Legal Document Updates in English (25/2020)

TO REDUCE 50% OF THE REGISTRATION FEE FOR
DOMESTICALLY MANUFACTURED AND ASSEMBLED CARS IN 2020
 

On June 28, 2020, the Government promulgates the Decree No. 70/2020/ND-CP on providing the registration fee rates for domestically manufactured and assembled automobiles until the end of December 31, 2020.

To be specific: From the effective date of this Decree (June 28, 2020), the registration fee rates to be remitted shall be equal 50% of the registration fee rate specified in the Decree No. 20/2019/ND-CP and current Resolutions of the People’s Councils of provinces and centrally run cities or

TO DEDUCT 10% MORE OF THE TOTAL LOAN INTEREST COST
 IN ENTERPRISE INCOME TAX DETERMINATION
 

On June 24, 2020, the Government issues the Decree No. 68/2020/ND-CP on amending and supplementing Clause 3 Article 8 of the Decree No. 20/2017/ND-CP dated February 24, 2017 of the Government on prescribing tax administration of enterprises having transactions with related parties.

Accordingly, the total loan interest cost (after deducted the interest of deposit and loan amount) arising in a period eligible to be deducted up on determine that income subject to enterprise income tax of enterprises not exceed 30% of total net profit generated from business activities plus loan interest cost (after deducted the interest of deposit and loan amount) and plus the depreciation cost arising in that

period. As regulated before, the maximum amount can be deducted was 20%, so that enterprises may be deducted 10% more when determine the enterprise income tax.

For non-deductible loan interest cost according to the above provisions, it may be carried forward to the next tax period, if the total deductible loan interest cost of the subsequent tax period is lower than the prescribed level. Time for transfer of the loan interest cost shall not exceed 05 consecutive years from the following year of the year which the ineligible to be deducted loan interest cost arising.

This Decree takes effect on the signing date and shall be applied from the tax period of 2019.

TO REDUCE 50% OF THE FEE
FOR ISSUANCE OF CITIZEN IDENTIFICATION CARD IN 2020
 

On June 22, 2020, the Ministry of Finance issues the Circular No. 61/2020/TT-BTC on prescribing the rate, remittance of appraisal charges for fire-fighting equipment; charges for appraisal and approval of fire prevention and fighting designs and fees for issuance of citizen identification cards.

To be specific: An organization or an individual that submits a dossier of request the competent agency for appraising fire-fighting equipment shall only pay 50% of the charge rates specified in Section I, Section II, Point 2, Section VI, Section VII, Section VIII, Section IX, Part A and Part B of the charge Tariff for appraising fire-fighting equipment attached to the Circular No. 227/2016/TT-BTC dated November 11, 2016

Besides, an organization or an individual that is granted a written appraisal and approval of fire prevention and fighting

design by the competent State agency shall only pay 50% of the charge rates specified in Article 5 of the Circular No. 258/2016/TT-BTC dated November 11, 2016.

Noticeably, all Vietnamese citizens of 14 year-olds or more carrying out procedures for change, re-issuance of citizen identification card, and change from identity card with 09-digits or 12-digits to citizen identification card shall be reduced 50% of the fee rates specified in Article 4 of the Circular No. 59/2019/TT-BTC dated August 30, 2019. From January 01, 2021, the fees for issuance of citizen identification cards specified in Article 4 of the Circular No. 59/2019/TT-BTC shall continue to be applied.

This Circular takes effect from June 22, 2020 to the end of December 31, 2020.

TO REPEAL 03 FORMS IN THE REQUESTING DOSSIER
FOR GRANT OF THE LICENSE FOR PRODUCING OF CHEMICAL
 

On June 18, 2020, the Ministry of Industry and Trade issues the Circular No. 13/2020/TT-BCT on amending, supplementing and repealing some regulations on business conditions under the management of the Ministry of Industry and Trade.

Accordingly, the trader which exports minerals in a quarter shall make a report and submit it to the Industry Agency instead of the Heavy Industry Agency as prescribed in Clause 5 of Article 1 of the Circular No. 12/2016/TT-BCT. The provincial People's Committee where the mineral exporting trader shall make general biannual and annual reports and send them to the Ministry of Industry and Trade (the Industry Agency) on July 31 and January 31 every year at the latest.

