Sunday, 06/24/2018
Dao & Brothers Law Firm | Add: No. 369, Nguyen Trai, Thanh Xuan, Ha Noi | Tel : (+84-24)3.557.9568*  Fax: (+84-24)3.557.9598 * Hotline: 0945.490.123
Fresh guidelines on special consumption tax

The Government on October 28 issued Decree No. 108/2015/ND-CP detailing and guiding the implementation of some articles of the Special Consumption Tax Law 2008 and amending and supplementing some articles of the SCT Law 2014.

Question: What are the new regulations on the new Decree No. 108/2015/ND-CP detailing and guiding the implementation of some articles of the Special Consumption Tax Law 2008?

Answer:

Objects subject to the SCT

Decree 108 has further clarified the characteristics of the objects subject to tax as stipulated in the SCT Law such as aircraft and yachts designed for civilian purposes; votive objects excluding children toys and teaching aids; betting businesses including sports and entertainment betting and other forms of bettering as prescribed by law. The Decree also emphasizes the goods subject to SCT shall be finished products excluding sets of components to the very finished products.

Objects outside the SCT

Decree 108 has specifically listed the types of goods outside the SCT stated in the SCT law including:

Aircraft and yachts used by business, security and national defense; or converted to uses other than security and national defense;

Vehicles designed by the manufacturer to be used as ambulances, prisoner transport vehicles, funeral vehicles; vehicles designed for use by both sitting and standing passengers with a capacity of 24 people or more; cars designed for use only in amusement parks, for recreation or sport, and which are not registered or fit to be used on main roads and in traffic;

Imports from abroad into non-tariff areas, domestic goods sold in non-tariff areas and only used therein, goods traded between non-tariff areas, except for the goods brought into the areas which entitled to the status of non-tariff areas, except for the goods brought into the area which entitled to the status of non-tariff areas where people inhabit, and there are no solid fences and passenger cars of less than 24 seat; and

Air conditioning with capacity of 90,000 BTU or less as designed by the manufacturer for installation on transport vehicles.

Price for SCT calculation

Decree 108 also guides how to determine the price for SCT calculation for some commodities as follows:

The price for SCT calculation with regard to imports (excluding gasoline of all types) sold by importer establishments shall apply to the same calculation as domestically produced goods based on the selling price without value added tax or environmental protection taxes (if any);

For the imports at the import stage, the price for SCT calculation is determined by the total for calculating import duty;

For the goods sold on an installment or deferment basis, the price for SCT calculation is the price of goods sold by lump-sum payment, excluding any interest on installment or deferral;

For tobacco products, the price for SCT calculation shall include compulsory contributions and support expenses as provided by the Law on Prevention and Control of Tobacco Harm; and

For the goods subject to the SCT, the price for SCT calculation does not exclude the value of packaging and container bottles.

Decree 108 also emphasizes that the date of the revenue generated from the goods is the date of transferring the ownership or right to use goods by the buyer, regardless of whether or not the sale proceeds are received; for services, that is the date of completing the provision of services or the date of billing for the service, regardless of whether or not the service proceeds are received.

SCT repayment

The repayment occurs when the paid amount of SCT is larger than the tax payable or pursuant to the decision of the competent authority or an international treaty to which Viet Nam is a member.

SCT deduction

Under Decree 108, the tax deduction is made when taxpayers conduct its tax declaration and payment whereby; and

Taxpayers for the imports subject to SCT (except for gasoline of all types) are eligible to deduct the paid tax amount at the import stage upon determining the tax payable for domestic sales.

Decree 108 takes effect from January 1, 2016 replacing Decree 26/2009/ND-CP, dated March 16, 2009 and Decree 113/2011/ND-CP, dated December 8, 2011./.

Source: VGP

Guides on foreign investment projects in VN

The Government on November 15, 2015 released Decree 118/2015/ND-CP, detailing and guiding the implementation of some articles of the 2014 Investment Law (Decree 118).

Question: What are the new regulations on the implementation of investment activities, termination of investment projects, report on investment projects, and investment incentives and support as stipulated on Decree 118/2015/ND-CP?

