10 new policies effective from May 2018

1. No bad debt within 3 years of being granted credit exceeding the limit

According to Decision No. 13/2018/QD-TTg of the Prime Minister, to be considered for credit exceeding the limit, in addition to meeting the credit granting conditions, customers must have no bad debt in the 3 most recent years immediately preceding the year of requesting credit exceeding the limit, have a debt-to-equity ratio of no more than 3 times the owner's equity recorded on the quarterly financial statements or annual financial statements...

The maximum credit limit for a customer, a customer and related person is equal to the sum of: Total outstanding credit balance at the reporting time; Amount remaining under the signed credit contract; Amount of newly approved credit request.

Some sectors such as electricity, coal, oil and gas, gasoline, transportation, and public transport will be considered for credit exceeding the limit.

The decision takes effect from May 1, 2018.

2. State-owned enterprises must also go through bidding to buy cars.

When investing in and purchasing fixed assets from outside for use (including purchasing vehicles), State-owned enterprises must also conduct bidding as stipulated in Decree No. 32/2018/ND-CP amending Decree No. 91/2015/ND-CP on State capital investment in enterprises, effective from May 1, 2018.

Also according to the Decree, State-owned enterprises are not allowed to use assets, capital, and land use rights to contribute capital or invest in the real estate sector; are not allowed to contribute capital or buy shares in banks, insurance companies, etc. For projects that State-owned enterprises are investors in or under construction, they are allowed to transfer part or all of the project.

For enterprises producing cigarettes, distributing electricity, wholesaling gasoline, and railway transport, the State will no longer continue to invest capital to maintain the ratio of shares and contributed capital from May 1, 2018.

3. Deductible and non-deductible expenses when calculating corporate income tax

According to Circular No. 25/2018/TT-BTC, enterprises are not allowed to deduct expenses when calculating corporate income tax for the portion of expenses exceeding VND 3 million/month/person to: Contribute to voluntary pension funds, purchase voluntary pension insurance, life insurance for employees; the portion exceeding the level prescribed by law on social insurance, health insurance to contribute to social security funds, health insurance funds and unemployment insurance funds for employees;

However, enterprises are still allowed to deduct expenses when calculating corporate income tax for: Welfare expenses directly paid to employees such as: expenses for funerals and weddings of the employee and his/her family; vacation expenses, treatment support expenses; expenses to support additional knowledge and study at training facilities; expenses to support employees' families affected by natural disasters, war, accidents, illness, etc. The total amount of welfare expenses mentioned above must not exceed 01 month of the average actual salary paid in the tax year of the enterprise.

The Circular takes effect from May 1, 2018.

4. Multi-level marketing sellers are allowed to return goods within 30 days.

According to the new regulations on multi-level marketing activities stipulated in Decree No. 40/2018/ND-CP of the Government, multi-level marketing participants have the right to return goods purchased from multi-level marketing enterprises, including goods purchased under promotional programs, within 30 days from the date of receipt of goods.

Multi-level marketing enterprises are prohibited from collecting deposits from participants and allowing participants to receive money from introducing new customers. Multi-level marketing enterprises are not allowed to pay commissions or bonuses to multi-level marketing participants exceeding 40% of annual revenue.

Regarding business conditions, multi-level marketing enterprises must have a website; an information technology system to manage participants; an information system to receive and resolve complaints; and be responsible for opening a deposit account equivalent to 5% of charter capital but not less than 10 billion VND at a commercial bank. The deposit amount is frozen by the bank during the entire period of operation of the enterprise.

The Decree takes effect from May 2, 2018.

5. Recognized as a 3-star hotel, must pay 2 million in fees

According to Circular 34/2018/TT-BTC of the Ministry of Finance, the fee for appraisal and recognition of tourist accommodation establishments for 1-star and 2-star categories is 1.5 million VND/file; for 3-star categories is 2 million VND/file and for 4-star and 5-star categories is 3.5 million VND/file.

The appraisal fee for recognizing other tourism service establishments that meet the standards for serving tourists is 1 million VND/application.

The Circular takes effect from May 14, 2018.

6. The fee for a tour guide card is 650,000 VND.

The collection rate, collection, payment and management regime of appraisal fees for granting international/domestic travel service business licenses; appraisal fees for granting tour guide cards have been issued by the Ministry of Finance in Circular 33/2018/TT-BTC.effective from 14/05/2018.

