Legal Document Updates in English (28/2012)

NOVEMBER 09 ANNUALLY IS THE VIETNAMESE LEGAL DAY
 

On June 20, 2012, the National Assembly promulgated the Law on law popularization and education No. 14/2012/QH13 and agreed that, on November 09 annually is the Legal day of the Socialist Republic of Vietnam.

The Legal day on November 09 annually is operated aiming to Honor Constitution, laws, to educate law-abiding consciousness for everyone in the society.

Besides, the National Assembly also determines that the funds for legal popularization and education of agencies, organizations enjoying budget shall be ensured by the State budget and mobilized from other legal resource.

For localities that can’t self-balance their budget, the central budget will assist funds for legal popularization and education.

Annually, basing on task on legal popularization and education of next year, agencies, organizations shall formulate budget estimates of legal popularization and education and making general synthetic into the State budget estimates of their level to submit to competent authorities for decision as prescribed by law on the State budget.

GIVE FULL AUTHORITY IN PRINTING AND ISSUING MONEY
FOR THE STATE BANK
 

On May 02, 2012, the Government issued the Decree No. 40/2012/ND-CP on issue of money, and preservation and transportation of precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches.

Under the Decree, the State Bank Governor shall, based on the annual forecast of the economy’s cash need, the need for issue of reserve money and the need for replacement of money unqualified for use, decide on the structure, quantity and value of money currently in circulation which needs to be additionally printed and minted.

The State Bank shall organize the design of money specimens to ensure that they are aesthetic, easily realizable, represent national cultural identity and follow the

world money design trend; Money printing and minting shall be carried out under contracts between the State Bank and money printing and minting establishments

according to money printing and minting plans and technical standards of each kind of money as stipulated by the State Bank Governor.

The State Bank Governor also has the authority to stipulate the embedment of security features on money to increase the anti-counterfeiting capacity. The State Bank shall issue money for circulation and collect money from circulation through its cash collection and payment operations and other operations.

This Decree takes effect on June 26, 2012 and replaces the Government’s Decree No. 81/1998/ND-CP of October 1, 1998 and the Government’s Decree No. 87/1998/ND-CP dated October 31, 1998.

MINISTRIES IN MANY SECTORS HAVING 4 DEPUTY MINISTERS AND MORE
 

This is one of the contents regulated under the Decree No. 36/2012/ND-CP dated April 18, 2012 of the Government defining the functions, tasks and organizational structures of ministries and ministerial-level agencies.

Specifically, the same as the previous regulations, the number of deputy ministers in a ministry must not exceed four. However, this Decree amends one more regulation: Ministries managing many major, important and complex branches or sectors may have more than 4 deputy ministers as decided by the Prime Minister.

This Decree also dismisses the representative offices of ministry in localities out of organizations assisting the minister in the state management. Accordingly, such organizations include: Departments; the Ministry’s office; the Ministry’s inspectorate; Bureaus; General departments and equivalent organizations. Relevant

ministries have the responsibility to reexamine the functions, tasks of representatives in localities to organize into departments, Bureaus or representatives under the control of the Ministry’s office in localities.

Ministries have the responsibility to submit to the Government for decision the functions, tasks, powers and organizational structures of their ministries; the establishment, reorganization and dissolution of general departments and equivalent bodies under the ministries. Besides, they also have the responsibility to define the functions, tasks, powers and organizational structures of departments, bureaus, inspectorates, offices and non-business public units of the ministries according to law.

FILMS NOT YET PUBLICIZED MUST BE ASSESSED BEFORE EXPORT
 

This is the contents regulated under the Decree No. 32/2012/ND-CP dated April 12, 2012 of the Government on management of the export and import of cultural products for non-commercial purposes.

