June

NEWSLETTER

AUDITING AND ACCOUNTING COMPANY

Taxation Investment Banking Enterprise Finance Accounting Others

No. 78 Auditing and Accounting Company - AAC provides the

June 2007 most updated information in relation to taxation,

investment, banking etc. in Vietnam to its regular

clients and other clients. This monthly newsletter is

published in Vietnamese and English, sent to our

readers through Post, Fax or E-mail.









Abbreviations Contents

MOF

Ministry of Finance

Published on 04/07/2007 Page

MOT

Summaries of major legal documents

Ministry of Trade

MOLISA 1. Value Added Tax 2-4



Ministry of Labor, War-Invalids - General regulations 2-3

and Social Affairs - Tax rate 3

MOC

- Invoice and voucher 3-4

Ministry of Construction

2. Corporate income tax 4-5

SBV

3. Personal income tax 5-6

State Bank of Vietnam

GDT 4. Other taxes, fees and charges 6



General Department of Taxation 5. Import - Export 6-8

GDC 6. Accounting and Finance 8-9

General Department of Customs 7. Labor and salary 9

VAT

8. State-owned enterprise 9-10

Value added tax

9. Banking 10

CIT

10. Investment 10-11

Corporate income tax

11. Securities 11

Dc.

Decree 12. Other regulations 11-16



Cir. Inter-bank exchange rates of VND against USD in June 2007 16

Circular List of the new legal documents in June 2007 16

Dc.

OL.

Official Letter









Page 1

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





Summaries of major legal documents

VALUE ADDED TAX



General regulations

VAT policy applicable to imported goods: Goods and services which are bought, sold and exchanged among

organizations and individuals in non –tariff zones or exchanged among organizations and individuals in non –tariff

zones for export overseas shall not be subject to VAT.

Goods and services imported from foreign countries by processing enterprises shall be subject to VAT. (OL

No.3326/TCHQ-KTTT dated 19/06/2007).

Tax policy: According to the prevailing regulations, input VAT shall be equal to total VAT as recorded in VAT invoices

on purchase of goods and services (including fixed assets), which are used for producing and trading goods and

services subject to VAT, VAT recorded on tax-payment voucher with respect to imported goods, documents on

paying tax on behalf of foreign party with respect to foreign organizations and individuals which operate in Vietnam

not in accordance with the investment forms as stipulated in the Law on foreign investment.

Accordingly, where a company purchase fixed assets to be used for producing and trading goods subject to VAT, the

company has deducted input VAT, the company the assets at price lower than the price as recorded on the

accounting books, and the company has declared and paid VAT, the company shall not be required to refund the

deducted VAT. (OL No.2335/TCT-PCCS dated 14/06/2007).

VAT policy: According to the prevailing regulations, business establishments, which merge, divide, dissolve, go

bankruptcy, assigned, sold or leased, shall have to finalize tax with the tax office within 45 days as from the date on

which there is decision on merger, division, dissolution, going bankruptcy, sale and leasing of the State owned

enterprises.

Within 45 days as from the date on which there is a decision on dissolution of an enterprise, the enterprise sends a

tax finalization to the tax office, if the enterprise has paid VAT excessively or has VAT not fully deducted, the

enterprise may be considered for refund of VAT in accordance with the law.

Within 45 days as from the date on which there is a decision on dissolution, if the enterprise has not prepared nor

sent the tax finalization to the tax office, the enterprise shall not be considered for refund of tax. (OL No.2253/TCT-

PCCS dated 11/06/2007).

Penalties applicable to violation of tax regulations: On June 7, 2007, the Government issued Decree 98/2007/ND-CP

stipulating the penalties applicable to violation of tax regulations and compulsory implementation of administrative

decisions on tax.

A fine of from VND 200,000 to 2,000,000 shall be applicable to the following actions: not implementing decision on

inspection and examination of tax after 3 days as from the deadline of implementation of the decision; refusing and

delaying the provision of documents and materials relating to tax obligations for 6 hours as from the time of receipt

of the request from the competent body.

Anyone who has the actions to evade or cheat on their taxes shall be subject to a fine of from one to three times

higher than the evaded tax.

