Key New Features of 07 Laws Effective from January 01, 2017 (Part 1)

1. Applying the agreed loan interest rate up to 20% per annum on the loan amount

The Civil Code 2015, passed by the 13th National Assembly, 10th session, officially takes effect from January 1, 2017, with many new points:

- Applying an agreed interest rate not exceeding 20% per annum on the loan amount in asset loan contracts.
Thus, compared to the current regulations, this interest rate is higher and no longer dependent on the basic interest rate of the State Bank.- In cases where the agreed interest rate exceeds 20% per annum, the excess rate will be invalid.- In cases where the parties agree on interest payment but do not specify the interest rate and there is a dispute over the interest rate, the interest rate will be determined as 50% of the above-mentioned interest rate limit.- Allowing gender change;- Regulations on usufruct rights over assets;- Priority order of payment in inheritance;- Allowing contract renegotiation when circumstances change.

The Civil Code 2015 replaces the Civil Code 2005.

1. To be specific: principles on balancing and managing the state budget

The State Budget Law 2015, passed by the National Assembly at the 9th session, 13th National Assembly, marks a new turning point in the state budget management system (NSNN), addressing many shortcomings and limitations of the State Budget Law 2002.

It specifically and in detail stipulates the principles in NSNN management activities:

- NSNN balancing principle (Article 7);- NSNN management principle (Article 8);- Principle of decentralizing management of revenue sources, spending duties and relations between budget levels (Article 9);- Principle of decentralizing revenue sources and spending duties among local budget levels (Article 39).

At the same time, for the first time, the State Budget Law stipulates that local budget deficits are part of the NSNN deficit.

The State Budget Law 2015 takes effect from January 1, 2017, replacing the State Budget Law 2002.

1. Strictly prohibited from keeping two or more sets of accounting and financial records

This is one of the prohibited acts under the Accounting Law 2015, effective from January 1, 2017.

Based on inheriting 09 prohibited acts stipulated in the Accounting Law 2003, the Accounting Law 2015 has added some other prohibited acts such as:

- Bribing, threatening, suppressing, or coercing accountants to perform accounting work contrary to regulations;- Renting, borrowing, leasing, or lending accountant certifications or certificates of registration for accounting practice in any form;- Engaging in accounting service business without being granted a Certificate of Eligibility for Accounting Service Business or practicing accounting services without ensuring the prescribed conditions;- Hiring individuals or organizations without sufficient conditions for practicing or doing business in accounting services to provide accounting services for their unit;- Professional accountants and accounting service businesses colluding with clients to provide or confirm false information or accounting data.

Moreover, the Law allows individuals responsible for managing, operating the accounting unit in private enterprises, and single-member limited liability companies owned by an individual to concurrently serve as accountants, treasurers, and cashiers.

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