Accordingly, the following cultural products must be assessed by State management agencies in charge of culture, sports and tourism before export: all kinds of films of agencies, organizations or produced under film making cooperation services for foreign countries which have not yet been publicized or disseminated; relics, antiques and national precious objects. In case, individuals and organizations exporting cultural products, publicized, disseminated and circulated in the Vietnamese territory do not need a permit of the stage agency in charge of

culture, sports and tourism but shall complete customs procedures under the customs law.

The Ministry of Culture, Sports and Tourism have the responsibility to examine and grant permits for the export or import of cultural products according to its competence; to organize the assessment or assess by itself cultural products at the request of organizations or individuals; to direct, guide and examine the implementation of legal documents on export and import of cultural products.

This Decree takes effect on June 01, 2012 and replaces the Government’s Decree No. 88/2002/ND-CP dated November 07, 2002.

FUND FOUNDING BOARD MUST HAVE AT LEAST
THREE FOUNDING MEMBERS
 

This is the contents regulated under the Decree No. 30/2012/ND-CP dated April 12, 2012 of the Government on the organization and operation of social funds and charity funds.

Specifically, founding members shall set up a fund founding board, composed of at least three members, including the head, deputy head and founding members (instead of two members according to the previous regulations).

The fund founding board shall compile a dossier of application for a fund establishment license and send it to a competent state agency. And for a fund established by Vietnamese citizens or organizations, it shall assure an amount of contributed assets converted into Vietnam dong being five billion for funds operating nationwide or in more than one province; one billion for funds operation within a

province; one hundred million for funds operation within a district; and twenty million for funds operation within a commune.

The fund is used to pay expenses for the provision of public services, implementation of scientific research schemes and targets programs and projects ordered by the State; to finance programs and projects of humanitarian and charity purposes, for promoting the development of culture, education, healthcare, physical training and sports and science or for other social purposes for community development in accordance with funds’ charters.

This Decree takes effect on June 01, 2012 and replaces the Government’s Decree No. 148/2007/ND-CP dated September 25, 2007.

RESTRICTING THE OWNERSHIP IN THE LAND MOBILE INFORMATION SERVICE
 

This is the content regulated under the Circular No. 10/2012/TT-BTTTT dated July 10, 2012 of the Ministry of Information And Communications providing on the list of telecommunication services specified in Clause 1, Article 3 of the Government’s Decree No.25/2011/ND-CP, of April 06, 2011, detailing and guiding the implementation of a number of articles of the Telecommunications Law.

Under this Circular, the Land Mobile Information Service is the the first

telecommunication service in the restriction list of telecommunication services. Accordingly, an organization or individual owned over 20% of charter capital or shares in a telecommunication enterprise shall not allowed to own over 20% of charter capital or shares in other telecommunication enterprise trading in the same market of telecommunication service.

This Circular takes effect from August 31, 2021.

CHARGE FOR ASSESSMENT OF AGRICULTURAL PRODUCTS
IS 32 MILLION VND
 

On June 28, 2012, the Ministry of Finance issued the Circular No. 107/2012/TT-BTC guiding the collection, remittance, management and use of charges and fees for management of aquatic product quality, safety and hygiene.

Under this Circular, the charge rate for the first assessment; wide-opening assessment is VND 32 million and the charge rate for re-assessment is 22.5 million VND.

Fee rates for the management of aquatic product quality, safety and hygiene and fee rates for the grant of certificate of aquatic work are still kept at the previous level from 20.000 – 40.000 dong. Specifically, the fee for licensing of import and export of aquatic animals, aquatic animal products and aquatic plants is 40.000 dong. Fee for extension and modification of contents of licenses upon request of customers is 20.000 dong; Fee for grant of a permit for assay of aquatic animal breed is 40.000 dong.

Charges and fees for the management of aquatic product quality, safety and hygiene shall be collected in Vietnam dong. When foreign organizations or individuals wish to pay charges and fees in a foreign currency, they may pay them in the US dollar (USD) at the average exchange rate on the inter-bank foreign exchange market announced by the State Bank of Vietnam at the time of collection.