Commercial banks, credit institutions and treasuries which do not extract and transfer money from the account of

taxpayer to the State budget„s account shall also be dealt with depending on the seriousness of the action.

Organizations and individuals who have the action to screen or collude with the taxpayer or tax evader shall be

subject to a fine of from VND 2 million to VND 8 million.

Besides, the Decree also stipulates the application of compulsory measure to extract money from the deposit

account or deduct a part of salary or income. In case where organizations and individuals refuse to implement

decision on penalty, their assets shall be seized and put for auction sale. In case where the money from auction sale

of assets is higher than amount of money as recorded on the penalty decision, the competent body shall have to

refund the difference within 10 days as from the date of auction sale.

This Decree shall be of full force and effect as from July 1, 2007.

Tax policy: According to the prevailing regulations, maintenance, repair, restoration and construction of cultural and

artistic works, public works, infrastructure and welfare housing funded by public contribution and humanitarian aid,

including cases in which the State funds thirty (30) per cent or less of the total capital actually expended shall not

be subject to VAT.

In case where an enterprise carry out the construction of resident housing by capital contributed by people and

humanitarian aid, including cases in which the State provides a part of support of 30% or less of the actually-spent

capital for the construction work, the construction of the resident housing shall not be subject to VAT.

If the enterprise conducting the construction of resident housing fails to satisfy the requirements, the construction

activity shall be subject to a VAT rate of 10%. (OL No.2207/TCT-PCCS dated 07/06/2007).

Refund of VAT: In order to remove difficulties in capital, especially in cases where enterprises have large export

turnovers and large creditable and refundable tax amounts, in case where export contracts state the deadline for







Page 2

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





foreign parties to make deferred payment, the enterprises may make a written commitment to produce a list of via-

bank payment vouchers in VAT refund dossiers. By the committed deadline, if the enterprises fail to produce the list

of via-bank payment vouchers for export goods and services, tax offices shall recover the credited or refunded VAT

amounts and impose sanction on acts of appropriating state‟s refunded tax amounts according to current

regulations. (OL No.2187/TCT-PCCS dated 06/06/2007)

VAT policy: In case where export establishments make payment via banks, but the foreign parties authorize a third

party being foreign organization or individual to make payment, the authorized payment must be stipulated in the

export contract (or Appendix of the contract if any).

If the payment via banks is authorized to the third party, but the authorized payment is not stipulated in the

contract or appendix of the contract, the exported goods shall not satisfy the conditions for entitlement to a VAT

rate of 0%. (OL No.2122/TCT-PCCS dated 31 /05/2007).

Tax policy: A business establishment issued 2 VAT invoices of goods sold in accordance with the regulations and

delivered the 2nd copy of such invoices to customers without recording on accounting books or declaring tax in

October 2005. In January 2007, upon inspection and discovery of tax office, such act shall be concluded as an act of

tax evasion due to not recording on accounting books in order to reduce the amount of tax payable. (OL

No.2120/TCT-PCCS dated 31/05/2007)

Guiding the implementation of the Law on management of tax: On May 25, 2007, the Government issued Decree

85/2007/ND-CP making detailed provisions for implementation of the Law on Management of tax.

Accordingly, when changing information on the dossier for registration of tax, the taxpayer shall have to notify the

tax office within 10 days as from the date of change of information.

Declaration of income tax applicable to high income earners shall be conducted as follows: monthly declaration of

tax is made if the tax is deducted at source when paying income; winning lottery; or income is temporarily

deducted. In case where the amount of tax to be deducted monthly isles than VND 5 million, the income-paying

bodies shall declare and pay tax quarterly.

In case where an individual has various income sources, the individual may register the payment of tax directly with

the tax office, the application dossier for finalization of tax shall include: list of detailed income sources; receipt on

payment of income tax or voucher on deduction of income tax; documents used for determination of reduced or

deducted amount of tax.

Taxpayers may require the tax management body to settle the excessively-paid amount of tax as follows: offsetting

the excessively-paid tax with payable tax, fine, including offsetting among kinds of taxes; deducting the excessively-

paid tax with the amount of tax payable next time; refunding the excessively-paid tax if the taxpayers do not owe

taxes or fine.

