New prominent regulations of Vietnam in effect from October, 2016 (Part 2)

1. Principles on manager salary calculation of State owned limited liability company with one member

Circular No.  27/2016/TT-BLĐTBXH guiding salary, bonus, and remuneration of manager in wholly State-owned single-member limited liability company is issued on 01 September 2016.

Accordingly, manager salary is calculated in the following principles:

Full-time manager salary is calculated and paid on the basis of production, business efficiency and management results. It does not exceed maximum level and does ensure reasonableness in light of other employee’s salary.

– The salary of part-time manager is calculated on the basis of working volume and time and does not exceed 20% of the salary of full-time manager.

– The salary fund of managers is determined on a year-by-year basis, separately from the salary fund of workers.

– Every month, managers shall be paid in advance by 80% of the provisional salary of the month. The remaining 20% shall be settled and paid at the end of the year.

– The salary fund of managers is recorded as production costs or business costs as in an item in annual financial report.

This Circular takes effect as of 15 October 2016.

2. Salary adjustment coefficient for managerial positions in state-run enterprises

As of 15 October 2016, Circular No.28/2016/TT-BLDTBXH guiding the implementation of regulations on salary and remuneration in joint-stock or limited liability companies with State controlling stakes takes effect.

Accordingly, the increase coefficient applied to the statutory pay rate shall accord with the profitability of main business lines of the companies as follows:

– Maximum coefficient of 0.5 in an enterprise that earns profit(s) of 50 to less than 100 billion Vietnam dongs;

– Maximum coefficient of 1.0 in:

+ Enterprises in a sector of banking, finance or telecommunications with profit(s) of 100 to less than 500 billion Vietnam dongs;

+ Enterprises in a sector of oil and gas extraction and processing, mining, electricity, trading or services with profit(s) of 100 to less than 300 billion Vietnam dongs;

+ Enterprises in other sectors with profit(s) of 100 to less than 200 billion Vietnam dongs.

– Maximum coefficient of 1.5 in:

+ Enterprises in the sector of banking, finance or telecommunications with profit(s) of 500 to less than 1000 billion Vietnam dongs;

+ Enterprises in a sector of oil and gas extraction and processing, mining, electricity, trading or services with profit(s) of 300 to less than 700 billion Vietnam dongs;

+ Enterprises in other sectors with profit(s) of 200 to less than 500 billion Vietnam dongs.

3. Time limit on access to the customs information portal

Decision No. 33/2016/QD-TTg in effect as of October 15, 2016, defines the provision and use of information from electronic customs declarations.

The lifetime of an account that provides access to the customs information portal shall be:

– 24 months (or a length of time as requested by the user but less than 24 months) for a new or extended account;

– Such time limit shall apply upon the General Customs Department’s response in writing to the user’s contact person regarding the registration or extension of access time.

– General Customs Department is responsible for informing each account holder of the expiration of access time 30 days before the expiry date by email or text messaging with electronic addresses and telephone numbers that General Customs Department officially announces.

4. Original C/O may be additionally submitted within 30 days

On 4 October 2016, the Ministry of Finance issued Official Letter No.13959/BTC-TCHQ to add some guidelines to Official Letter No. 12802/BTC-TCHQ regarding time of submission of C/O (exclusive of C/O Form VK/KV).

Whereby:

– In order to be eligible for enjoying the special preferential tax rates, enterprises must submit the original C/O at the time of making customs procedure.

– In case the original C/O is not available at the time of making customs procedure, enterprises must declare the additional submission of the C/O on the customs declaration and the C/O must be submitted within 30 days as from the customs registration date.

– The time of making customs procedure is counted from registration of customs declaration to the time before the goods are granted the customs clearance.

– During the C/O is not yet submitted, enterprises must declare according to the MFN tax rates.

The guidelines provided in Official Letters No. 13959/BTC-TCHQ and No. 12802/BTC-TCHQ are applied to the customs declarations registered before September 14th, 2016.

5. Inpatient bed shall be not free of charge in case of emergency time under 4 hours

This regulation is mentioned in Official Letter No. 7117/BYT-KH-TC issued by the Ministry of Health regarding additional guidance to implement Joint Circular NO. 37/2015/TTLT-BYT-BTC on prices for medical examination and treatment services covered by medical insurance among hospitals of the same level across Vietnam

Accordingly, in case of patients visiting emergency department without going through diagnosis department:

– In case of treatment time under 4 hours, health insurance (HI) agency shall bear costs for medical treatment, medicines and technical services within the scope of HI payments.

HI agency as well as patients does not have to pay for inpatient beds to health facilities.

– In case of treatment time of 4 hours or more, HI agency and patients shall pay for inpatient beds, medicines and technical services to medical facilities as prescribed without having to pay for medical treatment which is already included in the costs of inpatient beds.

The foregoing guidance does not apply to the case of patients visiting diagnosis department before going to emergency department. In such case, patients still have to pay costs for medical treatment as prescribed.

Additionally, the official letter also guides some other contents, such as:

– Payment for inpatient beds; payment for medical treatment at regional polyclinics directly under district hospitals/health centers; payment for beds at commune health stations.

– Polyclinics directly under provincial or central hospitals shall be applied with health service prices according to the grade of such hospitals…

This official letter takes effect as from 01 October 2016.

6. The support rate for coastal forest protection

Decree No. 119/2016/ND-CP of the Government on a number of policies for management, protection and sustainable development of coastal forests in response to climate change takes effect from 10 October 2016.

Under this Decree, the maximum support rate for contracted protection of coastal forests shall be equal to 1.5 times the average support rate for contracted protection of protective forests in accordance with current regulations.

Additionally, the support for preparing documents of contracting for forest protection and regeneration of natural forests shall be VND 50,000 per hectare and applied in the first year.

In addition, individuals and organizations are entitled to develop trademarks of products originated from coastal forests and coastal forest ecosystems and to receive compensation for working or investment results when the Government makes decision on withdrawal of forests.