New regulations in effect from mid-December 2016

1. Account registration no longer required for VAT deduction

On October 28, 2016, the Ministry of Finance promulgated the Circular No. 173/2016/TT-BTC on amendments to the first paragraph of Clause 3, Article 15 of the Circular No. 219/2013/TT-BTC, which was amended by the Circular No. 119/2014/TT-BTC. It stipulates that:

In the definition of the bank transfer confirmations, the requirement for the registration or notification of the buyer’s and seller’s accounts with tax authorities is removed.

Therefore, as of December 15, 2016, a seller and buyer transferring payments via accounts not registered with or notified to the tax authorities shall be entitled to VAT deduction if satisfying other requirements.

2. Maximum fine of VND 400 million for non-registration of securities trading

Such stipulation is newly defined in the Circular No. 145/2016/ND-CP on amendments to the Circular No. 108/2013/ND-CP on penalties for administrative violations regarding securities and stock market. It stipulates that:

The fine for late registration or listing of securities shall vary from VND 10 million to VND 400 million according to the time of lateness past the regulated deadline.

Public companies shall pay attention to such matter to register their trading of securities on the Upcom system strictly according to the Circular No. 180/2015/TT-BTC. />
Decree No. 145/2016/ND-CP takes effect as of December 15, 2016.

3. New forms of application for work permit

As of December 12, 2016, the formalities for issuance of work permit to foreigners shall adopt the forms annexed to the Circular No. 40/2016/TT-BLDTBXH. />
In fact, though the Decree No. 11/2016/ND-CP on foreigners working in Vietnam has taken effect since April 01, 2016, the forms for work permit procedures have not been revised to accord with the said Decree.

Therefore, the Circular No. 40/2016/TT-BLDTBXH on guidelines for the Circular No. 11 solves the said issue.

4. New level of subsidy on the building of new offshore fishing boats

Pursuant to the Decision No. 47/2016/QD-TTg, the following subsidies shall be given to the building of new offshore fishing boats, which include maritime machines and devices, fishing equipment, nets and tools and seafood preservation instruments:

- Building of a new steel-hull fishing boat whose main engine power varies from 800 to below 1,000 CV: 35% of the boat owner’s total investment in the new fishing boat shall be subsidized; however, the subsidy shall not exceed VND 6.7 billion per boat.

- Building of a new steel-hull fishing boat whose main engine power reaches 1,000 CV or more: 35% of the boat owner’s total investment in the new fishing boat shall be subsidized; however, the subsidy shall not exceed VND 8 billion per boat.

- Building of a new composite-hull fishing boat whose main engine power reaches 800 CV or more: 35% of the boat owner’s total investment in the new fishing boat shall be subsidized; however, the subsidy shall not exceed VND 6.7 billion per boat.

- Building of a new wooden fishing boat whose main engine power reaches 800 CV or more: 15% of the boat owner’s total investment in the new fishing boat shall be subsidized; however, the subsidy shall not exceed VND 2 billion per boat.

Decision No. 47/2016/QD-TTg takes effect as of December 15, 2016.