Answer:

Implementing investment activities

Scope and conditions of each project, investment projects shall comply with one or more of the following procedures: (i) the decision on investment policy and issuance of an investment registration certificate in accordance with Investment Law and this Decree; (ii) establishment of economic organizations for foreign investors to invest in the form of economic organization establishment; (iii) implementing procedures for allocation and re-allocation or lease, sub-lease, or permit the change of purpose of land use in accordance with the law on land (if any); (iv) implementing construction procedures in accordance with the law on construction. In case investors award the auction for the land use right or the bidding for investment projects involving land use, the investment will be implemented under the relevant provisions with written approval of the auction result or result of investor selection in consistency with the law and have not to perform the procedures of investment policy decision with the People’s Committee at provincial level.

Foreign investors investing in the form of capital contribution and share purchase, the capital share in the economic organization is not required to perform the procedures issuance of an investment registration certificate, unless foreign investors contribute capital and purchase shares or equity: (i) in economic organizations performing in conditional investment business lines applicable to foreign investor; (ii) the capital contribution, purchase of shares or equity lead to an increase in charter capital owned by foreign investors under 51% to over 51%, and increasing its percentage of owned charter capital for investors that already own more than 51% of charter capital in economic organizations.

Termination of investment projects

Decree 118 also instructs in detail the order and procedures for termination of the project in the cases mentioned in Article 48 of the Law on Investment. Termination of the project due to unable to contract with the investor, Decree 118 stipulates that when the project stops due to an investor such as sending a letter requesting the investor to make contact at the address registered with IRA or send a letter requesting communication support from the People’s Committee of the commune where the investor resides. After implementing contact measures and after the expiry of 12 months from the date the investment project stopped operating, and the investor or his legal representative still can not be contacted, the IRA will end the project. Assets of the investment project will be resolved in accordance to the provisions of the civil law on property management of absentee people.

Report on investment report

Economic organizations implementing investment projects must report to the IRA and State management agencies with respect to local statistics indicators, including (i) monthly report on the implementation of capital; quarterly reports made before the 12th of the first month of the quarter following the quarter being reported; and (ii) annual reports to be made before March 31 of the following year reported.

Reports will be sent online on the National Information System for investment and which does not need to be submitted in writing.

Investment incentives and support

According to Annexure I on list of incentives lines of investment and Annex II on list of areas of investment incentives which details the provinces and cities facing difficult or extremely difficult economic-social conditions, investment projects may apply for investment incentives. Accordingly, beneficiaries include investment projects in regions with difficult economic-social conditions; projects implemented in industrial parks, export processing zones and projects to which the special investment incentives apply in areas with special difficulties; and investment projects implemented in high-tech zones and economic zones, and will have its deposits reduced by 25% and 50% in accordance with the law.

Decree 118 replaces Decree 108/2006/DN-CP and shall take effect on December 27, 2015./.

 

Taxes applying to foreign contractors

The Ministry of Finance on August 6, 2014 issued Circular 103/TT-BTC (Circular 103) replacing Circular 60/2010/TT-BTC to provide guidance on tax obligations applied to foreign organizations and individuals to do business or originate income in Viet Nam.

Question: Who are the two supplemented objects subjected to tax treatment in accordance with Circular 103?
What are some cases not subjected to tax applying to foreign contractors?

How much value added tax (VAT) applying to foreign contractors?

Answer:

Circular 103 supplements two objects subject to tax treatment including:

· Foreign organizations and individuals conducting a part of the whole distribution of goods and provision of services into Viet Nam in which such organizations and individuals are still owners of the goods delivered to Vietnamese organizations or bear the cost for distribution, advertising, promotion and quality of goods and services in Viet Nam (including the case of authorization or hiring Vietnamese parties to conduct a part of distribution services or other services related to the supply of goods in Viet Nam)

· Foreign organizations and individuals through Vietnamese organizations and individuals to conduct negotiations and sign contracts under the foreign organizations and individuals’ names; or perform export, import and distribution rights in Viet Nam or purchase of goods for export or for sale to Vietnamese traders under the commercial law.

Addition of some cases not subject to tax

· Where the sellers delivers goods at the border of Viet Nam or overseas without attached services conducted in Viet Nam even in cases of having warranty conditions under the sellers’ obligations and responsibilities;

· Foreign organizations and individuals which use bonded warehouses and inland container depots (ICD) as storage of goods for ancillary supporting international transportation, transit, cross-border transportation or other enterprises’ processing are added to list of objects not subjecting to tax under this Circular.

