Legal Document Updates in English (25/2016)

TO REDUCE PIT OF INDIVIDUALS WORKING IN
THE INFORMATION TECHNOLOGY INDUSTRY BY 50%
 

This is one of the most important solutions on tax incentives for developing and applying information technology in Vietnam issued with the Resolution No. 41/NQ-CP dated May 26, 2016 of the Government.

In particular, beside the policy that personal income tax on salary-based and wage-based incomes of individuals working in hi-tech sections of the information technology industry is reduced by 50%. Such individuals are of high caliber and possess qualifications required for research, development and application of advanced technologies and services, for administration of high-tech activities, for operation of equipment and production lines manufacturing hi-tech goods in the industry of information technology, and for management of information system security. The Government also supplement that leveraged earnings for enterprises from the following types of projects: Production of digital contents, software servicing, manufacture of major information technology products, rectification of information safety issues, information safety security; such fields are granted with corporate income tax incentives similar to that

.

SALARIES FOR EMPLOYEES BY JOINT-STOCK COMPANIES
WITH STATE CONTROLLING STAKES
 

In accordance with the Decree No. 53/2016/ND-CP dated June 13, 2016 of the Government regulating on management of employees, salaries, remunerations and bonuses by joint-stock companies with State controlling stakes. Employee salaries are according to payroll budget and the reality, every company shall determine the piece rate for production/business operation and salary advance. The realized payroll is determined according to the payroll budget and the fulfillment of business/production targets.

The realized payroll for full-time managers is determined according to the payroll budget and other criteria, and the fulfillment of profit targets. If the actual profit overshoots the profit target, the full-time manager salary shall be added 2% for every 1% profit growth rate but not exceeding 20% of the budgeted average pay rate. The salary budget of part-time managers is determined according to the number of such managers and their actual working time; and their

PROVIDING FOR SALARY PAYMENT TO MANAGERS IN STATE COMPANIES
 

On June 13, 2016, the Decree No. 52/2016/ND-CP issued by the Government providing for salary, remuneration and bonus payment to managers of single-member limited liability companies of which charter capital is wholly owned by the State.

Accordingly, for economic corporation, the pay factors of full-time President of the Board of Members or full-time company President is 8.80 – 9.10; Director General or Director is 8.50 – 8.80, Head of the Control Board is 8.10 – 8.40, Full-time member of the Board of Members, full-time comptroller, Vice Director General or Vice Director is 7.90 – 8.20, Chief Accountant is 7.60 – 7.90…For  specially-ranked incorporation, the pay factor of full-time President of the Board of Members or full-time company President is 8.20 – 8.50, Director General or Director is 7.85 – 8.20, Head of the Control Board is 7.53 – 7.83, Full-time member of the Board of Members, full-time comptroller, Vice Director General or Vice Director is 7.33 – 7.66, Chief Accountant is 7.00 – 7.33….

MANAGEMENT OF EMPLOYEES IN
STATE-OWNED ONE-MEMBER LIMITED LIABILITY COMPANY
 

Takes effect on August 01, 2016, Decree No. 51/2016/ND-CP of the Government on management of employees, salaries, bonuses of employees in single-member limited liability companies of which charter capital is wholly owned by the State, includes: Parent companies of State-owned economic corporations or State-owned general companies or parent companies belonging to the group of parent-subsidiary companies; Independent single-member limited companies wholly owned by the State.

In accordance with this Decree, single-member limited liability companies of which charter capital is wholly owned by the State shall prepare an annual employment plan as the basis for recruitment and allocation of employees; in normal operational conditions, the average number of employees in the annual employment plan shall not exceed 5% of the actual employees of the immediately preceding year.

FOOD SAFETY SUPERVISION WITH MEAT, VEGETABLES, FRUITS SOLD AT MARKET
 

On June 01, 2016, the Ministry of Agriculture and Rural development issued Circular No. 08/2016/TT-BNNPTNT on food safety supervision of agro-aqua-forestry products including: Cereals; Meat, products made of meat; Fisheries and fishery products; Vegetables, fruits and their products; Eggs and egg products; Honey; Salt; Spices; Sugar; Tea; Coffee… sold at wholesale markets, agro-aqua-forestry markets and bulk purchasing and distributing facilities and other facilities trading agro-qua-forestry products.

Within that, products and criteria of food safety supervision shall be determined according to consumers’ reflection, warning of food safety authorities or competent authorities of importing countries; according to previous food safety inspection or supervision; requirement of the Ministry of Agriculture and Rural development and Departments of