Vietnam: Important policies effective from January 1, 2017

1. Application of accounting policies for small and medium enterprises according to Circular 133

Circular 133/2016/TT-BTC of the Ministry of Finance of Vietnam issued on August 26, 2016, guiding accounting policies for small and medium enterprises, has some notable new points:

- Innovating the approach to policy;

- Emphasizing the feasibility of application in practical enterprises;

- Separating accounting and tax, aiming to serve the management and operation needs of enterprises;

- Accounting is not just a matter of Debit - Credit, the technical recording in accounting books and the presentation technique of financial statements must be separated;

- Emphasizing substance over form and transaction name;

- Approaching closer to international practices and standards.

Circular 133/2016/TT-BTC is effective for fiscal years beginning on or after January 1, 2017, and any provisions contrary to this circular will be abolished.

Circular 133 replaces the contents applied to small and medium enterprises at Decision 48/2006/QD-BTC and Circular 138/2011/TT-BTC.

View articles related to Circular 133 here.

2.  Increase the regional minimum wage from VND 180,000 to VND 250,000/month

The regional minimum wage for employees working under official labor contracts has increased from January 1, 2017. The minimum wage increase by region is as follows:

- Region I: 3,750,000 VND/month (increased by 250,000 VND/month compared to 2016);

- Region II: 3,320,000 VND/month (increased by 220,000 VND/month compared to 2016);

- Region III: 2,900,000 VND/month (increased by 200,000 VND/month compared to 2016);

- Region IV: 2,580,000 VND/month (increased by 180,000 VND/month compared to 2016).

The areas belonging to regions I, II, III, and IV are specified in the Appendix issued with this Decree.

Changes in the regions are as follows:

View articles related to the regional minimum wage 2017 here.

3. Registration fee declaration dossier for properties of houses, land

According to Decree 140/2016/ND-CP of Vietnam's Government on registration fees, the declaration dossier for registration fees for properties of houses, land includes:

- Registration fee declaration form (Form No. 01 issued with this Decree).

- Documents proving assets (or asset owners) are exempt from registration fees (if any).

For electronic registration fee declaration cases, the dossier includes:

- The registration fee declaration form as mentioned in Form No. 01; and

- Legal documents attached to the registration fee declaration shall comply with the regulations of registration authorities when performing procedures to grant certificates of ownership and use of the property.

If the inter-coordination process of state agencies for administrative procedures in granting certificates of ownership or use of assets has different regulations, those regulations shall be applied.

Additionally, the Decree stipulates the registration fee rate (%) from January 1, 2017.

Decree 140/2016/ND-CP takes effect from January 1, 2017.

4. From January 1, 2017, beauty contestants can take nude picture

This new regulation is stipulated in Circular 10/2016/TT-BVHTTDL (effective from January 1, 2017) amending Circular 01/2016/TT-BVHTTDL on performing arts, fashion shows, beauty, and model competitions.

It abolishes the actions forbidden for performing artists, fashion models, and award winners at beauty and model contests including:

- Taking pictures or recording images of individuals without clothing or using offensive costumes/makeup and intentionally or unintentionally spreading, circulating on telecommunications networks;

- Taking pictures, recording audio, or recording collective or individual images of performances violating regulations in Article 6 Decree 79/2012/ND-CP of Vietnam's Government and intentionally or unintentionally spreading, circulating on telecommunications networks;

- Acting or speaking inappropriately with social ethical values, customs, Vietnamese cultural traditions, violating laws, and intentionally or unintentionally spreading on media or in public causing negative consequences.

5. Level of business license fees for 2017

The Government has issued Decree 139/2016/ND-CP on the level of business license fees effective from January 1, 2017, as follows:

- For organizations engaged in production, business of goods and services:

+ With charter capital/investment ≥ 10 billion VND: 3,000,000 VND/year;

+ With charter capital/investment ≤ 10 billion VND: 2,000,000 VND/year;

+ Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 VND/year.

- For individuals, groups of individuals, households engaged in production, business of goods and services:

"+ With annual revenue > 500 million VND: 1,000,000 VND/year;

+ With annual revenue 300 < a ≤ 500 million VND: 500,000 VND/year. (Where a is the revenue);

+ With annual revenue 100 < a ≤ 300 million VND: 300,000 VND/year.

Decree 139/2016/ND-CP is effective from January 1, 2017, repealing Decree 75/2002/ND-CP and Article 18 Decree 83/2013/ND-CP.

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