In addition, to repeal a number of documents in the requesting dossier for grant of the License for producing of chemicals and DOC, DOC-PSF chemicals as follow: Commitment document on producing chemical or DOC, DOC-PSF chemicals; A copy of the decision approving the environmental impact assessment report or the certificate of registration of environmental protection commitment, granted by a competent agency; A copy of the fire prevention and fighting appraisal and approval certificate or a copy of the decision on fire safety plan approval issued by a competent agency.

This Decree takes effect on August 03, 2020.

TO EXEMPT FROM DOCUMENT DEMONSTRATING
THE GOODS ORIGIN FOR LUGGAGE UNDER 200 USD
 

This is a new content prescribed by the Ministry of Industry and Trade in the Circular No. 11/2020/TT-BCT dated June 15, 2020 on providing the rules of origin under the European Union - Vietnam Free Trade Agreement.

Specifically, goods sent in small packages from individuals to individuals or personal belongings of travelers shall be considered to be originating goods without requiring document demonstrating the goods origin, with provided that such goods not be imported in commercial method.

Besides, irregular import lots of goods that only include products for personal use of consignees or traveler or their families shall not be considered as commercial imports.

Attentively, the exemption of document demonstrating the goods origin shall only be applied if the total value of goods does not exceed:

Firstly, 500 EUR for small parcels or 1,200 EUR for goods that be part of the personal luggage of a traveler entry into the Europe Union.

Secondly, 200 USD in the case of small parcels and goods be a part of the personal luggage of a traveler entry into Vietnam.

This Circular takes effect on August 01, 2020.

TO IMPLEMENT IRREGULAR INSPECTION
IF PHARMACY FAIL TO SUBMIT APPLICATION FOR PERIODIC INSPECTION
 

On June 22, 2020, the Ministry of Health issues the Circular No. 12/2020/TT-BYT on amending and supplementing a number of articles of the Circular No. 02/2018/TT-BYT dated May 04, 2018 of the Minister of health on good pharmacy practices.

According to the new regulation, within 45 days from the receipt of the Provincial Department of Health’s written request for explanation about its failure to submit the application for periodic inspection, if the pharmacy still fails to submit such application of periodic inspection as prescribed, the Provincial Department of Health shall implement irregular inspection on GPP compliance of the pharmacy.

In addition, if the specialized manager of the pharmacy absence for longer than 180 days, the pharmacy must conduct the procedure on application for newly granted of Certificate of eligibility for pharmacy business (the Certificate of eligibility for pharmacy practice of the new manager shall not require for submission as before).

Besides, if a pharmacy fails to submit the application for periodic inspection, within the time limit of 15 days from the due date of periodic inspection submission, it is required to provide a written explanation as requested in writing by the Provincial Department of Health.

AN INTERNATIONAL STUDENT IS PROVIDED
SUBSISTENCE ALLOWANCE OF UP TO 4.8 MILLION/MONTH
 

This is new content prescribed by the Minister of Finance in the Circular No. 55/2020/TT-BTC dated June 12, 2020 on guiding the management of the training expenses for international students under agreements on studying in Vietnam.

Accordingly, the content of training expenses for international students includes regular expenses for teaching and learning, one-time expenses for the whole course (includes financial support for equipment used for teaching, sightseeing expenses, expenses for admission procedures…) and the others as health insurance for international students during their actual study in Vietnam, expenses for general medical examination at the beginning of the course….

Specifically, spending norm of teaching Vietnamese to international student to attend graduate, postgraduate
 

admission exams is VND 2.576 million/student/month; the one of training courses to improve professional knowledge with training period of less than 12 months is VND 5.485 million/student/month.

Besides, the Ministry of Finance promulgates spending norms of initial equipment: VND 4.480 million/student/month for graduate international students, postgraduate international students and international students who study Vietnamese to attend graduate or postgraduate admission exam; VND 3.580 million/student/month for international students of training courses to improve professional knowledge for less than 12 months and an extra VND 55,000/person/month of military equipment support for international students of national defense, security.

This Circular takes effect on July 30, 2020.