Legal Document Updates in English (24/2021)

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NUMBER

TITLE

 

In This Updates:

TAX – FEE – CHARGE

 

TAX – FEE – CHARGE

1

40/2021/TT-BTC

Circular No. 40/2021/TT-BTC dated June 01, 2021 of the Ministry of Finance providing guidelines on value added tax, personal income tax and tax administration for business households and individuals

 

To apply the tax rate of 7% to karaoke, massage, billiards, shampoo and laundry services from August 01

Page 2

LABOR - SALARY

 

LABOR - SALARY

2

23/2021/ND-CP

Decree No. 23/2021/ND-CP dated March 19, 2021 of the Government on elaborating Clause 3 Article 37 and Article 39 of the Law on Employment on employment service centers and employment service enterprises

 

Enterprise providing employment service must make a deposit of VND 300 million

Page 2

INVESTMENT

 

INVESTMENT

3

03/2021/TT-BKHDT

Circular No. 03/2021/TT-BKHDT dated April 09, 2021 of the Ministry of Planning and Investment prescribing the forms and reports related to investment activities in Vietnam, offshore investment and investment promotion activities

 

70 forms and reports related to investment activities in Vietnam

Page 2

FINANCE – BANKING

 

FINANCE – BANKING

4

58/2021/ND-CP

Decree No. 58/2021/ND-CP dated June 10, 2021 of the Government promulgating regulations on the provision of credit information services

 

Credit information company must have a minimum charter capital of VND 30 billion

Page 3

5

35/2021/TT-BTC

Circular No. 35/2021/TT-BTC dated May 19, 2021 of the Ministry of Finance prescribing the financial management mechanism for implementation of the National Program on supporting enterprises to improve productivity and quality of products and goods in the period of 2021-2030

 

Financial management mechanism for implementation of the Program supporting enterprises in 2021-2030 period

Page 3

POLICY

 

POLICY

6

16/CT-TTg

Directive No. 16/CT-TTg dated June 14, 2021 of the Prime Minister on ensuring sustainable employment and improving living standards and working conditions for workers

 

To provide guidance on mid-shift meals for workers in industrial parks

Page 3

ADMINISTRATIVE

 

ADMINISTRATIVE

7

942/QD-TTg

Decision No. 942/QD-TTg dated June 15, 2021 of the Government approving the e-Government development strategy towards the digital Government in the 2021 – 2025 period, with a vision to 2030

 

To strive to reduce least 20% of administrative procedures of state agencies by 2025

Page 4

 

SUMMARY:

 

Ü  TAX – FEE – CHARGE

TO APPLY THE TAX RATE OF 7% TO KARAOKE, MASSAGE, BILLIARDS,
SHAMPOO AND LAUNDRY SERVICES FROM AUGUST 01

The Ministry of Finance issues the Circular No. 40/2021/TT-BTC providing guidelines on value added tax, personal income tax and tax administration for business households and individuals on June 01, 2021.

Specifically, the value added tax (VAT) rate of 5% and personal income tax (PIT) rate of 2% shall be applied to services of sauna, massage, karaoke, discos, billiards, internet, games; tailoring and laundry services, services of hair cutting, styling and shampoo; other repair services such as repair of computers and household appliances; services of legal consulting, financial consulting, accounting, audit; services of implementation of administrative procedures related to tax and customs, etc.

Besides, leasing properties (including leasing houses, land, stores, factories, warehouses except for accommodation

 

service; leasing means of transport, machines and equipment without drivers; leasing other properties without service) shall be applied the tax rate of 10% at most (including the VAT rate of 5% and PIT rate of 5%)

In addition, business households and individuals with revenues from production and business activities in a calendar year of VND 100 million or less shall be exempted from paying VAT and not be required to pay PIT as prescribed by law provisions on VAT and PIT. Business households and individuals shall make accurate, truthful, and complete tax declarations and submitting tax dossiers on time.

The Circular takes effect from August 01, 2021.

Ü  LABOR - SALARY

ENTERPRISE PROVIDING EMPLOYMENT SERVICE MUST MAKE A DEPOSIT OF VND 300 MILLION

The Decree No. 23/2021/ND-CP on elaborating Clause 3 Article 37 and Article 39 of the Law on Employment on employment service centers and employment service enterprises is promulgated by the Government on March 19, 2021.

Accordingly, one of conditions for granting the employment service license is that the enterprise has made a deposit of VND 300,000,000. In addition, the enterprise must have a location for its headquarter or branch to organize employment service activities, which is owned by the enterprise or is rented stably by the enterprise under a contract of 03 years (36 months) or more. The legal representative of an enterprise providing employment service must satisfy the conditions such as: Being the enterprise manager as specified; Having university degree or

 

higher or directly worked as a professional worker or managed employment services or labor supply for 02 years or more, etc.

The maximum term of the employment service license is 60 months. The term of the re-grant license shall be equal to the remaining term of the previously granted license. The license can be extended many times. Application dossier for a license includes: The enterprise’s application for a license; 01 certified true copy from the original or a copy, presented with the original for comparison of the Certificate of ownership or the contract of renting place; The Certificate of deposit for employment service activities; etc.

This Decree takes effect on June 01, 2021.

Ü  INVESTMENT

70 FORMS AND REPORTS RELATED TO INVESTMENT ACTIVITIES IN VIETNAM

The Ministry of Planning and Investment issues the Circular No. 03/2021/TT-BKHDT prescribing the forms and reports related to investment activities in Vietnam, offshore investment and investment promotion activities on April 09, 2021.

