05 Prominent New Policies Effective from Mid-December 2016

1. New regulations on conditions for VAT deduction

These are the contents mentioned in Circular 173/2016/TT-BTC (effective from December 15, 2016) amending Clause 3, Article 15 of Circular 219/2013/TT-BTC on bank payment vouchers. Accordingly:

- The regulation is abolished: The accounts (TK) of the buyer and the seller must be accounts registered or notified to the tax authority regarding the condition of bank payment vouchers for VAT deduction.

Thus, entities are still entitled to deduct input VAT even if the buyer's and seller's accounts are not registered or notified to the tax authority but meet all other conditions.

- No need to register accounts with the tax authority when the buyer pays from the buyer's account to the seller's account in the name of the owner of the private enterprise, or the buyer pays from the buyer's account in the name of the owner of the private enterprise to the seller's account.

1. Receiving and delivering administrative procedure results via postal service

According to Decision 45/2016/QD-TTg (effective from December 16, 2016) on receiving application dossiers and returning the results of administrative procedure settlement (AP) via public postal services, organizations and individuals when carrying out administrative procedures via public postal services may choose one of the following forms:

- Submit application dossiers for administrative procedure settlement;- Receive results of administrative procedure settlement;- Submit application dossiers and receive results of administrative procedure settlement.

Organizations and individuals shall pay the fees and charges for administrative procedure settlement (if any) by the following methods:

- Direct payment or transfer to the account of the competent authority fees and charges;- Direct payment or transfer to the account of the enterprise providing public postal services to transfer to the competent authority;- Payment of fees and charges for administrative procedure settlement by other methods as approved by the competent authority.

1. Criteria for identifying particularly difficult villages in mountainous areas for the period 2016-2020

A particularly difficult village is one that meets one of the two criteria specified in Decision 50/2016/QD-TTg (effective from December 20, 2016). Specifically:

- The total rate of poor and near-poor households is 65% or more (of which the rate of poor households is 35% or more) according to the multi-dimensional poverty approach standard for the period 2016 - 2020;- The total rate of poor and near-poor households is 55% or more (for provinces in the Southeast Region and the Mekong Delta Region from 30% or more) according to the multi-dimensional poverty approach standard for the period 2016 - 2020 and meets two out of three of the following factors (for villages with 80% or more ethnic minority households, one of the three factors is required):- The main road of the village or inter-village road has not been hardened according to the new rural criteria;- 60% or more of the classroom for preschool classes has not been solidified;- There is no Village Cultural House - Sports Area according to the regulations of the Ministry of Culture, Sports and Tourism.

1. Regular expenditure regulations for public service providers

Regular operating expenditures of public service providers (PSP) must comply with the provisions of Decree 141/2016/ND-CP (Effective from December 20, 2016) as follows:

- Salary expenditure: Salary payments according to rank, grade, position, and allowances as prescribed for PSPs;- Professional activity and management expenditure;- Based on the financial capacity, the unit is allowed to decide on higher or lower spending levels than the prescribed levels and regulations in the internal spending regulations for expenditure items with prescribed levels;- Based on the actual situation, the unit develops a suitable spending level in line with internal spending regulations and takes responsibility for expenditure items without prescribed levels;- Deduction for fixed asset depreciation.

1. Issuing 60 new audit dossier forms

The State Audit Office has issued the Audit Dossier Form System applied in the auditing activities of the State Audit Office together with Decision 06/2016/QD-KTNN including:

- 04 forms for the field of auditing Ministry and sector budgets;- 10 forms for the field of auditing local budgets;- 02 forms for the field of auditing budgets of estimating units, project management boards under ministries, sectors, and localities;- 05 forms for the field of auditing investment and construction projects;- 04 forms for the field of auditing target programs;- 04 forms for the field of auditing enterprises;- 04 forms for the field of auditing financial institutions and banks;- 04 forms for the field of auditing defense, security, and financial affairs of the Communist Party;- 23 common audit dossier forms.

Decision 06/2016/QD-KTNN is effective from December 17, 2016, replacing Decision 01/2012/QD-KTNN dated March 28, 2012.

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