New legal documents come into effect as from August 2016There are a range of decrees of the Government and circulars of ministries taking effect as from August 2016, as follows:1. Decree No. 45/2016/NĐ-CP dated 26 May 2016 of the Government amending a number of articles of the Government’s Decree No. 127/2013/ND-CP on penalties for administrative violations and enforcement of administrative decisions pertaining to customs controls took effect as from 1 August 2016.
Accordingly, in comparison with the earlier provisions, this Decree supplements the penalties for violations on management of materials, supplies, machinery and equipment, processed products or domestic exports results in discrepancy between actual stock and values in accounting documents, accounting books or documents about exports/imports. A fine of 20% of the understated amount of tax payable or the overstated amount of tax exempted, reduced, refunded or cancelled shall be imposed.
2. Decree No. 46/2016/ND-CP dated 26 May 2016 of the Government on administrative penalties for road and rail transport offences took effect on 1 August 2016 stipulates heavier penalties for behaviors which would cause transport accidents like ignorance of traffic lights, exceeding alcohol permits, excessive speeds, as well as highway infringements.
Especially, the Decree also states a new regulation under which those who steer their vehicles with their feet will incur a fine of VND 7-8 million (US$ 310-360).
3. Decree No. 49/2016/NĐ-CP dated 27 May 2016 of the Government amending and supplementary a number of articles of the Government’s Decree No. 109/2013/ND-CP on penalties for administrative violations against the law on pricing, fee management, and invoicing took effect on 1 August 2016.
In comparison with the current provisions, there are many important amendments to the provisions on penalties for violations against the law on invoices in the manner of being better for enterprises under this Decree.
Particularly, Clause 4 Article 3 of this Decree also supplements the provisions on fine exemption for the cases below:
- The case in which the second copy of an invoice is lost, burnt, or damaged because of other unexpected circumstances, force majeure events (under the earlier provisions, it is only exempt fine for the case of losing, burning, damaging the invoice because of natural disasters, conflagration);
- The case in which the buyer and the seller have made a record on the loss of the second copy of an invoice; the seller has declared, paid tax and has the contract, documents proving the goods sale and purchase and there are 02 extenuating circumstance (only a warning shall be imposed);
- In case in which organizations, individuals themselves detect errors and make another notification or report as prescribed in order to send to the tax agencies before the decisions on tax investigation, tax inspection at the taxpayers’ premise are made (Clause 7 Article 3);
4. Decree No. 51/2016/ND-CP dated 13 June 2016 of the Government providing labor management, wages and bonuses for employees of wholly state-owned one-member limited liability companies came into effect since 1 August 2016.
Accordingly, single-member limited liability companies whose charter capital is wholly owned by the State shall prepare an annual employment plan as the basis for recruitment and allocation of employees; in normal operational conditions, the average number of employees in the annual employment plan shall not exceed 5% of the actual employees of the immediately preceding year.
Every company shall set aside a reserve fund for the salary budget of the following year according to their realized payroll. The reserve fund shall not exceed 17% of the realized payroll. For seasonal companies, the reserve budget shall not exceed 20% of the realized payroll.
5. Decree No. 52/2016/ND-CP dated 13 June 2016 of the Government providing for wages, remunerations and bonuses for managers of wholly state-owned one-member limited liability companies came into effect since 1 August 2016.
This Decree sets out regulations on salary, remuneration and bonus payment to managers of wholly state-owned companies, including Chairpersons of the Board of Members (BOM) or company President, Members of BOM, Heads of the Control Board, Comptrollers, Directors General, Directors, Deputy Directors General, Deputy Directors, Chief Accountants.
One of the new points of this Decree is the supplement of limit on salary in the case a company President holds his/her second office as a Director General or Director. According to Clause 6 Article 4 of this Decree, if a company President holds his/her second office as a Director General or Director, he/she shall only be eligible to receive salary applicable to the highest position.
6. Decree No. 53/2016/ND-CP dated 13 June 2016 of the Government providing for labor management, wages, remunerations and bonuses in companies with the State acting as a controlling shareholder or capital contributor Government came into effect since 1 August 2016.
