Legal Document Updates in English (12/2014)

CONDITIONS TO APPLY 0% VAT
 

On December 31, 2013, the Ministry of Finance issued the Circular No. 219/2013/TT-BTC guiding the implementation of the Law on Value-Added Tax and the Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government on detailing and guiding implementation of several articles of Law on Value-Added Tax

Within that, the most important content is the application of 0% VAT. Accordingly, exported goods with  a sale contract, export processing contract, or export entrustment contract; bank receipts for payment for exported goods and other documents prescribed by law; a customs declaration if customs procedure has been completed and if the taxpayer exports software programs in the form of physical packages, the customs declaration must be made similarly to ordinary goods in order to deduct input VAT shall be applied 0% VAT. Apart from presenting the aforesaid documents, providers of repair services for foreign aircraft and sea vessels must follow the procedure for importing the

PRICE APPRAISAL RESULTS SHALL BE EFFECTIVE WITHIN 12 MONTHS
 

In accordance with the Circular No. 09/2014/TT-NHNN dated March 18, 2014 of the Vietnam State Bank amending, supplementing a number of Articles of the Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the State Bank of Vietnam on classification of assets, levels and methods of setting up of risk provisions, and use of provisions against credit risk in the banking activity of credit institutions, foreign banks’ branches. The price appraisal results of organization which have function on price appraisal as stipulated by the law used to determine the value of security asset by credit institutions, foreign bank branch shall be deducted when counting the specific levels of setting up provisions and be effective within 12 months since the organization which have function on price appraisal signs the appraisal document as stipulated by the law.

At the same time, the Circular also allows to reschedule the due date and keeping the same number of loan group such as credit institution, foreign bank’s branch shall consider and reschedule the due date and keep the same loan groups as classified before rescheduling the due date and credit institution, foreign bank branch shall restructure the

DOMESTICALLY-PRODUCED STEEL  MUST HAVE ANNOUNCEMENT OF
TECHNICAL-REGULATION CONFORMITY
 

This is the requirement of the Ministry of Industry and Trade in the Joint Circular No.  44/2013/TTLT-BCT-BKHCN dated December 31, 2013 of the Ministry of Industry and Trade and the Ministry of Science and Technology providing the management of the domestically produced and imported steel quality.

In particular, organizations and individuals domestically producing steel must announce products conformable with the corresponding national technical regulations as prescribed in Circular No. 28/2012/TT-BKHCN dated December 12, 2012; in case where the national technical regulations (QCVN) are not available, organizations and individuals domestically producing steel shall announce the applied standards (basic standards, national standards of Vietnam (TCVN), standards of other countries, international standards, and regional standards) for products and goods.

IMPORT TARIFF QUOTAS FOR RAW MATERIAL TOBACCO IN 2014
 

On December 12, 2013, the Ministry of Industry and Trade issued the Circular No. 33/2013/TT-BCT of December 18, 2013 prescribing the import of raw material tobacco  under 2014 quotas.

Accordingly, the volume of raw material tobacco (HS code 2401) to be imported under 2014 quotas is 44,100 tons. And the allocation of import tariff quotas for raw material tobacco must comply with Circular No. 04/2006/TT-BTM of

CONDITIONS OF INVESTMENT SUPPORTS FOR
CATTLE RAISING ESTABLISHMENTS
 

On December 19, 2013, the Government issued the Decree No. 210/2013/ND-CP of December 19, 2013 on incentive policies for enterprises investing in agriculture and rural areas, decide to support of VND 3 billion/project, particularly for raising high-yield milk cows, the support level is VND 5 billion/project for building infrastructure of waste treatment, roads, electricity, water, workshops and pasture, and for purchasing equipment. If road and electricity and water supply and drainage systems are not available at the project site, in addition to the support level, the project is entitled to a support equal to 70% of the expenses for building those items, which, however, must not exceed VND 5 billion.

An investment project entitled to the supports must raises at least 1,000 porkers in a concentrated manner; or at least 500 beef buffaloes or cows or meat goats or