VAT calculation

In accordance with the rates of revenue, as from October 1, 2014, VAT payable will be calculated on the VAT taxable revenue instead of calculating VAT payable basing on the added value as stipulated in Circular 60.

Percentages for VAT calculation are specified from 2-5% depending on the lines of businesses.

Circular 103 took effect from October 1, 2014./.

Source: VGP

Can foreign individuals buy a house in Viet Nam?

buying_apartmentHousing is not only a great asset of individuals, households, housing is also considered a necessary condition ranks third after eating and wearing to help people can safely participate in labor, make wealth for society. For foreign investors need to do business, study and live in Vietnam, the housing is one of the top concerns when they enter Vietnam, so can they buy a house?

According to Viet Nam Law, the following individuals are allowed to buy and own apartment in Vietnam:

a) Individuals are investing directly in Vietnam in accordance with the law on investment or working in enterprises in Vietnam (including domestic enterprises and foreign capital enterprises).


b) Individuals have contributions to Vietnam and was offered medal by President Socialist Republic of Vietnam.

c) Individuals have graduated university or equivalent degree, who have the knowledge and special skills which Vietnam needs.

d) Foreign individuals married to Vietnam citizen.

e) The enterprises are operating in Vietnam under the investment law need of housing for people working in businesses. These enterprises include joint venture between foreign investors to domestic investors and enterprises with 100% foreign capital, enterprises have foreigner worked on the basis of business cooperation contracts.

Conditions to purchase and own house in Vietnam

Under the rules of Resolution No. 19/2008/QH12, the five subjects above are only allowed to buy and own house in Vietnam if they meet the following conditions:

- For individuals who must live and work in Vietnam, were lisenced to live in Vietnam for least 01 years. Diplomatic passports are not allowed to buy houses.

- For enterprises with foreign investment which must have investment certificates or documents equivalent to the investment certificates issued by the competent authorities of Vietnam.

- Housing is the apartment in the housing development project and not locating in prohibit or restrict areas.

Purchasing procedures and ownership housing certificate

- The buying and selling houses must through the purchase contract was signed under the provisions of the Housing Law. In case, foreigners buy houses of the real estate businesses the housing purchase contract must not be notarized; If the purchase house of individual in urban areas, the housing purchase contract must be authenticated by the district People's Committee; If the purchase house in rural areas, the housing purchase contract must be certified by the commune People's Committee.

- After signing the purchase contract, the parties must pay the financial obligations according to the State, after fulfilling financial obligations buyer must file the record to offer issuance of ownership housing certificate, including housing purchase contract, ownership housing certificate of seller and temporary residence paper of the buyer.

- Time issues ownership housing certificate for buyers in the 30 days.

Rights and obligations of housing owners

a) Foreign individual only owns 01 apartments in the same time. Duration owned apartment is maximum of 50 years and owner only use to stay, must not for lease, must not use the apartment for other purposes.

Owners can only sell or offer apartments after 01 years from the date of issuance of ownership housing certificate, unless special reasons that owners can not continue to reside in Vietnam such as sick must return home... is entitled to sell or donate the apartment before this deadline.

When the time limit expired own house in Vietnam, the owners have to sell or donate the apartment for someone else, otherwise the ownership housing certificate will be revoked.

b) Enterprises with foreign investment have rights to buy and own one or several apartments in the housing development for the employees are working in the business. The duration of ownership of the enterprise correlative to the time limit in the investment certificate issued. As for individual, enterprises can not use for be rented or use for other purposes. When the investment certificate expire or enterprise bankrupts, the apartment will be handled in accordance with the enterprise law, bankruptcy law and other regulations of Vietnam Law.

c) The obligations of owners: the owners have to fulfill the obligations according to regulations of Vietnam law such as: Environment law, social security, fire prevention, rules on residence, travel of foreigners, strict implementation of regulations on housing transactions...

Handling violations and disputes, complaints

The handling of violations: The organizations or individuals are the wrong subjects, unqualified or fake documents to own houses in Vietnam will not be granted ownership housing certificate. If after the issuance of certificates that are detected the certificate shall be revoked and purchased housing can not be used. In case foreigners use the house for illegal activities, foreigners will be expelled from Vietnam, the house will be resolved by decision of the Court and according to the provision of the Vietnam Law.

