Highlights of Corporate, Audit, and Tax Documents

1. 02 Business Advantage Values of Enterprises During Equitization

This content is specified in Decree 126/2017/ND-CP transitioning state-owned enterprises and single-member limited liability companies with 100% state-owned capital to joint-stock companies.

The business advantage value of an equitized enterprise includes brand value and development potential. Specifically:

- Brand value is determined based on actual costs incurred in creating and protecting the brand, trade name during the enterprise’s operation 5 years prior to the valuation date, including costs such as:- Establishing the enterprise;- Training employees;- Advertising, both domestically and internationally;- Building the enterprise’s website;- For certain specific enterprises, brand value is also determined by historical factors and a longstanding tradition (if any).- The development potential value calculated into the equitized enterprise's value is assessed based on the enterprise’s future profitability compared to the Government of Vietnam bond interest rate.

See more in Decree 126/2017/ND-CP, effective from January 1, 2018.

2. New Banking Audit Procedure Applied from 2018

Decision 11/2017/QD-KTNN guides the audit process for financial institutions, banks, replacing the procedure attached to Decision 06/2012/QD-KTNN dated April 11, 2012.

From January 5, 2018, the sequence, content, and procedures of audit tasks at financial institutions and banks will be carried out according to the new procedure.

Notably, clear objectives, content, methods, and procedures for auditing certain types of assets and capital sources are outlined, such as:

- Auditing accounts such as cash; valuable documents; foreign currency and precious metals, gemstones; deposits; etc.;- Auditing investments like: trading securities; investment securities; derivative financial instruments; long-term investment contributions...;- Auditing receivables such as: deposits, mortgages, collateral…;- Auditing accrued interest receivables;- Auditing tools and materials;- Auditing fixed assets and investment properties;- Auditing ongoing capital construction costs...

See detailed guidance in Decision 11/2017/QD-KTNN.

3. New Import Tariff List Applied from January 1, 2018

On November 16, 2017, the Prime Minister of the Government of Vietnam issued Decision 45/2017/QD-TTg amending Decision 36/2016/QD-TTg stipulating the application of ordinary tariff rates on imported goods.

Two items added to the list of ordinary import tariff rates are:

- Set top boxes (Item code 98.46)- Cellular metal grids made from Nano-composite Polymeric Alloy (Neoweb) (Item code 9847.00.00)

From January 1, 2018, the new ordinary import tariff rate list will be applied, replacing the Appendix stipulating ordinary tariff rates on imported goods attached to Decision 36/2016/QD-TTg.

See details of the ordinary import tariff rate list in Decision 45/2017/QD-TTg.

4. Priority for Talented Teachers to be Head of Youth Teams

Circular 27/2017/TT-BGDDT stipulates the standards, duties, authority, and appointment as Head of the Ho Chi Minh Young Pioneer Organization at public educational institutions.

Teachers selected to be Head of the Youth Teams must meet the following standards:

- Meeting the job title standards for teachers according to the current job title grade. Specifically:- For primary school teachers: Apply regulations in Joint Circular 21/2015/TTLT-BGDDT-BNV;- For secondary school teachers: Apply regulations in Joint Circular 22/2015/TTLT-BGDDT-BNV.- Having been trained in Youth work along with their teaching specialty or having received professional training in Youth work;- Having the capability to cooperate with organizations inside and outside the school to organize Youth activities and movements.

Especially, teachers proficient in music, art, sports, presentation, event organization, and communication will be given priority in selection.

Circular 27/2017/TT-BGDDT takes effect from December 24, 2017.

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