Legal Document Updates in English (24/2021)

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

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

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.

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

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

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

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.