Legal Document Updates in English (04/2022)

REDUCE EXCISE TAX RATE FOR BATTERY ELECTRIC CARS TO 1-3%
IN 5 YEARS FROM MARCH 01

This highlight content is prescribed by the National Assembly in the Law No. 03/2022/QH15 dated January 11, 2022 of the National Assembly Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax and the Law on Enforcement of Civil Judgments.

Accordingly, to promote the development of battery electric cars, the National Assembly decide on excise tax reduction as follows:

Firstly, for battery electric passenger cars of 9 seats or fewer, the tax rate to be applied from March 01, 2022 to the end of February 28, 2027 and from March 01, 2027 shall be 3% and 11%, respectively, less than 4% compared to the previous rate.

For battery electric passenger cars of between 10 seats and under 16 seats, from March 01, 2022 to the end of February

REDUCE VAT RATE TO 8% FROM FEBRUARY 01

On January 28, 2022, the Government issues the Decree No. 15/2022/ND-CP on tax exemption and reduction policy under the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies supporting socio-economic recovery and development program.

Specifically, business establishments that calculate value-added tax according to the value-added tax credit method may apply the value-added tax (VAT) rate of 8% for goods and services currently subject to the tax rate of 10%, except for the following groups of goods and services: Telecommunications, finance and banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke, refined oil, chemical products; Goods and services subject to excise tax; Information technology.

THE MAXIMUM COMMISSION LEVEL UNDER A BROKERAGE CONTRACT
MUST NOT EXCEED HALF OF THE WORKER’S MONTHLY WAGE

The Circular No. 21/2021/TT-BLDTBXH detailing a number of articles of the Law on Vietnamese Guest Workers is promulgated by the Ministry of Labor, Invalids and Social Affairs on December 15, 2021.

According to this Circular, the maximum commission level under a brokerage contract shall be according to the agreement between a service enterprise and an intermediary organization or individual but does not exceed half of the worker’s monthly wage stated in the labor contract for every 12 working months. For cases of labor contracts with the definite term of 36 months or more, the maximum commission level under a brokerage contract does not exceed 1.5 of the worker’s monthly wage stated in the labor contract.

Also, the following service enterprises must assign at least a professional staff in the host country or territory to manage

SUPPORT THE INTEREST RATE (2%/YEAR) OF UP TO
VND 40 THOUSAND BILLION FOR IMPORTANT SECTORS AND FIELDS

This is a highlight content in the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting socio-economic recovery and development program.

In 2022, reducing 2% of value-added tax (VAT) in 2022, applicable to groups of goods and services currently subject to 10% VAT (remaining 8%), except for the following groups of goods and services: telecommunication, information technology, financial activities, banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products, goods and services subject to excise tax.

In addition, supporting the interest rate (2%/year) of up to VND 40 thousand billion through the system of commercial banks for important sectors and fields, enterprises,

PROVIDE ADDITIONALLY FORM OF CERTIFICATE OF FRAGRANT RICE VARIETY
EXPORTED TO THE UK

The Government promulgates the Decree No. 11/2022/ND-CP amending and supplementing a number of articles of the Government's Decree No. 103/2020/ND-CP dated September 4, 2020 on certification of fragrant rice varieties exported to the European Union to guide the implementation of certification of fragrant rice varieties for export to the European Union and the United Kingdom of Great Britain and Northern Ireland on January 15, 2022.

Accordingly, fragrant rice means a rice variety on the list specified at Point 8, Sub-section 1, Section B, Appendix 2-A to the EVFTA. The list of fragrant rice varieties exported to the European Union (hereinafter referred to as EU) may be modified or supplemented under the EVFTA Trade Committee’s decisions; the list of fragrant rice varieties exported to the United Kingdom of Great Britain and Northern Ireland (hereinafter referred to as UK) may be

REGULATION ON PROVISION OF E-CONTRACT CERTIFICATION SERVICES
MUST BE PUBLICIZED ON THE HOMEPAGE

The Circular No. 01/2022/TT-BCT amending and supplementing a number of articles of the Ministry of Industry and Trade’s Circular No. 47/2014/TT-BCT of December 5, 2014, on the management of e-commerce websites, and the Ministry of Industry and Trade’s Circular No. 59/2015/TT-BCT of December 31, 2015, providing the management of e-commerce activities via mobile applications is issued on January 18, 2022 by the Ministry of Industry and Trade.

Accordingly, traders and organizations developing websites for e-commerce service provision shall send online reports via the E-Commerce Management Portal or send written reports by post to the Ministry of Industry and Trade with statistics on their operations in the preceding year.

A Regulation on provision of e-contract certification services shall be publicized on the homepage of the website and must

FROM 2040, BAN THE IMPORT AND EXPORT OF HCFC

On January 07, 2022, the Government promulgates the Decree No. 06/2022/ND-CP providing regulations on reduction of greenhouse gas emissions and protection of the ozone layer.

Controlled ozone-depleting substances include: Bromochloromethane; Carbon tetrachloride (hereinafter referred to as CTC); Chlorofluorocarbon (hereinafter referred to as CFC); Halon; Hydrobromofluorocarbon (hereinafter referred to as HBFC); Hydrochlorofluorocarbon (hereinafter referred to as HCFC); Methyl bromide; Methyl chloroform.

The roadmap for management and phaseout of HCFC by period shall be as follows: From January 01, 2022 to the end of December 31, 2024, the total national consumption must not exceed 65% of the baseline consumption; From January 01, 2025 to the end of December 31, 2029, the total national

DELAY THE APPLICATION DEADLINE FOR CHARGING ON THE TOTAL REVENUE
FOR TELEVISION SERVICE PROVIDERS

On December 31, 2021, the Ministry of Finance issues the Circular No. 127/2021/TT-BTC amending and supplementing Clauses 1, 2 Article 1 of the Minister of Finance’s Circular No. 94/2020/TT-BTC dated November 16, 2020, amending and supplementing a number of articles of the Minister of Finance’s Circular No. 307/2016/TT-BTC dated November 15, 2016, on prescribing the rates and collection, remittance, management and use of charges for the right to provide pay television services, and fees for grant of a registration certificate for the provision of foreign program channels on pay television.

Accordingly, charge rates for the right to provide pay television services are 0.3% of the revenue from charging the right to provide pay television services. From January 01, 2022, the revenue from charging the right to provide pay television services is the total revenue of more than VND 50 billion

STRIVE TO RAISE THE CORRUPTION CONTROL INDEX RANKING (B2) BY 10 GRADES

This remarkable content is approved by the Government in the Resolution No. 02/NQ-CP dated January 10, 2022 on major tasks and solutions to improve the business environment and heighten the national competitiveness in 2022.

Specifically, regarding the improvement of 4.0 Competitiveness (GCI4.0) according to WEF’s ranking, in 2022, to strive to increase points and maintain the ranking of law observance expense index (called B1 for short); to raise the Corruption Control index ranking (B2) by 10 grades; to raise the land administration quality index ranking (B3) by at least 01 grade; to raise the information technology application index group ranking (B5) by 2-3 grades.

Besides, the ministries and agencies assuming prime responsibility for improving the business environment elements shall continue applying solutions towards reducing