Notable policies coming into force from the beginning of February, 2018 (Part 2)

5. Non-deductible expenses when determining corporate income tax

This provision is provided in the Government’s Decree No. 146/2017/ND-CP on amendments to the Government’s Decree No. 100/2016/ND-CP and Government’s Decree No. 12/2015/ND-CP .

According to the Decree, the following expenses shall not be allowable deductions when determining corporate income tax:

- The amount in excess of VND 3 million/month/person (presently, VND 1 million/month/person) which is used to make contribution to the voluntary pension fund, purchase voluntary pension insurance and life insurance for the employee;

- The amounts in excess of the allowable limits related to social insurance and health insurance which is paid to social insurance funds, health insurance fund, and unemployment insurance fund for employees.

6. 06 economic cases requiring expert examinations

The Joint Circular No. 01/2017/TTLT-VKSNDTC-TANDTC-BCA-BTP stipulates that presiding authorities may request for expert examinations in the following economic cases in addition to mandatory expert examinations prescribed in Article 206 of the Code of Criminal Procedures in 2015.

- Determination of quality and origin of property or goods, counterfeit, genuine or banned goods;

- Tracing of documents, things, signatures, handwritings, seals, traces and electronic data;

- Verification of accuracy of measuring, weighing and counting devices, and other machinery and equipment;

- Determination of violations against regulations on investment;

- Resolution of difficulties that arise in course of determination of damage caused from violations against regulations on investment;

- Determination of violations against regulations on taxation, finance and other sectors where expert examinations deem necessary.

Expert examinations are requested in the above-mentioned cases provided that there is not enough evidence to determine violations, nature and damage thereof.

7. A fine up to VND 75 million imposed on operating ships after their useful life

This provision is provided in the Decree No. 142/2017/ND-CP on penalties for administrative violations against regulations on maritime.

According to the Decree, the following fines shall be imposed on operation of ships after their useful life.

- A fine ranging from VND 65 million to VND 75 million shall be imposed for floating restaurants, floating hotels or overnight cruise ships;

- A fine ranging from VND 55 million to VND 65 million shall be imposed for any vessels carrying more than 12 persons other than overnight cruise ships, floating hotels, floating restaurants and hovercraft;

- A fine ranging from VND 45 million to VND 55 million shall be imposed for vessels carrying dangerous goods, oil tankers, LPG carriers or hovercrafts.

In addition to the abovementioned fines, organizations or individuals committing violations may have their shipmaster licenses or master certificates of competency suspended for 02 - 03 months.

8. Language proficiency standard to be satisfied by international tour guides

This provision is provided in the Circular No. 06/2017/TT-BVHTTDL on guidelines for implementation of the Law on Tourism.

According to the Circular, a tour guide is considered proficient in foreign language if he/she meets one of the following standards:

- Have an associate’s degree or higher in a foreign language;

- Have an associate’s degree or higher in a foreign language-instructed training program;

- Have an associate’s degree or higher conferred by a foreign training institution;

- Have a foreign language certificate or certification of:

+ Level 4 or higher as classified by the Vietnam’s Language Proficiency Framework;

+ B2 level or higher as classified by the Common European Framework of Reference for Languages.

 (The foreign language certificate must be unexpired or has just been issued within 05 years; the foreign language certification must be granted by an authorized or competent authority as regulated regardless of its date of issue).

 (To be continued)

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