Legal Document Updates in English (22/2011)

FROM JULY 01, 2011, NO APPEAL IS NEEDED
WHEN SUING ADMINISTRATIVE CASES
 

The XII^th National Assembly passed the Law on Administrative Procedures No. 64/2010/QH12 dated November 24, 2010; the Law includes 18 Chapters, 265 Articles with many new strong points compared to the Ordinance on settlement of Administrative Cases and takes effect on July 01, 2011.

Accordingly, the Law allows individuals, agencies and organizations to institute administrative lawsuits over administrative decisions or acts or disciplinary decisions on dismissal in case they disagree with these decisions or acts or they have filed complaints with persons competent to settle complaints but their complaints remain unsettled upon the expiration of the time limit for complaint settlement specified by the law on complaints or they disagree with the settlement of their complaints about these decisions or acts.

After procedure participants make statements during argument and replies, procurators shall make statements on compliance with the procedure law throughout the course of settlement of the case by judges and the trial panel, law observance by administrative procedure participants from the acceptance of the case to the time of deliberation by the trial panel.

This Law takes effect on July 1, 2011. The May 21, 1996 Ordinance on Procedures for Settlement of Administrative Cases, Ordinance No. 10/1998/PL-UBTVQH10, and Ordinance No. 29/2006/PL-UBTVQH11 Amending and Supplementing a Number of Articles of the Ordinance on Procedures for Settlement of Administrative Cases cease to be effective on the effective date of this Law.

FROM AUGUST 15, THE MINISTRY OF INDUSTRY AND TRADE
WILL HAVE MORE THE CHEMICAL DEPARTMENT
 

On June 14, 2011, the Government issued the Decree No. 44/2011/ND-CP amending, supplementing Article 3 of the Decree No. 189/2007/ND-CP dated December 07, 2007 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade.

Accordingly, the Industry and Trade Ministry’s structure will have more the Chemical Department beside 30 Departments assist the Minister in performing the state management, 06 state non-business units under the Ministry, besides, the previous Energy Department is changed to the General Department of Energy.

The Decree also regulates that the Minister of Industry and Trade shall submit to the Prime Minister for promulgation regulations on the functions, tasks, powers and organizational structures of the Electricity Regulation Department, the Competition Administration Department and the Market Management Department; the establishment of Commercial Service Bureaus in countries and territories; and issue a list of other non-business organizations under the Ministry.

TAX DECLARATION DOSSIERS MUST BE SUBMITTED
IF NO TAX OBLIGATION ARISES
 

The Ministry of Finance issued the Circular No. 28/2011/TT-BTC dated February 28, 2011 guiding a number of articles of the Law on Tax Administration and the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, and Decree No. 106/2010/ND-CP of October 28, 2010.

Contents of tax administration include Tax declaration, tax calculation; Tax assessment; Tax payment; Authorized tax collection; Responsibility to fulfill tax obligations; Procedures for tax exemption or reduction; remission of tax and fine arrears; Procedures for tax refund or clearing; Tax examination and inspection; Settlement of complaints, denunciations and legal actions related to the implementation of tax laws.

 For taxes to be declared on a monthly or quarterly basis, the first tax period is counted from the date of commencement of activities that give rise to the tax obligation to the last day of the month or quarter, and the last tax period is counted from the first day of a month or quarter to the date of termination of  activities that

give rise to the tax obligation. The annual tax period for enterprise income tax or royalty is counted according to the calendar year or the fiscal year applied by taxpayers. The annual tax period for other taxes is the calendar year.

As according to this Circular, tax agencies shall directly examine dossiers and issue decisions on tax exemption or reduction in the following cases: Tax exemption or reduction for business households or individuals that pay tax according to the presumption method and suspend business operations; PIT exemption or reduction for taxpayers facing difficulties caused by natural disasters, fires, accidents or dangerous diseases; Exemption from or reduction of excise tax, land rent, water surface rent, housing and land tax or agricultural land use tax for taxpayers facing difficulties caused by natural disasters, fires or accidents, thus suffering losses and unable to pay tax.

FROM APRIL 13, INCREASING THE MAXIMUM INTEREST RATE
APPLICABLE TO US$ CAPITAL MOBILIZATION
 

On April 29, 2011. the State Bank of Vietnam issued the Circular No. 09/2011/TT-NHNN providing for the maximum interest rate applicable to us$ capital mobilization from organizations, individuals at credit institutions.

Credit Institutions determines the maximum interest rate applicable to USD capital mobilization from resident organizations, individuals and non-resident organizations, individuals in the form of demand deposits, term deposits, savings deposits, issuance of deposit certificates, promissory notes, bills, bonds and other forms of deposit.

Within that, resident organizations, non-resident organizations (credit institutions excluded  fix  maximum interest rate applicable to USD capital mobilization to be of 1.0% per annum and individuals: to be of 3.0% per annum (Instead of the previous regulation only allow USD deposit with the maximum interest rate of 1.0% per annum without any differentiation among organizations or individuals).

The maximum interest rate applicable to capital mobilization as stipulated in this Article shall include expenses for promotion in any form and be applied to the

of term- end interest payment/ interest payment on maturity; for other methods of interest payment, it shall be converted into the method of interest payment on maturity equivalent to the maximum interest rate applicable to capital mobilization.

The State Bank of Vietnam also requires credit institutions to publically post interest rates applicable to USD capital mobilization at locations of capital mobilization (Head office, transaction departments, branches, transaction offices, savings funds) in accordance with provisions of the State Bank of Vietnam. It is strictly prohibited for credit institutions to carry out the promotion for capital mobilization in the form of cash, interest rate and other forms not in accordance with provisions of applicable laws and the provisions in this Circular.

REFINANCING INTEREST RATE INCREASES TO 14%
 

On April 29, 2011 , the Governor of the State Bank of Vietnam issued the Decision No.929/QD-NHNN on refinancing interest rate, rediscount interest rate, interest rate applicable to overnight loan in the inter-bank electronic payment and applicable to the loan for making up capital deficiency in clearing payment of State Bank of Vietnam for banks.

Accordingly, re-financing interest rate to be of 14.0%/annum; rediscount interest rate to be of 13.0%/annum;

interest rate applicable to overnight loan in the inter-bank electronic payment and applicable to the loan for making up capital deficiency in clearing payment of State Bank of Vietnam for banks to be of 14.0% per annum; so all the interest rate levels increase 1% compared to the previous regulation.