Legal Document Updates in English (41/2021)

REDUCE VALUE-ADDED TAX FOR TRANSPORT, FOOD AND BEVERAGE SERVICES
FROM NOVEMBER 1 TO THE END OF 2021

This noticeable content is prescribed by the National Assembly Standing Committee in the Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021, on promulgation of solutions to support enterprises and people affected by the COVID-19 pandemic.

Specifically, value-added tax reduction from November 01, 2021, to the end of December 31, 2021, shall be applied to the following commodities and services:

- Transport service (rail, water, aviation transport, and road transport); accommodation service; food and beverage service; services of travel agencies, tour operators and support services related to promotion and organization of tours;

- Publishing products and services; services of cinematography, television program production, sound

recording, and music publishing; artworks, creative, art services; services of libraries, archives, museums, and other cultural activities; sports and entertainment services (excluding publishing software and commodities, services produced and traded online).

Besides, to reduce 30% of the enterprise income tax payable in 2021 for taxpayers whose total revenue in 2021 does not exceed VND 200 billion and decreases compared to that in 2019. The criteria that total revenue in 2021 decreases compared to the total revenue in 2019 is not required for the case where the taxpayer has just established, consolidated, merged, separated, or split in the tax periods of 2020 and 2021.

This Resolution takes effect on the signing date.

COLLECTION AND REMITTANCE OF PROFITS DISTRIBUTED
FOR THE STATE CAPITAL AMOUNTS INVESTED IN ENTERPRISES

On October 05, 2021, the Ministry of Finance issues the Circular No. 85/2021/TT-BTC guiding the collection and remittance of profits and dividends distributed for the State capital amounts invested in enterprises.

According to this Circular, the remaining profits payable to the state budget of enterprises in which the State holds 100% of charter capital refer to the profits determined according to the accounting law after deducting the following amounts: Offsetting losses in the previous year; Making deductions for the Science and Technology Development Fund; Paying enterprise income tax; Distributions and deductions for funds as prescribed.

Dividends and profits distributed from joint-stock companies and limited liability companies with two or more members with capital contribution by enterprises in which the State

holds 100% of charter capital shall be determined on the basis of production and business results, financial statements and the decision on dividend and profit distribution of the General Meeting of Shareholders or the Board of Members of joint-stock companies and limited liability companies with two or more members.

Besides, enterprises in which the State holds 100% of charter capital, joint-stock companies, and limited liability companies with two or more members whose State capital contribution is represented by ministries, ministerial-level agencies, and Government-attached agencies shall remit into the central budget 100% of the remaining profits, distributed dividends and profits payable to the state budget.

This Circular takes effect on January 01, 2022.

AMEND CRITERIA ON THE ENTERPRISES’ COMPLIANCE WITH
CURRENT LEGAL REGULATIONS

On September 17, 2021, the Ministry of Finance promulgates the Circular No. 77/2021/TT-BTC amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 200/2015/TT-BTC dated December 15, 2015, guiding a number of provisions on supervision of investment of state capital in enterprises; financial supervision, assessment of operational efficiency and disclosure of financial information of state-owned and state-invested enterprises.

Specifically, regarding criterion 4 on status of compliance with current legal regulations, an enterprise shall be classified as A if it meets the following conditions: In the year of assessment and classification, the enterprise was not administratively sanctioned by the competent agency in the tax field for the group of acts of making false declarations leading to a deficit in the payable tax amount or an increase in the exemptible, reducible, refundable or non-collectible tax amount and group of acts of tax evasion; The enterprise was not or was

INCREASE FLIGHT FREQUENCY ON ROUTES
BETWEEN HANOI AND HCMC FROM OCTOBER 21

The Decision No. 1840/QD-BGTVT on the promulgation of Provisional Regulation on resumption of regular domestic air routes for safe, flexible adaptation to, and effective control over the COVID-19 pandemic is issued by the Ministry of Transport on October 20, 2021.

Accordingly, from October 21, 2021, to November 14, 2021, to organize no more than 6 flights per day each way and no more than 7 flights per day each way from November 15, 2021, to November 30, 2021 for the following air routes: Hanoi - Ho Chi Minh City (HCM) route and vice versa, Hanoi - Da Nang route and vice versa; Da Nang - HCM route and vice versa. For other routes, to organize no more than 4 flights per day each way.

Passengers who reside in level-4 pandemic areas or blockade areas before departure, or passengers on board flights from level-4 areas or blockage areas, or passengers

on board flights from international airports such as Tan Son Nhat or Can Tho airport must obtain negative SARS-CoV-2 certificates with the RT-PCR or rapid test done within 72 hours from the time of sampling to the time of departure.

Other passengers must have a certificate of full vaccination against COVID-19 with the second dose administered at least 14 days and not more than 12 months up to the time of departure; or have a certificate of recovery from COVID-19 or a hospital discharge paper within 6 months up to the time of departure; or obtain a negative SARS-CoV-2 certificate with the RT-PCR or rapid test done within 72 hours from the time of sampling to the time of departure.

