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TAX FREE, TAX REDUCTION FOR ENTERPRISES IN 2021
The Covid-19 epidemic, which has lasted from 2019 to the present time, has shown no sign of stopping, causing significant changes in the global economy, and business entities are the clearest evidence for affected by disease. In order to support business entities and encourage the spirit of Vietnamese business owners and foreign investors, the State issued Resolution No. 406/NQ-UBTVQH15 regarding of income tax reduction policies and tax reduction for enterprises, business households and individuals. Read More
Investment & Consulting, Investment advisory service, Procedure
The process for establishing foreign-invested language center in Vietnam
In the last article: Conditions for establishing a foreign-invested language center in Vietnam, Inco Minh Anh Law Firm advised foreign investors on the conditions to establish a foreign language center. With foreign investment capital in Vietnam, in this article, we will guide investors through the process for establishing foreign-invested language center.
Step 1: Issuing Certificate of Investment Registration for Target Project Establishing a Foreign Language Center
Investors who want to establish a foreign language center by themselves, without joint ventures or association with Vietnamese individuals or organizations must first apply for an Investment Registration Certificate. In the process of applying for an investment registration certificate, the investment registration certificate-issuing agency must obtain appraisal opinions from the Department of Education and Training because it is related to the training program, network planning educational institution.
The list of dossiers is as prescribed in Article 31 of the Investment Law 2020. The contents of the dossier must satisfy all conditions for foreign-invested foreign language centers according to Decree 86/2018/ND- CP and Circular 21/2018/TT-BGDDT. For details, see the article: Conditions for establishing a foreign-invested language center in Vietnam.
Step 2: Establish a project management business Establish a foreign language center
The foreign investor shall submit an application to the Business Registration Office where the Foreign Language Center operates, the dossier includes:
- Business registration application form.
- Company rules.
- List of founding members/shareholders
- A copy of the individual’s legal papers, for members being an individual, the legal representative;
- A copy of the organization’s legal papers for members being an organization and the document appointing an authorized representative; legal papers of individuals for authorized representatives of members being organizations.
- A copy of the Investment Registration Certificate for foreign investors in accordance with the Law on Investment.
Consult Enterprise, Investment & Consulting
Conditions for establishing foreign-invested language center in Vietnam
Foreign investors who want a foreign language training center in Vietnam need to meet the conditions prescribed by the WTO and according to the laws of Vietnam. In this article, we – Inco Minh Anh Law Firm advise foreign investors on the conditions for establishing foreign-invested language center in Vietnam..
Firstly, conditions according to WTO regulations
According to WTO regulations, the conditions for establishing a foreign-invested foreign language center (CPC 929 including foreign language training) are: Foreign teachers working at training institutions must have at least 5 years teaching experience and must be professionally recognized by the Ministry of Education and Training of Vietnam.
Second, the conditions for establishment in accordance with Vietnamese law
Foreign-invested foreign language centers in accordance with Vietnamese law are short-term training and retraining establishments (Article 28 of Decree 86/2018/ND-CP). According to the provisions of Decree 86/2018/ND-CP, conditions for foreign-invested foreign language centers include: Read More
Consult Enterprise, Investment & Consulting, Legislation, News & Legislation
Conditions for tax service activities for foreign investors
The Tax Services sectors (CPC 863) in the WTO Schedule of Commitments are better understood through their functions. Specifically: Tax consulting, tax planning, tax control, .. through regulations that are allowed by law but still must be based on the principles and conditions of establishment as a tax agent. Foreign investors need to comply with the conditions for tax service activities in Vietnam according to the conditions of the WTO and the provisions of Vietnamese law.
What occupations does the tax service cover?
According to the WTO Schedule of Commitments, tax services include the following activities:
Business tax planning and consulting services (CPC 86301)
A service that advises businesses on how they can handle their business in order to minimize the impact of corporate income tax on their profits by taking advantage of all the benefits provided by the permitted law.
Exclusion: Similar consulting services but including preparing or reviewing various incomes and reports for clients listed in subsection (business tax preparation and review services).
Business tax preparation and review services (CPC 86302)
Services include preparing, reviewing for businesses the earnings and reports necessary for compliance with income tax laws and regulations and protecting these results if required by tax authorities prove. This service may include tax planning and control. Read More
Investment & Consulting
Conditions for business of e-commerce services with foreign investors
The trend of “online shopping” becoming more popular and booming has made e-commerce activities more and more developed. Multinational corporations are very interested in investing in e-commerce platforms and want to expand their operations globally. In this article, Inco Minh Anh Law Firm will help foreign investors better understand the conditions of E-commerce services operation in Vietnam.
