Legal Document Updates in English (22/2022)

GUIDELINES FOR INVOICING FOR VAT REDUCTION

The Decree No. 41/2022/ND-CP amending and supplementing a number of articles of the Government's Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents and the Government's Decree No. 15/2022/ND-CP dated January 28, 2022, providing tax exemption and reduction policies under the National Assembly’s Resolution No. 43/2022/QH15, on fiscal and monetary policies in support of the socio-economic recovery and development program is issued on June 20, 2022 by the Government.

Accordingly, business establishments calculating VAT by the credit method that are entitled to the VAT rate of 8% for the prescribed goods and services shall, when providing services subject to different tax rates, write the tax rate applicable to each good or service in the VAT invoice in accordance with regulations.

Business establishments (including also business households and individuals) calculating VAT based on percentage of their turnover entitled to a 20%-reduction of the percentage used to calculate VAT that issue invoices for goods and services eligible for VAT reduction shall, when selling goods or providing services, write the reduced amount in the sale invoice in accordance with regulations.

According to current regulations, business establishments must make a separate invoice for the goods or services eligible for VAT reduction. In case of failure to do so, they shall not be entitled to VAT reduction for such goods or services.

This Decree takes effect on the date of its signing.

DEPOSITS ELIGIBLE FOR PREMATURE WITHDRAWAL AT CREDIT INSTITUTIONS

On June 16, 2022, the State Bank of Vietnam promulgates the Circular No. 04/2022/TT-NHNN providing for the application of interest rates upon premature withdrawal of deposits from credit institutions and foreign bank branches.

Specifically, deposits eligible for premature withdrawal include: time saving deposits; time deposits; certificates of deposit, promissory notes, treasury bills and bonds issued by the credit institutions; other forms of receiving time deposits in accordance with the Law on Credit Institutions. In case where customers prematurely withdraw the entire deposits, credit institutions shall apply the maximum interest rate equal to their lowest interest rate applicable to demand deposits of

customers and/or in the type of currency deposited at the time of premature withdrawal.

Besides, the Circular also provides regulations in case where customers prematurely withdraw a part of deposits. To be specific: for the deposits withdrawn before the date of maturity, credit institutions shall apply the maximum interest rate equal to their lowest interest rate applicable to demand deposits of customers and/or in the type of currency deposited at the time of premature withdrawal; for the remaining deposits, credit institutions shall apply the available interest rate applicable to the deposits that customers partially withdraw.

This Circular takes effect from August 01, 2022.

CASES WHERE ORIGIN DECLARATIONS ARE NOT HONORED

According to the Ministry of Industry and Trade’s Circular No. 10/2022/TT-BCT dated June 01, 2022, amending and supplementing Circulars on the implementation of the Rules of Origin under the ASEAN Trade in Goods Agreement, there are 3 cases where origin declarations are not honored by the importing member states.

To be specific: The exporters are not included in the ASEAN-wide Self-Certification database; The persons signing in the goods origin declarations are not included in the ASEAN-wide Self-Certification database; Products are not included

in the listed of goods updated in the ASEAN-wide Self-Certification database.

For the purposes of determining the goods origin, the C/O-issuing organization or competent agency shall have the right to request traders for supporting documentary evidence or to carry out check(s) in case of necessity. Member states are encouraged to allow traders to submit electronic supporting documents, if available, to carry out check(s) related to the proof of origin in accordance with the regulations of the member states.

This Circular takes effect on July 16, 2022.

FROM JULY 20, PROVIDE UP TO USD 25,000/PERSON/YEAR OF TUITION FEES
FOR LECTURERS SENT ABROAD FOR DOCTORAL TRAINING

On June 03, 2022, the Ministry of Finance issues the Circular No. 30/2022/TT-BTC on guiding the financial mechanism for implementation of the Scheme on improving the capacity of lecturers and administrators of higher education institutions to meet the requirements of fundamental and comprehensive renovation of education and training in the 2019 - 2030 period.

Specifically, support contents for full-time overseas doctoral and master training include:

Firstly, for tuition fees and related fees, the payment shall be made according to a contract signed between the Ministry of Education and Training and a foreign training institution or according to the rate announced by the foreign training institution. The payment shall not exceed USD 25,000/learner/academic year. If the tuition fees are more than USD 25,000/learner/academic year, the difference shall be paid by learners or paid by the higher education institution sending lecturers to study.