For assessment of tourist guide card issuance (including new issuance, exchange and re-issuance), the fee is 650,000 VND/international and domestic tourist guide card; 200,000 VND/tour guide card at the point.

The appraisal fees for new issuance, renewal, and re-issuance of international and domestic travel service business licenses are VND 3 million, VND 2 million, and VND 1.5 million/license, respectively.

For the License to establish a representative office in Vietnam of a foreign travel service business enterprise, the fee for a new issuance is 3 million VND and for reissuance, adjustment, and extension is 1.5 million VND/License.

7. Asset valuation in criminal proceedings must be based on market price.

Valuation of assets in criminal proceedings must be based on market prices, which is stipulated in Decree No. 30/2018/ND-CP of the Government. For assets that are not prohibited goods, it must also be based on: Prices prescribed by competent State agencies; Prices provided by valuation enterprises; Prices in documents and files attached to the assets to be valued (if any); Other bases for the price or value of the assets to be valued.

For assets that are prohibited goods, it must be based on at least one of the following bases in order of priority: The purchase and sale price collected on the unofficial market at the time and place where the assets are prohibited goods that are requested to be valued or in another locality; The price stated on the contract or sales invoice or import declaration of prohibited goods; The market price in the region and the world of similar assets that are allowed to be traded, circulated, and used in these markets...

The Decree takes effect on May 1, 2018.

8. Self-inflicted damage to receive insurance money is subject to a fine of up to 100 million.

Some regulations on administrative sanctions for violations in the fields of insurance business and lottery business in Decree 98/2013/ND-CP were amended on March 21, 2018 by Decree 48/2018/ND-CP of the Government.

Decree 48 specifies: Fines from 90 million to 100 million VND for acts of colluding with insurance beneficiaries to settle insurance compensation, pay insurance money illegally; Self-inflicted damage to property, health to enjoy insurance benefits, except in cases where the law provides otherwise; Forging documents, intentionally falsifying information to refuse compensation, pay insurance money... with the amount of money appropriated under 20 million VND, or causing damage under 50 million VND or not to the extent of being prosecuted.

In particular, the act of forcing organizations and individuals to buy insurance in any form will be fined from 40 million to 50 million VND. Particularly, the act of implementing life insurance and health insurance products before being approved by the Ministry of Finance will be subject to a much higher fine, from 60 million to 70 million VND, instead of only 10 million to 20 million VND as before.

The Decree takes effect from May 10, 2018.

9. Erasing accounting documents is subject to a fine of up to 5 million VND.

From May 1, the maximum fine in the accounting field will increase from 30 million to 50 million VND for individuals, and from 60 million to 100 million VND for organizations. The act of erasing or correcting accounting documents; signing accounting documents with red ink or faded ink; signing accounting documents with a pre-engraved signature stamp... will be fined from 3 to 5 million VND, which is a prominent content stipulated in Decree No. 41/2018/ND-CP of the Government.

The Decree also stipulates a fine of VND 5 - 10 million for one of the following acts: Making accounting documents without the required number of copies as prescribed for each type of accounting document; Signing accounting documents without proper authority; Signatures of one person are not consistent...

Failure to organize a handover of work when changing accountants, chief accountants, or accounting managers will be fined up to 10 million VND.

The Decree takes effect from May 1, 2018.

10. 6 standards of vocational education quality inspectors

Decree 49/2018/ND-CP of the Government stipulates 6 standards for vocational education quality inspectors, including: Inspectors must have good moral qualities and health; Graduated from university or higher; Have at least 05 years of experience in management, teaching, and research in the field of education; Completed vocational education quality inspector training course; Have foreign language proficiency from level 2; Meet basic information technology skills standards.

As of December 31, 2018, those who have been granted a certificate of completion of the vocational training quality assessment course before May 15, 2018 and are members of the vocational training quality assessment team established by the General Department of Vocational Training will:

+ Considered to have completed the vocational education quality inspector training course;

+ Participate in the vocational education quality assessment team;

+ Considered an inspector when a public service unit or enterprise requests to issue or re-issue a Certificate of eligibility for inspection activities.

The Decree takes effect from May 15, 2018.