December 2002

Under this Circular, such goods shall be subject to a value added tax rate of 0 per cent and the prevailing export duty rates. In addition, enterprises exporting goods in accordance with the "on-the-spot export" procedures may receive refunds for imported imported duty paid for materials imported for production of such goods. In order to enjoy the above preferential treatment, certain conditions must be satisfied, including that the sale contracts for exportation for goods to foreign purchasers must clearly specify descriptions of the goods and names of Vietnamese enterprises receiving the goods. The circular also sets out the documents required for submission to the customs office in respect of exportation of goods in accordance with the "on-the-spot export" procedures.

This Official Letter provides interpretation of regulations on payment to employees working on public holidays. Employees working on public holidays shall be paid overtime wages equal to at least 300 per cent of their normal salary.   

Pursuant to this Official Letter, where enterprises pay foreign employees who are not subject to social and health insurances an additional amount of 17 per cent of their salaries (equivalent to the obligation of enterprises to pay social and health insurances for Vietnamese employees), this additional amount shall be considered as income of the employees and be subject to personal income tax. However, this amount will only be accounted for as operational expenses of enterprises for the purpose of calculation of corporate income tax if it is clearly set out in the labour contract signed between such employee and the enterprise.  

Under this Official Letter, enterprises must issue invoices, declare and pay value added tax for fixed assets transferred to their partners upon dissolution of the enterprise.

This decree provides amendments to a number of articles of Decree 178/1998/ND-CP dated October 25, 2002 on securities for loans made by credit institutions. Where a secured transaction is deemed partially or wholly invalid, this does not affect the validity of the credit contract which the invalid secured transaction secures. The new decree stipulates that borrowers may mortgage the value of land use rights only or assets attached to land only, or both, as security for loans in accordance with their agreements with credit institutions. By contrast, under Decree 178, borrowers must use both the value of  land use rights and assets attached to land as security for loans.
Pursuant to this Decree, the value of land use rights allocated by the state used for mortgage will be determined between the mortgagor and the credit institution based on its actual value, not as in Decree 178 on the land price stipulated by the People's Committee of the province/city under the central authority applicable when the mortgage is granted. 

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