Legal Document Updates in English (45/2020)

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NUMBER

TITLE

 

In This Updates:

ENTERPRISE

 

ENTERPRISE

1

75/NQ-CP

Resolution No. 75/NQ-CP dated May, 21, 2020 of the Government providing the handling of problems with a number of investment projects of enterprises which the Committee for Management of State Capital at Enterprises representing the ownership

 

Instruction on handling a number of problems arising in enterprise’s investment

Page 2

TAX – FEE – CHARGE

 

TAX – FEE – CHARGE

2

132/2020/ND-CP

Decree No. 132/2020/ND-CP dated November 05, 2020 of the Government on prescribing tax administration of enterprises having transactions with related parties

 

Cases where an enterprise considered as having transactions with related parties

Page 2

 

 

 

3

25/2020/TT-BTC

Circular No. 25/2020/TT-BTC dated April 14, 2020 of the Ministry of Finance on amending and supplementing a number of articles of the Circular No. 291/2016/TT-BTC dated November 15, 2016 on prescribing the rates, collection, remittance, management and use of charge for appraisal of postal operation conditions

 

To reduce 50% of charge for appraisal of conditions for granting postal license

Page 2

FINANCE – BANKING

 

FINANCE – BANKING

4

12/2020/TT-NHNN

Circular No. 12/2020/TT-NHNN dated November 11, 2020 of the State Bank of Vietnam on amending and supplementing a number of articles of the Circular No. 05/2020/TT-NHNN dated May 07, 2020, on refinancing for the Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg dated April 24, 2020, on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic

 

To extend the refinancing disbursement time limit to support people facing difficulties due to COVID-19

Page 3

ACCOUNT - AUDIT

 

ACCOUNT - AUDIT

5

88/2020/TT-BTC

Circular No. 88/2020/TT-BTC dated October 30, 2020 of the Ministry of Finance amending and supplementing Article 26 of the Circular No. 68/2019/TT-BTC dated September 30, 2019 of the Ministry of Finance on guiding the implementation of a number of articles of the Government's Decree No. 119/2018/ND-CP dated September 12, 2018 on prescribing electronic invoices for goods sale and service provision

 

To prolong the effective duration of 07 e-invoice-related legal normative documents

Page 3

 

SUMMARY:

 

Ü  ENTERPRISE

INSTRUCTION ON HANDLING A NUMBER OF PROBLEMS
ARISING IN ENTERPRISE’S INVESTMENT

On May 21, 2020, the Government issues the Resolution No. 75/NQ-CP providing the handling of problems with a number of investment projects of enterprises which the Committee for Management of State Capital at Enterprises representing the ownership.

To be specific, for Group A projects, before making a feasibility study report on construction investment, the enterprise shall prepare a pre-feasibility study report on construction investment in accordance with the Construction Law.

In addition, for projects with a value of not more than 50% of equity capital and not exceeding the capital level of Group B projects specified at Point a, Clause 1, Article 24 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, the Members' Council or the company president shall decide on investment

 

in projects in accordance with the conditions and procedures stipulated in this Law;

The ministries shall be the governing agency and decide on the investment in projects using central budget capital to form public assets and assign them to enterprises for management but not including the composition of State capital at the enterprises.

The Committee for Management of State Capital at Enterprises shall perform the rights of representing the ownership in accordance with regulation of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and the Decree No. 131/2018/ND-CP.

This Resolution takes effect from the date of its signing.

Ü  TAX – FEE – CHARGE

CASES WHERE AN ENTERPRISE CONSIDERED AS HAVING TRANSACTIONS
WITH RELATED PARTIES

The Government issues the Decree No. 132/2020/ND-CP on prescribing tax administration of enterprises having transactions with related parties on November 05, 2020.

In accordance with this Decree, related parties shall have relationships in any of the following cases: A party participates directly or indirectly in the management, control, contribution of capital to or investment in the other; The parties are directly or indirectly subject to the management or control by or have capital contributed by or investment from a third party.

In addition to 10 cases specified in current regulations, there is one case where an enterprise is considered as having transactions with related parties. To be specific: The enterprise has transactions of transferring or receiving the transfer of capital contribution of at least 25% of the

 

contributed capital of the owner of the enterprise in the tax period; borrowing or lending at least 10% of contributed capital of the owner at the time of arising transactions in the tax period with the operator or controller of an enterprise.

The taxpayer shall be exempted from declaring or formulating dossiers of determining prices of related-party transactions only if it has transactions with related parties that are liable to pay enterprise income tax in Vietnam, subject to the same enterprise income tax rate as applied to the taxpayer, and neither of them is entitled to enterprise income tax incentives in a tax period, but shall provide bases for such exemption.

This Decree takes effect on December 20, 2020 and applies from the 2020 enterprise income tax period.