This Decree shall be of full force and effect as from July 1, 2007.



Tax rate

VAT rate applicable to construction and installation activities: In respect of construction and installation activities,

the pre-tax price of the construction and installation of the works, items of work or section of works completed. In

the case of construction and installation of works for which payment is made on the basis of unit prices and delivery

of completed items or a quantity of completed works, value added tax shall be calculated on the value of the section

of works which has been completed and delivered. In the case of construction and installation including the supply

of materials, equipment and machinery, the value added taxable price shall include the value of the materials,

equipment and machinery.

The construction and installation shall be subject to a VAT rate of 10%.

In case where a company signs contract on construction with investor including supply of materials, equipment and

machinery, the value of materials, equipment and machinery as well as the value of construction and installation

shall be subject to a VAT rate of 10%. (OL No.2257/TCT-PCCS dated 11/06/2007).

Application of VAT rate of 0%: The rate of zero (0) per cent shall apply to: exported goods or services, construction

and installation of works overseas and works of export processing enterprises.

Exported services and services provided to export processing enterprises for use for their production or business,

except for services used for personal consumption.

In case where a company signs a contract with a export processing enterprise to carry out the construction and

installation of works such as constructing football ground, constructing pond used for activities of laborers as well as

services to take care of ornamental plants, these activities shall be subject to a VAT rate of 0%. (OL No.2165/TCT-

PCCS dated 05/06/2007).

VAT applicable to clean water supplied to EPZ: According to the prevailing regulations, clean water used for

production and living purpose that business establishments exploit from the nature resources to provide to users

shall be subject to a VAT rate of 5%.









Page 3

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





In case where a company signs a contract on supplying water to another company through a general water-clock so

that this company re-supplies water to other enterprises inside or outside the export processing zone, the supplying

of water shall be subject to a VAT rate of 5%. (OL No.2048/TCT-PCCS dated 29/05/2007).



Invoice and voucher

Recording invoices for services not subject to tax: According to the prevailing regulations, when a client is provided

with service subject to VAT and service not subject to VAT, the seller may issue an invoice for the services in two

lines: one for service subject to VAT and one for service not subject to VAT. (OL No.2376/TCT-PCCS dated

19/06/2007).

Loss of VAT invoices: According to the prevailing regulations, where the loss of the second copy of issued VAT

invoice relates to the third party (transporting units or post office), the tax office shall settle as follows:

If the seller of goods hires the transporting unit to carry the second copy of invoice, the seller shall be responsible

for the loss of the copy of the invoice. The tax office shall apply fine to the seller for the loss of invoice copy and

shall guide the seller to re-issue and deliver the invoice to client.

In case where the transporting unit is hired by the purchaser of the goods to carry the second copy of the VAT

invoice, the purchaser of the goods shall be responsible for the loss of the second copy of the invoice. The tax office

shall settle in accordance with the law.

Accordingly, where a company loses the second copy of the invoice when the company sends the second copy of

the invoice via the post office, therefore the company is responsible for the loss of copy of the invoice. The company

shall have to issue a new invoice to replace the lost copy of the invoice. The invoice re-issued in replacing the lost

invoice must be attached with minutes on confirmation of the reason for loss of the copy of the invoice and must be

signed and sealed by the seller and purchaser. At the same time, the invoice must state that this invoice replaces

the invoice No. dated……. Pursuant to the re-issued invoice, the seller and purchaser may declare and adjust the

input VAT. (OL No.2354/TCT-PCCS dated 15/06/2007)

Receipt on collection of banking fee: With respect to banking service business, when collecting service fee, banks

may issue VAT invoices to clients in accordance with the following forms: where banks use receipts on collection of

banking service fee [printed by personal computers] with tax identifications, service fee, VAT amount, total payment

amount, symbol, number, signature and seal in accordance with the regulations, the banks shall not be required to

conduct the procedure for registration of quantity of receipts with the local tax office.

Accordingly, when using personal computers to print and provide receipts on collection of service fee to clients,

banks shall have to add the above-mentioned criteria to the receipts without registering or reporting quantities of

receipts and the use of the receipts. (OL No.2032/TCT-PCCS dated 28/05/2007).