 

Setting up a joint venture with a Vietnamese partner

Question: We want to set up a joint venture with a Vietnamese partner, operating in trade and export. What does Vietnam require for members of board of management, establishment of a supervisory board, recruitment of foreign accountants, and dismissal of laborers? (A Germany-headquartered transportation company)

Answer:

1. Members of the board of management

Under Article 109 of the Law on Enterprises, the Board of Management shall consist of at least three members and no more than 11. The number of members of the Board of Management residing in Vietnam is stipulated in the joint venture's Charter. The term of the Board of Management is five years.

Article 110 of the same Law sets criteria and conditions for members of the Board of Management. Accordingly, a member of the Board of Management must have sufficient capacity for civil conduct, fall outside the scope of subjects which are prohibited from business management (as stipulated in this Law) and own at least 5% of ordinary shares of the company or have expertise and experience in business management.

2. Establishment of a board of supervisors

A joint venture with 11 or more shareholders must establish a Board of supervisors. If the company has less than 11 members, it can decide whether to set up the supervisory board in line with requirements of the Board of Management.

3. Recruitment of foreign accountants in joint ventures

A joint venture can employ a foreign chief accountant and accountants who have accounting certificates recognized by the Vietnamese Ministry of Finance and at least two-year experience (with one year working in Vietnam).

4. Terminating labor contracts

According to Article 39 of the Labor Code, the joint venture shall not be permitted to terminate unilaterally a labor contract if the employee is suffering from illness or injury caused by a work-related accident or occupational disease, is on annual leave or during pregnancy, maternity or raising a child under 12 months old.

Under Article 41 of the Code, when an employer unilaterally and illegally terminates a labor contract, he must recruit the employee for the position in the signed contract and must pay compensation equal to the amount of wages and wage allowance (if any) for the period the employee was not allowed to work, plus at least two months' wages and wage allowance (if any)./.

Source: MPI

Procedures for foreign investors to establish firms in Vietnam?

Answer: The Vietnamese State encourages overseas organizations and individuals to invest in Vietnam in accordance with its current laws, such as the Law on Investment adopted by the National Assembly on November 21, 2005 and the Government’s Decree 108/2006/NĐ-CP ratified on September 22, 2006 on the implementation of the Law on Investment. Accordingly, any foreign investor interested in initially investing in Vietnam is obliged to present their investment projects and fulfill procedures of investment registration or verification at competent State agencies, so as to acquire investment certificates. Under Article 50 of the Law on Investment, the investment certificate is also the business registration certificate.


To set up a company in Việt Nam, a foreign investor has to take the following steps:

- Adopting a type of investment as regulated in Article 21 of the Law on Investment and Article 5 of Decree 108/2006/ND-CP;

- Drafting records and fulfilling procedures of investment registration (Article 46 of the Law on Investment; Article 44 of Decree 108/2006/ND-CP) then submitting them to competent agencies (Article 40, Decree 108/2006/ND-CP);

- The approval and issuance of the investment certificates is legalized in Articles 37-39 of Decree 108/2006/ND-CP.

Foreign investors can refer to instructions on setting up an enterprise in Hanoi by accessing to http://vietnam.investway.info published by the MPI and the United Nations Conference on Trade and Development.
Source: MPI

 

Legal conditions in terms of hiring foreign experts

Question: We are a 100% foreign-invested company in Vietnam. At present, we want to hire some foreign experts for short-term and long-term jobs. May we know some legal conditions in terms of hiring foreigners?

Answer:

The Vietnamese Government welcomes foreigners from all corners the world to come to work and live in Vietnam.

According to Article 34/2008/NĐ-CP dated on March 25, 2008, foreigners who want to work in Vietnam, must satisfy the following conditions:

1. Age from 18 years old up;

2. Good health conditions;

3. Being managers, executives or experts (as stipulated in Items 2 and 3 of Article 2 of the Decree);

For those who want to work as individual practitioners or pharmacists or engage in educational and vocational training activities, they must obey other related regulations.

4. Bearing no previous conviction for violating national security; not being investigated or executing punishments under the legal regulations of Vietnam and other countries.

