On July 12, 2019, the Ministry of Finance issued Circular No. 43/2019/TT-BTC stipulating investment costs determined as reasonable expenses when deducting expenses for employee working in industrial zones and economic zones, Circular 43/2019 / TT-BTC takes effect from August 26, 2019.
Accordingly, Circular 43/2019 / TT-BTC regulates investment costs determined as reasonable expenses when deducting expenses for workers working in industrial parks and economic zones. Specifically:
– Expenses for investment in construction, operation or lease of condominiums and social infrastructure works for workers working in industrial parks and economic zones of enterprises with investment projects. In industrial parks and economic zones, it is allowed to deduct when determining income subject to enterprise income tax as follows:
– For fixed asset value: calculated into the value of the project and depreciated into deductible expenses when determining the income subject to enterprise income tax if it meets the condition of fixed assets according to regulations. Ministry of Finance’s regulations on management, use and depreciation of fixed assets.
– For expenses (except for the case specified at Point a, Clause 1 of this Article), it shall be calculated into deductible expenses when determining incomes subject to enterprise income tax according to the provisions of law on enterprise income tax.
– Incentive for investment projects to build houses, cultural facilities, sports, social infrastructure works for workers working in industrial parks and economic zones.
Investment projects on construction of houses, cultural works, sports and social infrastructure works in service of workers working in industrial parks and economic zones shall enjoy preferences according to the law on construction. Building social housing and related laws.
Thus, Circular No. 43/2019/TT-BTC has detailed provisions, concretizing and explaining the content, guiding the application of Clause 4, Article 24 of Decree No. 88/2018/ND -CP of the government on the management of industrial parks and export processing zones on the cost of construction, operation or rental of apartment buildings and social infrastructure works for workers working in public areas industries and economic zones are reasonable expenses deductible for calculating taxable incomes of enterprises having investment projects in industrial parks or economic zones.
On June 26, 2019, the State Bank issued Circular No. 06/2019/TT-NHNN providing guidelines on foreign exchange management for foreign direct investment activities into Vietnam effective on 06 September 9, 2019.
Accordingly, Circular No. 06/2019 / TT-NHNN has the following outstanding contents:
– Foreign investors and Vietnamese investors are entitled to make investment capital contribution in foreign currencies and Vietnam dong according to the investor’s capital contribution level in the investment registration certificate, establishment and operation license. in accordance with specialized laws (for enterprises with foreign direct investment established and operating under specialized laws), Notice of satisfaction of conditions for capital contribution, share purchase, repurchase capital contribution of foreign investors, PPP contracts signed with competent state agencies, other documents proving the capital contribution of foreign investors in accordance with the provisions of law.
– Enterprises with foreign direct investment, foreign investors participating in BCC contracts, implementing PPP projects in case of not establishing project enterprises must open a direct investment capital account in foreign currency in 01 (one) bank is allowed to carry out legal transactions of collection and payment in foreign currencies related to foreign direct investment activities in Vietnam.
– In case of carrying out foreign loans, the borrowed money does not correspond to the currency that the foreign direct invested enterprise uses to open the direct investment capital account, the invested enterprise. Foreign direct investors are allowed to open more loan accounts, repay foreign loans with the currency borrowed at an authorized bank where the direct investment capital account has been opened to make lawful collection and spending transactions related to foreign loans in accordance with the law on foreign loans and debt repayment of enterprises.
Thus, Circular No. 06/2019/TT-NHNN provided detailed instructions on the investment capital contribution, the method of capital contribution of foreign investors when investing in Vietnam.
On June 24, 2019, the Government issued Decree 55/2019 / ND-CP on legal support for small and medium enterprises.
Accordingly, small and medium enterprises are supported with legal consultancy costs with the following levels:
– Microenterprises are supported 100% of legal consultancy costs according to the written agreement on provision of legal consultancy services between legal consultants and enterprises, but not exceeding VND 3 million / year;
– Small businesses are supported up to 30% of legal consultancy costs according to the written agreement on provision of legal consultancy services between legal consultants and enterprises, but not exceeding VND 5 million / year;
– Enterprises have been supported up to 10% of legal consultancy costs according to the written agreement on providing legal consultancy services between legal consultants and enterprises, but not exceeding VND 10 million / year;
– Business households converted to small and medium-sized enterprises, small and medium enterprises with creative start-ups, small and medium-sized enterprises join industry-linked groups, value chains are supported with legal consultancy expenses according to regulations. in Chapter IV of Decree No. 39/2018 / ND-CP detailing a number of articles of the Law on Small and Medium Enterprises Support or legal documents to amend, supplement or replace this Decree.
In cases where the ministry or ministerial-level agency agrees to support it, the small business has just submitted a dossier requesting payment of legal consultancy expenses, support problems. Payment records include:
– Legal advisory documents, including 01 full version and 01 copy has removed information about business secrets of the enterprise;
– A written request for payment of legal consultancy fees certified by a consultant and an enterprise, including a reference to the number and date of the written consent to support, the beneficiary’s name and account number, bank beneficiary’s goods;
– Finance bill.