Charge- and fee-collecting agencies may retain 85% of the total collected charge and fee amounts to cover expenses for the charge and fee collection under content of expense amounts specified by law. The remainder (15%) shall be remitted into the state budget by charge- and fee-collecting agencies according to the corresponding chapter, category, clause, item and sub-item in the current state budget index.

GRANTING THE PERSONAL TAX CODE CARD FROM JULY 01, 2012
 

Under the Circular No. 80/2012/TT-BTC issued by the Ministry of Finance, organizations, households and individuals producing, trading, providing goods and services; Individuals earning incomes subject to personal income tax; Foreign organizations without Vietnamese’s legal status, foreign individuals doing independent business in Vietnam; Other organizations and individuals related to tax issues such as: Project management board, non-business units, organizations and individuals without tax liability but eligible for tax refund or receiving aid from abroad will be issued with a sole tax code for the whole operation as from the tax registration until the shutdown (except for contractors).

The tax payers are individuals subject to personal income tax that complete the procedures and tax registration dossiers shall be issued with “the Tax registration certificate” or “the personal tax code card” within three working days as from receiving the complete tax registration dossier. In case the time limit to receive the Tax registration certificate or tax code notification is over, tax payers can remit to the tax agencies.

Individuals paying personal income tax via multiple paying organizations shall apply for tax registration at one paying organizations for the tax code issuance. Individuals shall notify their tax codes to other paying organizations for them to make tax declaration and tax payment using those tax codes.

Under this Circular, if an individual simultaneous pays personal income tax and does business, the personal income tax code shall be used for declaring and paying tax on the business. If a business individual is already issued with the tax code, such tax code shall be used for declaring and paying personal income tax.

This Circular takes effect on July 01, 2012 and supersedes the Circular No. 85/2007/TT-BTC on July 18, 2007 of the Ministry of Finance; annuls the form No. 01-DK-TNCN used for individuals paying personal income tax promulgated together with the Circular No. 175/2010/TT-BTC on November 05, 2010 of the Ministry of Finance.

TAX REFUNDING SERVICE FEE WHEN EXITING IS 15 %
 

On April 14, 2012, the Ministry of Finance issued the Circular No. 58/2012/TT-BTC guiding the implementation of a number of contents of the Decision No. 05/2012/QD-TTg dated January 19, 2012 of the Prime Minister concerning the pilot VAT refunding for foreigner’s goods purchased in Vietnam carried upon exit of the port of Noi Bai international airport and Tan Son Nhat international airport.

Tax refunding service fee that the commercial bank is entitled to enjoy equal to 15% / total amount of value added tax of goods eligible for refunding carried by the foreigner when leaving at Noi Bai international airport and Tan Son Nhat international airport. The amount of value added tax that the foreigner shall be refunded equal to 85% / total amount of value added tax of goods eligible for refunding carried by the foreigner when leaving at Noi Bai international airport and Tan Son Nhat international airport.

The tax refunding currency is Vietnam dong. In case the foreigner requests the exchange of the tax refunding amount from Vietnam dong into freely convertible

currency, the Commercial bank shall make a sale of foreign currency to the foreigner under the regulations of the law. The conversion rate is the rate listed by the commercial bank at the time of conversion and in accordance with the provisions of the State Bank of Vietnam.

The time for VAT refunding to the foreigner on exit is carried out right after the foreigner has completed the checking procedures of the invoice cum tax refunding declaration and prior to the time on board of the plane at Noi Bai International Airport and Tan Son Nhat International Airport. The customs agency and commercial bank shall appoint officials and public employees to work in all days including holidays, Sundays and non-work time to perform the VAT refunding to the foreigner in accordance with provisions of this Circular.

This Circular shall take effect from June 01, 2012. The contents regulated in the Articles 9, 10, 15, 16, 17, 18, 19, 20 and 21 of this Circular shall take effect from July 01, 2012