5. Having labor permits granted by the Vietnamese competent bodies, except for some specific cases as stipulated in Item 1 of the Decree’s Article 9.

Source: MPI Portal

Conditions for foreigners to open clinics in VN

 

images-clinicForeign organizations and individuals and overseas Vietnamese may invest in medical examination and treatment, pharmacy, vaccines, medical bio-products and/or medical equipment in Việt Nam.

 

Question:

(A Singaporean) I got marriage with a Vietnamese citizen and live in Việt Nam. Could I open a consulting room or pharmacy in Việt Nam?

Answer:

 

The Government’s Decree 103/2003/NĐ-CP allows foreign individuals and organizations as well as overseas Vietnamese to engage in medical and pharmaceutical practice. 

The Ministry of Health (MoH) will license the applicants if they meet the following conditions: 

- Able to satisfy the demand of health care of Vietnamese and/or foreigners in Việt Nam;

- Having locations, medical equipment and other necessary conditions in conformity with the MoH’s regulations;  

- The heads of foreign-invested medical examination and treatment establishments, the heads or professional managers of enterprises dealing in pharmacy, vaccines, or medical bio-products must be licensed by the MoH;

- Foreigners directly involved in examination and treatment must be fluent in Vietnamese or have interpreters. Their prescriptions must be written in Vietnamese and the language of the foreigners who directly give the medical examinations and prescriptions. 

So, a Singaporean doctor will be able to open a clinic or pharmacy in Việt Nam if he meets the criteria and receives a certificate from the MoH./.
Source: VGP

 

Stipulations on investment dispute resolution

images-investment_dispute_resolution

Any dispute relating to investment activities in Việt Nam shall be resolved through negotiation and conciliation, or shall be referred to arbitration or to a court in accordance with law.

Question: What are regulations for addressing investment disputes in Việt Nam?

Answer:

 Under Article 12 of the Law on Investment, any dispute to which one disputing party is a foreign investor or an enterprise whose investment capital is owned by foreigners, or any dispute  between foreign investors shall be resolved by one of the following tribunals and organizations:

(a) A Vietnamese court;

(b) A Vietnamese arbitration body;

(c) A foreign arbitration body;

(d) An international arbitration body;

(e) An arbitration tribunal established in accordance with the agreement of the disputing parties.

Any dispute between a foreign investor and the State administrative body of Việt Nam relating to investment activities in the territory of Việt Nam shall be resolved by a Vietnamese court or an arbitration body.

The regulation is inapplicable to the cases in which representatives of competent State bodies of Việt Nam and foreign investors reached other agreement contained in the contract they signed or in an international treaty of which the Socialist Republic of Việt Nam is a member./.

Source: VGP

Provisions on establishment of websites

images-webDomestic and foreign organizations, enterprises and agencies in Việt Nam have to apply for licenses from the Ministry of Information and Communications (MIC) in order to establish websites and provide information on the Internet.

Question: What are requirements for setting up a website on the Internet in Việt Nam?

Answer:

Article 21 of the Government’s Decree 97/2008/NĐ-CP, dated on August 28, 2008 stipulates requirements for licensing websites in Việt Nam.

- Licensing conditions:

a/ Being an organization or enterprise established and operating under the laws in Việt Nam;

b/ Having adequate technical facilities, personnel and management programs serving the establishment, provision and management of information suitable to the operation scale;

c/ Head of the organization or enterprise commits to full responsibility for the contents of the website.

- Dossier requirements

Application dossiers for a license shall be made in two sets, each comprising:

a/ An application for a license to establish a website;

b/ The business registration certificate, investment certificate or establishment decision;

c/ The curriculum vitae of the head of the organization or enterprise;

d/ A plan on the establishment of the website, clearly presenting purposes, contents of information, major columns, legal sources, operation process, staff, sample of the front page; types of services to provide or exchange information, technical measures to secure information provision and management; and the domain name.

Within 15 working days after receiving valid dossiers as prescribed in Clause 2 of this Article, the MIC shall consider for approval.

A license for establishing a website is valid for no more than five years./.

List of investment-banned fields

images22Viet Nam prohibits investment projects harmful to the national defense, national security, public benefits, historical and cultural sites, ethics, traditional and beautiful customs; people’s health, natural resources and environment.

