Key Document Highlights from April 03 - April 08

1. Application of new sub-items for fees and charges in the state budget nomenclature:

On March 29, 2017, the General Department of Taxation issued Official Dispatch 1147/TCT-KK guiding the implementation of the amended and supplemented state budget nomenclature according to Circular 300/2016/TT-BTC.

Fees and charges are to be applied according to the new sub-items as follows:

- Notarization fee: Accounted into sub-item 2715 “Notarization fee” (previously sub-item 3061 “Notarization fee”);- Driving test fee: Accounted into sub-item 2301 “Road use fee” (previously sub-item 2502 “Fee for testing to qualify for a certificate, license, or practicing license”);- Certification fee: Accounted into sub-item 2716 “Certification fee” (previously sub-item 3057 “Fee for issuing copies, certifications as required/by law”);- Civil status fee: Accounted into sub-item 2771 “Civil status fee” (previously sub-item 3057 “Fee for issuing copies, certifications as required/by law”);- Planning permit fee: Accounted into sub-item 2826 “Planning permit fee” (previously sub-item 3057 “Fee for issuing copies, certifications as required/by law”).

1. List of investment credit projects of the State:

Decree 32/2017/ND-CP on State investment credit promulgates a list of 19 projects eligible for State investment credit. Among these:

- 05 projects belong to the economic-social infrastructure sector;- 03 projects belong to the agriculture and rural sector;- 09 projects belong to the industrial sector;- 02 projects are implemented according to the program of the Prime Minister and invest abroad as regulated by the Government of Vietnam.

The loan term for the investment credit of the projects is specified as follows:

- Group A projects: A maximum of 15 years (currently 12 years);- Other projects: A maximum of 12 years;- For special projects requiring a loan duration exceeding the maximum loan period, the Vietnam Development Bank will appraise and submit to the Prime Minister of the Government of Vietnam for consideration and decision.

Decree 32/2017/ND-CP takes effect from May 15, 2017, replacing Decree 75/2011/ND-CP, Decree 54/2013/ND-CP, and Decree 133/2013/ND-CP.

1. Fines up to 250 million for constructing water reservoirs against regulations

This is a newly added provision in Decree 33/2017/ND-CP on administrative sanctions in the field of water and mineral resources.

Additional new penalties for violations in water resource management are as follows:

- A fine from 30 - 40 million VND for untruthfully declaring information for community consultation as regulated;- A fine from 80 - 100 million VND for failing to pay water resource exploitation rights according to regulations;- A fine from 200 - 250 million VND for constructing reservoirs, dams, and water exploitation facilities against the water resource regulations.

See more fines at Decree 33/2017/ND-CP which takes effect from May 20, 2017, replacing Decree 142/2013/ND-CP.

1. Conditions for operating a seaport business

On April 4, 2017, the Government of Vietnam issued Decree 37/2017/ND-CP regulating the conditions for operating a seaport business.

A port business is only allowed to operate a seaport when granted a Certificate of Business Eligibility and meets the following conditions:

In terms of organizational structure: It must have departments such as:

- Managing business operations of the seaport;- Managing maritime security;- Handling safety and labor hygiene.

In terms of human resources:

- The head of the department managing business operations of the seaport must have a university degree or higher in one of the fields of maritime, economics, or commerce and have ≥ 05 years of experience;- Port security personnel must be trained, instructed, and certified according to the regulations of the Minister of Transport;- The person in charge of safety and labor hygiene must be trained, instructed, and certified in fire prevention and protection; safety and labor hygiene.

See additional conditions at Decree 37/2017/ND-CP which takes effect from July 1, 2017.

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