What are regulations on determination of value of investment capital; assessment of value of investment capital regarding implementation of investment projects in Vietnam?

What are regulations on determination of value of investment capital; assessment of value of investment capital regarding implementation of investment projects in Vietnam? - image from internet

Pursuant to Article 28 of the Decree 31/2021/ND-CP stipulating determination of value of investment capital; assessment of value of investment capital; assessment of machinery, equipment and technological lines in Vietnam:

1. The registered capital for execution of an investment project shall be determined on the basis of:

a) Capital contributed by the investor in the form of cash, machinery, equipment, value of intellectual property rights, technology, technical know-how, value of land use rights and other assets in accordance with regulations of the civil law and international treaties on investment;

b) Capital raised to execute the project;

c) Profits (if any) retained by the investor for re-investment.

2. The investment capital for execution of an investment project shall be determined on the basis of contributed capital, raised capital and profits retained for re-investment during the project execution. The investor shall self-determine value of investment capital for execution of the project after it is put into operation.

3. The independent assessment of value of investment capital, quality and value of machinery, equipment and technological line after operation of a project as prescribed in Clause 3 Article 45 of the Law on Investment shall be carried out in the following cases:

a) The investment authority and tax authority have grounds for determining that the investor fails to truthfully, accurately and sufficiently declare tax regarding value of the investment capital in accordance with regulations of law and tax administration;

b) The investment authority and science and technology authority have grounds for determining that the investor show signs of violating regulations on application and transfer of technology during the project execution in accordance with regulations of law on technology transfer.

4. For the case specified in Point a Clause 3 of this Article, the tax authority shall carry out an assessment to determine the amount of tax payable by the investor; the hiring of an independent assessment organization for investment capital assessment shall be carried out by the investment authority.

5. For the case specified in Point b Clause 3 of this Article:

a) The Ministry of Science and Technology shall preside over and cooperate with relevant authorities in assessing quality and value of machinery, equipment and technological lines for the projects subject to approval for their investment guidelines by the National Assembly and the Prime Minister;

b) Science and technology authorities affiliated to provincial People’s Committees shall preside over and cooperate with relevant authorities in assessing quality and value of machinery, equipment and technological lines for the projects other than those specified in Point a of this Clause;

c) The assessment of quality and value of machinery, equipment and technological lines shall be carried out by consulting the science and technology advisory board, independent assessment organizations and experts about machinery, equipment and technological lines used during the project execution;

d) Applications and procedures for assessing machinery, equipment and technological lines shall comply with the Prime Minister’s regulations.

6. The costs of assessment made as prescribed in Clauses 4 and 5 of this Article shall be covered by the state budget. The investor must bear any costs of assessment if the assessment results lead to an increase in the tax obligations discharged to the State.

Best regards!