What is E-commerce service?
According to the provisions of Decree 09/2018/ND-CP, “E-commerce service is a commercial activity whereby an e-commerce service provider sets up an e-commerce website to provide an environment for other traders, organizations and individuals conducting trade promotion activities, selling goods or providing services”. The most obvious form of e-commerce activities is to provide an e-commerce website for organizations and individuals to carry out activities related to selling goods and providing services. E-commerce services in the WTO schedule of commitments have not been directly recognized through a CPC code. Based on the nature of e-commerce activities, investors can refer to the registration of the following CPC industry codes: Software Implementation Services (CPC 842), Other Computer Services (CPC 849), Data Processing Services (CPC 843),…
Conditions for business of E-commerce services in Vietnam with foreign investors
E-commerce activities belong to the list of industries and professions with conditional market access for foreign investors, so the applicable conditions are different from those of domestic investors. Conditions for a foreign-invested economic organization providing e-commerce services to be granted a business license as prescribed in Decree 09/2018/ND-CP include:
- Having a financial plan to carry out the activities requested for a business license;
- No overdue tax debt in case it has been established in Vietnam for 01 year or more.
Because e-commerce activities have not been committed to accessing the market in the international treaties that Vietnam is a member so investors must meet the following criteria:
- Comply with the provisions of specialized laws;
- Matching the level of competition of domestic enterprises in the same field of operation;
- Ability to create jobs for domestic workers;
- Ability and level of contribution to the state budget.
The business license shall be issued by the Department of Industry and Trade where the foreign-invested economic organization is headquartered. The term of the Business License is 5 years. After obtaining the business license, the company providing e-commerce services must also carry out the procedures to register the website to the Ministry of Industry and Trade according to the provisions of Decree 52/2013/NĐ-CP.
Some e-commerce platforms in Vietnam
The provision of e-commerce services by foreign-invested economic organizations is still strictly controlled, but foreign investors have been allowed to invest in service-providing companies, typically the 4 largest e-commerce platforms in Vietnam today, Shopee, Lazada, Tiki, and Sendo, all have foreign investment capital. In which, Lazada has the majority of capital of Alibaba Group, Sendo currently has nearly 35% of domestic capital and more than 65% of capital comes from 16 foreign shareholders.
The provision of e-commerce services, in addition to requiring investors to establish economic organizations, must also apply for a business license. The process for investors to provide e-commerce services in Vietnam is quite complicated because it has to go through the opinion of the Ministry of Industry and Trade. Inco Minh Anh Law Firm is ready to support investors to answer and carry out necessary procedures to be able to go into operation, please contact us immediately:
INCO MINH ANH CO., LTD
Hotline: 0982674857
Email: [email protected]
Best regards!
Activity, Legislation, News & Legislation
Conditions for working employment service in Vietnam
Employment service is one of the supporting industries that attracts a lot of attention from foreign investors. So how do Decree 23/2021/ND-CP and Decree 31/2021/ND-CP come into being with regulations on conditions for working employment service with foreign investors? Let us clarify in this article.
Firstly, what activities does employment services include?
According to the provisions of Article 36 of the Employment Law 2013, employment services include consulting and job placement activities; supply and recruit labor at the request of the employer; Collect and provide information on the labor market.
Thus, it can be understood that employment service is a service activity of an organization that has the function of providing and introducing jobs in order to create a product or service, whereby the service provider carries out recruitment and training activities according to the needs, conditions and standards of the client being the employer. The result of employment products and services is that employees find a suitable working position, and the employer finds a suitable person in charge of the job they need to recruit. Employment service organizations include employment service centers and employment service businesses. Foreign investors doing business in the field of employment services must establish an enterprise.
Secondly, conditions for working employment service:
Enterprises of foreign investors in Vietnam providing employment services must be granted employment service licenses. Article 14 of Decree 23/2021/ND-CP stipulates the conditions for being granted a license to provide employment services, including: Read More
Investment & Consulting
Conditions for establishment of short-term training and retraining establishments of foreign investors in Vietnam
Conditions for establishment of short-term training of foreign investor in VN under the Education Service and is one of the industries and professions with conditional market access for foreign investors. Accordingly, a short-term training and fostering institution is a foreign-invested educational institution, including a center for training and fostering foreign languages, informatics, culture, skills, expertise, professionalism, including training and retraining institutions established by foreign diplomatic missions or intergovernmental international organizations licensed to operate in Vietnam (Article 2 of Decree 86/2018ND-CP)
For example: Foreign language training center, Informatics training center, Soft skills training center (cooking, dancing, garment,…),….