Decree 55/2019 / ND-CP takes effect from August 16, 2019. Accordingly, the above-mentioned legal support policy helps small and medium enterprises improve their knowledge, consciousness and habit of complying with laws, limit risks and legal obstacles in business activities of enterprises career, thereby enhancing the competitiveness of enterprises and the effectiveness of law enforcement organization.
On 17/07/2019, the Ministry of Health issued Circular No. 17/2019/TT-BYT guiding the supervision and response to infectious diseases and epidemics issued by the Minister of Health. The Circular is effective from 01/09/2019.
Accordingly, in Article 6 of Circular No. 17/2019 / TT-BYT, there are provisions on monitoring contents, specifically:
1. For persons suffering from contagious diseases, carriers of infectious diseases, people suspected of being infected with contagious diseases, the supervising contents include:
a) Full name, age, gender, occupation, contact phone, living address, place of study and work; location and duration of illness and onset; disease development, symptoms, diagnosis and treatment process, health care and treatment facilities before getting sick; information on assays confirming appropriate pathogens; obstetric history, history of vaccination and immunological status, travel history at home and abroad, information on exposure history, exposure and epidemiological factors involved;
b) Economic, cultural and social conditions at the monitoring place
2. For infectious pathogens: strains, species, groups, types, subtypes, genes, genotypes, biological properties of drug resistance, changes in form, gene and mode of transmission.
3. For the transmission medium
a) Animals: quantities, relationships with humans and other characteristics required. Particularly for insects that need additional supervision: biological characteristics, species composition, monitoring indicators, chemical sensitivity;
b) Food: raw materials, sources, methods of processing, storage, transportation and distribution;
c) Environment: soil, water, air;
d) Other objects carrying infectious pathogens.
4. Based on infectious diseases and epidemics, objects of supervision and requirements of different types of supervision, the units responsible for supervision and selection of appropriate supervision contents.
And also according to Article 6 of Circular No. 17/2019 / TT-BYT, the monitoring process is carried out according to the following steps:
1. Collect data and information.
2. Data analysis, interpretation and evaluation of results.
3. Assess the risk, identify disease situation, infectious diseases.
4. Proposing intervention measures.
5. Report and share information.
Accordingly, the issuance of Circular No. 17/2019/TT-BYT is a legal basis to guide competent agencies to actively monitor and respond to infectious diseases and epidemics. This contributes to the complicated situation of infectious diseases and epidemics.
On 15/08/2019, Council of Justices of Supreme Court issued Resolution No. 05/2019/NQ-HĐTP coming into effect from 01/09/2019.
According to the Resolution, social insurance evasion committed before 01 January, 2018 shall not be prosecuted. The evasion, indeed, shall be dealt with as follows:
If the evasion is not sanctioned administratively and time limit for this administrative sanction does not pass, the evasion shall be administratively sanctionted.
If the evasion was sanctionted administratively, authorities shall force the violator to enforce the sanction.
If the violator cause damage to its labour, labour agency or other entity (“the victim”), the victim may claim for non-contractual liability.
According to Article 216 of Criminal Code, monetary penalty for social insurance evasion crime of enterprises ranges from VND 200,000,000 to VND 3,000,000,000.
The Resolution contributes to anticipation of enterprises in commercial and penal risks in relation to social insurance evasion.
On 26/06/2019, the Governor of the SBV issued of Circular No. 06/2019/TT-NHNN guiding the management of foreign exchange for foreign direct investment activities in Vietnam, replacing the Circular No. 19/2014/TT-NHNN dated 11/08/2014 of Governor of the SBV.
About the Circular No. 06/2019/TT-NHNN:
Circular 06/2019/TT-NHNN is issued to guide the contents related to foreign exchange management for foreign direct investment activities in Vietnam in accordance with the law on foreign management. Exchange at the Foreign Exchange Ordinance (amended and supplemented), Decree 70/2014 / ND-CP dated July 17, 2014 of the Government detailing the implementation of a number of articles of the Ordinance on Foreign Exchange (amended , amendments and supplements) and the law on investment in the 2014 Investment Law, specifically as follows:
The Circular specifies the concept of enterprises with foreign direct investment capital, serving as a basis for determining subjects to open direct investment capital accounts.
The Circular specifies the contents of revenue and expenditure on direct investment capital accounts in foreign currencies and direct investment capital accounts in Vietnam dong.
The Circular regulates the contents related to the payment of the value of investment capital transfer, investment projects including user accounts, valuation currencies, and payment transactions in transfer transactions.
In addition to the above contents, the Circular also specifies the responsibilities of authorized credit institutions, foreign direct investment enterprises and foreign investors in order to create a legal and advanced basis. responsibilities of concerned organizations and individuals in complying with regulations on foreign exchange management for foreign direct investment activities in Vietnam.