CORPORATE INCOME TAX

Corporate income tax: According to the prevailing regulations, assets being capital contribution for establishment of

an enterprise; assets transported among affiliates of an enterprise; and assets from division, merger, renaming of

enterprises shall not be subject to VAT and CIT.

In case where the value of assets is estimated to be higher than the value of the assets as recorded on the

accounting books, the difference of value of the assets shall not be subject to corporate income tax. (OL

No.2331/TCT-PCCS dated 14/06/2007).

Rent expenditure: In case where a single business household has an expense for renting guest-house without an

invoice recording the expense, such expense shall not be calculated as proper expense when determining CIT. In

order to calculate such expense as proper expense, the business household shall have to ask the host to buy loose

invoice at tax office to deliver to the business household. (OL No.2330/TCT-PCCS dated 14/06/2007)

Scientific study: In case where a company have an expense for scientific study with adequate supporting documents

in accordance with the regulations, such expense shall be recognized when determining CIT. (OL No.2329/TCT-

PCCS dated 14/06/2007)

Working mission allowances: Permission allowances for doing business inside and outside of the country with

adequate supporting document in accordance with the current regulations shall be calculated as proper expense

when determining corporate income tax. (OL No.2327/TCT-PCCS dated 14/06/2007)

Proper expense: According to the prevailing regulations, expenses on purchase or producing goods and services to

be given in conjunction with sold product in accordance with the goods-selling regulations of the enterprise (in the

forms of products, services, purchase vouchers, customer‟s cards, and so forth) shall be calculated as expense for

determination of taxable income if these expenses are supported by sufficient invoices and vouchers in accordance

with the laws. (OL No.2325/TCT-PCCS dated 14/06/2007).

Tax policy: In case where a foreign organization holds conferences on foreign investment in Vietnam and earns

income from Vietnamese as well foreign enterprises, such organization shall be subject to VAT and CIT according to

Circular 05/2005/TT-BTC dated 11/01/2005. (OL No.2267/TCT-DTNN dated 11/06/2007)

Depreciation on fixed assets: In case where a company build a complex of factory, office, accommodation for

foreign specialist, managing officers using investment capital of project, if construction work meet the requirements





Page 4

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





of fixed assets, the construction work shall be depreciated as proper expense when determining income subject to

CIT. (OL No.2258/PCCS dated 11/06/2007)

CIT incentives: According to the prevailing regulations, any business establishment which during its period of

entitlement to corporate income tax exemption or reduction converts its form of enterprise or form of ownership, or

if another business establishment merges into it in accordance with law, then the former business establishment

shall still continue to enjoy its tax incentive for the residual period if it satisfies the conditions for incentives.

In case where Corporation A is entitled to reduction of and exemption from CIT in accordance with the preferential

policy for equitization if the model of enterprise changes to the parent - affiliate company model (affiliates are

companies with 100% capital owned by the Corporation), the affiliates shall continue to enjoy CIT for the remaining

time provided that the conditions for investment incentives are still satisfied. (OL No.2254/TCT-PCCS dated

11/06/2007).

Income earned from land right transfer: In case where an economic organization who signed a land rent contract

with state competent authority and paid annual fee transfer assets together with rented land to another economic

organization, the economic organization receiving the transfer shall have to sign a land rent contract with state

competent authority and conduct other procedures as a new renter in accordance with the law. Such case shall be

considered as the transfer of land rent right and the transferor must declare and pay income tax of transferring land

rent right. (OL No.2230/TCT-PCCS dated 08/06/2007)

Commission for sales agent: Commissions that a company pays for its agents shall be considered expenses upon

determination of income subject to CIT of the company if supporting documents are available. This commission shall

not be recognized as expenses for advertising or sale promotion which are limited by a certain proportion in

accordance with the law. (OL No.2226/TCT-PCCS dated 08/06/2007)

Taxes applicable to supports received from foreign countries: In case where an enterprise receives supports from

foreign parent company and related parties, such supports shall not be considered as sales, therefore, the

enterprise do not issue invoice, declare and pay VAT. The enterprise shall record the supports as other revenues for

Cit determination. (OL No.2194/TCT-PCCS dated 06/06/2007)

Tax incentive for independent cost-accounting branch: According to the prevailing regulation, business

establishments newly formed from investment projects which are entitled to reduction of and exemption from tax in

accordance with the law must be business establishments implementing independent accounting system or

registering tax in the form of declaration.

