NEW POLICIES TAKE EFFECT IN NOVEMBER

Capital withdrawal of SOEs

Decision 51/2014/QD-TTg, dated September 15, 2014 on a number of contents on capital withdrawal, share sale, trading and listing registration on securities market of State-owned enterprises (SOEs) took effect since November 1, 2014.

Under the Decision, capital withdrawal below par value or accounting book value must ensure the maximum limit of investment loss and State capital preservation at the highest level upon capital transfer.

The capital transfer under the form of agreement shall only be implemented after unsuccessful auction or the share and capital have not been sold out by auction, except agreed sale of stocks listed on the stock exchange or registration for trading on Upcom in accordance with legal regulations.

Stricter rules of petrol and oil trading

Under Decree 83/2014/ND-CP, dated September 3, 2014 on petrol and oil trading, since November 1, 2014, the interval between two consecutive fuel price adjustments was extended from current 10 days to at least 15 days.

Fuel traders are allowed to unilaterally raise fuel prices if the rate of increase is below 3% of current retail prices but they must report the hike to the Ministry of Finance and the Ministry of Industry and Trade.

If the increase is between 3-7%, petrol wholesalers are required to submit documents on price fluctuations of elements which make up petrol prices, as well as the anticipated increases, to the two ministries for review and approval.

Fuel price increases exceeding seven percent, or increases with a significant impact on the national socio-economic development and the people’s living standards, must be reported to the Prime Minister for review and approval.

The Ministry of Industry and Trade is responsible for providing updates on world fuel prices, including base and retail prices, and the use of the fuel price valorization fund on its website.

Attraction of foreign scientists

Decree 87/2014/ND-CP, dated September 22, 2014 on attraction of overseas Vietnamese and foreign scientists and technologists in scientific and technological activities in Viet Nam, takes effect on November 10, 2014.

Accordingly, overseas Vietnamese and foreign experts shall be granted with preferential policies on (1) entry, exit and residence; (2) employment, labor and study; (3) salary; (4) housing; (5) information access; (6) commendation and honor; (7) and other policies in accordance with the regulations.

To enjoy the above preferential treatment, they shall have to satisfy the following conditions:

- Having inventions or plant varieties registered for intellectual property rights and suitable to scientific and technological tasks to be performed in Vietnam;

- Having outstanding scientific and technological research works that are suitable to scientific and technological tasks to be performed in Vietnam;

- Holding doctorates and having been teaching or conducting scientific research or technology transfer at foreign prestigious research institutions in professional fields suitable to scientific and technological tasks to be performed in Vietnam;

- Holding doctorates and having worked for over 3 years as scientific researchers in international cooperation programs or projects on science and technology or in research sections of foreign prestigious enterprises.

Exemption of import duty on medical equipment

Decision 54/2014/QD-TTg, dated September 19, 2014 on import tax exemption on components for manufacturing/assembling medical equipment comes into force on November 15, 2014.

Under the Decision, spare parts imported for production and assembly of medical equipment and devices will be exempted from import duties within five years.

The medical spare parts must be those which Viet Nam is unable to produce.

Fresh regulations on VAT tax

The Ministry of Finance issued Circular 151/2014/TT-BTC (“Circular 151”) on 10 October 2014 guiding Decree 91/2014/ND-CP (“Decree 91”) regarding various changes on Corporate income tax, Value added tax, Personal income tax and tax administration.

Circular 151 requires enterprises to declare and deduct the input VAT on goods and services under deferred payment or payment by installments which cost VND 20 million (nearly US$ 1,000) or more. The tax declaration and deduction must follow the agreement, in writing, on goods and service deal, the VAT invoice and bank payment documents on goods and services under deferred payment or payment by installments.

In cases where the enterprise has not yet received payment documents from the bank as the payment deadline has not come, the enterprise will still be eligible to declare and deduct the input VAT.

In cases where the enterprise does not have bank payment documents, it must declare and reduce the deducted VAT on goods and services without bank payment documents during the term for calculating tax on goods and services under cash payment.

The  Circular 151 takes effect from 15 November 2014.

Adjusted road user charges

Circular 133/2014/TT-BTC of the Ministry of Finance replaces Circular 197/2012/TT-BTC guiding regulations on the collection, payment, management and use of road use charges by unit of vehicle and takes effect since November 1, 2014.

Accordingly, the fee applicable to motor vehicles (excluding electric scooters) with a cylinder of 100cc shall range from VND 50,000-100,000 per year; and to the motorcycles with cylinder more than 100cc is from VND100,000 to 150,000 per year..

For automobiles, road toll is classified into eleven levels. Accordingly, the minimum road toll is VND1,560,000 per year and the maximum one is VND12,480,000 per year.

Source: VGP