Many new rules effective soon

04-Jan-2014 Intellasia | Saigon Times Daily | 6:00 AM Print This Post

Many new rules will take effect from the beginning of 2014, with many designed to support enterprises and enhance rule of the law. Following are a few prominent legal changes.

Tax cuts on auto imports from Asean

As per the preferential import tax list in line with the Asean Trade in Goods Agreement (ATIGA) in 2012-2014 issued by the Ministry of Finance and Circular 161/2011/TT-BTC also issued by the ministry on November 17, 2011, many types of sedans imported from other Asean nations will be subject to sharp tax cuts.

Import taxes on a number of automobiles from other Asean countries from tomorrow will be cut to 50 percent instead of 60 percent recorded in 2013 and 70 percent in 2012 as long as the cars have 40 percent of contents manufactured in such nations.

HCM City from tomorrow will reduce the registration fee for new cars of less than 10 seats to 10 percent instead of 15 percent in 2013, the lowest level according to the prevalent regulation. In the meantime, Hanoi City now is applying a fee level of 12 percent.

Automated customs clearance applied in 2014

The customs industry will apply the automated clearance system and one-stop mechanism under a project funded by Japan from April 1. Under the new system, local importing and exporting companies will perform related procedures through online services which are expected to help save on time and cost.

Tax debts, fines removed for five groups

According to Circular 179/2013/TT-BTC of the finance ministry, five groups from January 17 will have their tax debts and fines removed for unrecoverable sums arising before July 1, 2007. They are households and individuals having difficulties to make payment for the tax debts and have already halted business operations, and State-owned companies having independent finance and receiving the decision to be dissolved from relevant authorities.

The groups given the special treatment also comprise of State firms having gone public subject to law and having been granted with business licenses for establishing joint stock companies and those State enterprises that have been sold and others having a State ownership ratio of over 50 percent of chartered capital.

Alcohol stamp labels

Imported and home-made alcohol of legal producers must be labeled with stamps issued by local tax authorities when in circulation in the market from tomorrow, says Decree 94/2012/ND-CP issued on November 12, 2012.

Mineral exploitation right fees collected

The fees of granting the right of exploiting minerals will be collected, ranging from 1 percent to 5 percent of the crude ore value of the area allowed for exploitation as per Decree 203/2013/ND-CP issued by the government on November 28, 2013.

Fee hikes at BOT toll stations

Tolls at stations of build-operate-transfer (BOT) projects will be hiked from tomorrow, with cars of less than 12 seats and trucks with a loading capacity of less than two tonnes and buses subject to VND15,000-52,000 a ticket for a single route, according to Circular 159/2013 of the finance ministry.

Land prices changed every five years

As passed by the National Assembly at the end of last month, the amended Land Law consisting of 14 chapters and 212 articles will take effect from July 1, under which the land price frame will be issued by the government every five years instead of every year as previously.

More fertiliser production, trading banned

In addition to the previous banned cases, Decree 202/2013/ND-CP to be effective from February 1 clarifies more specific banned actions in making and trading fertiliser. In particular, the banned cases include carrying out illegal fertiliser production and committing fraud on the product’s quality and providing wrong information on the quality and the origin of the product.

Export gold jewellery tax cut to 0 percent

The export tariff of gold jewellery and other gold products will be slashed to 0 percent from tomorrow, says Circular 164/2013/TT-BTC on preferential import and export tax payment effective from tomorrow. Besides, gold materials will be subject to an export tax rate of 2 percent under the circular.

Minimum regional wages up 14 percent

The minimum regional wage will be increased by 14 percent compared to 2013 from tomorrow according to Decree 182/2013/ND-CP, which is applicable to workers at companies, cooperatives, farming areas, households, individuals and organisations. The monthly wage will be revised up to VND2.7 million for region 1, VND2.4 million for region 2, VND2.1 million for region 3 and VND1.9 million for region 4.

Environment violators to be fined up to VND2 billion

According to Decree 179/2013/ND-CP having just taken effect, an environment violation will be subject to sanctions amounting to VND2 billion for an organisation and VND1 billion for an individual instead of VND500 million as regulated by Decree 117 on administrative penalties in environmental areas. Similarly, many other environment violations will also be subject to much higher sanctions compared to the previous levels as per the new rule.

Customer information disclosure subject to fine of VND30 million

Decree 185/2013/ND-CP on administrative penalties in trading and producing fake products and banned items and protecting consumer rights will come into force from tomorrow. The new rule clarifies regulations on sanctions and violations in the e-commerce industry.

In particular, violations including setting up or amending and supplementing e-commerce websites without reporting to competent authorities will result in fines of VND5-20 million while those websites failing to keep customer information confidential will be fined VND30 million.

Besides, such violating e-commerce websites will have their operations suspended for six to 12 months while their domain name “.vn” will be withdrawn and the website owners will have to hand in any illegal gains earned from such violations. The highest administrative fine on violations in this area is VND100 million.

Multi-level marketing in tourism service

From tomorrow, those joining multi-level marketing for tourism services, commission payers or those asking for commissions to join this kind of marketing will be fined VND25-30 million each as per Decree 158/2013/ND-CP issued on November 12, 2013.

Also relating to tourism, Decree 180/20/ND-CP regulates that tourism companies wanting to join the outbound segment will have to pay a deposit of VND500 million each from tomorrow, doubling the current level.

The new decree also includes many fine levels for each specific violation in the tourism industry, with violators asked to pay fines or have their business licenses revoked.


Category: Legal

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