Legal Document Updates in English (04/2022)

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NUMBER

TITLE

 

In This Updates:

ENTERPRISE

 

ENTERPRISE

1

03/2022/QH15

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

 

Reduce excise tax rate for battery electric cars to 1-3% in 5 years from March 01

Page 2

TAX – FEE – CHARGE

 

TAX – FEE – CHARGE

2

15/2022/ND-CP

Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government 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

 

Reduce VAT rate to 8% from February 01

Page 2

LABOR - SALARY

 

LABOR - SALARY

3

21/2021/TT-BLDTBXH

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

 

The maximum commission level under a brokerage contract must not exceed half of the worker’s monthly wage

Page 3

FINANCE – BANKING

 

FINANCE – BANKING

4

43/2022/QH15

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

 

Support the interest rate (2%/year) of up to VND 40 thousand billion for important sectors and fields

Page 3

EXPORT – IMPORT

 

EXPORT – IMPORT

5

11/2022/ND-CP

Decree No. 11/2022/ND-CP dated January 15, 2022 of the Government 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

 

Provide additionally form of certificate of fragrant rice variety exported to the UK

Page 4

COMMERCE

 

COMMERCE

6

01/2022/TT-BCT

Circular No. 01/2022/TT-BCT dated January 18, 2022 of the Ministry of Industry and Trade 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

 

Regulation on provision of e-contract certification services must be publicized on the homepage

Page 4

NATURAL RESOURCES - ENVIRONMENT

 

NATURAL RESOURCES - ENVIRONMENT

7

06/2022/ND-CP

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

 

From 2040, ban the import and export of HCFC

Page 4

INFORMATION - COMMUNICATIONS

 

INFORMATION - COMMUNICATIONS

8

127/2021/TT-BTC

Circular No. 127/2021/TT-BTC dated December 31, 2021 of the Ministry of Finance 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

 

Delay the application deadline for charging on the total revenue for television service providers

Page 5

POLICY

 

 

9

02/NQ-CP

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

 

Strive to raise the Corruption Control index ranking (B2) by 10 grades

Page 5

 

SUMMARY:

 

Ü ENTERPRISE

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

 

28, 2027 and from March 01, 2027, the tax rate shall be 2% and 7% (the previous rate is 10%), respectively, etc. The National Assembly also decides on reducing the excise tax rate for battery electric passenger cars of between 16 seats and under 24 seats to 1% in five years from March 01, 2022.

This Law also amends and supplements 8 other laws, including 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, and the Law on Enforcement of Civil Judgments, with some noticeable contents, such as adding the sector and trade of trading in cybersecurity products and services (excluding trading in cyberinformation security products and services and civil cryptography products and services) to the List of sectors and trades subject to conditional business investment, etc.

This Law takes effect from March 01, 2022.

Ü TAX – FEE – CHARGE

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.

 

Business establishments (including business households and individuals) that calculate VAT according to the percentage of turnover shall be entitled to a reduction of 20% of the percentage used to calculate value-added tax when issuing invoices for goods and services eligible for VAT reduction.

Besides, enterprises and organizations being enterprise income tax payers as prescribed by the Law on Enterprise Income Tax, may account expenses for supporting and financing the COVID-19 prevention and control in Vietnam in kind or cash through units receiving supports and sponsorships as deductible expenses for determination of taxable income of the enterprise income tax period in 2022.

This Decree takes effect from February 01, 2022.

Ü LABOR - SALARY

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

 

and provide support for workers: Service enterprises with 500 or more workers working in Taiwan (China), Korea, Macao (China), Japan; Service enterprises with 300 or more workers working in other countries or territories.

Additionally, the Circular defines the main contents of a contract on the sending of Vietnamese workers abroad signed between a worker and a Vietnamese organization or individual making offshore investment, such as: working duration; professions, occupations and jobs to be performed; country or territory where the worker comes to work, workplace; pre-departure orientation education; working conditions and environment; working time and rest time; occupational safety and health; salary and bonuses (if any), overtime pay, salary deductions (if any); etc.