Accordingly, when business establishments establish a branch, the branch shall be dependent unit of the business

establishment. Therefore, branch shall not be entitled to incentives as applicable to newly formed establishments,

but shall enjoy incentives as applicable to investment for expansion of business scale. (OL No.2183/TCT-PCCS dated

06/06/2007).

List of goods bought and sold: In case where an enterprise purchase soil, stone, sand, gravel from those who

exploit by themselves without any supporting documents, the enterprise shall prepare the list of commodity in

accordance with the law and record the expenses when determining income subject to CIT. The enterprise‟s director

ratifies the list and stands responsible for the accuracy of the list. (OL No.2136/TCT-PCCS dated 01/06/2007)

Reduction of and exemption from CIT: According to the prevailing regulations, if in the period of enjoying CIT

incentives, business establishments change the form of enterprise, its ownership or merge with other business

establishment in accordance with the law, the business establishments shall still be entitled to CIT incentives for the

remaining period provided that the business establishments shall still satisfy the conditions for investment

incentives.

Accordingly, where a company is currently entitled to reduction of and exemption from tax and the company is

divided into two independent companies (changing its business forms) the two companies shall still enjoy CIT

incentives for the remaining period if the conditions for investment incentives are still satisfied. (OL No.2135/TCT-

PCCS dated 01/06/2007).

Establishment expenses: The expenses for establishment of enterprises are actual expenses related directly to the

preparation for the emergence of the enterprises and considered by the founding members as part of the

contributed capital of each party and recorded in the charter capital of the enterprises, including expenses for

research, exploration, elaboration of investment projects on setting up the enterprises, project evaluation expenses,

founding meetings… These expenses shall be calculated to the time the enterprises get the investment licenses and

considered long-term prepaid expenses. The establishment-related expenses must be evidenced with lawful and

valid vouchers. (OL No.2094/TCT-PCCS dated 30/05/2007)

Application of preferential CIT rates: According to the prevailing regulations, tax rate of 15% for 12 years as from

the cooperative or business establishment newly formed from investment project commences its operation.

In case where a project invests in lines of business or locations other than the main office of the business

establishment, and such lines of business or locations are entitled to investment incentives, the preferential tax rate

applicable to income, which increases due to the investment project, shall be determined according to the

satisfaction of the investment incentive conditions.

Accordingly, where a business establishment has investment project for construction of new line of production,

expansion of scale, renovation of technology or moving to industrial zone, the business establishment may enjoy a

preferential tax rate of 15% with respect to income from the investment project. This preferential tax rate shall be





Page 5

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





applied for 12 years as from the date of commencement of the operation. (OL No.2093/TCT-PCCS dated

30/05/2007).



PERSONAL INCOME TAX

Personal income tax with respect to foreign employees: Income tax applicable to foreign employees shall be

declared and finalized on the basis of residence subjects. The stay in the first year of income tax payment is

determined by totaling all the days to stay in Vietnam within 12 consecutive months beginning from the day of

arrival; after the first year of income tax payment, it is determined by the Calendar year and the day of arrival and

departure are counted as one day. In case the individuals are considered the residents of the last year, the stay in

the following year shall also be included in the period of residence. (OL No.2337/TCT-PCCS dated 14/06/2007)

Exemption from PIT: On May 29, 2007, the Ministry of Finance promulgated Circular No.55/2007/TT-BTC guiding

the PIT exemption applicable to foreign experts who implement programs or projects funded with foreign non-

governmental aid in Vietnam . Accordingly, the PIT exemption shall be applicable to foreign experts who bear

foreign nationalities and are selected to perform functions related to programs or projects funded with foreign non-

governmental aid in Vietnam on the basis of agreements between foreign non-governmental organizations and

Vietnamese agencies managing those programs or projects in program or project documents approved by those

Vietnamese agencies in compliance with current regulations on management and use of non-governmental aid and

terms of reference (ToR) to foreign experts.

