Legal Document Updates in English (19/2022)

ALLOCATE UP TO 5% OF THE CENTRAL BUDGET TO DIRECTLY MANAGE SME SUPPORT ACTIVITIES

This noticeable content is prescribed in the Ministry of Industry and Trade’s Circular No. 06/2022/TT-BKHDT dated May 10, 2022, guiding a number of articles of the Government’s Decree No. 80/2021/ND-CP dated August 26, 2021, detailing and guiding the implementation of a number of articles of the Law on Support for Small- and Medium-sized Enterprises (SMEs).

Specifically, agencies and organizations providing support for SMEs shall be allocated no more than 5% of the total annual funding from the Central budget to support SMEs in order to conduct the direct management of support activities, including:

Firstly, activities to support SMEs: business trips; overtime payments; communications; organization of meetings and seminars; hiring experts; organization of surveys directly at enterprises to decide on support; activities directly serving the support of SMEs.

Secondly, operations of councils for selection of innovative startup SMEs: review of dossiers and documents of innovative startup SMEs; hiring experts; overtime payments; communications; organization of meetings to evaluate the enterprises’ profiles; meetings to evaluate the results of selection of innovative startup SMEs; other activities directly related to the operations of the councils.

Thirdly, selection of suppliers in accordance with the law provisions on bidding.

Also in accordance with this Circular, consultants shall be free to participate in training courses on standardization of consulting skills, processes and knowledge organized by ministries and ministerial-level agencies.

This Circular takes effect from June 25, 2022.

EXTEND DEADLINES FOR VAT, EIT AND PIT PAYMENT

This is the highlight provision of the Government’s Decree No. 34/2022/ND-CP dated May 28, 2022, on extension of deadlines for payment of value-added tax (VAT), enterprise income tax (EIT), personal income tax (PIT) and land rental in 2022.

Accordingly, the extension duration is 06 months for the VAT amount of the tax periods of March, April and May 2022 and the tax period of the first quarter of 2022; 05 months for the VAT amount of the tax periods of June 2022 and the second quarter of 2022; 04 months for the VAT amount of the tax period of July 2022; and 03 months for the VAT amount of the tax period of August 2022.

For EIT, to extend the deadlines for payment of the temporarily paid EIT amounts of the tax periods of

the first and second quarters of 2022 of specified enterprises and organizations. The extended duration is 03 months from the deadline for EIT payment as prescribed by the law on tax administration.

Besides, to extend the deadlines for payment of payable VAT and PIT amounts of 2022 of business households and individuals operating in the economic sectors and fields prescribed in Clauses 1, 2 and 3, Article 3 of this Decree. Business households and individuals shall pay the tax amounts eligible for extension of the payment deadline on December 30, 2022, at the latest.

This Decree takes effect from the date of its signing to the end of December 31, 2022.

ALLOCATE MORE THAN VND 92 THOUSAND BILLION TO IMPLEMENT 3 NATIONAL TARGET PROGRAMS

On May 22, 2022, the National Assembly Standing Committee issues the Resolution No. 517/NQ-UBTVQH15 on the central budget allocation of the 2021-2025 period and the year 2022 for ministries, central agencies and localities to implement 3 national target programs.

Specifically, to allocate VND 92,057.861 billion as the central budget’s development investment fund for the 2021-2025 period to localities for implementation of the following 3 national target programs: VND 47,057.816 billion for the national target program on socio-economic development in ethnic minority and mountainous areas; VND 18,000 billion for the national target program on sustainable poverty reduction; VND 27,000 billion for the national target program on building of a new countryside.

For the central budget’s development investment fund of VND 7,942.139 billion that has not yet satisfied the conditions for being allocated: The Government shall expeditiously review and improve the legal

foundation and allocation plan before reporting them to the National Assembly Standing Committee for consideration and decision.

Besides, to allocate the central budget’s fund of VND 34,049 billion (including the development investment fund of VND 24,000 billion and the non-business fund of VND 10,049 billion) to ministries, central agencies and localities as follows: VND 14,429 billion for the national target program on socio-economic development in ethnic minority and mountainous areas (including the development investment fund of VND 9,000 billion, and the non-business fund of VND 5,429 billion); VND 8,620 billion for the national target program on sustainable poverty reduction (including the development investment fund of VND 6,000 billion and the non-business fund of VND 2,620 billion); VND 11,000 billion for the national target program on building of a new countryside (including the development investment fund of VND 9,000 billion and the non-business fund of VND 2,000 billion).