This Decree provides the regulations on employees, salaries, remunerations and bonuses applicable to joint-stock companies and limited liability companies having more than 50% of charter capital held by the State.
Accordingly, for a State capital representative, his/her budgeted average pay rate (also known as base pay rate) is not exceeding 36 million dong/month if planned profit of the company is less than 50 billion dong. Where the company makes the profit of 50 billion dong or more, the base pay rate of the capital representative shall be increased according to salary increase factor of 0.5 – 2.5 (depending on earned profit).
The realized payroll for full-time managers is determined according to the payroll budget and the fulfillment of profit targets. If the actual profit overshoots the profit target, the full-time manager salary shall be added 2% for every 1% profit growth rate but not exceeding 20% of the budgeted average pay rate.
The salary budget of part-time managers is determined according to the number of such managers and their actual working time; and their maximum salary shall not exceed 20% that of full-time managers.
The budget for employee awards or welfares shall not exceed 03-month realized payroll in case the actual profit reaches the profit target. In case the actual profit overshoots the profit target, the budget for awards and welfare is added 20% of the excessive of actual profit but not exceeding 03-month realized payroll.
7. Decree No. 54/2016/ND-CP dated 14 June 2016 of the Government providing the mechanism of autonomy and self-management applicable to public science and technology organizations Government came into effect since 1 August 2016.
8. Decree No. 56/2016/ND-CP dated 29 June 2016 of the Government amending a number of articles of the Government’s Decree No. 111/2013/ND-CP of September 30, 2013, on the application of the administrative handling measure of commune-, ward- or township-based education will take effect as from 15 August 2016.
9. Circular 11/2016/TT-NHNN dated 29 June 2016 of the State Bank of Viet Nam stipulates amendments to a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks.
Accordingly, since 13 August 2016, an enterprise working as a foreign exchange agent shall have to make procedures for registering with the State Bank’s branch where the certificate of foreign exchange agent registration is issued: name and/or address of the enterprise; address of foreign exchange agent’s office; increase in the number of foreign exchange agents.
10. Beside the documents mentioned as above, other legal normative documents also come into effect as from August 2016, including:
- Circular No. 08/2016/TT-NHNN dated 16 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 19/2013/TT-NHNN of September 6, 2013, providing the purchase, sale and handling of non-performing loans by VAMC took effect as from 1 August 2016;
- Circular No. 09/2016/TT-NHNN dated 17 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 31/2012/TT-NHNN of November 26, 2012, on cooperative bank will take effect as from 15 August 2016;
- Circular No. 10/2016/TT-NHNN dated 29 June 2016 of the State Bank of Vietnam guiding a number of contents provided in the Government’s Decree No. 135/2015/ND-CP of December 31, 2015, on offshore indirect investment will take effect as from 13August 2016;
- Circular No. 12/2016/TT-NHNN dated 29 June 2016 of the State Bank of Vietnam guiding foreign exchange management with regard to offshore investment activities will take effect as from 13August 2016;
- Circular No. 17/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam prescribing monetary brokerage operations of commercial banks and foreign bank branches will take effect as from 22 August 2016;
- Circular No. 18/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 21/2012/TT-NHNN of June 18, 2012, on lending and borrowing operations and termed purchase and sale of valuable papers among credit institutions and foreign bank branches will take effect as from 22 August 2016;
- Circular No. 19/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam on bank card operations will take effect as from 15 August 2016;
- Circular No. 21/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 04/2013/TT-NHNN of March 1, 2013, on the discount of negotiable instruments and other valuable papers by credit institutions and foreign bank branches for their customers will take effect as from 15 August 2016;
- Circular No. 22/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam prescribing the purchase of corporate bonds by credit institutions and foreign bank branches will take effect as from 15 August 2016;
- Circular No. 25/2016/TT-NHNN dated 29 July 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 11/2013/TT-NHNN of May 15, 2013, on provision of housing loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013 came into effect as from 1 August 2016;
- Circular No. 12/2016/TT-BCT dated 5 July 2016 of the Ministry of Industry and Trade amending a number of articles of the Minister of Industry and Trade’s Circular No. 41/2012/TT-BCT of December 21, 2012, on the export of minerals will take effect as from 20August 2016;
