What is Value-added Tax Reduction Policy in 2022?

In order to stimulate growth and recover the economy after the impact of the Covid-19 pandemic, the Government has issued a policy to reduce value added tax. The reduction of value-added tax is an effective solution and tool to stimulate consumption and is expected to create a driving force for rapid development to help businesses restore business and production.

 

The value-added tax reduction policy has been promulgated by Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy according to the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies currency to support the program of socio-economic recovery and development. Accordingly, value added tax will be reduced from 10% to 8%. This reduction will create conditions for consumers to increase spending, through which businesses will sell more products.

The value-added tax reduction will be applied to groups of goods and services currently subject to the 10% tax rate, except for the following groups of goods and services: (i) Telecommunications, financial and banking activities commodities, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; (ii) Products, goods and services subject to excise tax; (iii) Information technology under the law on information technology. However, if the goods and services are not subject to value-added tax or subject to value-added tax of 5% according to the provisions of the Law on Value-Added Tax, the provisions of the Law on Value-Added Tax shall be applied and not entitled to value added tax reduction.

It is important to note the value-added tax calculation method to apply. Accordingly, if the enterprise calculates value-added tax by the deduction method, the value-added tax rate of 8% shall apply; and in case the enterprise calculates value-added tax according to the percentage method on sales, collected, it will be reduced by 20% of the percentage rate for calculating value-added tax when issuing invoices for goods and services eligible for value-added tax reduction as prescribed.

The value-added tax reduction will be implemented quickly and businesses and consumers will immediately benefit. This tax reduction is expected to help reduce the cost of products and services, thereby stimulating consumer demand. Besides, it will help increase production output of enterprises and create more jobs for workers. Therefore, the reduction of value added tax is considered necessary solutions to promote the economy to recover soon after a long time affected by the pandemic.

The value-added tax reduction policy will be effective from February 1^st, 2022 to the end of December 31^st, 2022. Previously, value-added tax was only reduced for a few specific products, but with this policy, the object of tax reduction has been expanded in most fields of business and production. Therefore, the impact of this policy on the economy in the future is very large. However, in order for the value-added tax reduction to reach consumers, tax authorities need stricter inspection and control to meet the set goals. When in doubt, it is important to consult with tax lawyers in Vietnam for solutions and advice.

ANT Lawyers is a Law firm in Vietnam with international standards, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 juridictions. The firm provides a range of legal services as following to multinational and domestic clients.

 

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Solutions to Identify Counterfeit Goods and IP Violations

Solutions to Identify Counterfeit Goods and IP Violations from the Experience of Korea

Currently, counterfeit products and product infringing intellectual property rights happening in Vietnam are very popular and diverse in types. This situation not only affects domestic production and trade but also has a negative impact on close business partners of Vietnam, including Korea. In many cases, the infringed parties have been seeking help from IP lawyers in Vietnam for advice.

 

IP Enforcement Law Firm in Vietnam

With cultural compatibility, Korean products such as fashion, home appliances, cosmetics, and functional foods are very popular and widely consumed in Vietnam. Therefore, with the quick grasp of this trend, the products of Korean enterprises have become the subject of counterfeiting. Besides, with the development of e-commerce channels, these counterfeit products quickly reach consumers, affecting the interests of consumers in Vietnam and Korean enterprises.

Moreover, with technology, forgery is increasingly done in a very sophisticated way from the packaging, share, and the color of the counterfeit products. Therefore, without a method of comparison and inspection, it is difficult for consumers to detect the product as a fake. This causes great damage to Korean enterprises not only the market share, but also the value of reputation and intellectual property rights being violated.

Besides, the Covid-19 pandemic makes people in Vietnam more inclined to buy goods online. This is an opportunity for individuals and organizations that counterfeit products to easily reach out to consumers without being detected and punished.

In addition, although Vietnam has a mechanism to enforce intellectual property rights, these regulations have not been thoroughly applied. Therefore, many individuals and organizations making counterfeit goods and infringing intellectual property still continue to violate without being caught. Meanwhile, consumers still have to pay to use bad quality products.

