Legal Document Updates in English (20/2013)

EXEMPT VAT TAX FOR LOAN’S INTEREST RATE
 

This is one of focused content in the Circular No. 65/2013/TT-BTC dated May 17, 2013 of the Ministry of Finance amending and supplementing the Circular No. 06/2012/TT-BTC dated January 11, 2012 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Value-Added Tax and the Government’s Decrees No. 123/2008/ND-CP of December 8, 2008, and No. 121/2011/ND-CP of December 27, 2011.

Accordingly, in order to remove difficulties for enterprises, the Ministry of Finance regulates some more businesses and services without being liable to VAT tax or applying the tax rate of 0%.

In particular, Credit provision services of organizations are not liable to VAT (previously, credit extension services provided by credit institutions not liable to VAT), Revenues from compensation, bonus, subsidy, amounts from transfer of emission rights and other financial revenues are not

LABOR LEASING ENTERPRISE’S LEGAL CAPITAL IS VND 2 BILLION
 

This is an important content of the Decree No.  55/2013/ND-CP dated May 22, 2013 of the Government the labor leasing enterprises, payment of deposits and list of job entitled in labor lease’s implementation.

Accordingly, enterprises shall be licensed for the labor leasing operations when they have full the following conditions: having conducted payment of deposit of VND 2 billion; the leasing enterprises must maintain the charter capital not lower than the legal capital during their operation; the locations of head offices, branches and representative offices of the leasing enterprises must be stable for at least 02 years; heads of the leasing enterprises must have full civil act capacity, clear biography, working experiences in the field of labor lease of from 03 years or more and during three consecutive years before requesting for license of the labor leasing operation, they were not heads of the enterprises whose business registration certificates were withdrawn or they did not commit again acts of forging dossiers applying for grant, re-grant of Enterprise registration certificate, dossiers applying for grant, re-grant or extension of license for the labor leasing operation.

TRADE UNION REPRESENTS AND PROTECTS THE LAWFUL RIGHTS
AND INTERESTS OF EMPLOYEES
 

This content is presented at the Decree No. 43/2013/ND-CP dated May 10, 2013 of the Government on the implementation of the Article 10 of the Law on Trade Union.

Beside the rights and obligations of the union to provide employees with guidance and advices on their rights and responsibilities when concluding labor contracts with employers; to negotiate, sign, and supervise the implementation of collective labor agreements on behalf of the whole staff; to cooperate with the employer establishing and supervising the  implementation of the wage scale, the payroll, the labor norms, the regulations on wage payment, bonus, and labor regulations; to discuss with the employer about the resolution of issues relating to rights and obligations of employees; to provide legal advices for employees and to cooperate with organizations and individuals competent to resolve labor disputes, the trade union shall also be responsible for requesting competent

PUT OFF DEBT CLASSIFICATION TO 01 YEAR
 

This decision approved by the State Bank of Vietnam at the Circular No. 12/2013/TT-NHNN dated May 27, 2013 amending some articles of the Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the State Bank of Vietnam providing the classification of assets, risk provisioning levels and methods and use of provisions for handling risks in operations of credit institutions and foreign bank branches.

Accordingly, the State Bank of Vietnam decides the implementation time for the  Circular No. 02/2013/TT-NHNN to June 01, 2014 (from 01 year compared with previous regulation). Previously, the Circular No. 02/2013/TT-NHNN regulates that  a credit institution or foreign bank branch

INTEREST RATE FOR HOUSING ASSISTANCE’S LOANS IS 6% PER ANNUM
 

On May 15, 2013, the State Bank of Vietnam issues the Circular No.  11/2013/TT-NHNN guiding some provisions on housing assistance’s loans in accordance with the Resolution No. 02/NQ-CP dated January 07, 2013 of the Government.

At this Circular, the State Bank of Vietnam requires that The State-owned commercial banks, the join stock commercial banks (Vietnam Agriculture and Rural Development Bank; Joint Stock Commercial Bank for Investment and Development of Vietnam; Joint Stock Commercial Bank for Industry and Trade of Vietnam; Joint Stock Commercial Bank for Foreign Trade of Vietnam; Joint Stock Commercial Bank for Housing Development in Cuu Long River Delta) of which the State holds more than 50% of charter capital  shall use a quantity of fund at least 3% of total loan debt balance at the end time of last year for provision of loans to subjects conducting the purchase, hiring, purchase-hiring of social houses and the hiring, purchase of commercial houses with areas of less than 70m2, at sale price of less than 15,000,000 VND/m2 specified in the Circular No. 07/2013/TT-BXD, dated May 15, 2013 of the Ministry of Construction guiding on the determination of subjects entitled to borrow loans for housing assistance according to the Government’s Resolution No. 02/NQ-CP dated January 07, 2013 and documents revising, replacing the Circular No. 07/2013/TT-BXD.

HOUSING ASSISTANCE’S LOANS FOR CADRES, CIVIL SERVANTS WITH LOW INCOME
 

This is an important content of the Circular No.  07/2013/TT-BXD dated May 15, 2013 of the Ministry of Construction defining the subject entitled to borrow loans for housing assistance in accordance with the Resolution No. 02/NQ-CP dated January 07, 2013 of the Government.

At this Circular, the Ministry of Construction regulates the subjects for applying Housing assistance’s loans: Cadres, civil servants, public employees, armed forces and persons with low income wish to borrow loans for hiring or purchase of commercial houses with area of less than 70 m2, at sale price of less than 15 million VND/ m2­­­­; enterprises being investors of projects on social house construction; enterprises being investors of projects on commercial houses converted the use purpose into projects on social houses;

within that, subjects entitled to borrow loans for hiring, purchase-hiring and purchase of social houses and

MUST REGISTER TO THE MINISTRY OF INDUSTRY AND TRADE
FOR E-COMMERCE WEBSITE
 

This is the Government’s requirement at the Decree No.  52/2013/ND-CP dated May 16, 2013 on e-commerce.

This Decree regulates two forms of E-commerce such as the sales e-commerce website and website providing e-commerce services (including E-commerce trading floor; online auction website; online promotion website; other types of website stipulated by the Ministry of Industry and Trade). The traders, organizations or individuals setting up their sales E-commerce websites must inform the Ministry of Industry and Trade through the online announcement tool on the Management Portal of E-commerce activities. The traders or organizations conducting online registration with the Ministry of Industry and Trade on the set-up of E-commerce service provision websites after these websites have been completed with all structure, features and information under the service provision Plan, and operated at the domain name address registered and before these websites officially provide the users with services.

MUST PUBLIC ADMINISTRATIVE PROCEDURE AT LEAST 20 WORKING DAYS
BEFORE TAKING EFFECT
 

This is the new regulations of the Government at the Decree No.  48/2013/ND-CP dated May 14, 2013 amending and supplementing some Articles of the Decrees relating to the administrative procedure’s controls.

Instead, Decisions on announcement of administrative procedures of agencies must be issued at least 20 (twenty) working days before the legal documents containing regulation of the administrative procedures take effect. Decisions on announcement of administrative procedures of agencies must be issued at least 05 (five) working days before the legal documents containing regulation of the administrative procedures take effect.