The investment-banned fields include:

1. The production and process of illegal drugs;

2. Investment in secret intelligence service which endangers the state benefits as well as legitimate rights and benefits of individuals and organizations

3. Investment in the domain of private detection and investigation

4. Projects built in the campus of national historical and cultural sites; and those which negatively affect the designs and landscapes of the national historical and cultural sites;

5. The production of pornographic and superstitious products;

6. The production of dangerous toys or toys that are harmful to children’s health and/or personality or to the social order and safety;

7. Sexual business; trade of women and children;

8. Piloting cloning on human;

9. The production of prohibited chemicals (under the International Convention);

10. The production of animal medicines and herbicides which are legally banned or not allowed in Việt Nam;

11. The production of human medicines, vaccines, medical biologicals, cosmetics, chemicals and pesticides which are not allowed in Việt Nam;

12. Projects treating poisonous wastes brought into Việt Nam or producing toxic chemicals or chemicals with toxicants which are banned by the international conventions of which Việt Nam is a member./.

Source: VGP

Transfer abroad of capital and assets

A foreigner working in Việt Nam for an investment project shall be permitted to transfer capital and assets abroad after having fulfilled completely his or her financial obligations.

Question: How to transfer capital and assets abroad?

Answer:

1. After fulfilling their financial obligations toward the Vietnamese State, foreign investors may transfer abroad the following:

a) Profits gained from business activities;

b) Payments for the supply of techniques, services or intellectual property;

c) Principals and interests on foreign loans;

d) Investment capital and proceeds from liquidation of investments;

e) Other sums of money and assets under investors' lawful ownership.

2. Foreigners working in Vietnam for investment projects may transfer abroad their lawful incomes after fulfilling their financial obligations toward the Vietnamese State.

3. The transfer abroad of the above sums of money shall be effected in freely convertible currencies at the exchange rates of commercial banks selected by investors.

4. Procedures for transfer abroad of money amounts related to investment activities shall comply with the provisions of foreign exchange management law.

 Source: VGP

Marriage procedures with foreigners

Vietnamese foreign diplomatic representative offices or consulates are in charge of handling marriage registration for Vietnamese citizens and foreigners.

Question: (A Vietnamese citizen) I intends to marry a Malaysian. Could I travel to Malaysia to register my marriage?

Answer: Under Item 3, Article 3 of Decree 68/2002/NĐ-CP, dated July 10, 2002 to direct the implementation of the Law on Marriage and Family on foreign-related marriage and family relations, Vietnamese foreign diplomatic representative offices or consulates are in charge of processing marriage registration for Vietnamese citizens and foreigners in overseas countries.

In this case, you can travel to Malaysia to register your marriage.

Regarding marriage between a Vietnamese citizen and a foreigner, each side has to comply with his/her regulations on marriage conditions. In addition, the foreigner has to follow the Vietnamese Law on Marriage and Family on marriage conditions and prohibited marriage.

Under Article 13 of the Decree, a marriage registration dossier consists of:

- A form of marriage registration by competent organizations within six months by the date of reception, indicating that the person concerned has no wife or husband;

(Concerning foreigners, their marital status may be confirmed in a separate)

- A health statement provided by competent clinics in Viet Nam or other countries within six months by the date of reception, certifying that the person concerned has no contact to any metal problems or, in case of suffering some metal problems, is still able to maintain their self-consciousness;

- A copy of Identify Card (Vietnamese citizens at home); passport or alternative papers (foreigners or overseas Vietnamese)

Source: VGP News

Regulations on Vietnamese citizenship

A child born to parents, one of whom is a Vietnamese citizen at the time of his/her birth and the other is a foreign national, holds the Vietnamese nationality if so agreed in writing by his/her parents at the time of birth registration, according to Article 16 of the Law on Vietnamese nationality.

Question: If I (Vietnamese American citizen) want to come to Viet Nam to give birth, whether my kid can hold the American nationality or not? When would I return to the US? Which documents will I need for coming to Vietnam and going back to the US?

Answer: Under Article 16, in case a child is born inside the Vietnamese territory but his/her parents fail to reach an agreement on the selection of his/her nationality, the child has the Vietnamese nationality.

If you want your child to have the American nationality, you should study the US law before deciding to give birth in Viet Nam.

