Legal Document Updates in English (32/2012)

FEE FOR LICENSING REPRESENTATIVE OFFICES INCREASED
BY 2 MILLION VND
 

On August 13, 2012, the Ministry of Finance issued the Circular No. 133/2012/TT-BTC guiding the collection, remittance and management of fees for licensing representative offices of foreign traders in Vietnam.

Under this Circular, from October 01, 2012, the fees for licensing representative offices and expansion of foreign traders in Vietnam will increase by from VND 1.5 – 2 million. Specifically, the fee for new issuance is VND 3 million / license, increase by VND 2 million compared with the previous regulations (the previous one is VND 1 million/license). The fee for reissuance, amendment, supplement, expansion is 1.5 million VND / license.

HAVING AT LEAST 5 EXPERIENCE YEARS FOR
ENTERPRISE EVALUATION CONSULTATION ORGANIZATIONS
 

On August 08, 2012, the Ministry of Finance issued the Circular No. 127/2012/TT-BTC guiding standards, conditions and procedures for recognition of enterprise value determination services provider.

Accordingly, the domestic valuation consultation organization register to provide the equitized enterprise value determination consultation services must be audit companies, securities companies and valuation enterprises having valuation functions and satisfying the conditions for the organization and operation of each type of enterprise in accordance with the laws of Vietnam and some other conditions. Specifically, these organizations must have at least five years of experience in one of the following areas of operation: valuation, auditing, accounting, financial consultation, consultation of enterprise ownership transformation; Have at least three valuators who are granted valuation card by the Ministry of Finance and register the valuation practice in the enterprise; are not sanctioned for administrative violations with aggravating

APPLYING THE TAX RATE OF 10% FOR ENTERPRISES EARNING INCOME
FROM PUBLISHING ACTIVITIES
 

On July 27, 2012, the Ministry of Finance issued the Circular No. 123/2012/TT-BTC guiding the implementation of a number of articles of Law on Enterprise Income Tax No. 14/2008/QH12 and guidelines on implementation of decree No.124/2008/ND-CP dated December 11, 2008, Decree No.122/2011/ND - CP dated December 27, 2011 of the Government detailing the implementation of a number of articles of Law on Enterprise Income Tax.

Accordingly, enterprises earning income from publishing activities as prescribed in the Law on Publishing are eligible for the enterprise income tax rate of 10% during their entire operation as from the tax period 2012. At the same time, this Circular allows the enterprise applying the tax rates higher than 10% on the income from publishing activities as prescribed by the Law on Publishing to switch to apply the tax rate of 10% on the income from publishing activities from the tax period 2012.

HAVING AT LEAST ONE THIRD OF INDEPENDENT MEMBERS IN THE BOARD OF DIRECTORS
 

This is regulated under the Circular No. 121/2012/TT-BTC dated July 26, 2012 of the Ministry of Finance prescribing the company management applicable to public companies.

In order to ensure the balance of the number of members of the Board of Directors of large-scale public companies and listed companies, the Ministry of Finance requested that at least one third in the Board of Directors thereof must be independent members of the Board of Directors. Of which, independent members of the Board of Directors are members of the Board of Directors that satisfy the following conditions: not being a non-executive member of the Board of Directors and not related to the Director (General Director), Deputy Director (Deputy General Director), Chief accountant and other managers designated by Board of Directors; Not being a member of the Board of Directors, the Director (General Director), Deputy Director (Deputy General Director) of subsidiary companies, associate companies, or controlled by public companies; Not being a major shareholder or the representative of the major shareholder, or the relevant person of the major shareholder of the company…

INITIAL SUPPORT OF VND 100 BILLION FOR THE CENTRAL FOREST PROTECTION FUND
 

On May 25, 2012, the Ministry of Finance issued the Circular No. 85/2012/TT-BTC guiding the financial management regime for forest protection and development funds (below referred to as the fund).

Under this Circular, a fund is an independent accounting unit which may open accounts at the State Treasury and at commercial banks. Funds operate for non-profit purposes, but must preserve the initial state capital. Funds operate in a public and transparent manner for proper purposes and under law.

Regarding the organization, the fund is established in 3 levels: the central fund, provincial level fund and commune level fund. For the central fund, the state budget shall provide an initial support of VND 100 billion within two years from the date of establishing the fund; for provincial level fund, provincial-level People’s Committees shall consider

OFFICIALLY IMPOSING THE TARIFF QUOTA 2012 ON IMPORTED SUGAR
 

On August 06, 2012, the Ministry of Industry and Trade issued the Circular No. 22/2012/TT-BCT regulating on the import of salt, sugar, and poultry eggs under the tariff quotas 2012.

