On August 28, 1818, the State Bank issued Circular No. 19/2018/TT-NHNN guidelines on foreign exchange management of border trade activities between Vietnam and China. This Circular takes effect on October 12, 2018.
Accordingly, the State Bank shall issue licenses for banks located in the border of Vietnam. At these branches traders, Vietnamese as well as Chinese may set up accounts, withdraw money, send money, pay and other banking activities with both VND and CYN to serve their business activities, exchange of goods. In particular, the State Bank of Vietnam now allows border banks to enter into an agreement with the Bank of China to perform the mandated payment for commercial activities in the border area..
Thus, with the issuance of Circular No. 19/2018/TT-NHNN, residents and traders of the two countries Vietnam and China in the border area can make the payment quickly, It also helps to reduce tax losses and strengthen foreign exchange control, ensuring national currency security.
On 09/10/2018, the Government issued Decree No. 142/2018/ND-CP guiding a number of provisions on the amendment of a number of provisions on business conditions under the State management scope of the Ministry of Culture, Sports and Tourism. This Decree takes effect from the date of its promulgation.
Accordingly, Decree No. 142/2018 / ND-CP regulates film production conditions, specifically as follows:
Previously, businesses want to produce film business should meet the prerequisites of legal capital, accordingly, the minimum capital required that the enterprise need to ensure is VND 1 billion. However, since October 09, 2015, when Decree No. 142/2018/ND-CP came into force, the enterprise will only need to meet the legal capital of 200 million VND. As a result, the legal capital for film production has been reduced.
The competent state agencies shall base themselves on the following documents to determine that the enterprises have met legal capital levels:
– The owner’s decision to allocate capital to state-owned enterprises, one-member or two-member limited liability companies whose owners are an organization.;
– Minutes of capital contribution of founding shareholders to joint-stock companies or founding members for limited liability companies with two or more members;
– The registration of investment capital of the owner of the enterprise with respect to a private enterprise, partnership and, in the case of a limited liability company, where the owner is an individual.
It can be seen that the law is increasingly loosening policies in the business conditions of the business. The regulation on the reduction of legal capital for film production enterprises has created conditions for new units to set up/operate in this field, Contribute to encourage this business in the current period.
On 12th, October 2018, the General Department of Customs issued Official Letter No. 6010 / TCHQ-TXNK responding to Official Letter No. 26092018 / GETECH dated 26/09/2018 of Getech Vietnam Co., Ltd and Official Letter No. 2609/18 / JS-HQVP dated 26/09/2018 of Jinsung IND Vina Co., Ltd, for guidance on import tax policy for building workshops of export processing enterprises. This Official Letter comes into effect from the issued date.
Accordingly, Official Letter No. 6010 / TCHQ-TXNK has the following remarkable contents:
1. On import tax
Base on Clause 4, Article 2 of Export-Import Tax Law No. 107/2016 / QH13: Goods exported from no tax areas to foreign countries; Goods imported from abroad into the no tax areas and used only in no tax areas; Goods moving from one no tax area to another no tax area are not subjected putting export or import tax.
Accordingly, when export processing enterprises import goods for the construction of workshops, offices and setting equipment, they shall not have to declare and pay import tax.
2. On the value added tax (VAT)
Base on Clause 20, Article 5 of the VAT Law No. 13/2008 / QH12; Clause 20, Article 4 of the Finance Ministry’s Circular No. 219/2013 / TT-BTC date 31, December 2013, regulating goods traded between foreign countries and no tax areas and between no tax areas no putting VAT. Thus, in cases where enterprises in no tax zones import goods from foreign countries into no tax areas, imported goods shall not be subjected to VAT.
In cases where domestic enterprises import goods for the construction of workshops for EPEs, they must declare and pay VAT and, when exporting goods into export processing enterprises, shall be allowed to apply VAT at 0% witholding, tax deduction and refund under Article 2 of the Finance Ministry’s Circular No. 25/2018 / TT-BTC of March 16, 2018.
It can be seen that the reply of the General Department of Customs in Official Letter No. 6010 / TCHQ-TXNK dated 12/10/2018 above not only solves the problems of Getech Vietnam Co., Ltd. Jinsung IND Vina but also has valuable resources, applicable to businesses encountering similar situations.