- Circular No. 13/2016/TT-BGTVT dated 23 June 2016 of the Ministry of Transport amending a number of articles of the Minister of Transport’s Circular No. 01/2013/TT-BGTVT of January 8, 2013, on registration of railway vehicles will take effect as from 15 August 2016;
- Circular No. 91/2016/TT-BTC dated 24 June 2016 of the Ministry of Finance guiding the formulation of 2017 state budget estimates will take effect as from 10 August 2016;
- Circular No. 05/2016/TT-BNV dated 10 June 2016 of the Ministry of Home Affairs guiding the application of the base salary level to persons working at agencies and public non-business units of the Party, the State, socio-political organizations and associations and entitled to salaries and allowances took effect as from 1 August 2016;
- Joint Circular No. 06/2016/TTLT-BTP-VSKNDTC-TANDTC dated 31 May 2016 of the Ministry of Justice, the Supreme People’s Procuracy, the Supreme People’s Court guiding the coordination in making statistics on civil judgment enforcement took effect as from 1 August 2016;
- Joint Circular No. 09/2016/TTLT-BLĐTBXH-BTC on guidelines for financial support for guest workers prescribed in the Government's Decree No. 61/2015/ND-CP dated July 9, 2015 on job creation policies and National employment fund will take effect on 1 August 2016;
- Joint Circular No. 17/2016/TTLT-BGDDT-BTTTT dated 21 June 2016 of the Ministry of Education and Training and the Ministry of Information and Communications organizing the examination and grant of information technology application certificates will take effect as from 10 August 2016;
- Joint Circular No. 92/2016/TTLT-BTC-NHNN dated 27 June 2016 of the Ministry of Finance and the State Bank of Vietnam guiding the issuance of treasury bills via the State Bank of Vietnam will take effect as from 15 August 2016./.
New legal documents come into effect as from August 2016
08/08/2016
There are a range of decrees of the Government and circulars of ministries taking effect as from August 2016, as follows:
1. Decree No. 45/2016/NĐ-CP dated 26 May 2016 of the Government amending a number of articles of the Government’s Decree No. 127/2013/ND-CP on penalties for administrative violations and enforcement of administrative decisions pertaining to customs controls took effect as from 1 August 2016.
Accordingly, in comparison with the earlier provisions, this Decree supplements the penalties for violations on management of materials, supplies, machinery and equipment, processed products or domestic exports results in discrepancy between actual stock and values in accounting documents, accounting books or documents about exports/imports. A fine of 20% of the understated amount of tax payable or the overstated amount of tax exempted, reduced, refunded or cancelled shall be imposed.
2. Decree No. 46/2016/ND-CP dated 26 May 2016 of the Government on administrative penalties for road and rail transport offences took effect on 1 August 2016 stipulates heavier penalties for behaviors which would cause transport accidents like ignorance of traffic lights, exceeding alcohol permits, excessive speeds, as well as highway infringements.
Especially, the Decree also states a new regulation under which those who steer their vehicles with their feet will incur a fine of VND 7-8 million (US$ 310-360).
3. Decree No. 49/2016/NĐ-CP dated 27 May 2016 of the Government amending and supplementary a number of articles of the Government’s Decree No. 109/2013/ND-CP on penalties for administrative violations against the law on pricing, fee management, and invoicing took effect on 1 August 2016.
In comparison with the current provisions, there are many important amendments to the provisions on penalties for violations against the law on invoices in the manner of being better for enterprises under this Decree.
Particularly, Clause 4 Article 3 of this Decree also supplements the provisions on fine exemption for the cases below:
- The case in which the second copy of an invoice is lost, burnt, or damaged because of other unexpected circumstances, force majeure events (under the earlier provisions, it is only exempt fine for the case of losing, burning, damaging the invoice because of natural disasters, conflagration);
- The case in which the buyer and the seller have made a record on the loss of the second copy of an invoice; the seller has declared, paid tax and has the contract, documents proving the goods sale and purchase and there are 02 extenuating circumstance (only a warning shall be imposed);
- In case in which organizations, individuals themselves detect errors and make another notification or report as prescribed in order to send to the tax agencies before the decisions on tax investigation, tax inspection at the taxpayers’ premise are made (Clause 7 Article 3);
4. Decree No. 51/2016/ND-CP dated 13 June 2016 of the Government providing labor management, wages and bonuses for employees of wholly state-owned one-member limited liability companies came into effect since 1 August 2016.