Accordingly, from August 06, 2012 to the end of December 31, 2012, the amount of imported goods under the tariff quota 2012 is 70,000 tons. Of which, the Ministry of Industry and Trade shall allocate tariff quotas on the import of 50,000 tons of refined and raw sugar to traders that directly use sugar as raw materials for production, and 20,000 tons of raw sugar to traders producing refined sugar serving production and consumption.

At the same time, the Ministry of Industry and Trade shall allocate tariff quotas on the import of 100,000 tons of industrial salt to traders that directly use them as raw materials for chemical production, and 2,000 tons of pure salt to traders that directly use them as raw materials for the production of medicines and health products.

Under this Circular, the amount of imported goods under the tariff quota 2012 for Chicken eggs, Duck eggs, and other kinds is 40,000 tons.

This Circular takes effect on August 06, 2012 until the end of December 31, 2012.

THE INVESTOR CAN HIRE TO MAKE ENVIRONMENTAL IMPACT ASSESSMENT REPORT
 

This is one of the contents regulated under the Circular No. 13/2012/TT-BGTVT dated April 24, 2012 of the Minister of Transport amending and supplementing a number of articles of Circular No. 09/2010/TT-BGTVT dated April 6, 2010, on environmental protection in the development of transport infrastructure.

Specifically, the investor of investment project on transport infrastructure construction shall make or hire a qualified consultancy service institution to make environmental impact assessment report or written environmental protection commitment under Law and comply with

environmental protection measures stated in the environmental impact assessment report or the written environmental protection commitment approved by a competent authority; abide by the provisions on the fee for appraisal of environmental impact assessment reports.

The Ministry of Transport shall appraise and approve environmental impact assessment reports on environmental protection in transport infrastructure development strategies, planning and plans and other projects under its competence.

This Circular takes effect on July 1, 2012.

MINIMUM AREA FOR THE HIV/AIDS COUNSELING ROOM IS 7M²
 

This is one of the conditions on material facilities for HIV/AIDS prevention and control counseling organizations regulated under the Circular No. 06/2012/TT-BYT dated April 20, 2012 of the Ministry of Health stipulating on conditions of establishment and operational content for HIV/AIDS prevention and control counseling organizations.

In addition to some conditions such as: the counseling room must be with 7m2 as a minimum area, offer privacy, be airy and have enough light. Reception room must satisfy other conditions. Specifically, the reception room must be with 10m2 as a minimum area; having a notice board of counseling scope; having book to record name or code of the counseled, the counseling content summarized; having equipment minimally necessary for the counseling,

including work desks, chairs and educational materials servicing for counseling task.

The Circular also regulates that HIV/AIDS prevention and control counseling organizations must have at least a specialized and responsible officer. The direct counselor must possess professional level in either health or social science at mid-level or higher and have counseling skill on HIV/AIDS knowledge.

Provincial Services of Health is responsible for guiding and receiving dossier of notification, inspect, supervise operations of the HIV/AIDS prevention and control counseling organization quaterly, of irregular and implement reports under provisions on reporting the operations of HIV/AIDS prevention and control.

This Circular takes effect on July 01, 2012.

LIMITING CASH TRANSACTIONS OF CREDIT INSTITUTIONS TWICE A DAY
 

On August 09, 2012, the State Bank of Vietnam issued the Circular No. 23/2012/TT-NHNN promulgating on the case regulation and cash transactions.

Accordingly, branches of foreign banks, credit institutions, and State Treasuries only make cash transactions with branches and transaction centers of the State bank twice a day and must notified at least 2 hours prior to the time of transaction. If a credit institution has multiple branches in the same locality, the branch of the State bank shall make cash transactions via a representative unit appointed by that credit institution on the basis of satisfying the conditions for fund safety and other conditions as prescribed by the State bank.

Besides, under this Circular, the State bank establishes the issuance reserves funds and the Issuance funds to manage the issuance reserves money and issue money for the purpose of satisfying the cash demand of the economy, the issuance reserves demand, the demand for replacing money ineligible for circulation and money suspended from circulation. The Issuance reserves fund is managed at the Central money vault and the money vaults of branches of the State bank of central-affiliated cities and provinces.

This Circular is applied in the relevant units belonging to the State bank system, branches of foreign banks, credit institutions, State Treasuries, relevant organizations and individuals making cash transactions with the State bank and takes effect on September 24, 2012.