Our Vietnam legal update #164 would lead you on 03 legal issues:
I. Transferring a part of a real estate project, which has not been completed, for the continuance of construction investment
The Ministry of Construction has issued Official Letter No. 1619/BXD-QLN dated 12 May 2021 to guide the transfer of a part of real estate projects (land for trading and services) that have not been completed to continue the construction investment with the following contents:
- The owner of a real estate project, investors, have the right to transfer the whole or a part of an investment project to another investor for continuing business investment when satisfying the conditions, principles, rights, and obligations of the transferor and transferee as prescribed by law.
- For a real estate business project that being approved or granted an Investment Registration Certificate, the procedures for transferring the whole or a part of the project and adjusting the project shall be carried out according to the Law on Investment.
- For real estate projects that do not fall into the case of carrying out procedures for transferring the whole or a part of the project and adjusting the project in accordance with the Law on Investment mentioned above, transfer procedures shall be carried out in accordance with the Law on Real Estate Business. The transfer of land use rights of a whole or a part of the project, which is allowed to transfer, shall be carried out in accordance with the Land law.
II. VAT refund for investment projects in different provinces/cities
On 26 May 2021, the General Department of Taxation issued Official Letter No. 1713/TCT-KK in response to the Tax Department of Yen Bai Province about issues on the settlement of VAT refund dossiers for investment projects in different provinces/cities with the following contents:
Tax declaration dossiers: If the taxpayer has operational investment projects eligible for VAT refund, it/he/she shall make a separate VAT declaration dossier for each project and, at the same time, the VAT for the purchased goods and services of each project shall be offset against the VAT payable (if any) in the same tax period.
Places for submission of tax declaration dossiers:
- In case taxpayers conducting different activities or doing business in different provincial-level localities, tax declaration dossiers shall be submitted to the tax authority of the province other than the province in which the taxpayer is headquartered.
- In case the taxpayer is investing in a project in another province than that of the head office, which is not put into operation, has not applied for business registration and/or tax registration, the taxpayer shall make a separate tax declaration for the project and submit it at the supervisory tax authority of the head office.
III. Construction permit for makeshift works
The Ministry of Construction issued Official Letter No. 1764/BXD-HDXD on guiding the construction of makeshift works (specifically, makeshift markets) as follows:
Makeshift works are exempted from a construction permit.
Makeshift works are those constructed to serve, for the definite term for the following purposes:
- The construction of main works;
- The organization of events or other activities during the specified period (*).
For the works using for (*), depending on the time of project implementation, the works can be identified as makeshift works. The determination of makeshift works must comply with the law on construction and the relevant law.
Maybe you are interested in reading other updates: May 2021 (Part 4) | May 2021 (Part 3) | May 2021 (Part 2) | May 2021 (Part 1) | April 2021 (Part 5) | April 2021 (Part 4) | April 2021 (Part 3) | April 2021 (Part 2) | April 2021 (Part 1) | March 2021 (Part 4)