Legal Document Updates in English (30/2012)

REDUCING 30% ENTERPRISE INCOME TAX FOR ENTERPRISES
USING OVER 300 LABORERS
 

On July 30, 2012, the Government issued the Decree No. 60/2012/ND-CP detailing the implementation of the Resolution No. 29/2012/QH13 on promulgating a number of tax policies aiming to resolve difficulties for organizations and individuals.

Accordingly, the intensive-labor enterprises subject to enjoy tax reduction of 30% of enterprise income tax amount in 2012 are enterprises have average annual number of laborers in 2012 over 300 persons in manufacture, processing, not including laborers under short-term contract less than 03 month; The small- or medium-sized enterprises doing business in agricultural products, forestry products, fishery products, construction, manufacture of goods, services.

If a small- or medium-sized enterprise operates business in many sectors, the amount of enterprise income tax being reduced shall not include the tax amount

ACHIEVING TRADE BALANCE BY 2020
 

On July 25, 2012, the Prime Minister signed the Decision No. 950/QD-TTg promulgating the action Program in implementation of the goods import and export Strategy for the 2011-2020 period, with orientations toward 2030.

The major objective of the Program is to gradually reduce trade deficit and keep it at about 10% of the export value by 2015 and achieve trade balance by 2020. Besides, the Program also tend objectives to achieve the average goods export growth rate of 11-12%/year and the average goods import growth rate of 10-11%/year during 2011-2020. The Prime Minister proposed some major tasks to develop manufacture, restructure economy, develop market, promote trade as well as complete the policy on commerce, finance, credit and investment in development of manufacturing export goods…. to relevant Ministries, branches.

Specifically, intensifying use of goods have been manufactured domestic to contribute in trade deficit

restraint; forming roadmap of negotiation, agreement on governmental-level trade exchange aiming to reasonably improve trade balance with trade partners suitable to domestic demand and production level and international commitments; investing and upgrading transport infrastructure works, warehouses and storage yards at big seaports and customs clearance sites for imports and exports to satisfy demand of import and export through 2020, with orientations toward 2030; formulating incentive policy applying to multinational corporations, big enterprises in the world to invest in industry…

In addition, relevant Ministries and branches have the responsibilities to organize implementation of the Program, to administer operation of the Program and implement projects, the specific tasks assigned by the Law.

LIMIT UTMOST THE USE OF WET-RICE FARMING LAND
FOR NON-AGRICULTURAL PURPOSES
 

Such policies as limiting the utmost the use of wet-rice farming land for non-agricultural purposes and encourage land reclamation and expansion for rice farming and improvements of other rice-farming land into wet-rice farming land are just regulated under the Decree No. 42/2012/ND-CP dated May 11, 2012 on management and use of rice-farming land.

Under this Decree, from July 01, 2012, change of the use purpose of wet-rice farming land must satisfy three conditions as follows: conforming with approved land use master plans and plans and obtaining permission of competent state agencies; having a plan on most economical use of land, which is shown in the overall project proposal approved by competent state agencies; Organizations and persons allocated or leases by the State wet-rice farming land for non-agricultural use must have plans to use the top soil and offset the area of wet-rice farming land used for another purpose according to the law.

When using other rice-farming for non-agricultural purposes, investors that fail to implement projects or to implement projects according to schedule and leave land fallow will have such land recovered under the land law.

Besides, the Decree also regulated some support policies for rice producers, rice production damaged by natural disasters or pests. Of which, annually, state budget will support VND 500,000 /ha/year for organizations, households, or individuals producing rice on wet-rice farming land and support VND 100, 000 ha/year for other rice-farming land other than upland rice land which is spontaneously expanded not under master plans and plans on rice-farming land use.

This Decree shall take effect on July 01, 2012.

