Legal Document Updates in English (31/2019)

02 STATE AGENCIES COLLECT
APPRAISAL AND APPROVAL FEES OF FIRE PREVENTION AND FIGHTING DESIGNS
 

On August 16, 2019, the Ministry of Finance issues the Circular No. 52/2019TT-BTC on amending, supplementing a number or Articles of the Circular No. 217/2016/TT-BTC dated November 10, 2016 of the Ministry of Finance prescribing the regime of charge collection, remittance, management and use for  documentation certification due to personal demands and Circular No. 258/2016/TT-BTC dated November 11, 2016 of the Ministry of Finance on prescribing the rates of charges for appraisal and approval of fire prevention and fighting designs and charge collection, remittance, management and use.

Accordingly, to reduce 01 agency for taking charges for appraisal and approval of fire prevention and fighting designs and charge collection, remittance, management

and use compared with the Circular No. 258/2016/TT-BTC. Particularly, organizations allowed to take charges for appraisal and approval of fire prevention and fighting designs include Vietnam Fire and Rescue Police Department (The Ministry of Public Security) and polices of provinces and central-affiliated cities.

Besides, the Circular also amends the regime of charge collection, remittance, management and use for documentation certification due to personal demands (prescribed at the Circular No. 217/2016/TT-BTC), particularly, the Department of Police Records (The Ministry of Public Security) and the police of central affiliated cities and provinces.

SHALL NOT PROSECUTE CRIMINAL LIABILITY
AS ARTICLE 216 IF EVADING SOCIAL INSURANCE POLICY BEFORE JANUARY 01, 2018
 

On August 15, 2019, the Judicial Council of the Supreme People's Court issues the Resolution No. 05/2019/NQ-HDTP on providing guidelines for application of Article 214 on crimes of fraud in social and unemployment insurance, Article 215 on crimes of fraud in health insurance and Article 216 on crimes of evasion of social, health and unemployment insurance premiums for employees of the Criminal Code.

Accordingly, acts of evading social insurance, health insurance and unemployment insurance premiums before 0:00 a.m. on January 1, 2018 shall not be handled with criminal penalties according to the provisions of Article 216 of the Criminal Code but, depending on each case, shall be handled as follows:

First, in case administrative violations have not yet been sanctioned and the terms for sanctioning administrative

violations has not yet expired, the competent agencies shall consider and sanction administrative violations.

Secondly, in case administrative violations have been sanctioned but the sanctioned individuals or organizations deliberately avoid or delay the execution, the terms for execution of administrative sanction decisions shall be determined according to the provisions of Clause 2, Article 74 of the Law on Handling of Administrative Violations…

The administrative sanctioning of the acts of evading social insurance, health insurance and unemployment insurance premiums for employees before 0:00 a.m. on January 1, 2018 shall not be considered a basis to prosecute criminal liability in accordance with Article 216 of the Criminal Code.

06 PRINCIPLES OF THE USE OF PUBLIC ASSETS
TO MAKE PAYMENT FOR BT PROJECTS
 

On August 15, 2019, the Government issues the Decree No. 69/2019/ND-CP on prescribing the use of public assets to make payment to investors implementing construction investment projects in the form of build-transfer contracts.

Accordingly, there are 06 principles of the use of public assets to make payment for BT projects as follow:

- Compliance with the laws, public assets may be used only after competent state agencies permit such use in accordance with law;

- The value of public assets shall be determined based on law-prescribed market prices at the time of payment as prescribed in Clause 4 of this Article; the value of BT projects shall be determined based on bidding results;

- The use of public assets to make payment to investors implementing BT projects shall be shown in state budget accounts;

- The time of payment for BT projects is the issuance of the decision to allocate or lease land to the investor.

- The loan interest shown in the financial plan of a BT contract on the value of the completed item of a BT project according to schedule shall no longer exist from the time a competent state agency issues a decision to allocate or lease land or transfer assets to the investor;

- The transfer of public assets to make payment to investors implementing BT projects shall be carried out after a BT project is completed or in correspondence with the completed volume of a BT project.

