Summary of Significant Policies Effective from Early April

1. Maximum Compensation of 100 Million VND/Person When a Motor Vehicle Causes an Accident

The Ministry of Finance issued Circular 22/2016/TT-BTC stipulating the rules, terms, premium scales, and liability limits of compulsory civil liability insurance for motor vehicle owners.

Motor vehicle owners participating in traffic within the territory of the Socialist Republic of Vietnam must purchase compulsory civil liability insurance as stipulated in this Circular.

The maximum insurance liability that the insurer may have to pay for bodily injury, life, and property damage to third parties and passengers caused by motor vehicles in each accident within the insurance liability scope is as follows:

- For bodily injury caused by motor vehicles: 100 million VND per person per accident.

- For property damage caused by two-wheeled motorbikes, three-wheeled motorbikes, mopeds, and similar vehicles (including motor vehicles for the disabled): 50 million VND per accident.

- For property damage caused by cars, tractors, construction machines, agricultural and forestry machines, and other special-purpose vehicles used for security and defense purposes (including trailers and semi-trailers pulled by cars or tractors): 100 million VND per accident.

The time frame for the motor vehicle owner to request compensation is 01 year from the date of the accident, except for delays due to objective reasons and force majeure events as per the legal regulations.

Circular 22/2016/TT-BTC is effective from April 1, 2016.

2. Dossiers for Applying for Work Permits for Foreigners

From April 1, 2016, Decree 11/2016/ND-CP, providing detailed provisions for the implementation of certain articles of the Labor Code regarding foreign employees in Vietnam, takes effect.

Foreign employees working in Vietnam when applying for work permits need to prepare a dossier including:

- Application for issuance of work permit from the employer as per the form.

- Health certificate or medical examination certificate issued by a competent foreign or Vietnamese medical organization, valid for 12 months from the health conclusion date to the dossier submission date.

- Judicial record or document certifying the foreign employee is not a criminal or under criminal prosecution, issued no more than 6 months from the issuance date to the dossier submission date.

In cases where the foreign employee has resided in Vietnam, only a judicial record issued by Vietnam is required.

- Document proving the person is a manager, executive, expert, or technical worker.

- Two color photos (4cm x 6cm size, white background, front view, bareheaded, without colored glasses), not more than 6 months old from the dossier submission date.

- Certified copy of the passport or alternative travel documents still valid as per legal regulations.

- Any other relevant documents related to the foreign employee.

Decree 11/2016/ND-CP replaces Decree 102/2013/ND-CP.

3. Fee for Issuing Driver's Licenses within the People's Police

On February 23, 2016, the Ministry of Finance issued Circular 29/2016/TT-BTC amending and supplementing Circular 32/2013/TT-BTCregarding fees for examination and license issuance within the People's Police.

The fee for issuing Driver's Licenses within the People's Police has some changes as follows:

- For licenses printed on paper materials: 30,000 VND per issuance (new issuance, exchange, reissuance).

- For licenses printed on plastic materials: 135,000 VND per issuance (new issuance, exchange, reissuance).

Circular 29/2016/TT-BTC is effective from April 9, 2016.

4. New Guidelines on VAT Declaration

From April 1, 2016, Circular 21/2016/TT-BTC, guiding VAT declaration and corporate income tax incentives according to Decree 111/2015/ND-CP, will take effect.

Organizations and individuals producing supporting industry products (SPCNHT) listed as priority development sectors in the territory of Vietnam must declare VAT as follows:

- For tax-paying organizations:

Declare VAT quarterly for revenue from SPCNHT in the list (regardless of whether revenue is over or under 50 billion VND/year).

In cases where both revenue from SPCNHT in the list and revenue from other production and business activities are derived, declare VAT quarterly.

If not declaring quarterly, taxpayers may opt to declare VAT monthly and notify the tax authority according to the provisions of the tax management laws.

- For tax-paying individuals:

Declare VAT annually and pay VAT quarterly for revenue from SPCNHT in the list.

If paying tax per occurrence with SPCNHT revenue in the list, individuals may declare and pay tax per occurrence or opt for monthly declaration and payment of VAT.

Corporate income tax incentives stipulated in Circular 21/2016/TT-BTC apply to the corporate income tax calculation period from 2015 onwards.

5. Register for Military Service upon Changing Residence, Study, or Work Place

On February 19, 2016, the Government of Vietnam issued Decree 13/2016/ND-CP stipulating the procedures for registration and policies for citizens during the registration, examination, and health check-up period for military service (NVQS).

Citizens registering for NVQS when changing their residence or place of work or study need to prepare the following dossier:

- For transfer-out NVQS registration:

+ Transfer introduction letter for NVQS registration or transfer introduction letter for reserve military personnel;

+ Photocopy of the NVQS registration certificate or reserve military personnel registration certificate (carry the original for comparison);

+ Photocopy of the residence transfer introduction letter issued by the district, town, provincial city police, and equivalent administrative unit regarding the change of residence or the decision by the head of the agency or organization about the change of the work or study place (carry the original for comparison).

- For transfer-in NVQS registration:

+ Transfer introduction letter for NVQS registration or transfer introduction letter for reserve military personnel;

+ Reserve military personnel card.

Decree 13/2016/ND-CP is effective from April 8, 2016, and replaces Decree 83/2001/ND-CP.

6. Time Frame for Dossier Resolution at the General Department of Customs

From April 1, 2016, the General Department of Customs will implement the single-window mechanism as per Decision 369/QD-TCHQ.

The time frame for dossier resolution at the General Department of Customs according to the single-window mechanism is stipulated as follows:

- For tax exemption dossier resolution: 10 working days from the date of receipt of a complete and valid tax exemption dossier.

- For responding to and resolving issues: no more than 05 working days from the receipt of the request, resolving issues of organizations or individuals with complete condition dossiers.

If additional information is required: within 03 working days from the receipt of the request, resolving issues of organizations or individuals, business units must inform the organization or individual of the need to supplement information.

Additionally, business units must issue a written response within a maximum of 05 working days.

Moreover, the Decision also stipulates the time frame for dossier resolution in cases where the request content exceeds the authority, or the content resolution falls within the authority but requires consultation from other departments.

More details can be found in Decision 369/QD-TCHQ dated March 3, 2016.

7. Prohibitions on Swearing, Cursing in Apartment Buildings from April 2, 2016

This regulation is newly mentioned in the Regulations on Management and Operation of Apartment Buildings issued with Circular 02/2016/TT-BXD, effective from April 2, 2016.

Specifically, the following acts are prohibited in the use of apartment buildings:

- Swearing, cursing.

- Throwing anything from the windows, balconies of the apartment.

- Raising, releasing, keeping livestock, poultry in the apartment building.

- Burning votive paper, lighting fires in the apartment building, except in the designated areas for burning votive paper as stipulated in the apartment building.

- Drying, placing clothes, and any items on the balcony or in the space from the balcony upwards or hanging across the windows of the apartment.

- Gambling, engaging in prostitution activities in the apartment building.

- Purchasing, selling, storing, using illegal drugs in the apartment and other areas within the apartment building.

- Other acts as per relevant laws, as additionally stipulated by the Apartment Building Conference for appropriateness to each apartment building...

Circular 02/2016/TT-BXD replaces Decision 08/2008/QD-BXD and Circular 05/2014/TT-BXD.

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