AMENDING REGULATIONS ON PROCEDURES AND DOSSIERS
FOR ASSOCIATION’S SEPARATION, MERGER
 

On April 13, 2012, the Government issued the Decree No. 33/2012/ND-CP amending and supplementing some articles of the Decree No. 45/2012/ND-CP of April 21, 2010, of Government on the organization, operation and management of associations, of which, the Decree regulated procedures and dossiers for division, separation, consolidation, and merger of associations in detail.

Specifically, a dossier of association division, separation, consolidation or merger comprises an application for division, separation, consolidation, merger of association; a scheme on division, separation, consolidation, merger of association, including a plan providing the settlement of assets, finance and employees and delimitation of the functions, powers, operation fields and duties, obligation that must implement; Draft of charter of associations new established by division, separation, consolidation, merger of association; List of members in provisional leadership board of associations new established; Confirmation document on

scheduled place of head office of association new established by division, separation, consolidation, merger of association.

The associations implementing division, consolidation, merger shall terminate their existence and operation after the competent state agencies issue decisions to permit the division, consolidation, merger of such associations. The rights and obligations of the associations implementing division, consolidation, or merger shall be transferred to the new associations. In case of separation of an association, the separated association and the association newly established from such separation must take joint responsibility for the rights and obligations of the pre-separation association.

This Decree takes effect from June 01, 2012.

RAISE THE DUTY RATES ON CARS FROM ASEAN AND JAPAN
SINCE JUNE 08, 2012
 

The Ministry of Finance issued the Circular No. 63/2012/TT-BTC of April 23, 2012, amending the specially preferential import duty rates applicable to a number of commodity groups in Specially Preferential Import Tariffs.

Of which, increasing the specially preferential import duty rates to a number of commodities in order to for implementation of the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEPA) during 2012-2015; the Vietnam-Japan Economic Partnership Agreement (VJEPA) during 2012-2015; the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) during 2012-2014. The highest increase of some commodities under heading 8703 such as ambulances,

cars which are interior designed as apartments, four-wheel vehicles will be applied the new import tax rate of 78%.

Some commodities under heading 8702 such as motor vehicles (not including motor coaches, buses, minibuses or vans), buses, minibuses of a gross vehicle weight  of at least 6 tons but not exceeding 18 tons will be applied the increase from 5% to 70%. Besides, the import duty rate of some parts and other components for door trim under heading from 8701 to 8705 (code 8708), others (code 8716) will be adjusted to increase from the current regulations.

This Circular takes effect on June 08, 2012.

CHIEF MECHANIC OF SHIPS LESS THAN 3000 GT MUST HAVE THE ENGLISH B CERTIFICATE
 

On April 12, 2012, the Ministry of Transport promulgates the Circular No. 11/2012/TT-BGTVT providing on professional standard, professional certificate of seafarers and the minimum safety complement of Vietnamese seagoing ships.

Under the Circular, the captain, vice captain of ship from 50 GT to less than 500 GT, near-shore itinerary must satisfy professional standards specified in section A-II/3, A-IV/2 and A-VIII/2 of the STCW Code in concerning with functions as follows: Maritime according to management level; Technique of laying and arranging commodities according to the management level; Controlling ship’s activities and taking care of persons on ship according to the management level; Information and communication according to the operation level.

In order to be granted the certificate of professional competence, chief mechanic and second mechanic of ship with total capacity of main engine from 500 KW to less than 3000 KW must satisfy some conditions such as graduating specialized in seagoing ship machine operation at college or vocational college level with training time of 36 months;

Knowing the maritime English at level 2 or the English level is equivalent to the B certificate or higher; Finishing program of professional fostering as prescribed by the Ministry of Transport and attaining result in officer examination at the level of management of ship with total capacity of main engine from 500 GT to less than 3000 KW.

Besides, in order to undertake job titles as second mechanic, these people must have worked as deck officer of ship with total capacity of main engine from 500 KW or more in at least 24 months. For the chief mechanic, they must have worked as second mechanic of ship with total capacity of main engine from 500 KW to 3000 KW at least 24 months or work as the captain of ships from 50 T to less than 500 GT, near-shore itinerary in at least 12 months and pass the examination for chief mechanic.