Legal Document Updates in English (44/2011)

TO REDUCE CONDITIONS IN REGISTERING TECHNOLOGY TRANSFER CONTRACT
 

On November 11, 2011, the Government issued the Decree No. 103/2011/ND-CP amending, supplementing some articles of the Decree No. 133/2008/ND-CP dated December 31, 2008 of the Government detailing and guiding the implementation of a number of articles of the Law on Technology Transfer.

In the dossiers for registration of technology transfer contracts, In the case that contracting parties for technology transfer are Vietnamese organizations and individuals, only technology transfer modified contract in Vietnamese is needed, not included the contract in English as prescribed in previous regulations.

Dossiers for registration of modification of technology transfer contracts shall be made in 03 files with 01 original and 02 copies. Technology transferees or technology transferors will be on behalf of the contracting parties to submit a dossier to an agency competent issued technology transfer contract registration certificates to propose the modification of technology transfer certificate.

These amends and supplements take effect on January 01, 2012.

EXEMPT PERSONAL INCOME TAX AND REDUCE 50% VAT TILL DECEMBER 31, 2012
 

From August 01, 2011 till the end of December 31, 2011, individuals with taxable incomes from salaries, wages and from business to the level of taxable personal income at grade 1 of the partially progressive tax schedule provided for in Article 22 of Law on Personal Income Tax will be exempt from personal income tax.

This is one of the guidelines of the government in the Decree No. 101/2011/ND-CP dated November 04, 2011 detailing the implementation of the Resolution of the National Assembly on additional issuance of some tax solutions to remove difficulties for enterprises and individuals.

As stipulated in this Decree, from August 01, 2011 till the end of December 31, 2012, dividends to individuals from investment activities in securities markets, capital contribution for shares purchase of enterprise other than dividends from joint stock banks, financial investment funds, credit institutions are also exempt from personal income tax; Besides, income from securities transfer activities of the individuals will be reduced 50% of personal income tax.

For households, individuals trading guest-house, room used for renting out workers, students, pupils; households, individuals caring for children; households, individuals supplying shift meals for workers; their lump-sum tax of value added tax, personal income tax will be reduced 50%.

For enterprises, the Government also guides the reduction of 30% of payable enterprise income tax amounts in 2011 of small and medium enterprises; enterprises employing many laborers in the field of production, out-sourcing, processing agricultural, forestry and aquatic products, textiles, footwear, electrical components, construction of economic - social infrastructure works.

This Decree takes effect as from December 20, 2011.

FROM NOVEMBER 1, 2011, LETHAL INJECTION WILL BE USED FOR CAPITAL EXECUTION
 

The Government issued the Decree No. 82/2011/ND-CP dated September 16, 2011 on execution of the death penalty by lethal injection. This Decree also provides the drugs, equipment and devices used for execution; responsibilities of agencies, organizations and People's Committees of all levels for execution of the death penalty; as well as regimes and policies for persons engaged in execution of the death penalty.

Specifically, the drugs for execution include: Sodium thiopental, which is used for anesthesia; Pancuronium bromide, which is used to induce paralysis of the nervous system and muscles; and Potassium chloride, which is used to slop the heart.

A dose consists of the three drugs specified above; The drugs for execution shall be supplied by the Ministry of Health at the request of the Ministry of Public Security or the Ministry of National Defense. The drugs shall be delivered with written records; sealed and strictly managed under law.

As stipulated in this Decree, execution team members and physicians identifying veins are entitled to an allowance 2 times the common minimum wage for each execution and a 10-day rest under regulations on rest regimes applicable to People's Police and People's Arms officers and soldiers.

Execution Council members, forensic experts, technicians and persons pressing finger­prints of, and shrouding and burying executed persons are entitled to an allowance equal to the common minimum wage for each execution. Other persons engaged in execution are entitled to an allowance equal to half of the common minimum wage for each execution.

Expenses for burial of an executed person include 1 coffin of ordinary timber, 1 set of ordinary clothes, 4 meters of shroud, incense, candles, spirit and alcohol for cleaning the corpse and other burial expenses. If relatives or lawful representatives of the executed person are allowed to retrieve the body for burial, they shall bear transportation expenses and commit to observing the law on assurance of security and order.

This Decree takes effect on November 1, 2011. Previous regulations of the Government on execution of the death penalty which are contrary to this Decree are all annulled.

AMENDING VIETNAMESE SHIP REGISTRATION PROCEDURES
 

The Government issued the Decree No. 77/2011/ND-CP dated September 01, 2011 amending and supplementing a number of articles of the Government's Decree No. 29/2009/ ND-CP dated March 26, 2009, on seagoing ship registration, purchase and sale.

As stipulated in this Decree, Vietnamese ship registration certificates shall be granted to seagoing ships satisfying all conditions and registered in the national ship register according to the order and procedures stated in this Decree. It is valid from the date of its gram to the date of deregistration of the ship concerned.

Apart from documents as defined previously, ship registration dossier must contain documents proving the payment of registration fee according to regulations inculding: one set comprising the original registration fee declaration bearing the tax office's certification, and the original document on payment of registration fee to the state budget. For seagoing ships not liable to registration fee, it is required to submit the original registration fee declaration bearing the tax office's certification.

