Friday, June 23 2017

VietNamNews

Tightening corporate accounting

Update: February, 22/2017 - 10:58

Government Decree No 174/2016/NĐ-CP (December 30, 2016) detailing a number of articles of the Accounting Law on accounting documents, accounting operations, accountants, accounting service business, accounting services across borders and accounting association.

Representative offices of foreign enterprises operating in Việt Nam, business households and cooperative groups may apply the corporate accounting system to open accounting books for monitoring, recording and determining the tax liability.

Foreign contractors having permanent establishment or residence in Việt Nam and not qualified as independent units may choose to apply all or some requirements of the Vietnamese corporate accounting system and notify the same to tax authorities.

In case the foreign contractors choose to apply the Vietnamese corporate accounting system in full, they need to apply it consistently for one accounting period. The Decree takes effect on January 1, 2017, and replaces the Government’s decrees No 128/2004/NĐ-CP (May 31, 2004) and No 129/2004/NĐ-CP (May 31, 2004).

Governmental guarantee

Government Decree No 04/2017/NĐ-CP (January 16, 2017) on governmental guarantee provision and management.

Rate of the Governmental guarantee, by original value of loan or issued bond amount, must not exceed 70 per cent of total investment capital of an investment programme or project.

In particular, the guarantee rate for the project approved by the National Assembly or Government, or project subject to urgent implementation must not exceed 70 per cent of total investment capital; for a project grouped A with its total investment capital of more than VNĐ2.3 trillion and approved by the Prime Minister, the rate must not exceed 60 per cent of total investment capital; for other projects, the rate must not exceed 50 per cent of total investment capital.

The decree takes effect on March 1, 2017, and replaces the Government’s Decree No 15/2011/NĐ-CP (February 16, 2011).

EPC contracts

Ministry of Construction Circular No 30/2016/TT-BXD (December 30, 2016) guiding engineering, procurement and construction (EPC) contracts.

EPC contracts apply to projects, construction packages having a term which should be shortened or which have high technical requirements.

EPC contractor must have eligible experience, financial, professional and operational capacity to perform the entire scope of work of the EPC contract.

The EPC contractor must not assign more than 60 per cent of EPC contract workload to subcontractors. The circular takes effect on February 20,  2017.

Land management

Government Decree No 01/2017/NĐ-CP (January 6, 2017) amending and supplementing a number of decrees detailing the implementation of the Land Law.

The decree provides that land users who do not comply with obligation of payment of land use fees, land rent and were forced to pay but still did not do so, must be subjected to land retrieval measures.

An investor may continue to use land for 24 months after the investment project is terminated, and in case of not assigning the land use right or selling the property attached to land after the said 24 months, the investor is subject to land retrieval measures.

Land lease contracts and land use right mortgage contracts will be terminated when the State retrieves the leased land and mortgaged land due to national defence, security, national and public benefits or violations related to land regulations.

Additionally, in case the State retrieves land for other person’s use, the person receiving land must reimburse the person whose land is retrieved for the remaining value of the property attached to the land. The decree takes effect on March 3, 2017. — MAI COUNSEL

 

Send Us Your Comments:

See also: