Our Vietnam legal update #139 would lead you on 03 legal issues:
I. Legalization of foreign documents in the situation of Covid-19
On 18 November 2020, the Consular Department of the Ministry of Foreign Affairs issued Official Letter No. 4576/LS-HPH relating to the legalization of foreign documents in the situation of Covid-19 with main contents as follows:
- Foreign documents must be legalized to be recognized and used in Vietnam, except for cases of exemption.
- Legalization procedure and order are in accordance with the regulations and instructions of the Vietnamese consular authority and/ or diplomatic mission in the home countries.
- In the current situation of Covid-19 pandemic, if not possible to directly come to a consular authority or diplomatic mission of Vietnam overseas to carry out administrative procedures for legalization, the requesting individuals or organizations can:
- Deliver the documents by post mail;
- Put the documents in the receiving position according to the consular authority’s instructions to comply with the social distance rules in the epidemic situation; and
- Deliver the documents to the Embassy or Consulate of the home country in Vietnam for guidance and support.
II. Amending investment projects in case of the enterprise division
On 12 November 2020, the Ministry of Planning and Investment issued Official Letter No. 7511/BKHDT-PC guiding the procedures for amending investment projects due to the division of enterprises as follows:
- The division of an enterprise and the transfer of rights and obligations to implement the project of the divided enterprise to the new enterprises shall change the investors and the conditions for the investors to implement the project as prescribed in the Investment Registration Certificate and the Decision on investment policy.
- The investors shall carry out procedures for amending the Investment Registration Certificate of projects subject to the investment policy decision of provincial People’s Committees according to Article 34 of Decree No. 118/2015/ND-CP dated 12 November 2015 of the Government providing guidelines for some articles of Law on Investment.
III. VAT policies for the provision of services to customers of foreign partners
On 02 November 2020, Ha Noi City Tax Department issued Official Letter No. 95844/CT-THTT on VAT policies for the provision of services to customers of foreign partners with following contents:
If customers of foreign organizations are Vietnamese domestic enterprises and processing enterprises, when signing contracts with foreign organizations to provide installation, repair and maintenance services for machines and equipment of their customers, VAT rates shall be determined according to the following principles:
– In case services are provided directly to organizations or individuals in non-tariff area and consumed in this area, such services are exported services and 0% VAT rate is applied, if the legitimate conditions are satisfied.
– In case services are provided directly to organizations or individuals in Vietnam and consumed in Vietnam, the VAT rate is 10%.