Organizatons, individuals submit one set of the dossier directly or by post to one of the following regional ship registration agencies: Hai Phong regional ship registration agency at the Hai Phong City Maritime Administration; Sai Gon regional ship registration agency at the Ho Chi Minh City Maritime Administration; or Da Nang regional ship registration agency at the Da Nang Port.

For Vietnamese ship definite registration procedures, the Decree also adds the following: the definite registration period-shall be recorded in the registration certificate, which is corresponding to the term of bare-boat charter contract or as requested by the ship owner.

Ships can be also provisionally registered and sailed under Vietnamese flag, Vietnamese ship provisional registration certificates shall be granted in case of having not yet paid prescribed charges and fees as stipulated, having no ship deregistration or registration suspension certificates or ship owners operating on a trial basis newly built ships or receiving newly built ships and taking them to the place of registration under shipbuilding contracts.

Besides, this Decree also details Vietnamese ship re-registration procedures, ship renaming registration procedures, ship owner name change registration procedures, ship owner change registration procedures, ship structure and technical specifications change registration procedures, regional ship registration agency change registration procedures, ship registry-change registration procedures…

These amends and supplements take effect from October 15, 2011.

LIST OF DEVICES AND EQUIPMENT SUBJECT TO ENERGY LABELING
 

The Prime Minister issued the Decision No. 51/2011/QD-TTg dated September 12, 2011 promulgating the list of devices and equipment subject to energy labeling and application of the minimum energy efficiency, and the implementation roadmap.

The list of devices and equipment subject to energy labeling and application of the minimum energy efficiency is divided into 4 categories; of which household appliances category includes tubular fluorescent lamps, compact fluorescent lamps, electromagnetic and electronic ballasts for fluorescent lamps, air conditioners, refrigerators, washing machines, electric cookers, electric fans and television receivers.

Office and commercial equipment category includes photocopiers, computer monitors, printers and commercial refrigeration cabinets. Industrial equipment category includes distribution transformers and electric motors.And means of transport category includes passenger cars of 7 seats or less.

Roadmap for energy labeling for household appliances and industrial equipment is encouraged to be conducted until the end of December 31, 2012. However, from January 1, 2013,  compulsory energy labeling shall be conducted.

For office and commercial equipment, voluntary energy labeling is encouraged; And from January 1, 2014, compulsory energy labeling shall be conducted for commercial refrigeration cabinets.

Voluntary energy labeling for means of transport is encouraged to be conducted until the end of December 31, 2014; from January 1, 2015, compulsory energy labeling shall be conducted.

Regarding roadmap for application of the minimum energy efficiency, the Decision requires: for household appliance, import and manufacture of equipment with an energy efficiency lower than the minimum energy efficiency will be prohibited from January 1, 2014; For industrial, office and commercial equipment, Import and manufacture of equipment with an energy efficiency lower than the minimum energy efficiency will be prohibited from January 1, 2015; For light bulbs (incandescent lamps), Import, manufacture and circulation of incandescent lamps with a power output higher than 60W will be prohibited from January 1, 2013.

This Decision takes effect from November 01, 2011.

GUIDELINES ON PREVENTION AND COMBAT OF MONEY LAUNDERING
IN REAL ESTATE BUSINESS
 

On September 01, 2011, the Ministry of Construction issued the Circular No. 12/2011/TT-BXD guiding some provisions of the Government’s Decree No. 74/2005/ND-CP of June 7, 2005, on prevention and combat of money laundering in real estate business.

In this Circular, the Ministry of Construction requests reporting organizations to elaborate and issue their own internal anti-money laundering regulations in pursuance to Decree No. 74/2005/ND-CP, this Circular and relevant legal documents so as to detect and prevent organizations and individuals from conducting money laundering activities via their organizations.

Internal anti-money laundering regulations include: Processes and procedures for identifying and updating information on customers and beneficiaries, measures for verifying information on customers and beneficiaries in case of suspicious transactions; Processes for reviewing, detecting, handling and reporting on suspicious transactions to competent state agencies; Regulations on provisional measures to be applied in money laundering prevention and combat and principles of handling cases of delaying or rejecting transactions…

Based on their operational scope, ambit and characteristics, reporting organizations shall decide to assign some staff members (or their leaders) or set up specialized sections to take charge of money laundering prevention and combat. Reporting

organizations shall register their addresses, telephone and fax numbers; names, addresses and positions of staff members or sections in charge of money laundering prevention and combat with competent state agencies for contact in case of necessity.

Reporting organizations’ staff members or sections in charge of money laundering prevention and combat have the following major functions and tasks: To receive and verify information on suspicious transactions reported by related staffs, divisions or sections; To make, sign and take responsibility for the contents of reports on suspicious transactions; To make and sign reports on anti-money laundering activities of their organizations as required by law and competent state agencies; To elaborate and implement anti-money laundering programs, policies and strategies within their organizations…

When detecting a suspicious transaction, reporting organizations shall report it in to the Anti-Money Laundering Office under the Banking Inspection and Supervision Agency - the State Bank of Vietnam and the House and Real Estate Market Management Department - the Ministry of Construction. When necessary, reporting organizations may report it to these agencies via fax or telephone but they shall send a written report later.

This Circular takes effect from Octobet 15, 2011.