Our long-standing GBA board member Dr. Oliver Massmann, Partner at Duane Morris Vietnam LCC, is sharing the most relevant legal updates with you. Dr. Oliver Massmann is an International Attorney at Law and a Financial Accountant and Auditor, with over 20 years of experience working as a commercial lawyer in Vietnam.
Dr. Massmann is volunteering as a legal advisor for the GBA from the beginning of the association. Our regards and thank you!
Legal updates by Dr. Oliver Massmann| August 2021
- Tax cuts proposed to support businesses rocked by pandemic
- Vietnam cuts quarantine for fully vaccinated arrivals to 7 days: Health ministry
- New decision a legal tool to accelerate equitisation process
- Vietnam to amend legal documents in insurance business and for radio frequencies
1. Tax cuts proposed to support businesses rocked by pandemic
- The Tax Policy Department under the Ministry of Finance is drafting a proposal on tax reduction to support individuals and businesses affected by the COVID-19.
- There could be four different measures for tax reduction and exemption on late payment interest for businesses and individuals:
- Reducing 30 per cent of corporate income tax (CIT) payable in 2021 for enterprises and organisations as applied in 2020;
- Reducing 50 per cent of payable tax amount arising from production and business activities in the third and fourth quarters of 2021 for vulnerable business households and individuals doing business in all industries;
- Reducing 30 per cent of value-added tax for enterprises and organisations operating in a number of service sectors;
- Exemption of late payment interest arising in 2020 and 2021 for enterprises and organisations incurring continuous losses in 2018, 2019, and 2020.
- The MoF is also studying and reporting to the prime minister several solutions to reduce land rents for 2021.
- Vietnam cuts quarantine for fully vaccinated arrivals to 7 days: Health ministry
- Fully vaccinated arrivals to Vietnam with negative COVID-19 tests will only have to undergo seven days of centralized quarantine and another seven days for medical observation.
- The decision is made based on data from the World Health Organization (WHO) in Vietnam, US Centers for Disease Control and Prevention (CDC), and the National Steering Committee for COVID-19 Prevention and Control.
- It is applicable to those having certified (by relevant authorities of the home country) proof of negative RT-PCR tests for SARS-CoV-2 72 hours prior to departure, having been fully vaccinated with the last dose at least 14 days but no more than 12 months before the entry time (with vaccination certificates); or in place of vaccination records, those having been infected with coronavirus (with documents proving the positive status using RT-PCR method no more than six months prior to the entry date), or proof showing they have recovered from the disease or hospital discharge or equivalent documents issued by competent authorities in the country where they have been treated.
- Those completing centralized quarantine and travelling to their residences/hotels/accommodation for further observation must wear masks, keep a distance, and use the contact tracing app Bluezone.
- New decision a legal tool to accelerate equitisation process
- The prime minister’s newly-issued decision on State capital divestment at enterprises is an important legal tool to accelerate the current sluggish equitisation process of State-owned enterprises (SOEs).
- Decision No 22/2021/QD-TTg dated July 2, 2021 of the prime minister stipulates criteria for the classification of State-owned enterprises and State-invested enterprises undergoing ownership conversion, restructuring and divestment in 2021-2025.
- Under the decision, the prime minister will approve restructuring plans for nearly 500 “parent companies”, such as maintaining an enterprise in which the State holds 100 per cent of charter capital, the State will hold from over 50 per cent to under 65 per cent of charter capital after the equitisation, or the State will hold from 65 per cent of charter capital after equitisation.
- Notable names in the restructuring list include the Vietnam Posts and Telecommunications Group (VNPT), Electricity of Vietnam (EVN), The Vietnam Oil and Gas Group (PVN), Vietnam National Coal and Minerals Group (Vinacomin or TKV), Vietnam National Chemical Group (Vinachem), Military Industry-Telecoms Group (Viettel) and the State Capital Investment Corporation (SCIC).
- Vietnam to amend legal documents in insurance business and for radio frequencies
The Vietnamese government on August 17 discussed amendments of some laws and legal documents on insurance business and radio frequencies, among others, to further facilitate business activities.
- The discussions focused on the amendments of the Law on Insurance Business, a revision of the Law on Radio Frequencies, and a draft decree on collection fees to use these, as well as related bidding, licensing, and transfer of the rights to use radio frequencies.
- The government also discussed amendments and supplements for several laws to solve difficulties and challenges in investment and business activities amid the global health crisis.
- Regarding the draft amendments to the Law on Insurance Business, the government aims to cut administrative procedures and establish tools to control the transfer of profits outside the country, as well as encourage Vietnamese firms to join the insurance business.
- In terms of the amendments to the Law on Radio Frequencies and the related draft decree the rights to use these, the PM said that radio frequencies are a national resource.
- The PM assigned relevant agencies and ministries to gather ideas and complete the draft amendments on both laws.