to meet the objectives and requirements of the educational program, ensuring quality and efficiency.
– Educational institutions are actively linked with higher education institutions, research institutions, vocational education institutions, businesses, business households, organizations, individuals and students’ families => to organize educational activities in accordance with local conditions as prescribed by law.
3 . Financial, assets, organizational structure and staffing management
– The management of finance, assets, organizational structure and personnel in educational institutions must comply with relevant laws.
– Educational institutions can receive sponsorship from organizations and individuals to improve the quality of education and develop schools to ensure clearly the purpose of funding and use the funding sources for the right purposes, publicly, transparency in accordance with the law.
– The rates of revenues for services and support of non-tuition education activities to meet the needs of learners comply with the resolution of the provincial People’s Council on the basis of the proposal of the Provincial People’s Committee in accordance with local practical conditions.
Decree 24 takes effect from May 15, 2021.
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On March 19, 2021, the Government issued Decree 23/2021/ND-CP guiding Clause 3, Article 37 and Article 39 of the Law on Employment regarding employment service centers and employment service enterprises (“Decree 23”).
Accordingly, Article 14 of Decree 23 has changed the conditions for granting an Employment Service License (“License“), including 3 main groups of conditions, as follows:
- Having a location for the head office or branch for the employment service organization to be owned by the enterprise or leased stably under a contract of 03 years (36 months) or more.
- The enterprise made a deposit of VND 300,000,000 (Three hundred million VND).
- The legal representative of an enterprise providing employment services must satisfy the following conditions:
- Be an enterprise manager in accordance with the Law on Enterprises;
- Not falling into one of the following cases: being examined for penal liability, being detained, serving a prison sentence, serving an administrative handling measure at a compulsory detoxification establishment or a forced education institution, escaping from residence, having limited or incapable of civil acts, having difficulty in understanding, mastering acts, being banned by court from holding positions, banned from practicing or doing work related to employment services;
4. Possessing a university or higher degree or having worked directly as a professional or managing employment services or providing labor for 02 years (24 months) or more within 05 consecutive years before applying for licensing.
Decree 23 replaces the corresponding provisions on licensing conditions at:
– Decree No. 52/2014/ND-CP regulating conditions and procedures for licensing employment service activities of employment service enterprises.
– Articles 10 and 12 of Decree No. 140/2018/ND-CP amending and supplementing Decrees related to business investment conditions and administrative procedures under the state management scope of the Ministry of Labor – Invalids and Social Affairs.
Decree 23 takes effect from June 1, 2021.
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On March 31th, 2021, the Prime Minister issued Decision No.17/2021/QD-TTg regulating the vocational training support level for employees participating in unemployment insurance. This Decision takes effect from May 15, 2021.
According to Decision No.77/2014/QD-TTg, the maximum support level is VND 1,000,000/person/month regardless of the training period, but the Decision No.17/2021/QD-TTg has specified as follows:
- For participants of vocational training courses up to 03 months:
The support level is calculated according to the tuition fees of the vocational training institutions and the actual training time but must not exceed VND 4,500,000/person/ training course.
- For people participating in vocational training courses for more than 03 months:
The support level is calculated by month, the tuition fee rate and the actual time of vocational training but must not exceed VND 1,500,000/person/month.
- In case the employee participating in a vocational training course has days with insufficient months as prescribed by the vocational training institution, the number of days is calculated according to the following principles:
14 days or less is counted as 0. 5 months.
15 days or more is counted as 01 month.
On April 19, 2021, the Government issued Decree 52/2021/ND-CP on extension of time limit for payment of value added tax, corporate income tax, personal income tax and land rental in 2021. (“Decree 52“), accordingly, Small and medium-sized enterprises (SMEs) are one of the subjects to be applied Decree 52.
However, to apply the tax extension policy in 2021, what procedures should SMEs carry out?
– Decree 52/2021 stipulates that “Taxpayers determine by themselves and take responsibility for the request for extension to ensure the right subject is extended under this Decree.” The appendix attached to Decree No. 52/2021 on the Form of Application for deferred tax payment and land rental records: “Taxpayers must determine by themselves according to the provisions of the Law on support for SMEs No. 04/2017/QH14 and Decree No. 39/2018/ND-CP dated 11/3/2018 detailing a number of articles of the Law on Support for SMEs.”
– According to Article 11 of the Government’s Decree No. 39/2018/ND-CP dated March 11, 2018, detailing a number of articles of the Law on support for SMEs stipulates:
“Article 11. Determination and declaration of small and medium enterprises
1.a SME shall base itself on the form provided in the Appendix enclosed herewith to self-determine and declare its size as a micro-enterprise or a small or medium-sized enterprise and submit it to the agency, organizations support SMEs. SMEs are responsible before the law for the declaration. ”
From the information cited above, to apply the tax extension policy in 2021, SMEs should:
Prepare: (1) Declaration identifying micro-enterprise, small-sized enterprise, medium-sized enterprise; (2) Request for extension of tax and land rental payment. Then, provide these documents to the Tax Authority to prove you’re a SME.
Decree 52 takes effect from the signing date, which is April 19, 2021.
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On April 19, 2021, the Government issued Decree 52/2021/ND-CP on extension of time limit for payment of value added tax, corporate income tax, personal income tax and land rental in 2021. (“Decree 52“), accordingly, Small and medium-sized enterprises (SMEs) are one of the subjects to be applied Decree 52, specifically as follows:
SMEs are eligible for tax extension according to Decree 52:
– According to Clause 4 Article 2 of Decree 52: SMEs are determined in accordance with the Law on SMEs support No. 04/2017/QH14 and Decree No. 39/2018/ND-CP dated March 11, 2018 of the Government on details of a number of articles of the Law on SMEs Support.
– However, not all SMEs are eligible for tax extension under Decree 52. Specifically, under Clause 1, Article 4 of Decree 52/2021 to be considered for deferred tax under Decree 52. Taxpayers must also: Pay the deferred tax and land rental in full according to the provisions of Decree No. 41/2020/ND-CP and the corresponding arising late payment interest (if any) into the state budget before 30 July 2021. In which, Decree No. 41/2020/ND-CP was issued on April 8, 2020, providing for support enterprises overcome difficulties caused by the Covid-19 pandemic related to deferred tax and land rental to.
Decree 52 takes effect from the signing date, which is April 19, 2021.
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