The General Department of Customs has just issued an important guidance on the import duty treatment for goods imported from an EPE to domestic market under a subcontracting processing arrangement. We believe this is an interesting topic, especially for companies that enter into subcontracted toll manufacturing arrangements with EPEs.
The Ministry of Economy and Finance (“MEF”) issued Prakas No.346 dated 1 April 2020 regarding the Capital Gain Tax (“Prakas No.346”) consisting of twenty (20) Articles. The objective of the Prakas is to set out the rules and procedures on collecting tax on capital gains to be paid in the Kingdom of Cambodia.
In August 2020, the Government passed a new Decree 91/2020 to govern all forms of advertising via telecommunications means such as SMSs, e-mails, and phone calls. Decree 91/2020 will take effect from October 2020 and replace Decree 90/2008.
We have seen a ramp up in the e-commerce and online activities (online meetings, signing e-contracts, signing e-resolutions) in the covid-19 pandemic all over the world and Vietnam is no exception. This legal update discuss some features of digital signature and authentication of digital signature under Vietnamese law.
Group of affiliated enterprises (Nhóm công ty liên kết) is an important concept under the merger control regulations in Vietnam since it is used to calculate the relevant notification thresholds (e.g., market share, revenue, or total assets) of an economic concentration, and the market share of a party to an economic concentration. Unfortunately, Decree 35/2020 provides an unclear definition for this term.
The National Assembly passed some amendments to the Law on Laws 2015 on 18 June 2020 which will become effective on 1 January 2021 (LPLD 2020). This legal update summarizes the new amendments.
In June 2020, the Government adopted Decree 68/2020 amending the rules on interest expense cap under Decree 20/2017. Under Decree 20/2017, the total interest expense which can be deductible for the purpose of calculating corporate income tax of a company must not exceed 20% of the company’s EBITDA. The restriction has caused massive objection from Vietnam enterprises since Decree 20/2017’s purpose is to regulate tax arising from related transactions but not to regulate corporate income tax in general.
Following our previous customs update on the EU -Vietnam Free Trade Agreement, the EVFTA officially took effect on 01 August 2020. However, pending approval by the Government of the decree regulating the special preferential export-import duty tariff schedule under the EVFTA, the General Department of Customs has issued Official letter 5575/TCHQ-GSQL dated 21/8/2020 guiding provincial customs authorities on procedures to accept proofs of origin.
On 18 June, the National Assembly passed the Law on Public Private Partnership (PPP) which will come into effect from 1 January 2021 (except for Article 101.6 which halts the application of the BT contract form from 15 August 2020). While the new PPP Law shows the government’s strong commitment in attracting private sector investment to the country’s core infrastructure sectors, it also introduces certain fundamental changes to current PPP/BOT practices which will likely be of concern to foreign investors and lenders.
This update covers Round 5 of the Cambodian government's measuresaimed at mitigating the impacts of COVID-19 on businesses and workers in Cambodia, including support for textile and related industries, support for tourism and aviation, and support for vulnerable families.
The National Assembly has ratified a Resolution on reduction of 30% CIT payables in 2020, which will come into effect after 45 days from the signing date and apply to 2020 tax year.
Enforcement of security over shares or capital contribution by a lender, which results in a change of control of the borrower, may be considered as an economic concentration and subject to merger filing requirements under the Competition Law 2018. This could pose a serious timing problem for the lender.
The provisions on private placement of shares by non-public joint stock company under the new Enterprise Law 2020 now requires a non-public joint stock company planning to conduct a private placement of shares.
On 15 June, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT setting out rules of origin under the EU - Vietnam Free Trade Agreement. Circular 11 set out the criteria for originating products under the EVFTA, Certificate of Origin Form EUR.1 as well as guidance on product specific rules, cumulation of origin, application and inspection of origin of goods.
On 8 June 2020, Vietnam’s National Assembly passed resolutions on the ratification of the EVFTA and the EVIPA. While the EVFTA addresses matters relating to cross-border investments between Vietnam and the 28 state members of the European Union (the “Party”/”Parties”), the EVIPA establishes procedures for dispute resolution if the commitments under the EVFTA are not met.
Enforcement of security over shares or capital contribution by a lender, which results in a change of control of the borrower, may be considered as an economic concentration and subject to merger filing requirements under the Competition Law 2018. This could pose a serious timing problem for the lender.
As of 14 July 2020, Vietnam’s Ministry of Health informed a total of 373 cases of Covid -19 where 95% of affected patients have recovered and no dead recorded. Further, Vietnam has no new community infected case for nearly 3 months and has set up a nationwide new-normal-operation. In terms of the economy, Vietnam reported a 1.81 percent GDP growth in the first half of 2020, which is the lowest since 2011 as advised by the General Statistics Office.
On 17 June, the National Assembly passed the amended Law on Enterprises (new LOE) which will be effective from 1 January 2021 and replace the existing 2014 LOE.
On 15 June, the Ministry of Industry and Trade issued Circular 11/2020/TT-BCT setting out rules of origin under the EU - Vietnam Free Trade Agreement. Circular 11 set out the criteria for originating products under the EVFTA, Certificate of Origin Form EUR.1 as well as guidance on product specific rules, cumulation of origin, application and inspection of origin of goods.
Law 51/2019/QH14 on Entry, Exit, Transit and Residence of Foreigners in Vietnam; Law 38/2019/QH14 dated 13 June 2019 on Tax Administration: 1) Law No. 51/2019/QH14 provides for following remarkable updates on requirements relating to visas for foreigners, 2) Law No. 38/2019/QH14 shall replace Law No. 78/2006/QH11 (and its amendments) from 1 July 2020 and gives effect to notable amendments.
Important Vietnamese legal terms can be looked up, with the corresponding term in the other language presented (Vietnamese <-> English). Very helpful resource for those professionals working in both languages
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