Legal Document Updates in English (43/2020)

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NUMBER

TITLE

 

In This Updates:

TAX – FEE – CHARGE

 

TAX – FEE – CHARGE

1

 

123/2020/ND-CP

 

Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government on invoices and documents

 

To exempt from 1-year use for 2 cases of using e-invoices with the tax agency's code

Page 2

LABOR - SALARY

 

LABOR - SALARY

2

04/2020/TT-BLDTBXH

Circular No. 04/2020/TT-BLDTBXH dated May 25, 2020 of the Ministry of Labor, War Invalid and Social Affairs on providing guidance on the implementation of the regulations on contractual unit and the fund of wage for operation of employees and the Operation Board prescribed in Article 7 and Article 8 of the Government’s Decree No. 20/2020/ND-CP dated February 17, 2020 on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations

 

To add up to 2 average monthly wage to the paid wage fund in 2020

Page 2

FINANCE – BANKING

 

FINANCE – BANKING

3

09/2020/TT-NHNN

Circular No. 09/2020/TT-NHNN dated October 21, 2020 of the State Bank of Vietnam promulgating the security of information system in banking operations

 

Each account getting access to the banking information system must be given to a single user

Page 2

COMMERCE

 

COMMERCE

4

1369/QD-BCT

Decision No. 1369/QD-BCT dated May 22, 2020 of the Ministry of Industry and Trade regarding the addition of a number of goods subject to the conditional business to be listed on the Mercantile Exchange

 

To add many conditional business items to pilot listing for transaction

Page 3

NATURAL RESOURCES - ENVIRONMENT

 

NATURAL RESOURCES - ENVIRONMENT

5

60/2020/QH14

Law No. 60/2020/QH14 dated June 17, 2020 of the National Assembly, Amending and Supplementing a Number of Articles of the Law on Natural Disaster Prevention and Control and the Law on Dikes

 

From July 01, 2021, wildfire shall be considered as natural disaster

Page 3

JUSTICE

 

JUSTICE

6

63/2020/QH14

Law No. 63/2020/QH14 dated June 18, 2020 of the National Assembly, Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents

 

6 important contents in appraisal of a draft decree

Page 3

 

SUMMARY:

 

Ü  TAX – FEE – CHARGE

TO EXEMPT FROM 1-YEAR USE FOR 2 CASES OF USING E-INVOICES
WITH THE TAX AGENCY'S CODE

The Government promulgates the Decree No. 123/2020/ND-CP on invoices and documents on October 19, 2020.

Accordingly, 02 cases of using an e-invoice with the tax agency's code that are exempted from 12 months use, from the time of using e-invoice, including:

Firstly, small- and medium-sized enterprises, cooperatives, and business households and individuals that operate in localities with difficult socio-economic conditions or extremely difficult socio-economic conditions. Localities with difficult socio-economic conditions or extremely difficult socio-economic conditions are specified in the List of geographical areas eligible for investment incentives issued together with the Government’s Decree No. 118/2015/ND-CP dated November 12, 2015.

 

Secondly, other small- and medium-sized enterprises that are proposed by the People’s Committees of provinces and centrally-run cities, and submitted to the Ministry of Finance, except those operating in economic zones, industrial parks or hi-tech zones.

The General Department of Taxation shall provide or entrust e-invoice service providers to provide e-invoices with the tax agency’s code free of charge for above-mentioned subjects.

In addition, enterprises, economic organizations, business households and individuals other than the above-mentioned subjects must pay service charges under contracts signed by both parties when using e-invoices with the tax agency’s code or using e-invoices without the tax agency’s code via e-invoice service providers.

This Decree takes effect on July 01, 2022.

Ü  LABOR - SALARY

TO ADD UP TO 2 AVERAGE MONTHLY WAGE TO THE PAID WAGE FUND IN 2020

The Circular No. 04/2020/TT-BLDTBXH on providing guidance on the implementation of the regulations on contractual unit and the fund of wage for operation of employees and the Operation Board prescribed in Article 7 and Article 8 of the Government’s Decree No. 20/2020/ND-CP dated February 17, 2020 on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations is issued on May 25, 2020 by the Ministry of Labor, War Invalid and Social Affairs.

In accordance with this Circular, the company’s paid wage fund in 2020 shall be determined according to the wage fund calculated by the contractual unit price. In case a company’ earned profit in 2020 is higher than the average profit in the 2018-2019 period, the company may additionally include the difference in the wage fund on the principle that for an increase of 1% in profit, the wage fund may be added by up to 2%, provided that the addition must not exceed 20% of the excessive profit amount and 02 months’ paid wage amount

 

of the actual average number of employees employed in a year.

In case a company’ earned profit is lower than the average profit in the 2018 - 2019 period, the company’s wage fund shall be decreased by either of the following two ways as selected by the company:  deduction in percentage (%) and such deduction is equal to a percentage deduction (%) between earned profits that is lower than the average earned profits of the period 2018 - 2019; or deduction in absolute value by the difference between the profits earned in 2020 that is lower than the average profits earned in the period 2018 - 2019. The deducted amount of the two above-mentioned methods must not exceed 02 months’ average paid wage amount of the actual average number of employees employed in 2020.

This Circular takes effect on July 10, 2020.

