New stipulations in 05 decrees in effect as of February 15, 2017

1. Charter capital of a business entity operating prize-rewarding electronic games for foreigners

Decree No. 175/2016/ND-CP requires a business to possess a charter capital of at least VND 200 billion to obtain the certificate of business eligibility for operating prize-rewarding electronic games for foreigners.

It also defines the details of the advertisement of prize-rewarding electronic game business. The content of advertisement includes:

- Name and address of the business that operates prize-rewarding electronic games.

- Name of the prize-rewarding electronic games.

- Business location.

-  Permissible players.

2. Taxation on duty-free stores’ merchandise

The taxation on merchandise sold in a duty-free store is subject to the Decree No. 167/2016/ND-CP dated December 27. 2016, as follows:

- Goods imported temporarily for sale in a duty-free store are exempt from the import duty and does not incur the excise tax and value added tax.

- Goods manufactured in Vietnam and then sold in a duty-free store are eligible for the same taxation on temporarily exported goods.

- Imported merchandise for which the import duty has been paid in a duty-free store is eligible for tax overpayment treatment pursuant to the legislation on tax administration.

3. Abrogation of VAT rebate for saltwater fishing boats whose main engine power is 400 CV or higher

Such content is defined in the Decree No. 172/2016/ND-CP on amendments to the Decree No. 67/2014/ND-CP on polices for fishery development.

The stipulation “The owner of a saltwater fishing boat is entitled to VAT rebate for a newly built or upgraded saltwater fishing boat whose main engine power is 400 CV or higher.” is abrogated.

Moreover, the treatment for ship building contract, ship handover, et cetera before January 01, 2015 is defined in Article 2 of this Decree.

4. Revision to tourism inspection

Decree No. 173/2016/ND-CP governs the organization and operation of culture, sport and tourism inspection.

Tourism inspection is separately defined and concerns:

- Legal compliance regarding the business of domestic tourism, international tourism and tourist agency.

- Legal compliance regarding the business of tourist accommodation.

- Legal compliance regarding tour guide.

- Legal compliance regarding other tourism activities.

The inspection of matters in sport, gymnastics, culture and family is also separately defined and detailed.

5. Forest allotment for state-owned agricultural or forestry enterprises

Promulgated on December 27, 2016, the Decree No. 168/2016/ND-CP stipulates the allotment of forest, garden and water surface area to forest management boards and state-owned single-member limited liability enterprises.

The allotment of forest, garden and water surface for the activities of management, protection, exploitation and production between the allotting entity and the receiving entity is defined as follows:

- The allotment by work and service is subject to such entities’ negotiation.

- The stable allotment by production cycle shall be negotiated according to the allotting entity’s consideration of the allotted area and the receiving entity’s need, where:

+ An allotment to an individual is subject to negotiation but limited to 15 hectares.

+ An allotment to a household is subject to negotiation but limited to 30 hectares.

+ Allotments to a hamlet community are subject to negotiation; however, the total allotted area is at most 30 hectares larger than the total average area allotted to each household in the community at the time of the allotment contract.