Accordingly, single-member limited liability companies whose charter capital is wholly owned by the State shall prepare an annual employment plan as the basis for recruitment and allocation of employees; in normal operational conditions, the average number of employees in the annual employment plan shall not exceed 5% of the actual employees of the immediately preceding year.
Every company shall set aside a reserve fund for the salary budget of the following year according to their realized payroll. The reserve fund shall not exceed 17% of the realized payroll. For seasonal companies, the reserve budget shall not exceed 20% of the realized payroll.
5. Decree No. 52/2016/ND-CP dated 13 June 2016 of the Government providing for wages, remunerations and bonuses for managers of wholly state-owned one-member limited liability companies came into effect since 1 August 2016.
This Decree sets out regulations on salary, remuneration and bonus payment to managers of wholly state-owned companies, including Chairpersons of the Board of Members (BOM) or company President, Members of BOM, Heads of the Control Board, Comptrollers, Directors General, Directors, Deputy Directors General, Deputy Directors, Chief Accountants.
One of the new points of this Decree is the supplement of limit on salary in the case a company President holds his/her second office as a Director General or Director. According to Clause 6 Article 4 of this Decree, if a company President holds his/her second office as a Director General or Director, he/she shall only be eligible to receive salary applicable to the highest position.
6. Decree No. 53/2016/ND-CP dated 13 June 2016 of the Government providing for labor management, wages, remunerations and bonuses in companies with the State acting as a controlling shareholder or capital contributor Government came into effect since 1 August 2016.
This Decree provides the regulations on employees, salaries, remunerations and bonuses applicable to joint-stock companies and limited liability companies having more than 50% of charter capital held by the State.
Accordingly, for a State capital representative, his/her budgeted average pay rate (also known as base pay rate) is not exceeding 36 million dong/month if planned profit of the company is less than 50 billion dong. Where the company makes the profit of 50 billion dong or more, the base pay rate of the capital representative shall be increased according to salary increase factor of 0.5 – 2.5 (depending on earned profit).
The realized payroll for full-time managers is determined according to the payroll budget and the fulfillment of profit targets. If the actual profit overshoots the profit target, the full-time manager salary shall be added 2% for every 1% profit growth rate but not exceeding 20% of the budgeted average pay rate.
The salary budget of part-time managers is determined according to the number of such managers and their actual working time; and their maximum salary shall not exceed 20% that of full-time managers.
The budget for employee awards or welfares shall not exceed 03-month realized payroll in case the actual profit reaches the profit target. In case the actual profit overshoots the profit target, the budget for awards and welfare is added 20% of the excessive of actual profit but not exceeding 03-month realized payroll.
7. Decree No. 54/2016/ND-CP dated 14 June 2016 of the Government providing the mechanism of autonomy and self-management applicable to public science and technology organizations Government came into effect since 1 August 2016.
8. Decree No. 56/2016/ND-CP dated 29 June 2016 of the Government amending a number of articles of the Government’s Decree No. 111/2013/ND-CP of September 30, 2013, on the application of the administrative handling measure of commune-, ward- or township-based education will take effect as from 15 August 2016.
9. Circular 11/2016/TT-NHNN dated 29 June 2016 of the State Bank of Viet Nam stipulates amendments to a number of legislative documents on provision of foreign currency payment services, and activities of foreign exchange agents and foreign exchange desks.
Accordingly, since 13 August 2016, an enterprise working as a foreign exchange agent shall have to make procedures for registering with the State Bank’s branch where the certificate of foreign exchange agent registration is issued: name and/or address of the enterprise; address of foreign exchange agent’s office; increase in the number of foreign exchange agents.
