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Vietnam Weekly Update - 14 May 2021

Cập nhật Hàng tuần Việt Nam - 14 Thang 5 2021

In this week's updates: Calculation of deductible expenses when determining CIT for leave expenses, Deductible expenses when determining income subject to CIT for foreign workers, foreign contractor tax finalization, and Paying monthly pension, social and unemployment insurance during COVID-19.

Interest Rates for P2P Lending in Vietnam

Before getting into the business of P2P lending, it is important to plan for the proper fees charges and to make sure that they are not only distinguished from interest but that the purpose of the fees is traceable to specific activities separate from the profit of the lenders.

E-Commerce business in Vietnam: Conditions for foreign investors

As defined in Decree 52/2013/ND-CP, e-commerce activity means conducting a part or the whole process of commercial activity by electronic means connected to the Internet, mobile telecommunications networks, or other open networks. E-commerce activities are classified into two categories.

Management of Social Housing in Vietnam

This Special Alert will discuss some of the inadequacies of the regulation requiring the use of 20% of the land fund of total residential land area allocated to commercial housing investment projects for social housing.

Vietnam Weekly Update - 7 May 2021

In this week's updates: 1) New administrative procedures to replace current procedures in the field of construction quality management; 2) Management of Covid-19 cases and entry into Vietnam, and 3) the declaration and payment of VAT for investment projects.

The Importance of Proper Drafting in relation to Construction Contracts

The addition of Section 17(2A) to The Building and Construction Industry Security of Payment Act (“SOPA”), and the recent Singapore Court of Appeal decision in Orion-One highlights the importance of proper drafting in relation to construction contracts.

Legal issues and lack of anti-deadlock mechanisms in a recent shareholder dispute

In the recent controversial case of shareholder dispute in Vietnam, the appellate court of Ho Chi Minh City (Appellate Court) held that two following articles of a company charter conflict with each other and therefore the provisions of the Enterprise Law 2014 are applied to resolve the dispute.

Decree now finalised on extension of deadlines for tax and land rental payments in 2021

Similar to last year, on 19 April, the Government released Decree 52 regarding the extension of deadlines for payment of taxes and land rental fee applicable for the 2021 tax year. The Decree took effect from the signing date.

Cambodia: GDT Facilitates Online Document Submission

This update covers Notification no. 7179 GDT dated 18 April 2021 from the General Department of Taxation regarding procedures for the submission of scanned application forms, administrative letters, other documents or tax returns via the online E-Document Submission System.

Cambodia: Ministry of Labour & Vocational Training Issues Guidance on Paying Wages During the Lockdown

On 19 April 2021, the Cambodian Ministry of Labour & Vocational Training issued Instruction 043 concerning the Payment of Wages for Early April 2021 and Additional Allowances for Employees in certain sectors during the Phnom Penh and Takmao city lockdowns to prevent the spread of COVID-19.

Cambodia: Extension of Due Date for March Monthly Tax Returns & Payments

Notification no. 7175 GDT dated 16 April 2021 (“Notification 7175”) from the General Department of Taxation provides an extension of the due date for the March 2021 monthly tax returns and payment.

Vietnamese E-Commerce Industry To Be Subject To Stricter Regulations By The Government

Recognizing the need to improve the regulation of e-commerce in current Decree 52/2013/ND-CP, the MOIT recently issued the second draft of a decree amending Decree 52 (“Second Draft”). This update covers some of the main note-worthy points in the draft decree.

Cryptocurrency Trading Risks In Vietnam

This article provides an overview of the treatment of cryptocurrency trading under Vietnamese laws, risks investors should be aware of and legal developments to look out for in this space.

Mobile Money Pilot Program in Vietnam

On 3 March 2021, the Prime Minister of Vietnam issued a decision that authorized a pilot program for the use of mobile money in Vietnam. This is a major step forward in the use of non-physical currency in the country and marks a potential change in the direction of the government’s policies towards digital currencies.

Criteria for high tech companies

On 16 March, the Government issued Decision 10/2021/QD-TTg setting out criteria for companies to be classed as “high tech”, which will be effective from 30 April 2021. This Decision applies to companies manufacturing high-tech products and providing high-tech services in Vietnam.

Model PPAs for LNG and Coal Fired Power Projects under Circular 57/2020

Tariff Calculation For LNG And Coal Fired Power Projects Under Circular 57/2020

This update provides summaries and comments on the tariff calculation of the model power purchase agreement under Circular 57/2020 (Model PPA) between an independent power producer (IPP) as the seller, and Vietnam Electricity Corporation (EVN) as the buyer.

Private placement of shares and pre-emption rights of existing shareholders under Enterprise Law 2020

Under Article 125.2(b) of the Enterprise Law 2020, except for the cases of merger and consolidation of companies, when a non-public joint stock company (a target company) plans to conduct a private placement of shares, the existing shareholders must be offered to purchase such shares first.

Vietnam standing its ground in private equity realm

The COVID-19 pandemic has disrupted countless lives and businesses, causing the world’s economy to slump as global GDP shrunk by 4.1 per cent in 2020, as estimated by S&P.

Cambodia: Additional Measures to Support Private Sector Workers & Revive the Post-COVID-19 Economy (Round 8)

On 25 March 2021, the Royal Government of Cambodia (“RGC”) implemented ‘Round 8’ of measures aimed at mitigating the impacts of COVID-19 on businesses and workers in Cambodia.