Legal Document Updates in English (03/2016)

APPLICATION OF INFORMATION TECHNOLOGY IN IMPORT AND
EXPORT TAX ACCOUNTING
 

On November 10, 2015, the Ministry of Finance issued the Circular No. 174/2015/TT-BTC guiding the accounting operations of tax and other revenues for imported and exported goods.

In according with this Circular’s regulations, the application of information technology in import and export tax accounting of the customs authorities at all levels must ensure the serious and complete compliance with principles and requirements of accounting laws. The General Director of General Department of Customs shall provide detailed instructions on procedure for use, management, updating and operation of information and data of information technology system applied in import and export tax accounting (referred to as import and export tax accounting system) applied in customs units from January 01, 2017.

Besides, the Circular also prescribes that import and export tax accounting must take actions as recording all operations

TO ANNUL THE REGULATIONS ON PAYING WAGE
WITHIN WORKING MONTH FOR EMPLOYEES
 

On November 16, 2015, the Ministry of Labor, War Invalids and Social issued the Circular No. 47/2015/TT-BLDTBXH guiding the labor contracts, labor disciplines and material responsibilities prescribed in the Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government guiding the implementation of a number of the Labor Code’s contents.

In accordance with the regulations in this Circular, monthly wage shall be paid once or twice a month at the time of wage payment determined by the employer. On severance pay and redundancy pay, the salary as the basis for determination of severance pay or redundancy pay is the average salary specified in the labor contract of the 6 continuous months before the employee is laid off or with respect to each employee concluding multiple continuous labor contracts, his/her total working time under such labor contracts shall be considered to determine the severance pay or redundancy pay, upon the termination time of the last labor contract. If the last labor contract is terminated because the employee unilaterally and unlawfully terminates labor contract or the employee is be disciplined in the form of dismissal, the working time of the last labor

OPERATION DURATION OF A NON-BANK CREDIT INSTITUTION
IS NO MORE THAN 50 YEARS AT THE MAXIMUM
 

On December 25, 2015, the State Bank of Vietnam issued the Circular No. 30/2015/TT-NHNN on regulations on issuing the licenses, organization and operation of non-bank credit institutions; within that, the most important content is the requirements for licensing joint stock non-bank credit institutions.

Accordingly, the founding shareholders must have at least two founding shareholders as organizations, have a profitable business for three straight years preceding the year of submission of applications for licensing; organizations as Vietnamese enterprises (except Vietnamese commercial banks) must have at least VND 500 billion in equity capital and at least VND 1,000 billion in total assets for three straight years preceding the year of submission of applications for licensing; or have at least VND 100,000 billion in total assets; comply fully with regulations on risk management and establishment of provisions at the time of submission of applications for licensing (for Vietnamese commercial banks).

For owners, founding members as foreign credit institutions must have at least US$ 10 billion in total assets at the end

BLOCK THE INSPECTED ENTITY’S ACCOUNT IF IT IS SUSPECTED
TO HIDE THE PROPERTY
 

In accordance with the Joint Circular No. 07/2015/TTLT-TTCP-NHNN dated November 25, 2015 by the Government Inspectorate and the State Bank of Vietnam guiding the account blockade of inspected entities; only if the inspected entity is suspected to hide the property or disobey the decision on confiscation of cash or property, the inspected entity’s account shall be blocked.

Within that, the inspected entity’s acts are suspected as hiding property including transferring or preparing to transfer their money to other accounts with unclear purposes, contents and recipients; transferring right to ownership and/or right to enjoyment of property such as

TO EXEMPT FROM MANDATORY LABELING FOR GENETICALLY MODIFIED FOODS
TEMPORARILY IMPORTED, PLACED IN TRANSIT
 

On November 23, 2015, the Ministry of Agriculture and Rural Development, the Ministry of Science and Technology issued the Joint Circular No. 45/2015/TTLT-BNNPTNT-BKHCN on labeling of pre-packed genetically-modified foods.

In accordance with the regulations in this Circular, the labeling of prepacked genetically-modified foods sold in Vietnam, at least 1 genetically modified ingredient of which makes up over 5% of the total amount of ingredients permissible for food production. Genetically modified foods must be labeled according to law provisions on goods label. The phrase “genetically modified” and content thereof shall be written on product’s label next to the name of the genetically modified ingredients. Regarding products whose area for labeling is smaller than 10 cm2, the phrase “genetically modified” must be displayed on the label; other compulsory information that cannot be displayed on the