On 09th, October 2018, the Government issued Decree No.142/2018/ND-CP amending to some articles of the investment and business conditions under regulating of the Ministry of Culture, Sports and Tourism. Decree No.142/2018/ND-CP will come into force from the issued date.
Accordingly, Decree No.142/2018/ND-CP amending and abolishing some articles related to Karaoke activity, specifically:
Firstly, Abolish some articles relating to the condition of business karaoke:
– The karaoke door must be no color glass and can see from outside into the karaoke room;
– The location of business karaoke must keep distance with the school, hospital, religious organization, historical-cultural relic, autority at least 200m or more;
– Business karaoke activity is suitable for planning of karaoke approved by the authorities.
Secondly, Abolish some articles relating to the responsibility of the business karaoke’s owner:
– Ensure that the inside light of the room always up to 10 Lux similar to 01 pub 40W/20m2;
– Ensure that the sound’s echo does not to exceed the regulations of law on the standard of the maximum noise level.
– Do not sell wine or allow guests to drink in karaoke rooms;
– Ensure the security conditions stipulated in the Decree No. 72/2009 / ND-CP dated September 3, 2009 of the Government.
In conclusion, the Decree No.142/2018/ND-CP expanded the conditions of business karaoke in particular and others service under the regulation of the Ministry of Culture, Sports and Tourism in general. The new regulations abolish the old provisions not to suit for now and creat a comfort mind in business karaoke activities and using service.
On 11th, October 2018, the Ministry of Industry and Trading issued Decision No. 3720/QD-BCT promulgating the plan for cutting and simplifying business investment conditions following the regulation of MOIT in 2019-2020. This Decision will come into force from the issued date.
Accordingly, Decision No. 3720/QD-BCT promulgating the plan for cutting and simplifying business investment conditions following the regulation of MOIT with the criteria and principles, as follows:
1. About the citeria:
– Current legal documents;
– Requirements of state management and the effectiveness’ s assessment to investment and business conditions of state management;
– Actual practice in the past time;
– The problems and obstacles in the implementation process;
– Comply with international commitments.
2. About the principles:
– Continue reviewing the industries, occupations and business investment conditions following the regulation of the Ministry of Industry and Trade;
– Review business conditions according to the principles of Decision No. 3610a / QD-BCT dated September 20, 2017;
– Review and reduce business investment conditions in the 2019-2020 period.
In conclusion, with criteria and principles above, MOIT is trying to reduce business conditions hard that do not suit for now, thereby reducing the pressure an administrative procedures for individual and organization when they participate in business activities following the regulation MOIT.
On 20/08/2018, the Ministry of Industry and Trade issued Circular No. 21/2018/TT-BCT amending some articles of Circular No. 47/2014/TT-BCT dated 05/12/2014 by the Ministry of Industry and Trade on the management of e-commerce websites and Circular No. 59/2015/TT-BCT dated 31/12/2015 of the Ministry of Industry and Trade regulating the management of e-commerce activities through applications on mobile devices. This Circular will be effective on 18/10/2018.
Accordingly, Circular 21/2018/TT-BCT has made many important changes as follows:
– To revoke Article 8, Circular No. 47/2014/TT-BCT on subjects of announcing e-commerce websites. This adjustment aims to eliminate the fear of the procedure in some business objects;
– Article 13 of Circular No. 47/2014/TT-BCT is amended to read: “Subjects registered as traders or organizations having e-commerce websites provide at least one of the following services: E-commerce transaction platform; Online promotion services; Online auction service”;
– To annul Article 21 of the Circular No. 47/2014 / TT-BCT, regulations on the registration of credit rating activities of e-commerce websites;
– To amend Article 10 of Circular No. 59/2015/TT-BCT into “Notification subjects being owners of sale applications, including traders, organizations or individuals that have been granted personal tax identification numbers”;
– Article 13 of Circular No. 59/2015 / TT-BCT is amended to read: “Registered subjects are traders or organizations owning e-commerce services under Clause 3, Article 3 of this Circular”.
As such, Circular 21/2018/TT-BTC has made important changes related to the management of e-commerce activities in general. This revision, aimed primarily at eliminating some unnecessary procedures, is intended to create a comfortable psychological environment for individuals or organizations that own websites or applications that relate to the activity. E-commerce aims to stimulate the development of the economy in the direction of modern, diverse.
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.