Legal Document Updates in English (14/2020)

FROM APRIL 08, ENTERPRISES ARE ENTITLED TO EXTEND THE TIME LIMIT
FOR PAYING TAXES AND LAND RENT FOR ANOTHER 5 MONTHS
 

On April 08, 2020, the Government issues the Decree No. 41/2020/ND-CP on extending time limits for tax and land rental payment.

The extension of time limits for payments of value-added tax, enterprise income tax, personal income tax and land rentals shall be applied to: Enterprises, organizations, households, and individuals engaged in business and production activities; Products of supporting industries prioritized for development; Key mechanical engineering products; Small and super small enterprises; Credit institutions, branches of foreign banks shall conduct measures to support customers being enterprises, organizations and individuals affected by the COVID-19 epidemic.

The extension time shall be 05 months for the payable value-added tax amount arising in the tax period of March, April, May and June 2020 and the tax period of the first and the second quarter of 2020. For enterprise income tax, the extension time also is 05 months, applied for the payable enterprise income tax amount in accordance with the tax finalization of the tax period of 2019 and the temporarily paid amount of enterprise income tax for the first and the second quarters of the tax period of 2020 of such enterprise.

For value-added tax, personal income tax of business households and individuals, business households and individuals must pay the payable tax amount in 2020 no later than December 31, 2020. Besides, the Government also extends the time limit for paying the land rentals in the first period of 2020 for another 05 months.

Taxpayers eligible for the extension of time limits shall submit their written a request for the extension of time limits for tax and land rental payment by electronic means, or by other appropriate means and at the same time, shall submit their monthly (or quarterly) tax declaration under legal regulations on tax administration – to tax agencies directly in charge of them. In cases where the request for the extension of time limits for tax and land rental payment is not submitted simultaneously with the monthly (or quarterly) tax declaration, the time limit for the submission of such request shall be no later than July 30, 2020.

This Decree takes effect from the signing date. Taxpayers must themselves determine and take responsibility for the extension request in order to ensure that they are eligible for such extension.

TO APPLY THE REGISTRATION FEE CALCULATION PRICE
UP TO VND 38.154 BILLION WITH ROLL - ROYCE CULLINAN CAR
 

The Ministry of Finance issues the Decision No. 452/QD-BTC on the adjustment and supplementation of the Table of registration fee calculation prices for automobiles and motorcycles on March 31, 2020.

Accordingly, for passenger automobiles of up to 09 seats, the highest registration fee calculation price is VND 38.154 billion, applied to Roll - Royce Cullinan car. The lowest price is VND 218.8 million, applied to Baic Senova Shenbaozhixing 1,5T (BJ7153U5ECB) car. Besides, the registration fee calculation prices applied to Bentley cars as follow: Bentayga V8 (AD4XAD): VND 15.8 billion; Bentayga V8 (AD5XAD): VND 12.09 billion; Bentayga V8 (AD7XAD): VND 16.1 billion; Continental GT (C4AZAB): VND 20.188 billion…

In addition, the Decision also stipulates the registration fee calculation prices applied to some imported two-wheel motorcycles. Specifically, the highest price is VND 1.289 billion, applied to BMW K 1600 B Grand America motorcycle and the lowest price is VND 20.1 million, applied to Beenelli motorcycle. The registration fee calculation price applied to some other popular models is as follows: Ducati 959 Panigale Corse: VND 630 million; Ducati Diavel 1260: VND 725 million; Honda ADV 150: VND 58.1 million and Honda C125: VND 85 million...

This Decision takes effect on April 03, 2020.

TO ADD 01 IMPORT DUTY-FREE ITEM TO SERVE THE PREVENTION AND CONTROL OF COVID-19
 

On March 27, 2020, the Ministry of Finance issues the Decision No. 436/QD-BTC on the addition of goods exempted from import tax in the List of goods eligible for import tax exemption for the prevention and control of the acute respiratory infections caused by new strains of Coronavirus promulgated together with the Decision No. 155/QD-BTC dated February 07, 2020 of the Minister of Finance.

Accordingly, the Ministry of Finance adds non-woven fabric to produce the epidemic prevention outfit into the List of goods eligible for import tax exemption for the prevention and control of the acute respiratory infections caused by new strains of Coronavirus, promulgated together with the Decision No. 155/QD-BTC dated February 07, 2020. To be specific: To add non-woven fabric to produce the epidemic prevention outfit, HS code: 56.03.

This Decision takes effect on the signing date.

THE GOVERNMENT GUIDANCE ON FORMULATION
OF APPRAISAL DOSSIER FOR PUBLIC INVESTMENT PROJECT
 

This content is approved by the Government on the Decree No. 40/2020/ND-CP on detailing and guiding the implementation of a number of Articles of the Law on Public Investment on April 06, 2020.

Accordingly, the appraisal dossier for public investment project without construction component shall include the following documents:

First, a written proposal for appraisal of the project, with: The necessity of investment in the project; objectives and principal contents of the feasibility study report of the project; proposal for competent authorities to decide on the public investment program;

Second, the feasibility study report of the project as prescribed in Article 44 of the Law on Public Investment;

Third, the reports of the Vietnam Fatherland Front Committees at all levels summarizing opinions of residents

in the place where the project is to be implemented for projects as prescribed in Article 74 of the Law on Public Investment.

Fourth, other relevant documents serving the appraisal of public investment projects (if any). And the dossier for appraisal of a public investment project with construction components must comply with the law on construction, and contain opinions of residents and other relevant law regulations. The number of appraisal dossiers sent to the Appraisal Council or the agency in charge of appraisal is 10 sets.