Ü  FINANCE – BANKING

EACH ACCOUNT GETTING ACCESS TO THE BANKING INFORMATION SYSTEM
MUST BE GIVEN TO A SINGLE USER

On October 21, 2020, the State Bank of Vietnam issues the Circular No. 09/2020/TT-NHNN promulgating the security of information system in banking operations.

In accordance with this Circular, institutions shall provide regulations on access management applied to users, groups of user, equipment and instruments used for accessing to information systems satisfying professional requirements and information security requirements, ensuring basic contents such as: Each account getting access to the system must be given to a single user; in case one account is shared by different persons for access purpose, such common use must be approved by competent authorities and responsibilities of each person at each using time must be defined, etc.

 

Remarkably, the account of automatic connection application and service must be transferred under one user’s management and limit the assess rights in accordance with using purpose; that user is not allowed to use this account for other purpose, etc.

Besides, the State Bank defines that a third party providing the cloud computing service must be an enterprise. Concurrently, such third party shall commit itself not to replicating, altering, using or providing data of the institution using the service for another individual or institution. Notification of any violations against information security regulations applied to the service in use committed by staff members of the third party shall be sent to institution using such service.

This Circular takes effect on January 01, 2021.

Ü  COMMERCE

TO ADD MANY CONDITIONAL BUSINESS ITEMS TO PILOT LISTING FOR TRANSACTION

The Ministry of Industry and Trade issues the Decision No. 1369/QD-BCT regarding the addition of a number of goods subject to the conditional business to be listed on the Mercantile Exchange on May 22, 2020.

Accordingly, the Ministry of Industry and Trade allows the Mercantile Exchange of Vietnam (hereinafter referred to as MXV) to experimentally list transactions of a number of goods belonging to the conditional business group (energy and rice commodities) on the Mercantile Exchange for 01 year.

To be specific, the pilot commodities including: Crude oil (Brent Crude Oil ICE EU, Mini Brent Crude Oil ICE Singapore, WTI Crude Oil NYMEX, etc.); Petroleum products (RBOB Gasoline NYMEX, Low Sulphur Gasoil ICE EU,

 

Heating Oil ICE EU, etc.); Gas (Natural Gas NYMEX, Mini Natural Gas NYMEX, etc.); Rice (Rough Rice CBOT, Vietnamese long grain white rice 5% broken, Vietnamese long grain white rice 10% broken and Vietnamese long grain white rice 15% broken, etc.)

Contracts for trading of energy and rice commodities must be settled before the due date. It is not allowed to deliver material goods. MXV shall send report to the email address of the Domestic Markets Department on a daily basis, from 6:00 to 9:00 (after the trading time is over and the trading system finishes processing the session data).

This Decision takes effect on the signing date.

Ü  NATURAL RESOURCES - ENVIRONMENT

FROM JULY 01, 2021, WILDFIRE SHALL BE CONSIDERED AS NATURAL DISASTER

On June 17, 2020, the National Assembly passes the Law Amending and Supplementing a Number of Articles of the Law on Natural Disaster Prevention and Control and the Law on Dikes No. 60/2020/QH14.

In accordance with this Law, apart from some natural disasters as specified in the Law on Natural Disaster Prevention and Control, the following abnormal natural phenomena also are considered as natural disasters: Wind at sea; Landslide and land subsidence due to drought; Wildfire and fog.

From the effective date of this Law, persons engaged in natural disaster prevention and control activities at state agencies that perform natural disaster prevention and control

 

tasks also are considered as the manpower for natural disaster prevention and control.

In accordance with the previous regulations, Natural disaster prevention and control funds mean funds established in provincial level and managed by the provincial People’s Committee. However, according to the new provisions, Natural disaster prevention and control funds mean off-budget state financial funds, including the Central Natural Disaster Prevention and Control Fund managed by the Ministry of Agriculture and Rural Development and provincial-level natural disaster prevention and control funds managed by provincial-level People’s Committees.

This Law takes effect on July 01, 2021.

Ü  JUSTICE

6 IMPORTANT CONTENTS IN APPRAISAL OF A DRAFT DECREE

On June 18, 2020, the National Assembly passes the Law No. 63/2020/QH14, Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents.

Accordingly, the Standing Committee of the National Assembly, the Government and the Presidium of the Central Committee of the Vietnam Fatherland Front shall also promulgate joint resolutions for guiding a number of necessary issues in the election of deputies to the National Assembly or People’s Councils besides detailing issues assigned by a law.

In addition, the Law provides that the submission report of the draft document must clearly state the necessity of promulgation of the law, ordinance or resolution; objectives and viewpoints of formulation of the law, ordinance or resolution; the drafting process; structure and basic contents of the draft document; consistency

 

of the draft document with legal documents in its field and fields related to its contents; and conformity of the draft document with relevant treaties to which the Socialist Republic of Vietnam is a contracting party.

Besides, the appraisal of a draft decree must focus on many contents such as: The necessity to promulgate the decree; The conformity of the draft decree with the Party’s line and guidelines and the State’s policies; The consistency of the draft decree with the to-be-detailed document, for the decrees prescribed in Clause 1, Article 19 of this Law; The necessity, reasonability and compliance cost of administrative procedures in the draft decree; Human and financial resources necessary; Language and drafting techniques and process, etc.

This Law takes effect on January 01, 2021.

 

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