With the support of Korean businesses, Vietnam authorities will continue to improve their capability in identifying counterfeit goods and goods infringing on intellectual property. Therefore, an exchange between Korean businesses and the General Department of Market Management of Vietnam is necessary in providing methods to detect counterfeit goods and intellectual property violations for Vietnam agencies to exchange support, raise awareness of intellectual property rights protection, and provide information on intellectual property rights for Korean businesses in Vietnam. It is expected that Vietnam intellectual property enforcement agencies improve their efficiency in identifying, preventing, combating and handling counterfeit and infringing goods in Vietnam to protect consumers and company in creating an encouraging investment environment in Vietnam, for Korean investors to enter Vietnam for setting up company, factory and do business in Vietnam.

You could learn more about ANT Lawyers IP Practice or contact our IP lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

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Procedures for Granting Work Permits for Foreign Workers

What Changes in Procedures for Granting Work Permits for Foreign Workers from 2021?

Vietnam law allows enterprises, agencies, organizations, individuals and contractors to recruit foreign workers for job positions that Vietnamese workers cannot meet the needs of business operation in Vietnam. However, the procedures to apply for permit allowing foreign workers to work in Vietnam is complicated which many times labour lawyers could be engaged to help provide more productive solutions to avoid delay or dispute that lead to the negative impact to the rights and benefits of employer or employee.

 

A foreign employee means a person who hold a foreign nationality and is at last 18 years of age and has full legal capacity; has qualifications, occupational skills, practical experience and adequate health as prescribed by the Minister of Health; is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law; has a work permit granted by a competent authority of Vietnam, except in the cases the foreign employees are not required to have the work permit.

Job positions in which enterprises are employed by foreign workers include managers, executives, experts and technical workers.

Manager means a person in charge of management of an enterprise or the head or deputy head of an agency or organization.

Executive means the head or a person who directly administers affiliated entities of an agency, organization or enterprise.

Expert means a foreign worker who obtains at least a bachelor’s degree or equivalent and at least 03 years’ experience in his/her training field in corresponding with the job position/job assignment that he/she will be appointed in Vietnam; obtains at least 5 years’ experience and a practicing certificate in corresponding with the job position that he/she will be appointed in Vietnam; or falls under a special case subject to decision of the Prime Minister according to a request of the Ministry of Labor, War Invalids and Social Affairs.

Technical worker means a foreign worker who has been trained in technical field or another major for at least 01 year and have worked for at least 03 years in his/her training field; or obtains at least 5 years’ experience in corresponding with the job position that he/she will be appointed in Vietnam.

Before applying for a work permit for a foreign worker, at least 30 days before the date on which foreign workers are expected to be employed, the employer (except contractor) shall request to determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified and send a corresponding report to the People’s Committee of province where the foreign workers are expected to work.

The People’s Committee of province shall issue a document specifying accepted job positions and non-accepted job positions within 10 working days after receiving the foregoing report on demand for foreign workers or report on change thereof.

At least 15 working days before the day on which a foreign worker starts to work, the employee shall submit an application for work permit to the Department of Labor, War Invalids and Social Affairs of the province where he/she is expected to work.

Within 5 working days after receiving a duly completed application, the Department of Labor, War Invalids and Social Affairs of province where the foreign worker is expected to work shall issue a work permit to the foreign worker. The form of work permit shall be solely printed and issued by the Ministry of Labor, War Invalids and Social Affairs. If the application is rejected, a written explanation is required.

After the foreign worker is issued with a work permit, the employer and the foreign worker must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work. The employer shall send that employment contract to the competent authority that issue that work permit. The employment contract is the original or a certified true copy.

In a number of cases, there are situation which employer engages a foreign employee in a job but fails to perform sufficient work permit procedures in time. When a labour dispute arise, it takes time to prove the labour relationship between the parties and this would negatively impact the right and benefits of the employee. It is therefore important to ensure the labour compliance from both employer and employee side to avoid dispute.

ANT Lawyers – A Law Firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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Changes on Enterprise Registration in Vietnam

What Are Changes on Enterprise Registration According to Decree No.01/2021/ND-CP?

On January 4, 2021, the Government issued Decree No. 01/2021/ND-CP on enterprise registration.

 

From January 4, 2021, the following 04 procedures will be carried out in conjunction: Registration of establishment of enterprises, branches, representative offices in Vietnam; Labor usage declaration; Granting the number of the social insurance participant; Register to use invoices of the enterprise.

