Our Vietnam legal update #167 would lead you on 03 legal issues:
I. Payment by e-wallet
The Tax Department of Ha Noi City issued Official Letter No. 20524/CTHN-TTHT dated 09 June 2021 to guide on the tax policy toward payment by e-wallet with the following notable content:
Bank transfer confirmations are documentary evidence proving the transfer of money from the buyer’s account to the seller’s account opened at providers of payment services under legitimate payment methods such as checks, payment orders, cash collection orders, bank cards, credit cards, SIM cards (digital wallets) and other means of payment as prescribed.
II. Warning about scams and fake vaccinations against COVID-19
On 14 June 2021, the Ministry of Health issued Official Letter No. 4719/BYT-TT-KT on strengthening communication to warn against scams and fake vaccinations against COVID-19 (“Vaccine”) with the following advice:
- Localities, organizations, and businesses wishing to import Vaccines need to negotiate directly with manufacturers, restricting with intermediaries. If negotiating through intermediaries, those must be confirmed and authorized by the manufacturer.
- Vaccines used in Vietnam must be licensed by the Ministry of Health. Each batch of Vaccine imported to Vietnam must be controlled and licensed by the Drug Administration of Vietnam and the Ministry of Health;
- Before being put into use, each batch of imported Vaccines must be inspected by the National Institute for Inspection of Vaccines and Medical Biologicals – the Ministry of Health to meet quality standards and issue a certificate of release of the Vaccine batch as prescribed.
- Under the direction of the Government, the Ministry of Health is negotiating with manufacturers to buy and import large quantities of Vaccines for free vaccination for all people living in Vietnam. Therefore, people need to stay calm and wait for their turn to be vaccinated when being notified.
- People need to be wary of invitations to register for vaccination spread on social networks, messages, leaflets, and other forms of advertising and only go for vaccination at qualified medical facilities.
- Do not vaccinate with a Vaccine with unknown origin, not tested and licensed by the Ministry of Health.
- When detecting information related to vaccination that is unclear or shows signs of fraud, people should immediately report it to local authorities and local health authorities.
III. Guiding on problems in setting up risk provisions for special corporate bonds
The General Department of Taxation issued Official Letter No.990/TCT-DNL dated 06 April 2021 for guiding on problems in setting up risk provisions for special corporate bonds of Saigon Commercial Joint Stock Bank (“SCB Bank”) with the following contents:
- Foreign credit institutions and bank branches that are legally established in Vietnam shall make and settle their provisions. Particularly, for provisions for risks in operation, foreign credit institutions and bank branches shall make provisions in accordance with regulations stipulated by the State Bank of Vietnam after reaching an agreement with the Ministry of Finance.
- Special bonds are valuable papers issued by Vietnam Asset Management Company to buy bad debts of credit institutions.
- During the term of special bonds, the debt-selling credit institution shall include risk provision for special bonds in the expense. Every year, within 05 working days before the maturity date of special bonds, the debt-selling credit institution shall make a specific provision for each special bond.
- The original period of a special bond is the term of a special bond when the Vietnam Asset Management Company issues it to buy bad debts from a credit institution. Extension of the term of a special bond is an extension of the term of a special bond that has been issued, ensuring that the total extension term and the principal period of a special bond do not exceed 10 years from the date of issuance.
- In case a credit institution is approved to extend the term of a special bond by the State Bank if the actual pre-tax fee difference in the year of the credit institution is larger than the expected pre-tax revenue and expenditure difference which was reported to the State Bank:
- The credit institutions may use up to this difference to make additional provisions for special bonds which have been approved for renewal in that year;
- This difference is used until the estimated amount provision for special bonds after being made additionally equal to the amount of provision to be made for special bonds.
- The additional provisioning shall be applied to special bonds which have been approved for an extension by the State Bank in accordance with regulations.
Maybe you are interested in reading other updates: June 2021 (Part 3) | June 2021 (Part 2) | June 2021 (Part 1) | 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)