vietnam

30% corporate income tax cut in 2020 - Newsbrief

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.

Merger filling requirement arising from enforcement of security over shares or capital contribution under Vietnamese Competition Law - Legal Update

Yêu cầu thông báo tập trung kinh tế phát sinh từ việc xử lý tài sản bảo đảm là cổ phần và phần vốn góp theo Luật Cạnh Tranh của Việt Nam

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.

A U-Turn About Preemptive Rights Of Existing Shareholders In Joint Stock Companies In Vietnam

Thay Đổi Toàn Diện Đối Với Quyền Ưu Tiên Mua Của Cổ Đông Hiện Hữu Trong Công Ty Cổ Phần Ở Việt Nam

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.

Rules of Origin under EU - Vietnam Free Trade Agreement

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.

Vietnam’s Ratification of EVFTA and EVIPA

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.

Merger filling requirement arising from enforcement of security over shares or capital contribution under Vietnamese Competition Law

Yêu cầu thông báo tập trung kinh tế phát sinh từ việc xử lý tài sản bảo đảm là cổ phần và phần vốn góp theo Luật Cạnh Tranh của Việt Nam

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.

Alert on Immigration - July 2020

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.

Changes to the Law on Enterprises

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.

Rules of Origin under EU - Vietnam Free Trade Agreement - July 2020 Update

Quy tắc xuất xứ hàng hóa trong Hiệp định thương mại tự do Việt Nam và Liên minh Châu Âu

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.

RHTLaw Vietnam July 2020 Legal Updates: Amended Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; New Law on Tax Administration

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.

Is joint chairmanship in a joint stock company (JSC) allowed under Vietnamese law?

Đồng Chủ Tịch Trong Một Công Ty Cổ Phần (CTCP) Có Được Cho Phép Theo Pháp Luật Việt Nam?

New Criteria Of Anti-Competitive Agreements In Vietnam Under The Competition Law 2018

Tiêu Chí Mới Của Thỏa Thuận Hạn Chế Cạnh Tranh Tại Việt Nam Theo Luật Cạnh Tranh 2018

Governing law of an arbitration agreement in the absence of an express choice in Vietnam

Pháp luật điều chỉnh thỏa thuận trọng tài trong trường hợp không được lựa chọn rõ ràng tại Việt Nam

Issuance of Decree No.68/2020/ND-CP to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP regarding interest expenses of enterprises engaging in transactions with related parties

Quy định về Nghị định 68/2020/NĐ-CP mới ban hành sửa đổi, bổ sung Khoản 3 Điều 8 Nghị định 20/2017/NĐ-CP quy định về chi phí lãi vay đối với các doanh nghiệp có giao dịch liên kết

The Vietnamese Government has recently issued the Decree No. 68/2020/ND-CP in order to amend and supplement Point 3, Article 8 of Decree No.20/2017/ND-CP with regards to the deductibility of interest expenses for calculation of Corporate Income Tax. Decree 68/2020/ND-CP will take effective from tax year 2019 onward.

Letters of Credit (L/C) is subject to Value Added Tax (“VAT”)

Dịch vụ thư tín dụng (L/C) chịu thuế Giá Trị Gia Tăng (“GTGT”)

On 22 April 2020, the General Department of Taxation (“GDT”) issued Official Letter No. 1606/TCT-DNL to provincial tax departments confirming that the letter of credit service is subject to VAT according to the Law on VAT and the Law on Credit Institution.

Update on Vietnam Social Insurance

The Government issued Decree 58/2020/ND-CP on 27 May 2020 guiding employer's contribution to the Social Insurance Fund for occupational diseases and accident. Decree 58 comes into effect on 15 July 2020.

Submission of year-end customs finalization reports

Thời hạn nộp báo cáo quyết toán hải quan

Companies which engage in export production, toll manufacturing activities, and Export Processing Enterprises are required to submit annual customs finalization reports on their usage status of import duty exempt materials, exported products and actual consumption norms during the year.

Personal Income Tax (“PIT”) changes in 2020

The National Assembly has approved the new PIT changes in their recent meeting to increase personal and dependant relief in 2020.

EVFTA officially ratified by Vietnam’s National Assembly

Vietnam's National Assembly has officially ratified the EVFTA. After this ratification, the EVFTA will be effective soon and it is expected to boost the trade volume between Vietnam and the EU.

Resolution 84 – further Government support to businesses during the COVID-19 pandemic

Further to the support to businesses stated in Directive 11/CT-TTg, the Government issued on 29 May Resolution 84/NQ-CP aimed at further reduction of the pandemic’s impact on businesses.