The enterprise code is also the enterprise’s taxpayer identification number and the unit participating in social insurance number of the enterprise. According to previous regulations, only the enterprise code was specified as the enterprise’s taxpayer identification number.

The Business Registration Office has the right to accept or reject the intended name for registration of the enterprise. The opinion of the Business Registration Office is the final decision to avoid the identical, mistaken enterprise name and violation of the regulations on enterprise naming. In case of disagreement with this decision, an enterprise may initiate a lawsuit in in Vietnam accordance with the law on administrative procedures.

In case an enterprise registers the date of business commencement after the date of being granted an enterprise registration certificate, the enterprise is entitled to do business from the date it is registered, except in the case of conditional business investment.

The person competent to sign the application for enterprise registration may authorize other organizations or individuals to carry out enterprise registration procedures. Authorized subjects may be individuals, organizations or  non-public postal service providers or single service providers of public postal services. In case of authorizing a public postal service provider to carry out enterprise registration procedures, when carrying out enterprise registration procedures, postal staff must submit a copy of the application form according to the form provided by the operator. Public postal service providers to issue with certified signatures of postal staff and persons competent to sign written application for enterprise registration. In case of authorizing a non-public postal service provider to carry out enterprise registration procedures, the enterprise registration dossier must be accompanied by a copy of the service contract with the organization providing services to perform procedures related to enterprise registration, referral of that organization to the individual directly performing procedures related to enterprise registration and copies of legal papers of the individual introduce.

In addition, the Decree also stipulates that in addition to the way of paying fees and charges directly at the Business Registration Office, the fee payer can transfer money to the account of the Business Registration Office or use an electronic payment service. The enterprise registration fee is not refundable to an enterprise in the event that an enterprise is not granted an enterprise registration certificate. Online payment of fees and charges will also be supported on the National Business Registration Portal. However, the fee for using this service will not be included in the business registration fee, the fee for providing and disclosing information. In the event of an error in the electronic payment process, the fee or fee paying organization or individual should contact the service provider intermediary for settlement.

ANT Lawyers – A Law Firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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Enforcement of Foreign Arbitral Awards in Vietnam

Procedures for Recognition and Enforcement of Foreign Arbitral Awards in Vietnam

In the era of globalization, cooperation between countries have been established in many aspects and fields. Especially in the judicial field, the recognition and enforcement of foreign arbitral awards are important procedure in order to facilitate law enforcement between countries and protect the legitimate interests of the litigants.

 

Arbitral Award Enforcement Law Firm in Vietnam

The recognition and enforcement of foreign arbitral awards in Vietnam is a specific procedure. Accordingly, the court will be the authority to conduct the review to recognize the validity of foreign arbitral awards to be enforced within the territory of Vietnam. When receiving a request for recognition of a foreign arbitral award, the court will consider and accept the settlement according to the prescribed principles. Specifically, Vietnamese courts only recognize and enforce foreign judgments in the following cases: (i) on the basis of international treaties; (ii) on the principle of reciprocity. Therefore, it can be seen that not all requirements are recognized in Vietnam.

To process the request for recognition and enforcement, depending on the case, the requesting individual or organization must file a request at the Ministry of Justice or directly at the court. Furthermore, in order to ensure that the petition is valid, the petition must satisfy the conditions of form, extent and status of the subject entitled to file according to the regulations that the applicant must pay attention to. In addition, the time limit for filing a request for recognition and enforcement of a foreign arbitral award is 03 years from the date on which the foreign arbitral award takes legal effect. However, this time limit can also be extended if it can be proved that the cause of the delay in filing the application is under force majeure circumstances.

After receiving the application and considering accepting the settlement, in case the dossier is sent to the Ministry of Justice, the Ministry of Justice shall consider the application and enclosed documents and request the applicant to pay the fee as prescribed at the Office of the Ministry of Justice, then transfer the file to the authoritative court. Within 05 working days from the date of receipt of the dossier, the authoritative court shall consider and accept it as prescribed.

Accordingly, after considering, the court will hold a meeting and issue a decision to recognize or not to recognize the foreign arbitral award and notify relevant parties. Relevant individuals and organizations have the right to appeal or protest against that decision within 07 to 15 days from the date the court issues the decision.