This Decision takes effect on October 01, 2019.

08 EXPENSES FOR DETERMINING
THE TOTAL CONSTRUCTION INVESTMENT
 

On August 14, 2019, the Government issues the Decree No. 68/2019/ND-CP on management of construction investment costs.

Accordingly, total construction investment shall be determined by 08 types of cost, includes: Compensation, assistance and resettlement costs; Construction investment costs; Equipment costs; Project management costs; Construction investment consulting costs; Other costs; Contingency costs.

The adjustment of total construction investment shall be carried out in conjunction with the adjustment of project construction investment and shall be adjusted when costs arise in excess of the total investment.

In case of adjusting only the cost structuring, including the contingency costs, due to price adjustment when price indexes increase higher than the indexes calculated in the price escalation reserves but this does not exceed the approved total construction investment, the investors shall adjust the investment and submit the results to the investment deciders for approval.

In case of increasing the costs of the projects or delaying projects leading to loss and waste by deciding on implementation of projects when the capital plans are inconsistent with the project implementation plans, the investment deciders shall take legal accountability.

02 ORGANIZATIONS COLLECTING FEES
FOR APPRAISING LICENSE OF INDUSTRIAL EXPLOSIVES
 

On August 20, 2019,  the Ministry of Finance issues the Circular No. 53/2019/TT-BTC Amending, supplementing a number or Articles of the Circular No. 148/2016/TT-BTC dated October 14, 2016 of the Ministry of Finance on providing for fees for processing of applications for the license to use industrial explosives, and the collection, transfer and management thereof.

Accordingly, to amend the regulations on charge collection prescribed at Clause 2, Article 2 of the Circular

No. 148/2016/TT-BTC. Particularly, the Industrial Safety Techniques and Environment Agency directly under the Ministry of Industry and Trade, central-affiliated cities and the General Department of Military Industries and Manufacture directly under the Ministry of National Defense issues the License to use industrial explosives.

ENTERPRISES DO NOT APPROPRIATE RISK
PROVISIONS FOR INVESTMENTS ABROAD
 

The Ministry of Finance issues the Circular No. 48/2019/TTT-BTC instructions on the appropriating  and handling of provisions of devaluation of stocks, losses of investments, bad debts and warranty on products, goods, services, construction works at enterprises on August 08, 2019.

Provisions prescribed in this Circular shall be accounted into deductible expenses when determining incomes subject to corporate income tax in the annual reporting period in order to offset possible losses in the subsequent year's reporting period; ensuring that enterprises reflect the value of inventories, investments which are not higher than market prices and the value of receivables is not higher than the recoverable value at the time of preparing the financial statements main year.

Accordingly, the subjects to which the provision is made are the receivable debts which are overdue and receivables that have not yet matured but are likely to be irrecoverable timely by the enterprise and at the same time. The level of appropriation for overdue receivable debts, the provisioning level is set as 30% of the value for debts overdue from 6 months to less than 1 year; 50% of the value for debts overdue from 1 year to less than 2 years; 70% of the value for debts overdue from 2 years to less than 3 years; 100% of the value for debts receivable from 3 years or more.

This Circular takes effect on October 10, 2019.

EXPENSES FOR ACCEPTANCE INSPECTION
SHALL NOT EXCEED 20% THE CHARGE ON BUILDING CONSTRUCTION
 

This is the regulation stated in the Circular No. 04/2019/TT-BXD of the Ministry of Construction issued on August 16, 2019 on amending, supplementing a number of the Circular No. 26/2016/TT-BXD dated October 26, 2016 of the Ministry of Construction on elaboration of a number of aspects of construction quality control and maintenance.

According to the amended regulation, the expenses for acceptance inspection shall be specified in the "miscellaneous expenses” and shall be included in the total investment estimate.

For the construction works using state budget, the charges for expenses for acceptance inspection shall not exceed 20% the charge on building construction.

This Circular also adds e new regulation that in case construction items, building constructions have many main contractors in building construction, Investor can make acceptance and make acceptance minutes for finishing construction items and construction works with each main contractor.

This Circular takes effect on October 01, 2019.