Legal update on November 2021 (Part 2)

BLawyers Vietnam - Legal update

Our Vietnam Legal Update #187 would lead you on 03 legal issues:

I. Amending and supplementing several articles of Decree No. 83/2014/ND-CP on petrol and oil trading

The Government issued Decree No. 95/2021/ND-CP dated 01 November 2021, to amend and supplement several articles of Decree No. 83/2014/ND-CP on petrol and oil trading with the following main contents:

  • Supplement on share transfer for foreign investors. Specifically, in addition to petroleum traders who have been approved by the Prime Minister to contribute capital or transfer shares to foreign investors. In case a petrol and oil trader have petroleum production activities, if he/she wishes to transfer shares to foreign investors, he/she must obtain permission from the Prime Minister.
  • Based on the actual situation at the enterprise, the general petrol and oil distributor and petrol and oil distributors shall decide the retail price of petrol and oil in their distribution system in accordance with the actual incurred costs of the enterprise. At the same time, the costs incurred are not higher than the operating price announced by the competent authority.
  • However, for areas far from ports, key warehouses, and far from petrol and oil production facilities: if there are reasonable and valid actual costs incurred, leading to higher selling prices than operating prices, the petrol and oil wholesaler may decide the actual selling price in that area to cover the incurred costs, but not exceed 02% of the announced operating price at the same time.
  • Modifying conditions for petrol and oil import and export traders. Accordingly, traders must have a petroleum distribution system:
    • At least 10 petrol and oil retail stores are owned or leased with a lease term of 5 years or more, in which at least 5 stores are owned by traders.
    • At least 40 petrol and oil general agents or petrol retail agents or petrol and oil retail franchisees under the trader’s distribution system.
  • For the main trader of aviation fuel, it is not required to have a distribution system but must satisfy the following additional conditions:
    • Having a means of transport, aeronautical refueling vehicle in accordance with regulations and standards for aviation fuel, owned or rented with a lease term of 5 years or more.
    • Having a receiving warehouse at the airport with equipment and facilities that meet the standards of aviation fuels owned or rented with a lease term of 5 years or more.
    • Having a qualified testing laboratory owned or rented to check the quality of aviation fuel products according to national and international standards according to current regulations.
  • For petrol and oil retail agents, this Decree amends the conditions on retail stores as follows: Having a petrol and oil retail store owned or leased with a lease term of 5 years or more, such agent is granted Certificate of eligibility for petrol and oil retailing according to regulations.
  • Conditions for petrol and oil retail stores:
    • Being owned or leased with a lease term of 5 years or more of a trader being a petrol and oil retail agent or petrol and oil general agent or petrol and oil retail franchisee or a petrol and oil distributor or the general trader of petrol and oil or the general trader of petrol and oil production having a distribution system as prescribed.
    • In the case of renting a petrol and oil retail store, the tenant trader must have his/her name on the Certificate of eligibility for petrol and oil retailing.

II. Guidance on handling overpaid tax in case of false declaration of the value of imported goods

The General Department of Customs issued Official Letter No. 5051/TCHQ-TXNK dated 26 October 2021 to provide guidance on handling overpaid tax. The main content is as follows:

  • If the enterprise falls into the case that needs additional declaration due to incorrect declaration of payable tax value, resulting in the paid tax amount being larger than the payable tax amount, the overpaid tax amount shall be refunded if the enterprise does not owe tax, late payment interest, fines.

III. Amending on the subjects entitled to defer the payment to Trade Union funds

The Vietnam General Confederation of Labor issued Official Letter No. 2946/TLD-TC dated 26 October 2021 to amend the subjects entitled to defer the payment to Trade Union funds to support enterprises facing difficulties due to the Covid-19 pandemic. The main contents are as follows: 

  • Regarding the subjects entitled to defer the payment to Trade union funds: Enterprises that are affected by the Covid-19 pandemic that causes the reduction of their employees participating in social insurance compared to January 2021 by 10% or more (including employees who stop working, suspend the performance of labor contracts, or agree to take unpaid leave).
  • Regarding the time: the time of paying for Trade Union funds has been pushed back to 31 December 2021.

For down-loading: 

Legal Update #187 (EN version)

Maybe you are interested in reading other Legal Update of BLawyers Vietnam: November 2021 (Part 1) | October 2021 (Part 5)October 2021 (Part 4) | October 2021 (Part 3) | October 2021 (Part 2)October 2021 (Part 1) September 2021 (Part 4) | September 2021 (Part 3)September 2021 (Part 2) | September 2021 (Part 1) | August 2021 (Part 4) 

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