In addition, order and procedures for decision on investment policy on programs and projects that use capital from lawful revenue sources of state agencies and public non-business units for investment...

This Decree takes effect from the date of its signing.

BANKS MUST REDUCE EXPENSES ON SALARIES AND BONUSES TO REDUCE INTEREST RATES
 

This is the content prescribed in the Directive 02/CT-NHNN dated March 31, 2020 on urgent solutions applied by the banking sector to enhance the prevention and control of Coronavirus disease (Covid-19) and overcome difficulties caused by the disease by the State Bank of Vietnam.

At the direction of the State Bank Governor, the units at the central bank shall provide refinancing for credit institutions for implementation of programs under the direction of the Government and Prime Minister, and support the restructuring of credit institutions and settlement of non-performing loans in the forms of refinancing on the basis of special bonds of the Vietnam Asset Management Company (VAMC).

Next, the central bank shall hold working meetings directly with chairpersons of Members’ Councils/Boards of Directors/Directors General of credit institutions for

effectively implementing solutions to remove difficulties for clients affected by the disease, such as rescheduling loans, exempting or reducing interests on existing loans and retaining categories of bank loans under Circular No. 01/2020/TT-NHNN and provide new loans with preferential interest rates.

Noticeably, the State Bank Governor requires credit institutions to take the initiative in reviewing and reducing operating expenses, especially expenses on salaries and bonuses, and timely adjust business plans and financial plans to suit reality before shareholders ’meetings are held; in the immediate future, not to distribute dividends in cash so as to reserve resources for drastically reducing interest rates for existing outstanding loans and new loans.

This Directive takes effect on the signing date.

TO APPROVE ADJUSTMENTS TO THE GENERAL MASTER PLAN
ON CONSTRUCTION OF HO CHI MINH CITY THROUGH 2025
 

On March 27, 2020, the Prime Minister issues the Decision No. 430/QD-TTg on approving partial adjustments to the general master plan on construction of Ho Chi Minh City through 2025.

Accordingly, the Prime Minister approves partial adjustments to the general master plan on construction of Ho Chi Minh City through 2025 with the main contents as follow:

Firstly, to include in the 2010 master plan the updated information about the scale, alignment, and criteria for the Ho Chi Minh City’s Ring Road No. 3 specified in the Decision No. 1679/QD-TTg of September 28, 2011, and the Decision No. 497/QD-BGTVT of February 19, 2016. The land areas used for the purposes specified in the 2010 mater plan which are within the right-of-way line of adjusted road sections shall be used for transport purpose.

Secondly, in the area of Long Phuoc ward, District 9: To build a hi-tech park of 166.2 ha as a science and technology research, experimentation, transfer and application area; To adjust the alignment of inner-city main roads stated in the 2010 master plan and add a bridge crossing Tac river.

Thirdly, in the area of Long Binh and Long Thanh My wards, District 9: To change the location and increase the area of urban-level greeneries and sports parks from 3.7 ha to about 36 ha; To change the location and increase the area of urban-level public areas from 9.7 ha to 13.1 ha; To add a route linking Ho Chi Minh City’s Ring Road No. 3 with Long Phuoc road in conformity with technical regulations for urban main roads…

This Decision takes effect on the signing date.

AN EMPLOYEE LOSING JOB DUE TO COVID-19 SHALL BE SUPPORTED VND 1.8 MILLION/MONTH
 

The Government issues the Resolution No. 42/NQ-CP on measures to support people affected by the COVID-19 epidemic on April 09, 2020.

Accordingly, an employee who takes unpaid leave or has his/her labor contracts suspended for one month or longer due to their enterprises affected by the COVID-19 epidemic, having no revenue or financial source to pay the salary shall be supported VND 1,800,000/month. The support duration shall not exceed 03 months, starting from April 01, 2020.

Besides, an employee who has his/her labor contract terminated, has a labor contract but is not eligible for unemployment benefit, or becomes unemployed due to the

lack of contract signing shall be entitled to VND 1,000,000 a month, for a maximum of 03 months, depending on the evolution of the epidemic. The support duration starts from April 2020 to June 2020.

At the same time, an enterprise that is in financial difficulties and has paid at least 50% of the salary for employees from April 2020 to June 2020 shall be entitled to loans without collaterals up to 50% of the regional minimum salary for each employee based on actual pay period but not more than 03 months with 0% interest rate and a maximum loan term of 12 months to pay an additional half a month's salary to these employees and direct disbursement monthly to the unemployed…

EFFECTIVE PERIOD OF A POWER PURCHASE AGREEMENT
FOR GRID-CONNECTED SOLAR POWER PROJECTS IS 20 YEARS
 

On April 06, 2020, the Prime Minister promulgates the Decision No. 13/2020/QD-TTg on mechanism for encouragement of solar power development in Vietnam.

Accordingly, the effective period of a power purchase agreement for grid-connected solar power projects may not exceed 20 years from the commercial operation date. After this term, both parties may extend the agreement or sign a new agreement in accordance with law provisions at that time. A model power purchase agreement for grid-connected solar power projects must be applied in the power purchase between the electricity seller and the electricity buyer that is Vietnam Electricity Corporation or member units authorized by Vietnam National Electricity Corporation.

The purchasing price of solar power ranges from VND 1,644 - 1,943 per kWh, for floating solar, ground solar power and rooftop solar power projects. This price does not include value added tax and is applicable within 20 years from the date of commercial operation.

For Ninh Thuan province, the power purchase price from grid-connected solar power projects that have been included in the electricity development planning at all levels and have a commercial operation date before January 1, 2021 with a total cumulative capacity not exceeding 2,000 MW is VND 2,086/kWh.

This Decision takes effect on May 22, 2020.