An eligible foreign expert is required to present to the Tax Department of the province or city in which the project

management unit or owner is headquartered the following documents: A written request of the non-governmental

organization for non-collection of personal income tax on incomes from the foreign expert‟s activities in executing a

program or project; certification by the management agency competent to approve a program or project funded

with non-governmental aid that the foreign expert is executing that program or project, stating his/her full name,

nationality, passport number and duration of work in Vietnam, made according to a set form; and, documents

related to tax-exempted income of the foreign expert.

Tax offices will then issue certificates of personal income tax exemption to foreign experts.



OTHER TAXES, FEES AND CHARGES

Registration fees: Ships, rescue boats are the items subject to payment of registration fees. Thus, those who own

ships or rescue boats shall have to pay registration fees in accordance with the law. (OL No.2230/TCT-PCCS dated

08/06/2007)

Collection of tax on land and resident housing: According to the prevailing regulations, organizations and individuals

fail to declaration or make false declaration of tax in order to evade tax, they shall not only have to pay sufficient

tax, but shall have to pay a fine from one to three times higher than the amount of tax they evade.

In case where false declaration of tax or evasion of tax is discovered or concluded, within three years as from the

date of false declaration of tax or evasion of tax, the tax office shall have the right to collect the evaded tax amount.

Therefore, organizations or individuals are subject to payment of land and housing tax, but they fail to declare or

pay land and housing tax, the tax office shall collect the evaded tax in accordance with the above-mentioned

provisions. (OL No.2189/TCT-PCCS dated 06/06/2007).



EXPORT - IMPORT

VAT rates pursuant to the preferential import tariff: According to the prevailing regulations, tax rates applicable to

imported automobiles shall be as follows:

- With respect to automobiles with 5 seats or less, the preferential import tax rate, special sales tax rate and VAT

rate are 80%, 50% and 10% respectively;

- With respect to automobiles with from 6 seats to 15 seats, the preferential import tax rate, special sales tax rate

and VAT rate are 80%, 30% and 10% respectively;

- With respect to automobiles with from 16 seats to 24 seats, the preferential import tax rate, special sales tax rate

and VAT rate are 80%, 15% and 10% respectively;

- With respect to automobiles with 24 seats or more, the preferential import tax rate and VAT rate are 90% and

10% respectively;

- With respect to motorcycles, the preferential import tax rate and VAT rate are 90% and 10% respectively;

Import dutiable prices shall be implemented in accordance with the law. (OL No.2387/TCT-PCCS dated

21/06/2007).

Application of preferential tax rates: According to the prevailing regulations, where the truthfulness and accuracy of

C/O, form D, the customs body may have the following rights:

(i) Requesting to examine C/O, form D: the Customs body may send request to the competent authority (which has

issued C/O) in the exporting country for confirmation.







Page 6

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





(ii) Suspending the application of CEPT tax rates and temporarily collecting tax at the MFN tax rate or at normal tax

rate. Requesting the importer to provide further documents (if any) to evidence that the goods is originated form

ASEAN countries within 365 days as from the C/O, form D is submitted to the customs body.

When there is sufficient documents to prove that the goods is originated from ASEAN countries, the customs body

shall be responsible for conducting the procedure for refunding the difference between tax calculated at the normal

tax rate (or MFN tax rate) and tax calculated at the CEPT tax rate.

While pending the result of examination, the customs body shall still conduct the procedure as for importing goods

normally. (OL No.3301/TCHQ-KTTT dated 18/06/2007).

Management of import and export taxes: On June 14, 2007, the Ministry of Finance issued Circular 59/2007/TT-BTC

on guiding the implementation of the law on import and export tax as well as management of taxes applicable to

imported and exported goods.

Accordingly, objects subject to tax shall be goods imported or exported via border-gates and border-line of Vietnam,

including goods exported and imported through border-date on land, waterway, seaports, air-ports, international

railway, international post office or other places for conducting customs procedure as established in accordance with

decision of the competent body; goods brought from the domestic market to the free duty area; goods brought

from the free-duty area to the domestic market or goods sold, purchased or exchanged, which is considered as

export or import.

This Circular stipulates the bases for calculation of tax, method for calculation of tax, declaration and payment of

tax, reduction of and exemption from tax; refund of tax, extending the time-limit for payment of tax and so forth.

