vietnam

Cayman Islands removed from EU list of non-cooperative jurisdictions

The European Union (EU) announced on 6 October the removal of the Cayman Islands from its list of non-cooperative tax jurisdictions. The list is a tool of the EU that aims to tackle external risks of tax abuse and unfair tax competition in low and tax neutral jurisdictions.

30% corporate income tax cut in 2020

Following up on our recent newsbrief on the Resolution that cut CIT 30% in 2020, the Prime Minister has officially released Decree 114/2020 providing guidance for this measure. The Decree will take effect on the same effective date of the Resolution (3 August 2020) and apply to the 2020 tax year.

New Anti-Spam Regulations

The government issued Decree 91/2020/ND-CP dated 14 August on anti-spam text messages, emails and calls. Decree 91 comes into effect on 1 October and replaces Decree 90/2008 and Decree 77/2012.

Alert on New Immigration Regulation on Re-opening International Flights between VN and 6 Jurisdictions

On 15 September 2020 the Government Office announced the conclusion for re-opening international flights between Vietnam and some jurisdictions, which is in principle approved by the Prime Minister and agreed with by the Deputy Prime Minister.

Would transactions between parties outside Vietnam (offshore transactions) be caught by merger control legislation?

Liệu các giao dịch giữa các bên thực hiện ngoài Việt Nam (giao dịch ở nước ngoài) có chịu sự điều chỉnh của quy định về tập trung kinh tế?

Under the Competition Law 2018, any transaction “causing the effect or being capable of causing the effect of significantly restricting competition in the market of Vietnam” is prohibited. As such, an offshore transaction will be caught by merger control requirement if it has actual or potential anti-competitive impact on a relevant market of Vietnam.

Can Foreigner Engage In An Indefinite Term Employment In Vietnam Under Labour Code 2012?

Người Nước Ngoài Có Được Phép Làm Việc Không Thời Hạn Tại Việt Nam Theo Bộ Luật Lao Động 2012?

The current Labor Code 2012 does not make it clear on whether a foreigner could be entitled to an indefinite term employment contract (ITEC) although the foreigner only has a work permit with limited term (two years at the maximum). In theory, the foreigner can demand for an ITEC with the employer based on the following legal basis and arguments.

Points To Consider In An Arbitration Clause For A Vietnamese Party In A Contract With A Foreign Party

Những Điểm Cần Xem Xét Trong Điều Khoản Trọng Tài Đối Với Bên Việt Nam Trong Hợp Đồng Với Bên Nước Ngoài

When a Vietnamese company enters into a contract with a foreign party, the foreign party usually requires the contract to have an arbitration clause so that disputes arising from the contract will be settled by commercial arbitration instead of Vietnamese courts. When negotiating and drafting the arbitration clause of such contract, a Vietnamese company may need to consider the following points.

Re-execution of a Government Land Lease Agreement in case of assigning of land use rights in Vietnam

Ký lại Hợp đồng thuê đất với Nhà nước trong trường hợp chuyển nhượng quyền sử dụng đất tại Việt Nam

In Vietnam, leasing land directly from the State is a common option to acquire land use right (LUR). That means one, as master “land user” (người sử dụng đất), needs to sign a land lease agreement (LLA) with State, by which it is obligated to pay land rental.

Personal Income Tax (“PIT”) treatment on income and expenses paid to employees during COVID-19 pandemic - Oct 2020

Local tax authorities have issued Official Letters as guide for employers and employees in the reporting of income and expenses paid relating to COVID-19 pandemic. To help employers and employees understand how these payments may affect your withholding and reporting obligations, we have summarised the main points as follow.

EVFTA preferential export and import tariffs announced

The Government has issued Decree 111/2020/ND-CP providing Vietnam's preferential export and import tariffs for the period 2020 - 2022 to implement the EVFTA.

Vietnam: Corporate Income Tax Reduced by 30% for 2020

On 25 September 2020, the Government of Vietnam issued Decree 114 which provides guidance on the implementation of a 30% reduction of Corporate Income Tax. This update covers some of the key points.

Alert on immigration

On the 31 August 2020, the Ministry of Health issued Official letter No. 4674/BYT-MT to ministries, ministerial agencies, government agencies and the provincial People’s Committees providing guidelines on Covid-19 prevention and control for a short-term visit by foreigners of less than 14 days to Vietnam.

Customs duty treatment applicable to goods subcontracted to an EPE for processing

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.

Major New Restrictions On Telemarketing In Vietnam

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.

Digital Signatures in Vietnam

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.

Determination of a group of affiliated enterprises under Vietnam merger control regulations

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.

New Amendments to the Law on Laws 2015 in Vietnam

Những sửa đổi, bổ sung mới của Luật Ban hành văn bản quy phạm pháp luật 2015 tại Việt Nam

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.

Amendments to the interest expense cap under Decree 20/2017

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.

Proof of origin under EU - Vietnam Free Trade Agreement (EVFTA)

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.

New Law on Public Private Partnership

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.