10. Beside the documents mentioned as above, other legal normative documents also come into effect as from August 2016, including:
- Circular No. 08/2016/TT-NHNN dated 16 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 19/2013/TT-NHNN of September 6, 2013, providing the purchase, sale and handling of non-performing loans by VAMC took effect as from 1 August 2016;
- Circular No. 09/2016/TT-NHNN dated 17 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 31/2012/TT-NHNN of November 26, 2012, on cooperative bank will take effect as from 15 August 2016;
- Circular No. 10/2016/TT-NHNN dated 29 June 2016 of the State Bank of Vietnam guiding a number of contents provided in the Government’s Decree No. 135/2015/ND-CP of December 31, 2015, on offshore indirect investment will take effect as from 13August 2016;
- Circular No. 12/2016/TT-NHNN dated 29 June 2016 of the State Bank of Vietnam guiding foreign exchange management with regard to offshore investment activities will take effect as from 13August 2016;
- Circular No. 17/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam prescribing monetary brokerage operations of commercial banks and foreign bank branches will take effect as from 22 August 2016;
- Circular No. 18/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 21/2012/TT-NHNN of June 18, 2012, on lending and borrowing operations and termed purchase and sale of valuable papers among credit institutions and foreign bank branches will take effect as from 22 August 2016;
- Circular No. 19/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam on bank card operations will take effect as from 15 August 2016;
- Circular No. 21/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 04/2013/TT-NHNN of March 1, 2013, on the discount of negotiable instruments and other valuable papers by credit institutions and foreign bank branches for their customers will take effect as from 15 August 2016;
- Circular No. 22/2016/TT-NHNN dated 30 June 2016 of the State Bank of Vietnam prescribing the purchase of corporate bonds by credit institutions and foreign bank branches will take effect as from 15 August 2016;
- Circular No. 25/2016/TT-NHNN dated 29 July 2016 of the State Bank of Vietnam amending a number of articles of the State Bank Governor’s Circular No. 11/2013/TT-NHNN of May 15, 2013, on provision of housing loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013 came into effect as from 1 August 2016;
- Circular No. 12/2016/TT-BCT dated 5 July 2016 of the Ministry of Industry and Trade amending a number of articles of the Minister of Industry and Trade’s Circular No. 41/2012/TT-BCT of December 21, 2012, on the export of minerals will take effect as from 20August 2016;
- Circular No. 13/2016/TT-BGTVT dated 23 June 2016 of the Ministry of Transport amending a number of articles of the Minister of Transport’s Circular No. 01/2013/TT-BGTVT of January 8, 2013, on registration of railway vehicles will take effect as from 15 August 2016;
- Circular No. 91/2016/TT-BTC dated 24 June 2016 of the Ministry of Finance guiding the formulation of 2017 state budget estimates will take effect as from 10 August 2016;
- Circular No. 05/2016/TT-BNV dated 10 June 2016 of the Ministry of Home Affairs guiding the application of the base salary level to persons working at agencies and public non-business units of the Party, the State, socio-political organizations and associations and entitled to salaries and allowances took effect as from 1 August 2016;
- Joint Circular No. 06/2016/TTLT-BTP-VSKNDTC-TANDTC dated 31 May 2016 of the Ministry of Justice, the Supreme People’s Procuracy, the Supreme People’s Court guiding the coordination in making statistics on civil judgment enforcement took effect as from 1 August 2016;
- Joint Circular No. 09/2016/TTLT-BLĐTBXH-BTC on guidelines for financial support for guest workers prescribed in the Government's Decree No. 61/2015/ND-CP dated July 9, 2015 on job creation policies and National employment fund will take effect on 1 August 2016;
- Joint Circular No. 17/2016/TTLT-BGDDT-BTTTT dated 21 June 2016 of the Ministry of Education and Training and the Ministry of Information and Communications organizing the examination and grant of information technology application certificates will take effect as from 10 August 2016;
- Joint Circular No. 92/2016/TTLT-BTC-NHNN dated 27 June 2016 of the Ministry of Finance and the State Bank of Vietnam guiding the issuance of treasury bills via the State Bank of Vietnam will take effect as from 15 August 2016./.