This Circular shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Administrative penalties applicable to customs: On June 7, 2007, the Government issued Decree 97/2007/ND-CP

stipulating the administrative penalty and implementation of the administrative decisions with respect to customs

sector.

Accordingly, the actions to evade tax or fraudulent declaration of taxes applicable to imported and exported goods

shall be subject to a fine of three times higher than the amount of evaded tax. In case where the tax obligations are

not declared fully or reduction of and exemption from taxes are declared to be higher than the actual situation, the

business establishments shall be subject to a fine of 10% of the amount of tax not declared fully, or the reduced or

exempted tax as they have already declared higher. In case where business establishments delay the payment of

tax, they shall have to pay a fine of 0.05% of amount of the tax for the each day they delay to pay.

Actions to offend the honor of customs officers or to obstruct the customs officers to implement their tasks shall be

subject to a fine of from VND 1 million to VND 3 million. Anyone who have actions to threaten to threaten to the

force to be against the customs officers implementing their tasks shall be subject to a fine of from VND 3 million to

VND 5 million if they are not crimes.

Compulsory measures shall be taken in case where organizations and individuals fail to comply with administrative

decisions such as: notice on tax debts and fine payable for delaying payment of taxes, notice on amount of tax

payable as the amount of refunded tax is higher than amount stipulated by the law.

This Decree shall be of full force and effect as from July 1, 2007.

Tax policy applicable to finance-leasing activities: In case where a foreign organization leases machinery, equipment

in the form of financial leasing to a Vietnam-based company, upon the import of machinery and equipment to

Vietnam, the import duty shall be settled in compliance with the Finance Ministry‟s Circular No.113/2005/TT-BTC

dated 15/12/2005. The Vietnam-based company is liable to pay import duty, the foreign organization is liable to pay

tax applicable to contractors as stipulated in Circular No.05/2005/TT-BTC dated 11/01/2005.

Upon the expiry of leasing, the Vietnam-based company shall return the machinery and equipment to the foreign

organizations, the Vietnam-based company shall not pay export duty but shall be refunded with import duty if

satisfying the conditions provided by Circular 113/2005/TT-BTC. (OL No.2193/TCT-PCCS dated 06/06/2007).

Registration of the right to import and export: On May 31, 2007, the Government issued Decree 90/2007/ND-CP

stipulating the export and import rights of the foreign business entities who do not present in Vietnam.

Accordingly, the conditions for registration of the import and export rights shall be as follows: (i) the foreign

business entities, the commercial operation right of which are not taken away in accordance with the Vietnam‟s laws

and foreign laws; (ii) the foreign business entities do not have previous conviction or the foreign business entities,

whose civil capacity is not limited or lost with respect to foreign business entities being individuals or legal

representatives of the foreign business entities being economic organizations.

In the period of 30 working days, as from the date of receipt of valid application dossier, the Ministry of Trade or

the authorized body shall be responsible for issuance of certificate on registration of import and export rights for

foreign business entities. If refusing to issue the certificate, within 30 working days, the Ministry of Trade or the

authorized body shall have to notify the foreign business entities clearly stating the reasons. In case where the

application dossier is not valid, within 30 working days as from the date of receipt of the application dossier, the

foreign business entities must be notified for addition to the application dossier.









Page 7

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





Within 5 working days as from the date of issuance of certificate on registration of the import and export rights,

foreign business entities shall have to announce the contents as recorded in their certificate on the mass media

[within 3 consecutive issues] or on one of the popular newspapers in Vietnam.

The maximum duration of the certificate on registration of the import and export rights shall be 5 years. Before date

of expiry of the Certificate 60 working days, the foreign business entities not presenting in Vietnam may propose the

extension of the certificate if the conditions are satisfied.

This Decree shall be of full force and effect after 15 days as from the date of its publication on Cong Bao.

Import of large-engined motorbikes : On May 30, 2007, the Ministry of Trade issued Circular 06/2007/TT-BTM

providing guidelines on imports of motorbikes with engine of 175 cm3 and more. Accordingly, motorbikes with

engine of 175 cm3 and more are motorbikes with reciprocating internal combustion piston engine of a cylinder

capacity of 175 cc or more under heading 8711 of import-export tariffs (hereinafter called large-engined

motorbikes).

