Legal Document Updates in English (12/2012)

TAXABLE INCOMES INCLUDE INCOME FROM DEPOSIT INTERESTS FROM 2012
 

In addition to these incomes mentioned above, the Decree also regulated other taxable incomes such as: income from capital transfer, income from the transfer or liquidation of assets (excluding real estate) and other valuable papers; Income from the right to own or use assets, including earned copyright royalties in any forms and earnings from intellectual property rights; income from technology transfer under law; and asset lease in any forms.

For income from capital transfer, capital-transferring enterprise receives non-cash payment in assets or other material benefits such as stocks, fund certificates and earns an income; such income shall be liable to enterprise income tax.

These amendments and supplements shall take effect on March 1, 2012, and apply from the 2012 tax period.

AMENDING THE PROCEDURE OF GRANTING THE CERTIFICATE OF
 SATISFACTION OF LPG BOTTLING CONDITIONS

On December 16, 2012, the Government issued the Decree No. 118/2011/ND-CP amending and supplementing administrative procedures in petrol and oil and liquefied petroleum gas trading (LPG).

The Decree amended some regulations on the dossier of application for a certificate of satisfaction of LPG bottling conditions. Accordingly, it shall be submitted in one set, comprising: an application for a certificate and copies of the business registration certificate, the slip of results of inspection of the bottling station’s machinery and equipment subject to stringent labor safety requirements; the certificate of satisfaction of fire prevention and fighting conditions…)

A site plan (on paper of A2 or larger size) showing the locations of tanks and the bottling station, positions for pumping/filling LPG out of/into tank trucks, storehouses or workshops, lanes for trucks, fire

alarms and fighting devices, LPG pipelines, electric system, and LPG supply control system must be also included in the dossier of application for a certificate of satisfaction of LPG bottling conditions.

For procedure of the certificate of satisfaction of LPG bottling conditions, the Decree regulated that within three working days after receiving a dossier, the provincial level

Industry and Trade Department shall notify the trader of the dossier’s completeness and validity. Within ten working days after receiving a complete and valid dossier, the provincial-level Industry and Trade Department shall consider and evaluate the dossier and grant a certificate of satisfaction of LPG bottling conditions.

These amendments and supplements shall take effect on February 1, 2012.

 
BY 2020, STRIVING FOR TRADE BALANCE
 

On December 28, 2011, the prime Minister issued the Decision No. 2471/QD-TTg approving the goods import and export strategy for the 2011-2020 period, with orientations toward 2030 based on strategic viewpoints to develop production for quickly increasing exports while meeting domestic demand; to tap comparative advantages of the economy and trade balance.

General objective is that total goods export value by 2020 will increase more than 3 times over 2010, bringing the average level per capita to over USD 2,000, and achieving trade balance; the average goods export growth rate will be 11-12%/year; the import growth rate will be lower than the export growth rate; to gradually reduce trade deficit and keep it at under 10% of the export value by 2015.

To achieve these objectives, the Prime Minister required restructuring exports in a rational manner toward industrialization and modernization, focusing on quickly increasing the proportions of high added-value export products, deeply processed products, hi-tech products and environment-friendly products in the export structure.

 
FROM JANUARY 01, 2012, IMPORTED GOODS FROM ASEAN MEMBER
 COUNTRIES ARE ELIGIBLE FOR LOW TAX RATES
 

The Ministry of Finance issued the Circular No. 161/2011/TT-BTC of November 17, 2011, promulgating Vietnam’s Special Preferential Import Tariff to implement the ASEAN Agreement on Trade in Goods during 2012-2014.

Accordingly, since January 01, 2012, to be eligible for ATIGA duty rates, imports must fully meet the following conditions: being named in the Special Preferential Import Tariff promulgated together with this Circular; Being imported from the following ASEAN member countries into Vietnam; Being transported directly from a country of exportation being an ASEAN member country specified in Clause 2 of this Article to Vietnam under the Ministry of Industry and Trade’s regulations; satisfying the rules of origin of goods in the ASEAN Agreement on Trade in Goods and having an ASEAN certificate of origin (referred to as C/O -Form D) as required by the Ministry of Industry and Trade.

ATIGA duty rates applied towards imported goods as regulated in this Circular range from 0 – 5% (while the rate of the same goods in preferential import tariff form ranges from 15 – 20%) such as: fish and seafood at 0%, butter, milk and packaged foods at 5%; fabric, yarn, garments at 5%...

This Circular takes effect on January 1, 2012, and replaces the Minister of Finance’s Decision No. 36/2008/QD-BTC of June 12, 2008 and the Decision No. 73/2008/QD-BTC dated September 5, 2008 of the Minister of Finance promulgating CEPT/AFTA Special Preferential Import Tariff for the 2008- 2013 period.

PROCESS AND PROCEDURE OF ENTERPRISE INCOME TAX EXTENSION
 

On 12 March 2012, the Ministry of Finance issued the Circular No. 42/2012/TT-BTC guiding the implementation of the Decision No. 04/2012/QD-TTg dated January 19, 2012 of the Prime Minister on extending of paying more 03 months to the enterprise income tax of the small- and medium-sized enterprises and labor-intensive enterprises on the quarter I, II of the year 2011.

Accordingly, for enterprise income tax payable to the quarter I, II of the year 2011 will be extended in accordance with regulations at the Article 1 of this Circular, enterprises allowed to be extended for paying tax will make and send enterprise income tax declaration which are temporarily calculated in the quarter I, II of the year 2011 to replace all submitted declaration.

The declaration must clearly state the enterprise income tax that will be extended in accordance with regulations at the Decision No. 04/2011/QD-TTg and extension time.

Enterprise will make tax declaration file on any working days, not depending on the time of submitting tax declaration file in the next time, but at least before the time that tax agencies and authorized agencies notice the decision on tax audit and investigation at the places of tax payers.

This Circular takes effect on April 26, 2012

ENTERPRISES ARE ALLOWED TO PRINT LABOR SAFETY CARDS
 

On December 28, 2011, the Ministry of Labor, War Invalids and Social Affairs issued the Circular No. 41/2011/TT-BLDTBXH amending and supplementing a number of provisions of the Circular No. 37/2005/TT-BLDTBXH of December 29, 2005, guiding the training in labor safety and sanitation.

Accordingly, labor safety cards shall be printed and managed by employers. In case of being unable to print labor safety cards, employers shall contact provincial-level Departments of Labor, War Invalids and Social Affairs to be provided with these cards.

Employers are responsible to issue labor safety cards to their employees (including employees working

as freelancers) who perform jobs subject to strict requirements on labor safety and sanitation after these employees are trained for the first time and pass examinations and tests.

Annually, establishments shall report on the list of employees performing jobs subject to strict requirements on labor safety and sanitation to provincial level Departments of Labor, War Invalids and Social Affairs and the managing agencies for management and monitoring; summarize and periodically report on labor safety and sanitation training under the regulations.

These amendments and supplements shall take effect on March 01, 2012.