Firstly, conditions for foreign investors according to the WTO schedule of commitments
Short-term training and retraining institutions in the adult education service industry (CPC 924) are committed by Vietnam to open freely and without restrictions from January 1, 2009. Foreign investors with nationality as a member of WTO can establish short-term training and retraining establishments with a maximum foreign capital of 100% in Vietnam.
Secondly, conditions according to Vietnamese law (Decree 86/2018/ND-CP)
Capital conditions (Article 35):
Must have an investment rate of at least 20 million VND/student (excluding land use costs). The minimum total investment capital is calculated based on the time with the highest expected scale.
Conditions on facilities (Article 36):
• Having appropriate classrooms in terms of lighting, furniture, equipment, and teaching aids;
• Having an area used for learning and teaching to ensure an average of at least 2.5 m2/learner;
• There are offices of the board of directors, leaders, teachers’ rooms, libraries and other functional rooms.
Conditions on the training program (Article 37):
The educational program must reflect the educational objectives and must not contain any content harmful to national defense, security or the interests of the community; not propagate religion, distort history; must not adversely affect the culture, morality, fine customs and traditions of Vietnam and must ensure the connection conditions between educational levels and training levels. Organized educational programs include:
• Vietnam’s educational program in accordance with Vietnamese law;
• Foreign short-term training and retraining programs;
• Training programs at university, master and doctoral degrees from abroad within the framework of training links with foreign countries.
Conditions for teaching staff (Article 38):
Teachers must have at least a college degree or equivalent, with a training discipline relevant to their assigned teaching specialty. The maximum student/teacher ratio is 25 students/teacher.
Note to investors: When carrying out the procedures for setting up a short-term training and retraining institution in Vietnam, foreign investors need to prove the investor’s capacity when meeting all the conditions under the provisions of this Law. regulations of Vietnamese law on dossiers, step-by-step establishment of short-term training institutions and implement those conditions in practice after being approved by the competent authority and carry out the procedures for obtaining an operating license and posting notices on the website of the licensing authority.
Inco Minh Anh Law Firm – Law firm specializing in Investment, enterprises are ready to guide and advise on investment-related issues, on behalf of foreign investors to carry out procedures with state agencies. To receive the latest legal information, to provide professional legal services for businesses, please contact us.
We look forward to cooperating with you!
INCO MINH ANH CO., LTD
Hotline: 0982674857
Email: [email protected]
Activity, Consult Enterprise, Establish, Investment & Consulting, News & Legislation
Investment Law 2020 – Special investment support incentives for foreign investors in Vietnam
In order to improve efficiency and investment cooperation, in line with planning and development orientation of key sectors and areas on the basis of ensuring security, national defense and sustainable development and environmental protection in Vietnam, The Government of Vietnam has promulgated the Investment Law 2020, officially effective from January 1, 2021 with many provisions to encourage the development of investment projects that have a great impact on Vietnam’s socio-economic development and attract foreign investors. Specifically, Article 20 of the Law on Investment 2020 provides for the first time the form of special investment incentives and support with the following contents:
Firstly, about the subjects entitled to special investment incentives and support
“Investment incentives” are understood as beneficial policies given to investors by the State when investors have investment activities in industries and areas encouraged by the State.
“Investment support” is a measure that the State creates opportunities for investors to enjoy when certain conditions are met in order to attract investment.
Accordingly, group of subjects entitled to special investment incentives and support in the investment law 2020 include:
The beneficiaries of special investment incentives and support belong to the group of subjects with investment projects that have a great impact on the socio-economic development of the country. These investment projects are specified in Clauses 2 and 6, Article 20 of the Law on Investment 2020, as follows:
New establishment investment projects (including the expansion of such newly established projects) innovation centers, research and development centers with total investment capital of 3,000 billion VND or more. currently disbursing at least VND 1,000 billion within 03 years from the date of issuance of the Investment Registration Certificate or approval of the investment policy; Read More
Consult Enterprise, Frequently Questions, News & Legislation
MONTHLY PAYMENT OF SOCIAL INSURANCE PAYMENT FROM SEPTEMBER 2021
Law on Social Insurance 2014, amended and supplemented in 2018 stipulates that “The monthly salary on which social insurance premiums are based will be the salary plus salary-based allowance and other amounts as prescribed in the labour law”. In labor contracts, besides the salary, the agreement about payment of social insurance is an issue of particular concern to the employer and the employee and there are still many unclear points. We, a law consulting firm Inco Minh Anh, will analyze and clarify in this article based on new circulars issued by the Ministry of Labor, War Invalids and Social Affairs.
