Our Vietnam Legal Update #209 would lead you on 03 legal issues:
I. Judicial expertise in the financial field
The Ministry of Finance issued Circular 40/2022/TT-BTC regulating judicial expertise in the financial field dated 29 June 2022. Notable contents include:
- Adding 02 fields of judicial expertise. They are judicial expertise of public property and judicial expertise of corporate finance.
- Adding new regulations on expertise period as follows:
- The maximum period of judicial expertise shall not exceed 3 months, this period may be extended but shall not exceed half of the maximum period of expertise.
- In case the expertise has 02 or more different contents in the financial field, or has a complicated nature or large workload, or involves many authorities, organizations, individuals, or depending on expertise results of other authorities, organizations, and individuals, the maximum period of expertise shall not exceed 4 months.
- Adding new regulations on standards, dossiers, orders, and procedures for appointing judicial experts, orders, and procedures for recognition of ad hoc judicial expertise performers in the financial field.
- Regulations on conditions of physical facilities of judicial expertise offices and judicial expertise organizations on the case in the financial field; making and publishing the list of ad hoc judicial expertise institutions in the financial field; the receipt and implementation of solicitation of judicial expertise by judicial expertise offices and ad hoc judicial expertise institutions in the financial field.
- This Circular takes effect from 15 August 2022.
II. Deducting input value-added tax
On 17 June 2022, the Tax Department of Hung Yen Province issued Official Letter 3780/CTHYE-TTHT on deduction of input value-added tax (“VAT”). Notable contents include:
- When an enterprise has submitted the VAT declaration and then realizes that the tax rate of the purchased goods on the invoice is higher than the prescribed tax rate, the enterprise shall supplement the tax declaration dossier with the deductible input VAT according to the tax rates specified in legal provisions on VAT.
- In case the enterprise has not adjusted the dossiers by itself, the tax authority checks and detects them, the enterprise shall deduct input VAT at the prescribed tax rate, the VAT amount corresponding to the difference between the tax rate stated on the invoice and tax rates are included in deductible expenses when determining income subject to CIT.
- In case it is determined that the seller has declared and paid tax at the correct tax rate stated on the invoice, the enterprise may deduct input VAT at the tax rate stated on the invoice, but it must be verified by the tax authority directly managing the seller.
III. Summary of articles published in July 2022
Below are the articles that were published on the BLawyers Vietnam’s website this month. Please click on the links below to see more.
1/ What problems an enterprise must solve when forcing an employee to leave the job before the expiry of a labor contract pursuant to Vietnamese laws? BLawyers Vietnam would like to point out some key issues for enterprises to consider, in order to minimize the risks from the unilateral termination of labor contracts signed with their employees and avoid “dispensable lawsuits”.
2/ Which regime do the licensing authorities approve the capital contribution, share purchase, or purchase of a part of the contribution capital portion of foreign investors in real estate business enterprises in Vietnam? Currently, real estate business companies in Vietnam are attracting huge attention from foreign investors. However, competent licensing authorities of Vietnam are applying a special regime to consider and approve the capital contribution, share purchase, or purchase of a part of the contribution capital portion of the foreign investors at real estate companies. BLawyers Vietnam will mention based on our practical experience in supporting some clients recently.
3/ Statute of limitations in dispute settlement in Vietnam: How does Vietnamese law regulate the statute of limitation in dispute settlement? Through this article, BLawyers Vietnam will discuss several issues related to the statute of limitation for lawsuits.
4/ 4 remarkable notes for franchising legally in Vietnam: Through this article, BLawyers Vietnam would like to present the conditions for legal franchise transactions in Vietnam.
5/ Why do periodic reports regarding investment activities in Vietnam play an important role? Investors in Vietnam should comply with the regulation on making periodic investment reports. Through this article, BLawyers Vietnam shall tell you why.
For further information, please contact:
Minh Ngo Nhat, Partner, BLawyers
minh.ngo@blawyersvn.com