Where a recognized award is to be enforced in Vietnam, the parties concerned are obliged to enforce that award. In case the party does not voluntarily execute the judgment, the judgment enforcement agency will carry out similar enforcement according to the provisions of the law on judgment enforcement in Vietnam.

At present, foreign arbitral awards might encounter challenges in recognition and enforcement in Vietnam due to complexed procedures. Therefore, it is important for individuals and organizations to learn and strictly follow the procedures as prescribed by law so that the process of recognition and enforcement in Vietnam can be carried out smoothly.

You could learn more about enforcement of foreign arbitral awards in Vietnam or contact our Arbitration lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

 

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Extension of Answering the Questionnaire on Anti-dumping Case AD16

Trade Remedies Authority of Vietnam issued the announcement on extension of the term of answering the official questionnaire on investigating the application of anti-dumping measures on some products of office desks and chairs originating from China and Malaysia (Case No. AD16).

 

On December 06th, 2021, the Trade Remedies Authority of Vietnam issued the official Questionnaire for the foreign manufacturers, exporters in the case No. AD16.

On January 05th, 2022, the Investigation agency extended the term of answer the questionnaire for the first time on January 26th, 2022.

According to Article 35.2 Decision No.10/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies dated January 15th, 2018, within 30 days after receiving the investigation questionnaires, the concerned parties must provide written replies to all questions in the questionnaire. In case of necessity or there are written requests for extension with reasonable reasons from the concerned parties, the investigating authority may extend the time limit but not more than 30 days.

The Investigation agency extended the term of answering the questionnaire for the second time at 17:00 P.M on February 09th, 2022.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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What Are Changes on Enterprise Registration According to Decree No. 01/2021/ND-CP?

On January 4, 2021, the Government issued Decree No. 01/2021/ND-CP on enterprise registration.

 

From January 4, 2021, the following 04 procedures will be carried out in conjunction: Registration of establishment of enterprises, branches, representative offices in Vietnam; Labor usage declaration; Granting the number of the social insurance participant; Register to use invoices of the enterprise.

The enterprise code is also the enterprise’s taxpayer identification number and the unit participating in social insurance number of the enterprise. According to previous regulations, only the enterprise code was specified as the enterprise’s taxpayer identification number.

The Business Registration Office has the right to accept or reject the intended name for registration of the enterprise. The opinion of the Business Registration Office is the final decision to avoid the identical, mistaken enterprise name and violation of the regulations on enterprise naming. In case of disagreement with this decision, an enterprise may initiate a lawsuit in in Vietnam accordance with the law on administrative procedures.

In case an enterprise registers the date of business commencement after the date of being granted an enterprise registration certificate, the enterprise is entitled to do business from the date it is registered, except in the case of conditional business investment.

The person competent to sign the application for enterprise registration may authorize other organizations or individuals to carry out enterprise registration procedures. Authorized subjects may be individuals, organizations or non-public postal service providers or single service providers of public postal services. In case of authorizing a public postal service provider to carry out enterprise registration procedures, when carrying out enterprise registration procedures, postal staff must submit a copy of the application form according to the form provided by the operator. Public postal service providers to issue with certified signatures of postal staff and persons competent to sign written application for enterprise registration. In case of authorizing a non-public postal service provider to carry out enterprise registration procedures, the enterprise registration dossier must be accompanied by a copy of the service contract with the organization providing services to perform procedures related to enterprise registration, referral of that organization to the individual directly performing procedures related to enterprise registration and copies of legal papers of the individual introduce.

In addition, the Decree also stipulates that in addition to the way of paying fees and charges directly at the Business Registration Office, the fee payer can transfer money to the account of the Business Registration Office or use an electronic payment service. The enterprise registration fee is not refundable to an enterprise in the event that an enterprise is not granted an enterprise registration certificate. Online payment of fees and charges will also be supported on the National Business Registration Portal. However, the fee for using this service will not be included in the business registration fee, the fee for providing and disclosing information. In the event of an error in the electronic payment process, the fee or fee paying organization or individual should contact the service provider intermediary for settlement.

ANT Lawyers – A Law Firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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