Legal Document Updates in English (15/2016)

DEDUCT VAT OF GOODS AND SERVICES USED FOR THE SEARCH,
EXPLORATION AND DEVELOPMENT OF OILFIELD
 

The input VAT of goods and services used for the search, exploration and development of oilfield to the first date of extraction or the first date of production shall be totally deducted is the content prescribed at the Circular No. 36/2016/TT-BTC dated February 26, 2016 of the Ministry of Finance guiding the implementation of the regulations on tax to organizations and individuals conducting the search, exploration and extraction of oil and gas according to regulation of the Law on Petroleum.

Where the petroleum contract does not detect the commercial oil and gas and terminates its effect by the decision of the competent level, the input VAT of goods and services used for the search, exploration and development of oilfield shall not be collected retrospectively.

Besides, the Circular also gives the way to determine the natural resources tax payable. In particular, the 

THE TOTAL EXTENSION TIME OF ASSET MANAGEMENT COMPANY‘S SPECIAL BONDS
IS NO LONGER THAN 10 YEARS
 

This is the new contents prescribed at the Decision No. 18/2015/ND-CP dated March 18, 2016 of the Government amending, supplementing a number of articles of the Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Vietnam Asset Management Company.

Accordingly, after being approved by the State Bank, Asset Management Company shall extend the time of special bonds that are issued to purchase bad debts of credit institutions that are implementing restructure plans or

CHANGE CONDITIONS ON GAS EXPORT AND IMPORT
 

On March 22, 2016, the Government issued the Decree No. 19/2016/ND-CP on gas business, within that, the most important content is the regulations that every gas importer and exporter must own/ jointly own or enter an agreement on leasing wharves of Vietnam ports for at least 05 years.

Besides, every gas importer and exporter must own/jointly own/enter into an agreement for leasing storehouses with the total storage tanker capacity of least 3,000 m3for LPG for at least 01 year, 60,000 m3 for LNG for at least 5 years and 200,000 m3 for CNG for at least 5 years.

In addition to the set forth requirements, every gas importer/exporter shall own a quantity of LPG bottles (excluding mini-sized LPG bottles) that are eligible for being used on the market with the total capacity of at least 3,930,000 liters; and own LPG bottling stations granted Certificates of Eligibility or a contract for LPG bottling with other LPG wholesalers; and have their own LPG bottling stations available after 02 years from the date of issue of

TO SUPPLEMENT DIVISION OF ELECTRICITY PRICE IN TWO COMPONENTS:
OUTPUT PRICE AND ELECTRICAL ENERGY PRICE
 

On March 18, 2016, the Prime Minister signed the Decision No.  428/QD-TTg dated March 18, 2016 of the Prime Minister on approving revisions to the national power development plan from 2011 to 2020 with visions extended to 2030, in order to mobilize all domestic and global resources for electricity development to maintain the supply of ample electric power of higher quality at reasonable price for the nation's growth in economy and society; utilize varied resources of primary energy for effective production of electricity; fortify the development and use of renewable energies for electricity generation to gradually enhance the volume of electricity generated by renewable energies to alleviate dependence on coal imports for electricity production, contribute to power security, mitigate climate changes…

To achieve above targets, the Prime Minister requires ministries and relevant agencies to implement preferential finance policies and expand international cooperation to intensify the search, survey and increase of reserves and competency for exploitation of coal, gas and renewable energies, maintain and secure the supply of fuels and

TO ACHIEVE THE COMMERCIAL COAL YIELD OF FROM 0.5-1.0 MILLION TONS
BY THE YEAR 2030
 

To develop Vietnam’s coal industry into a competitive industry applying technological advances to coal exploration, mining, and preparation, processing and trading, on March 14, 2016, the Prime Minister signed the Decision No. 403/QD-TTg on approving the adjusted master plan for Vietnam’s coal industry development to 2020 and vision towards 2030.

This scheme set the objectives that probable commercial coal yields of  Vietnam’s coal industry,  2016: approximately 41-44 million tons; 2020: 47-50 million tons; 2025:  51-54 million tons; 2030:  55-57 million tons; 2021-2030: conduct pilot projects in Red River Delta coal basin as the basis  for the investment in large-scale coal mines ; achieve the commercial coal yield of from 0.5-1.0 million tons by the year 2030.