Legal Document Updates in English (26/2012)

EXEMPT PERSONAL INCOME TAX  FOR INCOME UNDER VND 5 MILLION
 

This Resolution 29/2012/QH13 introducing a number of tax policies in order to resolve difficulties for organizations and individuals is approved by the 08th National Assembly of the Socialist Republic of Vietnam in the 3rd session on June 21, 2012.

Within that the personal income tax is exempted from July 1^st until the end of December 31^st 2012 for individuals earning taxable incomes from salaries, wages and business to VND 5 million.
Besides, reducing 30% of the enterprise income tax amount payable in 2012 for

medium and small enterprises; intensive-labor enterprises that produce, process and treat: agricultural products, forestry products, aquacultures product, textile and garment, leather and footwear, electronic components; building socio-economic infrastructural constructions and the presumptive tax (value-added tax, personal income tax) and enterprise income tax in 2012 is exempted for households and individuals providing hostel services for laborers, workers, students; households and individuals providing nursery services and so on.

This Resolution takes effect as from its approval.

MUST PAY TRADE UNION FUND EQUAL TO 2% SALARY FUNDS

This is one of the contents under Law on Trade Unions No. 12/2012/QH13 promulgated by The National Assembly on June 20, 2012.

Recognizing the problems with regulating 2 different kinds of fee for Trade Union funds under many documents, specifically, Trade Union funds are paid by administrative agencies, organizations and enterprises in 2% salary funds based on the level, salary grade or salary paying to laborers and additional allowances (if any) ; 1% salary funds paying to Vietnamese labors for the foreign capital enterprises and administrative offices of foreign enterprises in the business contract), the National Assembly promulgates Law on Trade Unions regulating on Trade Union funds paid by agencies, organizations and enterprises in 2% salary funds based to pay social insurance for laborers from January 01, 2013.

This regulation will create the equality for all agencies, organizations and enterprise; at the same time, it supports the funds to perform activities with a view to protecting the benefits of laborers, contributing to the stability and development of enterprise.
Besides, this Law creates a favorable chance for Trade Union activities, specifically: falcilitating laborers to establish participate in and operate Trade Union; Coordinating to Trade Unions at the same level to formulate adopte and implement regulation on coordination for operation; Recognizating and facilitating Trade Unions to implement theirs powers and duties as prescribed by law; Getting olinions of Trade Union at the same level before deciding problems relating to rights and obligations of laborers.
This law effects from January 01, 2013.

FIVE-YEAR-TERM FOR INDUSTRIAL EXPLOSIVE’S LICENSE

On June 22, 2012, the Government promulgates the Decree No. 54/2012/ND-CP on amending and supplementing a number of articles of the Government's Decree No. 39/2009/ND-CP of April 23, 2009 on industrial explosives.

Under the Decree, the term of the License to trade industrial explosives is within five years for the License to use industrial explosives serving mineral extraction.

The term of the License to use industrial explosives for works, research, pilot and petrol operation and the term of the License of blasting services are still calculated according to the term of works and within 02 years.

At the same time, the terms of the License to trade industrial explosives, the

Certificate of eligibility to produce industrial explosives, explosive precursor substances are not defined. Annually, the agencies that issue the Business license and the Certificate of capability shall cooperate with relevant agencies to inspect the fulfillment of the conditions prescribed in the License, the Certificate with which the organizations that have been issued; impose sanctions against the violations as prescribed by current provisions on sanctions against administrative violations of industrial explosive management.

The Licenses to trade explosive precursor substances issued before this Decree takes effect are still valid under the term in such Licenses.

MUST HANG VIETNAMESE FLAG WHEN FOREIGN FISHING VESSELS
OPERATE IN VIETNAM

On June 20, 2012, the Government issued the Decree No. 53/2012/ND-CP amending and supplementing a number of articles of the Decrees on the aquatic product area.

Under the Decree, the foreign fishing vessels are only permitted to perform the aquatic operation in Vietnam's sea waters if having the License of aquatic operation issued by the competent authorities and the License of frequency and equipment of radio transceivers using issued by the Authority of Radio Frequency Management and they must hang Vietnamese flag during the time of operation. The Vietnamese flag must be hung side by side and is as high as the flag of the country hung on the boat since August 10, 2012.

