A periodic summary of new rulings and other legal documents relating to legal, tax and investment developments in Vietnam.
On 30 December 2016, the Government issued Decree No.174/2016 / ND-CP (“Decree 174”) providing guidance on the Accounting Law 2015 regarding accounting operations, accounting and accountancy systems, accounting services business, accounting services across borders and accounting associations. Decree 174 takes effect from 1 January 2017. This Decree gives accounting guidance for the State’s operation and business operation.
Aiming to improve the business environment, the Prime Minister has requested Ministries and other authorities to coordinate with each other when planning their tax and financial audits to avoid duplication and overlaps.
The Ministry of Finance has issued Letter 15888/BTC-CST providing that VAT is applicable to trademark fees paid to foreign organisations. The Letter also sets out the VAT declaration requirements for past payments.
According to Decree 07/2016/ND-CP dated 25 January 2016, representative offices (“ROs”) of foreign companies in Vietnam are required to submit an annual operations report on their activities (“Report”).
Vietnam lawmakers have passed Law No. 03/2016/QH14 amending the list of conditional business lines in Annex 4 of the Law on Investment. The changes will become effective on 1 January 2017.
The Ministry of Construction has issued Circular 14/2016/TT-BXD which came into force on 15 August. Circular 14 deals with licensing procedures for issuance of foreign construction contractor licences for foreign companies and individuals wishing to conduct construction related activities in Vietnam.
On 13 October 2016, the Ministry of Finance (“the MoF”) issued Circular No. 147/2016/TT-BTC (“Circular 147”), which amends and supplements some articles of Circular No. 45/2013/TT-BTC (“Circular 45”) dated 25 April 2013 guiding regulation on management, use and depreciation of fixed assets. Circular 147 has been effective from 28 November 2016 and applicable for the fiscal year 2016.
The Ministry of Finance (the “MoF”) issued Circular No. 133/2016/TT-BTC (“Circular 133”) providing guidance on the Vietnamese Corporate Accounting System for small and medium-sized enterprises (“SMEs”) on 26 August 2016, that replaces Decision No. 48/2006/QD-BTC (“Decision 48”) and Circular No. 138/2011/TT-BTC (“Circular 138”). Circular 133 will be effective from 1 January 2017.
For the practical operation of the accounting services provision, the draft Decree guiding the implementation of a number of articles of Accounting Law 2015 (“the Draft Decree") gives new and detailed regulations on providing cross-border accounting services of overseas accounting services enterprises in Section 4, such as the definition of regulated entities, methods, responsibilities and conditions to provide inbound cross-border accounting services.