In this Circular, the Ministry of Planning and Investment promulgates 70 forms and reports related to investment activities in Vietnam. To be specific: 28 forms applicable to the investors, 22 forms applicable to State management agencies in charge of investment, 04 periodical reports of economic organizations implementing investment projects and 16 periodical reports of State management agencies in charge of investment.

 

Forms related to investment activities in Vietnam that are applicable to investors consist of: Written request for investment project implementation; The investment project proposal (Projects subject to approval of investment policies formulated by competent state agencies; projects subject to approval of investment policies proposed by investors and projects not subject to approval of investment policies); Application for an Investment Registration Certificate; Application for capital contribution/share purchase/purchase of contributed capital by foreign investors; etc.

This Circular takes effect from the signing date.

Ü  FINANCE – BANKING

CREDIT INFORMATION COMPANY
MUST HAVE A MINIMUM CHARTER CAPITAL OF VND 30 BILLION

The Decree No. 58/2021/ND-CP promulgating regulations on the provision of credit information services is issued on June 10, 2021 by the Government.

Specifically, a credit information company shall be granted a certificate of eligibility for providing credit information services if satisfying the following conditions: Having a minimum charter capital of VND 30 billion; Having a business plan that ensures to perform no business lines other than the provision of credit information services; Having at least 15 participating organizations including credit institutions, foreign bank branches.

Concurrently, an information infrastructure system of the company must have at least 02 data transmission lines, each transmission line of 01 service provider; have a server system located in Vietnam, a computer software system and technical solutions capable of performing the provision of

 

credit information services for at least 5,000,000 borrowers; have a disaster contingency plan in order to ensure that the provision of credit information services is not interrupted for more than 04 working hours, etc.

Noticeably, within a maximum period of 12 months from the date on which the certificate is issued, the credit information company must start the provision of credit information services and send a written notification of the opening of operation to the State Bank within 05 working days from the date on which the credit information company starts its operation. The company that fails to start providing credit information services within 12 months from the date of granting the certificate shall have its certificate revoked.

This Decree takes effect on August 15, 2021.

FINANCIAL MANAGEMENT MECHANISM FOR IMPLEMENTATION
OF THE PROGRAM SUPPORTING ENTERPRISES IN 2021-2030 PERIOD

On May 19, 2021, the Ministry of Finance issues the Circular No. 35/2021/TT-BTC prescribing the financial management mechanism for implementation of the National Program on supporting enterprises to improve productivity and quality of products and goods in the period of 2021-2030.

Specifically, enterprises eligible to participate in the Program 1322 under instructions of the Ministry of Science and Technology shall be supported in applying the management systems, quality productivity improvement tools, boosting up the application of specific management systems, quality

 

productivity improvement tools of sectors or fields, newly announced standards on management systems; applying the products and goods traceability system, good agricultural practices (G.A.P), organic agricultural production, green productivity practices; applying standards, and supporting tools for smart production and smart services; supporting for applying information technology, digital technology to establish, optimize and modernize the corporate governance system; etc.

This Circular takes effect on July 05, 2021.

Ü  POLICY

TO PROVIDE GUIDANCE ON MID-SHIFT MEALS FOR WORKERS IN INDUSTRIAL PARKS

This direction is stipulated by the Prime Minister in the Directive No. 16/CT-TTg dated June 14, 2021 on ensuring sustainable employment and improving living standards and working conditions for workers.

Accordingly, the Prime Minister requests the Ministry of Health to focus on stepping up the implementation of the Prime Minister’s Decision No. 659/QD-TTg of May 20, 2020, promulgating the program on improvement of health care for workers and occupational disease prevention in the 2020 - 2030 period; provide guidance on mid-shift meals for workers in industrial parks and export processing zones; formulate regulations on minimum calories intake per meal and meal allowance for particular categories of workers; etc.

Besides, the State Bank of Vietnam shall direct credit institutions and the Vietnam Bank for Social Policies to continue implementing credit programs and policies for creating jobs for improving living standards of workers; focus

 

on guiding the implementation of support policies on provision of loans to employers for making severance pay for their employees, and rehabilitate their production heavily affected by the Covid-19 pandemic.

The Ministry of Labor, Invalids and Social Affairs shall grasp actual labor and employment crises due to the Covid-19 pandemic for synchronous supplementation, modification and improvement of mechanisms and policies on labor, employment, wages, social insurance, occupational safety and health; provide advices on reduction of normal working hours as suitable to the practical socio-economic development; expeditiously finalize and submit to competent authorities for enactment support policies for workers and enterprises to surmount impacts of the Covid-19 pandemic, etc.

Ü  ADMINISTRATIVE

TO STRIVE TO REDUCE LEAST 20% OF ADMINISTRATIVE PROCEDURES
OF STATE AGENCIES BY 2025

On June 15, 2021, the Government promulgates the Decision No. 942/QD-TTg approving the e-Government development strategy towards the digital Government in the 2021 – 2025 period, with a vision to 2030.

Accordingly, targets towards 2025 include: At least 80% of administrative procedure records are processed completely online and people are only required to declare data once; 100% of state agencies provide services 24/7 and are ready to provide online services at any time; 100% of officials have digital identities for work; At least 20% of administrative procedures of state agencies are reduced compared to the current number; Each citizen has a digital identity and QR code, striving so that all citizens have smartphones; etc.

 

Besides, the key tasks in the Strategy are as follows: Researching on and proposing amendments to the Law on E-Transactions and guiding documents; Developing and operating stable, safe and uninterrupted specialized network infrastructure that connects 04 administrative levels from the central to commune level based on specialized data transmission networks; Developing and completing the national public service portal so that people and enterprises can access online public services of ministries, sectors and localities; etc.

This Decision takes effect on the signing date.

 

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