Besides, under this Decree, the imported fishing vessel must satisfy three conditions as follows: The age of the boat not exceeding eight years (from the year of new building to the time of import); the main engine of the ship (from the year of manufacture to the time of import) not exceeding two (02) years compared with boat age (for used fishing vessel); Having legal origin; Being steel hull boat with the total capacity of the main engine from 400 CV or more. For used fishing vessels, they must be registered by the Vietnam Fishing Vessel Registration Agency before sending the vessel to Vietnam.
These conditions do not apply for the case the fishing vessels are aided by the foreign Government, organizations and individuals to Vietnam.
This Decree takes effect on August 10, 2012.

SIMPLIFY PROCEDURES FOR AIRCRAFT OWNERSHIP’S REGISTRATION

On June 11, 2012, the Government issued the Decree No. 50/2012/ND-CP on amending and supplementing some Articles of the Decree No. 70/2007/ND-CP of April 20, 2007 by the Government on nationality registration and registration of rights to civil aircrafts.
Under this Decree, the proposer must submit an application for registration of aircraft ownership in the form as prescribed; A certified copy of certificate of Vietnam aircraft nationality registration; Papers evidencing the legal status of the registration applicant or the registrant; Legal papers to prove ownership of the aircraft; in case of transfer of ownership, it must also include papers to prove

Besides, the Decree also issued more application forms on nationality registration and registration of rights such as: Application Form for deregistration of the rights to aircraft; Application Form for renewal of registration of rights to possession of aircraft; Application Form for information; extracts or copies from the register of Vietnam aircraft…

MARITIME PILOTAGE SERVICE IS OBLIGED TO 1.000 GT VIETNAMESE VESSELS

On March 21, 2012, the Government promulgated the Decree No. 21/2012/ND-CP on management of seaports and navigable channels.

Under this Decree, from June 01, 2012, Vietnamese vessels carrying passengers, oil, liquefied gas or chemical buckets and of a gross tonnage of 1,000 GT or more are obliged to use the maritime pilotage service when entering or departing from seaports or moving within Vietnamese seaport waters.

The pilotage organization shall work out daily steering plans based on the requests for the pilotage service. A daily steering plan contains the following details: name, flag state, fundamental technical specifications of vessel, anchorage or berthing position, time for the pilot to embark the vessel, expected wharf or anchorage or

berthing position, name of the pilot assigned to steer the vessel and other necessary contents.

At the same time, Before 16:00 hours every day, the pilotage organization must send the steering plan for the subsequent day to the port authority for working out a plan for shifting of vessels to enter, depart from or transit through the port or move within the port waters. In case of a change or another request arises, such change or request must be promptly notified to the port authority for prompt adjustment of the daily shifting plan.

This Decree replaces the Decree No. 71/2006/ND-CP dated July 25, 2006 and takes effect on June 01, 2012.

INCREASE BY 2% FOR IMPORT TAX OF PETROLEUM OIL AND OIL

The Ministry of Finance has issued the Circular No. 109/2012/TT-BTC guiding the application of the preferential import tax rates on a number of items belonging to group 2710 in the preferential import tariff.

Accordingly, from July 03, 2012, petrol will apply the interest rate of 12%, instead of 10% as previous regulation. Similarly, the interest rates of diesel and plane fuel (jet fuel) also increase by 2%, in turn 10% and 12%. Other commodities have the same import interest rate, in particular, the import interest rates of crude oil and

This Circular takes effect as from the date of its signing and supersedes the Circular No. 103/2012/TT-BTC.

REDUCE 2.4% INTEREST RATE OF INVESTMENT CREDIT

On June 25, 2012, the Ministry of Finance issued the Circular No. 104/2012/TT-BTC the interest rate on loan of the investment credit and export credit of the State and the difference of the interest rate calculated for support after investment.

Under this Circular, from June 25, the interest rate on loan of investment credit of the State in Vietnam dong is 12%/year, instead of 14.4% as previously, which reduces by 2.4%.Besides, the interest rate on loan of the export credit of the State in Vietnam dong and the difference of the interest rate calculated for support after investment for the loan project in Vietnam dong is 14%/year and 2.4%/year

respectively.

The interest rate on loan of the investment credit and export credit of the State and the difference of the interest rate is calculated for support after investment applies to the disbursements of the loan capital of the investment credit and export credit of the State from June 25, 2012.

This Circular takes effect from June 25, 2012 and supersedes the Circular No. 201/2011/TT-BTC dated December 30, 2012.