Legal Document Updates in English (36/2012)

EXEMPTION OF VALUE-ADDED TAX PAYABLE IN 2012
 

On August 21, 2012, the Ministry of Finance promulgates the Circular No. 140/2012/TT-BTC guiding the Government's Decree No. 60/2012/ND-CP dated July 30, 2012, detailing the implementation of the National Assembly’s Resolution No. 29/2012/QH13 promulgating a number of tax policies to help organizations and individuals resolve their difficulties.

Of which, one of the notable contents is the exemption of flat value-added tax in 2012 for households and individuals renting houses and rooms to workers, employees, and students; households and individuals providing day care services; Households and individuals doing catering for workers.

Business households and individuals eligible for tax exemption 2012 must satisfy the following conditions:

CONSTRUCTION PERMIT EXTENDED ONLY ONCE
 

In order to unify the management of construction permit for individual works and houses, the Government issued the Decree No. 64/2012/ND-CP dated September 04, 2012 on the construction permit issue.

Of which, one of the notable contents is within 30 days, before the construction permit expires, if the work has not been started, the investor must request the extension of construction permit. Each construction permit is extended only once. Besides, the construction permits can be revoked in the following cases: Construction permits issued not in accordance with current regulations; beyond the time limit stated in the document of handling violations for the case of the wrong construction compared with construction permits granted that the investors have not taken remedy measure of the violation as required by the competent authority.

After 10 working days from the date of the decision to revoke construction permit made by the competent authority, if the investor fails to return the construction permit to the licensing agency, the licensing agency or competent agency shall

MUST HAVE AT LEAST 02 FOUNDING SHAREHOLDERS
IN INSURANCE COMPANY
 

This is one of the conditions to issue the Establishment and Operation License for Insurance joint-stock company regulated under the Circular No. 124/2012/TT-BTC dated July 30, 2012 of the Ministry of Finance guiding the implementation of a number of articles of the Government's Decree No. 45/2007/ND-CP dated March 27, 2007 detailing the implementation of a number of articles of the Law on Insurance Business, and the Government's Decree no. 123/2011/ND-CP dated November 28, 2011, detailing the implementation of a number of articles of the law on amending and supplementing a number of articles of the Law on Insurance Business.

Apart from the general conditions such as having at least 02 founding shareholders being organizations; having the charter capital not lower than the legal capital regulated by the Law; having the application for the Establishment and Operation License; having the technical facilities, equipment, and information technology system to work right

after the Establishment and Operation License being issued. Organizations and individuals contributing capital to the establishment of insurance enterprises must also satisfy other conditions.

Specifically, each shareholder being an individual and organization may possess up to 10% and 20% of charter capital; the founding shareholders must possess at least 50% of the liquid common share of a joint-stock insurance company for at least three years as from being issued with the Establishment and Operation License. Contributing individuals must prove the monetary contribution capacity by the certification from the bank about the balance in VND or freely convertible foreign currency in the bank account…

For reinsurance joint stock company, the Circular regulated that shareholder must be organizations operating in the finance, banking and insurance sector.

This Circular takes effect on October 01, 2012.

FINE OF UP TO 50 MILLION VND FOR GIVING, DONATING STATE-OWNED
PROPERTY IMPROPERLY
 

This is one of the contents regulated under the Decree No. 66/2012/ND-CP dated September 07, 2012 on penalties for administrative violations of the management and use of state-owned property.

Under the Decree, individuals and organizations that commit violations of the management and use of State-owned property must incur one of the following primary penalties: warnings; fines. The maximum fine for each administrative violation of the management and use of State-owned property is 50,000,000 VND. Specifically, fines of from 5,000,000 VND to 10,000,000 VND will be applied for giving, donating, or trading property with value lower than 100 million VND. Fines of from 10,000,000 VND to 20,000,000 VND will be applied for giving, donating, or trading cars or property with value ≥ 100 million VND; Fines of from 30,000,000 VND to 50,000,000 VND will be applied for giving, donating, or trading the office building.

Fines of from 500,000 VND to 20 million VND depending on the nature and extent of violations will be applied for organizations committing violations of purchasing

UNDER-9 CHILDREN MAY SHARE ORDINARY PASSPORTS WITH
THEIR FATHERS OR MOTHERS
 

On September 06, 2012, the Government issued the Decree No. 65/2012/ND-CP amending and supplementing a number of Articles of the Decree No.136/2007/ND-CP on the exit from and entry into of Vietnamese citizens.
Under this Decree, ordinary passports granted to under-14 children are valid for not more than 5 years from the date of issue and shall not be extended. Under-9 children may share ordinary passports with their fathers or mothers if so requested by their fathers or mothers. In this case, passports are valid for not more than 5 years from the date of issue and these passports are inextensible. Therefore, from November 10, 2012, children from 09 to 14 years old may not be share ordinary passports with their fathers or mothers as the previous regulations under the Decree No. 136/2007/ND-CP dated August 17, 2007.