New policies take effect in April 2016

1. On Feb 2^nd 2016, the Government issued Decree no.11/2016/ND-CP detailing the regulations on implementing a number of articles of the Labor code regarding foreign workers in Vietnam.

This Decree provides detailed regulations for implementation of the Labor Code regarding the issuance of work permits to foreign citizens to work in Vietnam takes effect from April 1st 2016: workers who comply with the company’s internal reassignments; volunteers; taking charge of establishing the commercial presence; managers, chief executive officers, experts, technicians; determination of job positions available for foreign workers; foreign workers exempt from work permits; issuance and reissuance of work permits and expulsion of of foreign workers without work permits; revocation of the work permit and expulsion of foreign workers.

Conditions for issuing the work permit: the worker is capable of civil acts as prescribed by law; the worker’s health is fit for working; the worker is a manager, chief executive officer, expert or technician; the worker is not a criminal or liable to criminal prosecution in accordance with the Vietnam law and the foreign country’s law; the employment of the foreign worker is approved in writing by a state competent authority.

The Decree takes effect from April 1^st 2016.

2. Corporate income tax incentives:

According to Circular 21/2016/TT-BTC, corporate income tax incentives for supporting products manufacturers are regulated as follow:

– Incentives are applied to corporate income from supporting products which satisfies requirements in Law on amendments to tax law and implementation docments, and is granted with Certificate of supporting industry incentives.

– Process and procedure for incentives confirmation and verified for supporting industry companies in the list of priortized supporting products as regulated in Circular 55/2015/TT-BTC.

– Corporate income tax incentives are calculated according to certificate of incentives for priortized supporting products.

– As for incentive rate, application time, and incentive transition activities are implemented according to regulations in corporate income tax.

– During the favoring time under corporate income tax incentives, if the manufacturer has different business activities, then income from supporting products must be calculated separately to be applied with corporate income tax incentives.

Corporate income tax incentives are regulated in Circular 21/2016/TT-BTC which is apply for tax calculation period from fiscal year 2015.

3. Adjustments and amendments preferential import tax rates

– From April 8th 2016, preferential import tax rates imposed on n-Hexane solvent used in manufacturing soybean oil-cake, vegetable oil, defatted rice bran, and extracted rice bran oil (HS code 9842) which is regulated in Circular 31/2016/TT-BTC dated Feb 23th 2016 is 2%.

– According to Circular 25/2016/TT-BTC dated Feb 16th 2016 (takes effect from April 3rd 2016), preferential import tax rates imposed on Diammonium hydrogen phosphate (HS code 3105.30.00) is 5%.

4. Guidance on preliminary project selection; establishment, appraisal and approval for project proposal and feasibility study report on investment project under form of public-private partnership.

On March 1st 2016, Ministry of Planning and Invesment issued Circular 02/2016/TT-BKHĐT providing guidance on preliminary project selection; establishment, appraisal and approval for project proposal and feasibility study report on investment project under form of public-private partnership.

The Circular provides principles, criteria for preliminary project selection of PPP project and detailed guidance on preliminary project selection; establishment, appraisal and approval for project proposal as regulated in Decree 15/2015/NĐ-CP.

The Circular takes effect from April 18^th 2016.

5. General Department of Customs issued new regulations on one-stop service

General Department of Customs issued Decision no.369/QĐ-TCHQ dated March 3^rd 2016 providing regulations on one-stop service machenism which takes effect from April 1st 2016, replacing Decision 854/QĐ (dated May 11th 2007).

One-stop service in General Department of Customs is the machenism to process administrative procedures and works under the Department’s authorities by only one stop which providing guidance, documents receiving, and returning results (One-stop service Division) to all relating policies, export-import activities upon requested by individuals and/or firms.

Thus, within 10 working days from the receiving date, the eligible tax examption application must be processed. If the application is eligible, within a maximum of 5 working days from the receiving date, a response must be sent by the processing division.

6. E-border guard procedure at seaports

Decision 10/2016/QĐ-TTg dated March 3^rd 2016 on guiding the implementation of E-border guard procedure at seaports under the management of Border Guard of Ministry of National Defense takes effect from April 18^th 2016

Border guard procedure at seaports must be implemented in an equal, safe, public, transparent and easy manner, and must be complied with Vietnamese laws and regulations regarding e-commerce, entry or exit and relating international treaty in which Vietnam is also a country member.