Secondly, for expenses for passports and visas, the payment of expense for passports shall be in accordance with the State’s regulations; the payment of expense for visas shall

be according to the visa fee invoices of the countries to which the learners are sent for training.

Thirdly, the cost of living shall be provided quarterly or every 6 months, ensuring the learners’ study and research. It shall be provided according to the actual overseas study duration, from the date of admission to the date of completion of the course.

Fourthly, for compulsory health insurance, the paid compulsory health insurance level shall be the one specified in the foreign country and be provided in USD or in the currency of the foreign country; but not exceed USD 1,000/person/year.

Additionally, learners shall be provided with the airfare for one ticket from Vietnam to the place of study and one ticket from the place of study to Vietnam for the entire training period; one-time support of travel expenses equal to USD 100/person for the entire training period; and other expenses arising during the training.

This Circular takes effect on July 20, 2022.

FROM AUGUST 15, DA NANG PEOPLE’S COMMITTEE MAY NOT APPROVE
AN ADJUSTMENT OF UP TO 10% OF AN INDUSTRIAL PARK AREA

This content is prescribed in the Decree No. 40/2022/ND-CP dated June 20, 2022 of the Government on amending and supplementing a number of articles of the Government’s Decree No. 144/2016/ND-CP dated November 01, 2016 providing a number of special investment, finance, budget and management decentralization mechanisms applicable to Da Nang City.

Accordingly, the City People’s Council may consider and decide the investment in industrial clusters in Da Nang City from the City’s budget in the event that investors in technical infrastructure for the industrial clusters cannot be selected under current regulations. Public non-business organizations that are assigned to act as project owners of construction and business of industrial clusters’ technical infrastructure may lease land from the State for project implementation, or

sublease the land after completing the investment in industrial clusters’ infrastructure.

The People’s Committee of Da Nang City is assigned to prescribe the financial mechanism, competence to determine and decide on rental prices and lessees for public non-business units assigned to act as project owners of construction and business of industrial clusters’ technical infrastructure.

Remarkably, the regulation “the City People’s Committee may approve an increase or a decrease by up to 10% of the area of an industrial park or a hi-tech park which must not exceed 30 hectares compared to the planned area initially approved” is repealed.

This Decree takes effect on August 15, 2022.

2023 OVERSIGHT PROGRAM OF THE NATIONAL ASSEMBLY

On June 06, 2022, the National Assembly promulgates the Resolution No. 47/2022/QH15 on the 2023 oversight program of the National Assembly.

According to this Resolution, contents of the oversight program at the 5^th session shall be as follows: examining the Government’s reports on additional evaluation of results of the implementation of the 2022 socio-economic development and state budget plans; examining the National Assembly Standing Committee’s report on results of the oversight of the settlement of voters’ recommendations sent to the 4^th session; examining the topical oversight report on “the mobilization, management and use of resources for the COVID-19 pandemic prevention and control,

CONDITIONS FOR SHIFTING INDUSTRIAL PARKS TO DEVELOP URBAN-SERVICE ZONES

The Government promulgates the Decree No. 35/2022/ND-CP on prescribing the management of industrial parks and economic zones on May 28, 2022.

Accordingly, an industrial park may be shifted to develop urban-service zones if meeting the following conditions: the shift conforms to provincial and urban master plans in the provinces, centrally-run cities; industrial parks located in the inner cities of special-grade or grade-I centrally-run cities, and grade-I provincial cities.

Additionally, other conditions shall be: the operating term from the date the industrial park is established to the time of consideration for shifting is at least 15 years or one-half (1/2) of the operating term of the industrial park; having the consent of investors implementing investment projects on construction and commercial operation of infrastructure

facilities of industrial parks and over two-thirds (2/3) of enterprises in industrial parks in the areas expected to be shifted (except for several cases); and having economic, social and environmental efficiency.

Besides, an economic zone shall be expanded if it meets the following requirements: requirements for establishment of economic zones; having fully invested in the entire economic zone infrastructure system according to the general construction plan of the economic zone approved by competent authorities; and at least 70% of the land area of functional areas in the economic zone has been allocated or leased for investment project implementation.

This Decree takes effect on July 15, 2022.