Firstly, the amounts included in the monthly salary to pay social insurance premiums (mandatory) include:
1. The salary by job or title is the salary calculated according to the time of the job or title according to the salary scale and salary table developed by the employer in accordance with the law; for employees who are paid by product or package salary, it is the salary calculated over time to determine the product unit price or package salary;
2. Salary-based allowance to compensate for factors on working conditions, job complexity, living conditions, and level of labor attraction that the salary agreed in the labor contract has not been taken into account or calculated not enough.
3. Other amounts can determine the specific salary along with the salary agreed in the labor contract and pay regularly in each pay period.
The amounts included in the monthly salary on which social insurance premiums are based are regular incomes, and it is easy to determine a specific amount. This makes it easy for enterprises to determine the insurance payment obligation for each employee. At the same time, the insurance agency also easily manages the declaration and payment of social insurance. Read More
Consult Enterprise, Investment & Consulting, News & Event, News & Legislation
Guidance on the application of the Labor Code 2019
Time is counted as hours of paid work according to the Labor Code 2019
Mid-hour breaks are counted into working hours when working in continuous shifts;
Take breaks according to the nature of the job;
Rest required during labor included in the labor norm for human physiological needs;
Take a 60-minute break every day for a female employee nursing a child under 12 months old;
Take a 30-minute break every day for female employees during menstruation;
The time to stop working is not due to the employee’s fault;
Training time for labor safety and hygiene;
Time of meeting, study, training is at the request of the employer or agreed by the employer;
Time for meetings, study and training sessions by the superior trade union summons part-time trade union officers according to the law provisions on trade union;
The duration of the employee’s health check-up and occupational disease check-up according to the provisions of law. Read More
Consult Enterprise, Investment & Consulting, News & Legislation
Some prominent note for employers from 2021 (Labor Code 2019)
Labor Code 2019 takes effect from the date of 01.01.2021. Some prominent notes for employers are as follows:
1. The probationary period
The Labor Code 2019 requires the parties to sign a probationary contract, which can be recorded into a separate contract, agreed by mouth or recorded in the contents of the labor contract; change the regulations on the subjects who are not required to sign the probationary contract (for those with a labor contract of less than 01 month) and expand the probationary audience. The probation period for each subject is specified in Article 25 of the Labor Code 2019, specifically as follows:
- 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
- 60 days for positions that require a junior college degree or above;
- 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
- 06 working days for other jobs. Read More
What is M&A?
M&A stands for two English words “merger” and “acquisition“.
M&A is an activity carried out by an individual or an organization that acquires an existing property of another individual or organization. Such existing property can be in the form of a company or a combination of assets, human resources, and methods. model for conducting certain business operations.
2. Types of M&A transactions: M&A is executed under two main types: buying shares and buying assets.
Factors affecting the reason parties choose to buy shares or buy assets to include: commercial, legal, tax, third-party consent, time required to refund transaction, etc. Sometimes, two methods of buying shares and buying assets are combined in one transaction in order to take advantage of advantages and disadvantages of each method.
– Share acquisition: the purchaser will buy shares / capital contribution in an existing and established company to become the sole owner, shareholder or member of that company -> The purchaser has the right to operate and indirectly own the assets that the target company has. Shares purchased by the purchaser become the property of the purchaser and the purchaser has the right to dispose of such shares in accordance with the laws, the charter and a separate agreement between the buyer and other shareholders of the company.
– Buying assets (Business acquisition): the purchaser acquires ownership of the property sold by the seller. Assets can be tangible or intangible, in a broad sense: reputation, human resources, resources, distribution network mạng The purchaser becomes a direct owner of the property and operates the business according to his way. Business acquisition is executed in Vietnam under the form of transfering of investment projects.
– Merger / consolidation (Merger): can also be considered as the third type of M&A transaction, however, in essence, merger / has many similarities with the share purchase: the shareholders of the merged or consolidated company often become shareholders of the merging or acquiring party; The merging or acquiring party inherits the rights and obligations of the merged or consolidate company and often does not have a choice of assets when conducting the merger / consolidation process. This is a stepping stone for two or more companies to be merged / merged together because they are the same owners. Read More