This Circular takes effect on February 01, 2022.

Ü FINANCE – BANKING

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,

 

cooperatives, and business households capable of repaying debt and recovering; granting loan for renovating old apartment buildings, building social houses and houses for purchase, rent, and lease purchase of workers. Also, granting the charter capital of up to VND 300 billion to the Tourism Development Assistance Fund.

Particularly, utilizing up to VND 46 thousand billion from other legal financial sources to import vaccines, medicine, and medical equipment and supplies for COVID-19 prevention and control when necessary; continuing to restructure debt repayment term and maintaining debt category, exempting and reducing interest for debtors affected by the COVID-19 pandemic; etc.

The Resolution takes effect from the signing date.

Ü EXPORT – IMPORT

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

 

modified or supplemented under the UKVFTA Trade Committee’s decisions.

Besides, the form of certificate of fragrant rice variety exported to the UK is also added.

For fragrant rice produced before the effective date of this Decree for export to the UK, the application for certification of fragrant rice varieties of organizations and individuals shall comply with Point a Clause 1 Article 7 of the Decree No. 103/2020/ND-CP and Clause 3 Article 1 of this Decree; the application for re-issuance of an authenticity certificate of fragrant rice varieties shall comply with Point a Clause 2 Article 8 of the Decree No. 103/2020/ND-CP and Clause 5 Article 1 of this Decree until the end of March 31, 2022.

This Decree takes effect on the signing date.

Ü COMMERCE

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

 

have the following contents: Rights and obligations of service-providing traders and organizations; Rights and obligations of service users; Description of methods and process of certification of e-contracts; Limitation of the liability of service-providing traders and organizations.

In addition to the above-mentioned contents, a Regulation on provision of e-contract certification services also contains information security and management in the provision of e-contract certification services; mechanism for settlement of complaints and disputes between parties related to the provision of e-contract certification services; measures to handle violations for those who do not comply with the Regulation.

This Circular takes effect on March 08, 2022.

Ü NATURAL RESOURCES - ENVIRONMENT

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

 

consumption must not exceed 32.5% of the baseline consumption; etc. From January 01, 2040, to ban the import and export of HCFC.

Also, Methyl bromide shall be only imported for the purpose of sterilization and quarantine of imported goods. Greenhouse gas-emitting establishments subject to greenhouse gas inventory are establishments that have the annual greenhouse gas emissions of 3,000 tons of CO2 equivalent or more, or fall in one of the following cases: Commercial buildings with the total annual energy consumption of 1,000 TOE or more; Establishments treating solid wastes with an annual operational capacity of 65,000 tons or more; etc.

This Decree takes effect on January 07, 2022.

Ü INFORMATION - COMMUNICATIONS

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

 

 (excluding value-added tax) arising from contracts with pay television subscribers in the calendar year.

From January 01, 2023, the revenue from charging the right to provide pay television services is the total revenue arising from contracts with pay television subscribers in the billing period (excluding value-added tax).

From January 01, 2022 to the end of December 31, 2022, pay television service providers shall pay quarterly charges. From the quarter when the total accumulated revenue from January 01 of the calendar year is more than VND 50 billion, the provider shall calculate and pay charges for the part of the total revenue that is more than VND 50 billion. From January 01, 2023, pay television service providers shall calculate and pay charges for total revenue arising in the quarter.

This Circular takes effect on January 01, 2022.

Ü POLICY

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

 

the number of procedures, time, expenses and risks for enterprises, including: Starting business; Paying taxes and social insurance premiums; Licensing the construction and relevant procedures; credit access; Protection of investors; etc.

Also, the central tasks and solutions stated in the Resolution shall be: Shortening the lists of conditional investment and business lines and reforming the business conditions; Concentrating on removal of obstacles for investment and business activities due to overlapping, contradiction, irrationality and differences in legal provisions; Further boosting the reform of management and specialized inspection of export and import commodities; Stepping up the reform of land registration and the renewal of land administration.


 

 

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