Legal Document Updates in English (26/2015)

A HI-TECH ENTERPRISE HAS 5% STAFF MEMBERS HOLDING
A UNIVERSITY OR HIGHER DEGREE
 

This is the prominent content prescribed at the Decision No. 19/2015/QD-TTg dated June 15, 2015 of the Prime Minister prescribing criteria for identifying hi-tech enterprises.

Accordingly, from August 01, 2015, beside satisfying the criteria prescribed at Point a and b, Article 75 of the Investment Law, a hi-tech enterprise  must satisfy the criteria that the enterprise’s revenue from hi-tech products must account for at least 70% of its total annual net revenue and the enterprise’s total expenses for research and development activities conducted in Vietnam must account for at least 1% of its total annual net revenue, for small- and medium-sized enterprises, or 0.5%, for

GUARANTEES FOR SALE AND HIRE-PURCHASE OF FUTURE-ACQUIRED HOUSES
 

On June 25, 2015, the State Bank of Vietnam issued the Circular No. 07/2015/TT-NHNN stipulating the bank guarantee, within that guarantees for sale and hire-purchase of future-acquired houses is the most important contents.

In particular, when giving a bank guarantee to the owner of real estate projects developed for the purpose of sale or hire-purchase of future-acquired houses, commercial banks must comply with the regulations such as future-acquired houses must conform to sale or hire-purchase requirements; in the contract for sale, purchase or hire-purchase of houses signed between the project owner and purchaser or hire-purchaser, it is agreed that the project owner would indemnify the purchaser or hire-purchaser if

THE LEVEL OF ADVANCE PAYMENT MUST NOT EXCEED 50% OF THE CONTRACT VALUE
 

In accordance with the Decree No. 37/2015/ND-CP dated April 22, 2015 of the Government prescribing in detail construction contracts, within that, the level of advance payment must not exceed 50% of the contract value.

In special cases, this level shall be permitted by the competent investment decider, or by the ministers, chairpersons of provincial-level People’s Committees; chairpersons of the Members’ Councils or of the Boards of Directors of groups or corporations in case the competent investment decider is the Prime Minister. The minimum level of advance payments for consultancy contracts are 15% and 20% of the contract price for a contract valued at over VND 10 billion and up to VND 10 billion. Similarly, the minimum level of advance payments for construction implementation contracts are 10%; 15% and 20% of the contract price for a contract valued at over VND 50 billion; between VND 10 and 50 billion and under VND 10 billion

SUPPORT 20% OF INTEREST RATE OF LOAN FOR A COACH STATION EXPANSION PROJECT
 IN THE FORM OF SOCIALIZATION
 

On April 16, 2015, the Prime Minister signed the Decision No. 12/2015/QD-TTg to attract investment in and operation of coach station in the form of socialization, based on each locality’s resources, a coach station investment, upgrading or expansion project in the form of socialization will be eligible for a support equivalent to at least 20% of the interest rate of loans from a credit institution.

Besides, the Prime Minister also details the incentive policies on operation of coach stations in the form of socialization. In particular,  to exempt land rental  for a coach station in poor districts prescribed by the Government, land rental exemption will be granted for its whole area; land rental exemption will be granted for the areas of compulsory service items, including areas for passenger embarkation and disembarkation, parking lots for vehicles to await passenger embarkation, lounges for passengers, working offices for the managerial divisions, ticket offices, toilets, roads for vehicles to exit from and enter the stations, internal roads within the stations, and areas for greeneries and flower-gardens. A preferential enterprise income tax rate of 10% for 15 years will be

NOT REQUIRED TO BE IMPLEMENT THE INSPECTION CONCLUSIONS
PENDING INSTRUCTIONS
 

Smuggling, illegal transport of goods across the border, trade frauds and counterfeits remain complicated with sophisticated trickeries associated with corruption causing loss to state budget and natural resources, imposing negative impacts on environment of investment, trading and international integration..On June 09, 2015, the Government issued the Resolution No. 41/NQ-CP stepping up the fight against smuggling, trade frauds and counterfeits in new situation.

At the Resolution, the Government requires the Ministry of Finance to cooperate with the Ministry of Industry and Trade and relevant agencies in making submission to the Prime Minister for amendments and supplements to the Decision No. 72/2013/QD-TTg dated November 26, 2013 regulating financial policies toward border-gate economic zones; annul regulations on incentives of VAT, import taxes that are currently taken advantage of for frauds that cause loss to the state budget before July 31, 2015; reinforce management of taxable prices, post-customs clearance inspections, investigation and inspection of taxes; take comprehensive and drastic measures to fight loss of revenue and budget; discover and strictly deal with acts of price transfer and other trickeries for tax evasion and budget appropriation.