Legal Document Updates in English (45/2020)

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.

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

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

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.

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).