Our Vietnam Legal Update #205 would lead you on 03 legal issues:
I. Incentives on CIT for projects manufacturing supporting industrial products
The Tax Department of Bac Ninh Province issued Official Letter No. 1270/CTBNI-TTHT dated 20 April 2022 to guide incentives for the corporate income tax (the “CIT”) for projects manufacturing supporting industrial products. The content of the guidance is as follows:
- If an enterprise earns income from manufacturing supporting industrial products under a new investment project and the income from this project is enjoying CIT incentives under the conditions of investment incentives implemented in the industrial park, then such income is entitled to CIT incentives under the conditions of the project manufacturing supporting industrial products for the remaining time from the tax period (counting from the time a Certificate of incentives is granted by a competent authority).
- During the period of being entitled to CIT incentives, if an enterprise carries out many production activities, the enterprise must calculate separately for each type of income that is entitled or not entitled to the respective types of CIT incentives.
II. Approving for both investment guidelines and investors to implement the commercial housing construction investment project
The Ministry of Planning and Investment issued Official Letter No. 2875/BKHDT-PC dated 04 May 2022 regarding approving the investment policy and at the same time approving the investor to implement the commercial housing construction investment project. This Office Letter has the following main contents:
- According to the law, the approval for both investment guidelines and investor without holding a land use right auction or bidding to select investor in the following cases: (1) the investor has the right to use the land; and (2) the investor receives the agricultural land use rights to implement the project of investment on non-agricultural production or business.
- According to the provisions of law, the forms of land use to implement investment projects to build commercial housing include (1) the investor has the right to use residential land; or residential land and another land other than residential land that satisfies the conditions for permitting the change of land use purpose for the implementation of investment projects; (2) receive the residential land use rights by the law on land for commercial housing construction.
- Therefore, the approval for both investment guidelines and investor to carry out the commercial housing construction project in case the investor receives the “residential land and another land other than residential land” or “another land other than residential land” is not following the law.
III. Summary of articles published in May 2022
Below are the articles that were published on BLawyers Vietnam’s website this month. Please click on the links below to see more.
- 24 Frequently Asked Questions on business licenses for goods trading activities of foreign direct investment enterprises: BLawyers Vietnam would like to summarize the frequently asked questions on the business license for goods trading activities and other activities related to goods trading of foreign-invested enterprises.
- Is “husband’s property, wife’s contribution” being considered when resolving common property disputes in divorce in Vietnam? BLawyers Vietnam would like to present to you how such an old saying may affect the decision of the Court when dividing the common property in the divorces.
- 03 notes for importing used machinery, equipment, and technological lines from overseas into Vietnam: Importing machinery help enterprises save initial investment costs in their production. However, Vietnamese laws stipulated the import conditions for this type of product and a strict quality examination process before customs clearance. BLawyers Vietnam would like to present the necessary notes on this issue for your reference.
- 03 notes about sanctioning administrative violations when running rooftop solar power projects in Vietnam: Investors must strictly comply with the provisions of the law when operating RSP projects. Through this article, BLawyers Vietnam would like to highlight several common administrative violations regarding RSP projects for investors to note.
- The agreement on the matrimonial property regime in Vietnam – How necessary is it from a legal perspective? To limit the risks of a property dispute between spouses upon divorce, the parties may consider establishing an agreement on the matrimonial property regime (also called a Prenuptial Agreement). Through this article, BLawyers Vietnam would like to present the legal perspectives on the necessity of this agreement.
For further information, please contact:
Minh Ngo Nhat, Partner, BLawyers
minh.ngo@blawyersvn.com