The values of Circular No. 06/2019 / TT-NHNN provide:
Strengthen foreign exchange management to ensure market stability, increase foreign exchange reserves, attract foreign currency from FDI.
Perfecting the legal framework for foreign exchange management, creating favorable conditions and ensuring legitimate interests for organizations and individuals engaged in foreign exchange activities, in line with practical requirements, contributing to promoting economic development.
Create a clear legal corridor in managing direct investment flows into and out of Vietnamese territory.
Encouraging remittances, attracting foreign currency into the banking system, limiting domestic foreign exchange use, contributing to stabilizing the foreign currency market.
On 15/08/2019, the Government issued Decree 69/2019/ND-CP regulating the use of public assets to pay investors when implementing construction investment projects in the form of build – transfer contract (BT contract). The Decree takes effect from October 1, 2019.
Some notable contents in the decree:
Types of public assets allowed to be used to pay Investors include (Clause 2 Article 1):
Land fund;
Land, houses and other assets associated with land of state agencies, public non-business units, units of the people’s armed forces, the Communist Party of Vietnam, political and social organizations, socio-political-professional organizations, social organizations, socio-professional organizations and other organizations established under the law on associations (agencies, organizations and units);
Infrastructure assets in service of national interests and public public interests;
Other types of public assets according to the Law on Management and Use of Public Assets.
The valuation of each type of public asset
Land fund: The value of the paid land fund is the land use levy or land rent paid in lump sum for the whole lease term (Clause 1, Article 6);
Land, houses and other assets attached to land of agencies, organizations and units: Value of land use rights and property values on land (Clause 1, Article 9);
Infrastructure assets: Value of exploitation rights of infrastructure assets (Clause 1 Article 11);
Other types of public assets: comply with regulations on management and use of public assets and other relevant regulations (Article 13).
For BT contracts signed before the effective date of this Decree, payment to investors shall continue to be performed according to the contents of the BT Contract signed or applied by law. related to implementation (Article 17).
The promulgation of Decree 69/2019 / ND-CP has created an important legal basis for the implementation of Build – Transfer contracts, which is a premise for foreign investors to participate in national construction investment activities as well as promoting the development of the economy.
On 16/08/2019, the Ministry of Construction issued Circular No. 04/2019/TT-BXD amending and supplementing a number of contents of Circular No. 26/2016/TT-BXD of 26/10/2016 of The Minister of Construction shall detail a number of contents on quality management and construction maintenance. Circular 04/2019 / TT-BXD takes effect from 01/10/2019.
Accordingly, in Clause 5, Article 1 of Circular 04/2019 / TT-BXD, supplementing Article 15a, Article 15b after Article 15 of Circular No. 26/2016 / TT-BXD, regarding the construction supervision in the past Construction process is carried out in the following cases:
Follow regulations of approved construction design, technical instructions, construction measures;
When the project has abnormal expression, it needs to be monitored for the assessment, determine the cause to take measures to handle and prevent construction incidents during construction.
Construction contractors are responsible for implementing monitoring in the above cases and in accordance with construction contracts with the following responsibilities:
Prepare a monitoring proposal for investors to accept;
Organization to conduct monitoring according to the approved outline; making reports and evaluating monitoring results.
In addition, investors can choose contractors independent from construction contractors to perform some monitoring during the construction process.
The promulgation of Circular 04/2019/TT-BXD is to supplement regulations related to quality management and maintenance of construction works, creating strict management of state agencies in monitoring quality construction, while enhancing the responsibility of contractors as well as investors.
On 14/08/2019, the Government issued Decree 68/2019/ND-CP on management of construction investment costs. This Decree takes effect from October 1, 2019.
Accordingly, in Article 3 of Decree 68/2019 / ND-CP, the principle of management of construction investment costs and management responsibilities of investors is recorded as follows:
Management of construction investment costs must ensure the investment objectives, the approved project effectiveness, in accordance with the construction investment order as prescribed in Clause 1, Article 50 of the Construction Law and Capital application and investment form of the project, implementation method of the project. Construction investment costs must be properly and fully calculated for each construction project, project or construction package, suitable to the design requirements, technical instructions, construction conditions and project implementation plans, market price level in the construction area and expected price fluctuations in the construction investment process.
The investor is responsible for managing construction investment costs from the project preparation stage to the end of construction and putting the project’s works into exploitation and use and settlement of construction investment capital within the scope of the approved total investment of the project includes the case where the total investment amount is adjusted according to the provisions of Article 7 of this Decree. Investors may hire organizations and individuals to provide consultancy on expense management to meet the capability conditions prescribed in the Decree on management of construction investment projects for elaboration, verification, control and management of head expenses. construction.
Decree 68/2019/ND-CP applies to agencies, organizations and individuals related to the management of construction investment costs of projects using state budget capital and state capital out of state budget, investment projects in the form of public-private partnerships (PPP).