Under item 1, Article 4 of Ordinance 24/2000/PL-UBTVQH10, dated April 28, 2000 on entry, exit and residence of foreigners in Viet Nam, foreigners entering or exiting Viet Nam must hold a passport or valid papers (which can be used as a substitute for passport) along with a visa issued by an authorized State agency of Viet Nam, except cases which enjoy visa exemption.

Hence, you must have the above documents if you wish to return to Viet  Nam./.

 

Tax procedures on cosmetic imports

Individuals have to comply with the regulations on customs, quality, tax and value-added tax payment for their cosmetic imports to Viet Nam.

Question: I have a friend who is studying in Japan. I hope to import cosmetic products made from Japan, China and Taiwan from a Japanese company to sell in Viet Nam. Which procedures and taxes do I have to follow?

Answer: If you want to import cosmetic products from Japan to Viet Nam, you will have to fulfill cosmetic procedures.

a) Customs file preparation

Under Article 22 of the 2005 Law on amendments and supplements to a number of articles of the Law on Customs, you will have to submit a customs file including:

·    A customs declaration;

·    Commercial invoices;

·    Contract for purchase and sale of goods;

·    Permit of the authorized State body which requires a permit

·    Other documents which a declarant is obliged to submit or present to the customs office as stipulated by law with respect to each item of goods.

b) Customs procedures

According to Article 16 of the Law, customs procedures consist of the following tasks:

·    Make and submit a declaration; present documents included in the customs file; in the case where electronic customs clearance procedures are conducted, the customs declarant shall make a declaration and send the customs file via the electronic database;

·    Take goods or means of transportation to the stipulated place for inspection of actual goods or means of transportation;

·    Pay duties and perform other financial obligations in accordance with the law.

In addition, the declarant will have to pay value-added tax, comply with the regulations stipulated on Articles 12 and 34 of the 2007 Law on Product and Goods Quality on conditions for obligations of importers and ensuring imported goods’ quality, and Article 35 of the Ministry of Health cosmetic management./.

Obligations of investors

Investors have to comply with the obligations of accounting, auditing and statistics, and environmental protection among others.

Question:

What are investors' obligations while doing business in Viet Nam?

Answer:

Investors shall have the following obligations:

1. To comply with the provisions of the laws on investment procedures; to carry out investment activities correctly in accordance with the registered investment contents [and/or] the provisions of the investment certificate;

The investor shall be responsible for the accuracy and truthfulness of the contents of investment registration and of the investment project file and the lawfulness of documents on certification;

2. To discharge fully financial obligations in accordance with law;

3. To carry out the provisions of the laws on accounting, auditing and statistics.

4. To perform obligations in accordance with the law on insurance, on labor; to respect the honor and dignity of employees and the customs of Viet Nam;

5. To respect and create favorable conditions for employees to establish or participate in political organizations and socio-political organizations;

6. To implement the provisions of the law on protection of the environment;

7. To perform other obligations in accordance with law.

Converting driving licenses in VN

Question: (A foreigner) I intends to stay in Viet Nam for one month. What should I do to drive a vehicle in Viett Nam?

Answer: Under Item 5, Article 40, Circular 07/2009/TT-BGTVT, dated June 19, 2009, specifying the training, testing and grant of road motor vehicle driver licenses, foreigners or overseas Vietnamese shall have to convert their foreign driving licenses or international driving permits into Vietnamese driving licenses.

Circular No. 15/2011/TT-BGTVT, dated March 31, 2011, on amending and supplementing a number of articles of the Minister of Transport’s Circular No. 07/2009/TT-BGTVT of June 19, 2009, stipulates that the conversion of driving licenses has to comply with the following provisions:

- A Vietnamese citizen can convert his/her driving license at the Viet Nam Road Department or Transport Departments at their temporary residence.

- Non-Vietnamese citizen residing over three months in Viet Nam would be allowed to convert their driving license.

In your case, if you intends to stay in Viet Nam for one month, you are not eligible for converting your driving license.

Consultancy Support

Tel:
Fax:
 
+(84-24)3.557.9668
 
+(84-24)3.557.9598
Please send your inquiry via E-mail: info@dao-lawfirm.com
icon_email

FQAs

Joomla Templates and Joomla Extensions by JoomlaVision.Com

Affiliates

notary
auction

Web link

bg_trai3