Legal Document Updates in English (22/2021)

3 CASES OF CROSS-OWNERSHIP AMONGST COMPANIES IN A CORPORATE GROUP

The Decree No. 47/2021/ND-CP detailing a number of articles of the Law on Enterprises is promulgated by the Government on April 01, 2021.

According to the Decree, the contribution of capital to, or purchase of shares of another enterprise, or establishment of a new enterprise includes the following cases: Together contribute capital to establish a new enterprise; Together purchase contributed capital amounts, purchase shares of established enterprises; Together receive the transfer of shares or contributed capital amounts from members or shareholders of established enterprises.

The business registration agency shall refuse application dossier for change of members or shareholders of a company if, during the processing of the dossier, it

MEDICAL EQUIPMENT WITH AN IMPORT LICENSE SHALL BE ENTITLED TO 5% VAT RATE

On June 11, 2016, the Ministry of Finance issues the Circular No. 43/2021/TT-BTC amending and supplementing Clause 11, Article 10 of the Ministry of Finance’s Circular No. 219/2013/TT-BTC of December 31, 2013, guiding the implementation of the Law on Value-Added Tax and the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding a number of articles of the Law on Value-Added Tax (amended and supplemented by the Ministry of Finance’s Circular No. 26/2015/TT-BTC of February 27, 2015).

Accordingly, the VAT rate of 5% shall be applied to medical equipment and instruments, such as scanners and radiography machines of all kinds for medical examination and treatment; devices and instruments used exclusively in

ENTERPRISES INVESTING IN MANUFACTURING SUPPORTING INDUSTRY PRODUCTS
BEFORE 2015 SHALL BE ENTITLED TO EIT INCENTIVES

The Decree No. 57/2021/ND-CP supplementing Point g, Clause 2, Article 20 of the Decree No. 218/2013/ND-CP (amended and supplemented by the Decree No. 12/2015/ND-CP) regarding enterprise income tax (EIT) incentives for projects manufacturing supporting industry products is issued on June 04, 2021 by the Government.

Specifically, enterprises that have projects manufacturing supporting industry products before January 01, 2015 but have not yet enjoyed enterprise income tax incentives for the income generated from such projects, shall be entitled to enterprise income tax incentives under the conditions for projects manufacturing supporting industry products from the tax period during which they are granted the incentive certificate for manufacture of supporting industry products by a competent agency.

Besides, enterprises that have fully enjoyed enterprise income tax incentives for the income generated from such projects

SPECIAL PREFERENTIAL IMPORT TARIFF UNDER THE UKVFTA IN THE 2021-2022 PERIOD

The Decree No. 53/2021/ND-CP on the Preferential Export Tariff, the Special Preferential Import Tariff of Vietnam for implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland in the period of 2021-2022 is issued by the Government on May 21, 2021.

Specifically, goods exported from Vietnam eligible for the preferential export duty rates as specified in this Decree must fully satisfy the following conditions: Being imported to the United Kingdom of Great Britain and Northern Ireland; Having the transport documents (copies) indicate that the destination is the United Kingdom of Great Britain and Northern Ireland; Having the import customs declaration proving the import of the goods lot exported from Vietnam into the United Kingdom of Great Britain and Northern Ireland (copies and translated copies in English or Vietnamese in case the language used on the declaration other than English).

Besides, when carrying out customs procedures, the customs declarant shall fill in an export declaration, apply the

4 SUBJECTS OF PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT

On May 21, 2021, the Government issues the Decree No. 54/2021/ND-CP promulgating regulations on preliminary environmental impact assessment.

According to this Decree, subjects of preliminary environmental impact assessment shall include investment projects subject to the preparation of environmental impact assessment reports as prescribed. Such projects consist of: Public investment projects (except several cases); Investment projects in the form of public-private partnership; Investment projects subject to approval of investment policies in accordance with the law on investment; Investment projects for which investment registration certificates are required, except for cases of granting investment registration certificates at the request of investors.

BY 2030, 100% OF HOUSEHOLDS SHALL RECEIVE INFORMATION ON NATURAL DISASTERS

The Decision No. 553/QD-TTg approving the “Project for community awareness raising and community-based natural disaster risk management, with a vision toward 2030” is issued on April 06, 2021 by the Prime Minister.

Specifically, the Program strives to achieve the following goals by 2030: 100% of general training levels shall include natural disaster risk mitigation and prevention in some subjects for teaching; 100% of the people in communes prone to frequent typhoon, flashflood, landslide, flood, inundation drought and seawater intrusion and at least 50% of the people in other areas shall be disseminated natural disaster- related knowledge; Striving for 100% of households to receive sufficient information on natural disasters and disaster prevention and control directions, etc.

Besides, the Project includes 03 components as follows: Completing mechanisms, policies and documents guiding

EMPLOYEES IN PRODUCTION AND BUSINESS ESTABLISHMENTS
SHALL BE SCREENED FOR COVID-19

The Ministry of Health issues the Decision No. 2787/QD-BYT on the promulgation of “the guidance for pandemic prevention and control plans when COVID-19 cases are recorded at the production and business establishments or industrial parks” on June 05, 2021.

Accordingly, when no COVID-19 case is recorded, the production and business establishment must organize screening tests by rapid antigen testing or pooled RT-PCR testing of SARS-CoV-2, at least every 05-07 days for all employees providing close-contact services for employees at the production and business establishments and at least 20% of high-risk employees at the production and business establishment.

Where confirmed cases are recorded at 01 production and business establishment or industrial park, it is required to temporarily isolate the entire production and business establishment or industrial park, or each workshop/production line/production team/production area/working position where the confirmed cases

TO SUPPORT FOR REDUCTION IN ELECTRICITY PRICES AND BILLS DUE TO COVID-19

On June 02, 2021, the Government issues Resolution No. 55/NQ-CP on the plan on support for electricity customers through reduction (the third time) in electricity prices and electricity bills.

Accordingly, the Government agrees to the plan on support for electricity customers affected by the COVID-19 pandemic through reduction (the third time) in electricity prices and electricity bills as proposed by the Ministry of Industry and Trade in the Report No. 283/BC-BCT of May 27, 2021.