This Decision takes effect from October 21, 2021 to the end of November 30, 2021.

CARS TRAVELING THROUGH LEVEL-3 OR LEVEL-4 AREAS
MUST BE DISINFECTED AFTER EACH TRIP

The Ministry of Transport promulgates the Decision No. 1812/QD-BGTVT on promulgating the Interim Guidance on transport activities in 5 sectors (roadway, railway, inland waterway, maritime, aviation) for safe and flexible adaptation and effective control over the COVID-19 pandemic on October 16, 2021.

For all pandemic risk levels, testing is only required in one of the following cases: There is suspicion or indication for epidemiological investigation of people coming from a pandemic-hit area at level 3; They come from level-4 areas or blockage areas; no testing is required while traveling within the area. For fully vaccinated people and those who have recovered from COVID-19, testing is only required in one of the following cases: There is an epidemiological

investigation requirement; They come from level-4 areas or blockage areas.

In addition, for by-automobile passenger transport, transport business units must arrange drivers and attendants on vehicles who satisfy requirements; arrange vehicles meeting the requirements for COVID-19 prevention and control, such as being equipped with hand sanitizer, medical masks; disinfect vehicles after each trip (disinfection is only required for vehicles traveling through level-3 or level-4 areas); ask drivers to follow the itinerary and only stop, park (for meals or toilet) and pick up and drop off passengers at the specified locations; etc.

This Decision takes effect on the signing date.

ORGANIZE ON-SITE TEACHING IN LOW RISK AND MEDIUM RISK AREAS

This highlight content is prescribed in the Official Dispatch No. 4726/BGDDT-GDTC dated October 15, 2021 of the Ministry of Education and Training on organizing the on-site teaching at education institutions.

According to this Official Dispatch, in level-1 and level-2 areas (low risk and medium risk), on-site teaching shall be organized; conditions on information technology infrastructure, equipment, and means shall be consolidated to be poised to transit to other teaching forms due to the complicated pandemic development.

In level-3 areas (high risk), organize on-site teaching in combination with online teaching and teaching by television. Based on actual conditions, localities shall decide on teaching plans applicable for every class or grade. For general education, on-site teaching shall be prioritized for the

first grade, second grade, sixth grade, ninth grade, and twelfth grade, provided that appropriate distance is ensured according to the schools' facilities and safe conditions in pandemic prevention and control.

In level-4 areas (very high risk), online teaching, teaching by television, and self-learning with homework, etc. shall be organized based on the actual situation and the implementation progress of the school year plan in localities. For early childhood education and general education, teachers shall guide student parents to assist and support their children to learn and play at home according to appropriate forms; coordinate with student parents to guide students to use equipment serving the online learning and learning by television effectively and safely.

REQUIREMENTS FOR VIETNAMESE NATIONALS GOING ABROAD FOR STUDYING

The Decree No. 86/2021/ND-CP on prescribing Vietnamese nationals going abroad for learning, teaching, taking part in scientific research and academic exchange is promulgated by the Government on September 25, 2021.

According to the Decree, Vietnamese nationals going abroad for studying must satisfy the requirements as follows: Having good political and moral credentials; Not subject to disciplinary measures and criminal prosecution; Having degrees, certificates for specialty and foreign languages satisfying the scholarship programs and other requirements of the scholarship programs; Being approved by the direct management agency to be sent to foreign countries for studying; Satisfying current law regulations on training for cadres, civil servants, public employees and regulations of the Party.

Besides, students going abroad under State budget scholarships have responsibilities such as: To strictly comply with Vietnam’s law regulations, law regulations and customs

of the host country; Not to drop out deliberately, comply with regulations on the study time, training level, major, host country, and education institution in accordance with the decision on sending students for studying abroad of the competent agency. Also, they must inform the sending agency at least 10 working days before the date on which students going abroad return to Vietnam for internship, etc.

In cases students going abroad as prescribed wish to suspend their study, the sending agencies shall issue the Decision on suspending the study and adjust study time. Students going abroad shall not be granted any scholarship during the suspension period. Students going abroad shall continue to be granted the scholarship after the suspension period. The total period of receiving scholarship shall not exceed total period of studying under the original decision on sending students going abroad for studying.

This Decree takes effect on December 01, 2021.

CONSOLIDATE THE NATIONAL STEERING COMMITTEE FOR ELECTRICITY DEVELOPMENT

The Decision No. 1410/QD-TTg on consolidating the National Steering Committee for Electricity Development is issued on August 17, 2021 by the Prime Minister.

Accordingly, Head of the National Steering Committee for Electricity Development shall be Deputy Prime Minister Le Van Thanh; the Permanent Deputy Head of the Steering Committee shall be Minister of Industry and Trade Nguyen Hong Dien; Deputy Heads of the Steering Committee include: Cao Xuan Thanh - Assistant to former Prime Minister Nguyen Xuan Phuc, Dang Hoang An - the Deputy Minister of Industry and Trade, Le Quang Hung - the Deputy Minister of Construction, Ho Sy Hung - the Deputy Chairman of the Committee for Management of State Capital at Enterprises.