INTEREST RATE SUPPORT CONDITIONS APPLICABLE TO LOANS RELATED TO LABOR AND EMPLOYMENT

On May 30, 2022, the Government issues the Decree No. 36/2022/ND-CP on interest rate support for loans from the Vietnam Bank for Social Policies, funding sources for loans, allocation of interest rate subsidies and management expenses for the loan of the Vietnam Bank for Social Policies under the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies in support of the socio-economic recovery and development program.

Accordingly, this Decree provides for the mechanism of interest rate support for loans from the Vietnam Bank for Social Policies prescribed at Item b, Point 1.2, Clause 1, Article 3 of the Resolution No. 43/2022/QH15 and Item d, Point 2, Section II of the Resolution No. 11/NQ-CP dated January 30, 2022; funding sources for loans, allocation of interest rate subsidies and management expenses for the implementation of preferential loan policies of the Vietnam Bank for Social Policies specified at Item b, Point 1.3, Clause 1, Article 3 of the Resolution No. 43/2022/QH15 and Item c, Point 2, Section II of the Resolution No. 11/NQ-CP.

Specifically, eligible customers using the loans with the specified purposes shall be entitled to interest rate support from the State budget if their loans fully meet the following conditions: Being in policy credit programs at the Vietnam Bank for Social Policies under documents as prescribed; the interest rate of the loans shall be above 6%/year; and the loans are disbursed by the Vietnam Bank for Social Policies and the outstanding loans arise during the interest rate support period.

The interest rate support period is from January 01, 2022 to December 31, 2023 or until the Vietnam Bank for Social Policies announces the end of interest rate support, whichever comes first. The supported interest rate for borrowers is 2%/year, calculated on the outstanding loans disbursed during the interest rate support period and their loan durations applicable to interest rate support.

This Decree takes effect on the signing date.

LEND UP TO VND 10 MILLION/STUDENT WITH DIFFICULT CIRCUMSTANCES
FOR PURCHASING COMPUTERS

On April 04, 2022, the Prime Minister promulgates the Decision No. 09/2022/QD-TTg regarding the credit applicable to pupils and students with difficult circumstances for purchase of computers and equipment in service of their online learning.

Borrowers include pupils at all education levels who are studying at education institutions of the national education system as specified; and pupils and students who are studying at universities (or equivalent), colleges, professional secondary schools and vocational education centers established and operating under Vietnamese law.

Pupils and students must meet the following conditions for loan borrowing: Be a member of a household in one of the following household categories: poor households, near-poverty households, and better-off households in accordance with the standards as prescribed, or households with difficult circumstances due to the COVID-19 pandemic (with the father or mother or parent who died of COVID-19

pandemic); and Do not have computers and equipment meeting online learning requirements and have not yet enjoyed the benefits of the policy of supporting in computers and equipment for online learning.

The loans for pupils and students shall be provided through households. Households of the pupils and students shall use their representatives’ names to borrow the loans and make transactions with the Vietnam Bank for Social Policies. A pupil or student being full 18 years old may directly apply for loans from the Vietnam Bank for Social Policies of the locality where he/she resides or where his/her school is located if he/she meets the conditions as specified.

The loans shall not exceed VND 10 million/pupil or student. The maximum loan term is 36 months. The loan interest rate shall be 1.2%/year.

This Decision takes effect from the signing date.

AGREE TO WITHDRAW THE TASK OF FORMULATING A DECREE ON “MAKE IN VIETNAM”

The Resolution No. 73/NQ-CP on withdrawing the task of formulating a decree on “Make in Vietnam” is issued on May 27, 2022 by the Government.

Accordingly, the Government agrees to approve the Ministry of Industry and Trade’s proposal in Report No. 713/TTr-BCT of February 16, 2022, on the withdrawal of the task of formulating a decree on “Make in Vietnam”. At the same time, the Ministry of Industry and Trade shall consider and decide to promulgate a circular on “Make in Vietnam” according to its assigned competence, functions and tasks,

ensuring the compliance with the Law on Promulgation of Legal Documents, Investment Law and relevant laws; take full responsibility before the Government and Prime Minister for its decision.

Besides, the Ministry of Justice shall examine legal documents and process illegal documents (if any) in accordance with the Law on Promulgation of Legal Documents and relevant documents.

This Resolution takes effect on the date of its signing.