TO REDUCE 50% OF CHARGE FOR APPRAISAL OF CONDITIONS
FOR GRANTING POSTAL LICENSE

The Circular No. 25/2020/TT-BTC on amending and supplementing a number of articles of the Circular No. 291/2016/TT-BTC dated November 15, 2016 on prescribing the rates, collection, remittance, management and use of charge for appraisal of postal operation conditions is issued on April 14, 2020 by the Ministry of Finance.

Accordingly, the Ministry of Finance changes the charge rates for appraisal of conditions for granting postal license upon expiry. Specifically, as in the Circular No. 291/2016/TT-BTC, the charge rate for initial appraisal and other appraisal are the same, now, such charge is reduce 50%, equal to 50% of the initial appraisal charge. Besides, the charge rate for

 

appraisal for changing other contents in the license and appraisal for re-granting in case a license is lost or damaged is also reduced from VND 03 million and VND 2.5 million to VND 01 million/time.

In addition, unlike the previous regulations, the Ministry of Finance shall not specify the scope of charge collection of charge collector, but only 02 organizations entitled to collect charges for appraising postal operation conditions are: The Ministry of Information and Communications and Department of Information and Communications.

This Circular takes effect on June 01, 2020.

Ü  FINANCE – BANKING

TO EXTEND THE REFINANCING DISBURSEMENT TIME LIMIT
TO SUPPORT PEOPLE FACING DIFFICULTIES DUE TO COVID-19

On November 11, 2020, the State Bank of Vietnam issues the Circular No. 12/2020/TT-NHNN on amending and supplementing a number of articles of the Circular No. 05/2020/TT-NHNN dated May 07, 2020, on refinancing for the Vietnam Bank for Social Policies according to the Prime Minister’s Decision No. 15/2020/QD-TTg dated April 24, 2020, on providing regulations on the implementation of policies to support people facing difficulties due to the COVID-19 pandemic.

Accordingly, to extend the duration of refinancing disbursement, which starts from the date of signing in the first debt agreement until the end of January 31, 2021 instead of July 31, 2020 as in previous regulations. In addition, at the due time of the refinancing loan, the Vietnam Bank for Social Policies must pay all principal debt for the refinancing loan which is disbursed under Clause 4, Article 6 of this Circular from the payment of the employers borrowing capitals according to the Decision No. 15/2020/QD-TTg and the Decision No. 32/2020/QD-TTg to the State Bank.

 

Until the end of January 31, 2021 (July 31, 2020 according to the previous regulations), if the Vietnam Bank for Social Policies fails to disburse all amounts received to disburse according to Clause 4, Article 6 of this Circular, before February 10, 2021 (instead of August 15, 2020 as in the previous regulations), the Vietnam Bank for Social Policies must pay the remaining amounts that has not been fully disbursed in the order from the debt agreement with outstanding loan signed at the earliest time to the State Bank.

Besides, the State Bank also decides to extend the reporting time to before February 20, 2021 (06 months later than the time limit specified in the previous regulations), the Vietnam Bank for Social Policies shall send a paper report on the disbursed refinancing loan data to the State Bank Governor.

This Circular takes effect on November 11, 2020.

Ü  ACCOUNT - AUDIT

TO PROLONG THE EFFECTIVE DURATION
OF 07 E-INVOICE-RELATED LEGAL NORMATIVE DOCUMENTS

The Ministry of Finance promulgates the Circular No. 88/2020/TT-BTC amending and supplementing Article 26 of the Circular No. 68/2019/TT-BTC on guiding the implementation of a number of articles of the Decree No. 119/2018/ND-CP on prescribing electronic invoices for goods sale and service provision on October 30, 2020.

In accordance to this Circular, the Ministry of Finance prolongs the effective duration of the following circulars and decisions until the end of June 30, 2022 (instead of the end of October 31, 2020 as defined in the previous regulation):

Firstly, the Circular No. 32/2011/TT-BTC guiding the creation, issuance and use of electronic invoices for selling goods and providing services.

Secondly, the Circular No. 191/2010/TT-BTC guiding the management and use of transportation invoices.

Thirdly, the Circular No. 39/2014/TT-BTC (amended and supplemented by the Circular No. 119/2014/TT-BTC and the Circular No. 26/2015/TT-BTC).

 

Fourth, the Decision No. 1209/QD-BTC dated June 23, 2015 of the Minister of Finance on the pilot use of electronic invoices with tax identification codes issued by tax agencies.

Fifthly, the Decision No. 526/QD-BTC dated April 16, 2018 of the Minister of Finance on expanding the scope of pilot use of electronic invoices with tax identification codes issued by tax agencies.

Sixthly, the Decision No. 2660/QD-BTC dated December 14, 2016 of the Minister of Finance on extending the term for implementing the Decision No. 1209/QD-BTC dated June 23, 2015.

Finally, the Circular No. 37/2017/TT-BTC amending and supplementing the Circular No. 39/2014/TT-BTC (amended and supplemented by the Circular No. 119/2014/TT-BTC and the Circular No. 26/2015/TT-BTC).

This Circular takes effect from November 01, 2020.

 

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