Accordingly, imports of large-engined motorbikes are subject to automatic import licence of the Ministry of Trade.

With regard to registration of automatic import license, before conducting customs procedures for import, traders

must send to the Ministry of Trade the following dossiers: 02 import registration copies made according to a set

form; a copy of import contract with true-copy seal of traders. (traders who register import for the first time shall

send one valid copy of business registration certificate).

The Ministry of Trade certifies the automatic import registration of trader within 3 working days since receiving the

above-mentioned dossiers. After importing each lot of goods, traders shall report the import of large-engined

motorbikes in writing to the Ministry of Trade. Based on such report, the Ministry of Trade shall certify the

subsequent registration of importing large-engined motorbikes for traders.

This Circular becomes effective after 15 days since its publication on the Official Gazette.



ACCOUNTING AND FINANCE

Regulations on examination and issuance of certificate to State auditors: On May 21, 2007, the State Auditing Body

issued Decision No.01/2007/QD-KTNN on promulgating regulations on examination and issuance of certificate to

State auditors. Subjects of application are cadres and public servants of the State Auditing Body.

Accordingly, conditions for taking examination and issuance of certificate to State auditors are Common criteria for

State auditors as stipulated in Article 29 of the Law on State Audit; reserve auditors and other cadres and

employees of the State Audit must fulfill their professional tasks and must satisfy requirements of professional ethics

while working for the State Audit and are delegated to take the examination. Those who are currently disciplined

shall not be permitted to take the examination on certificate of state auditors.

The examination for issuing certificate of state auditors is held annually by the State Audit. The examination shall

include 7 subjects: Economic Law, Financial Management, Accounting, Auditing, Financial Analysis, Informatics

(level B), English (level A).

The passing grade is 50/100. Examinees are qualified if they pass the above-mentioned subjects with total score of

420 plus.

Making depreciation of land use right: According to Official Letter 2159 TCT/PCCS dated June 4, 2007 of GDT, long-

term land use right is specially intangible, therefore, enterprise shall not make depreciation, but recognize this asset

as intangible fixed asset in accordance with the original price. (OL No.2159/TCT-PCCS dated 04/06/2007)

Calculation of loan interest : In case where loan interest which is incurred in 2005 but not yet be recognized as 2005

expense shall be recorded as other expenses in 2006. Payable loan interest shall be calculated as proper expense

when determining CIT in 2006 in accordance with the law. (OL No.2123/TCT-PCCS dated 31/05/2007)



LABOR AND SALARY

Regime for laborers: According to the prevailing regulations, laborers may enjoy pension in one of the following

cases:

Male laborers with 60 years old or female laborers with 55 years old who have paid social insurance premium for 20

years or more.

Male laborers with from 55 years old to 60 years old or female laborers with from 50 years old to 55 years old, who

did heavy, noxious or dangerous job for 15 years or who work in area of which the regional coefficient is 0.7 or

more.

Laborers with from 50 years old or 55 years old, who have paid social insurance premium for 20 years and have

worked in mine for 15 year.

Persons infected with HIV/AIDS due to career risk and having paid social insurance premium for 20 years or more;

At the same time, laborers have paid social insurance premium for 20 years or more and their working capacity is

reduced by 61% or more, they shall enjoy the pension lower than the pension paid for those satisfying the

conditions as stipulated by laws if they do not fall within the following circumstances: male laborers with 50 years







Page 8

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





old or more, female laborers with 45 years old or more who have done heavy, noxious or dangerous job for 15

years or more. (OL No.2099/LDTBXH-BHXH dated 14/06/2007).

Purchase of preferential shares: According to the prevailing regulations, the time is calculated for purchase of

preferential shares shall be total time for which they have worked for State owned enterprises, agencies and units;

units belonging to armed force until the time of equitization, including laborers who have received retrenchment

allowances.

Therefore, the period of time for which the laborers work for joint-stock companies with 51% or more State owned

capital (State owned enterprises) shall be calculated as the time used for purchasing preferential shares in

accordance with the law.

In case where the laborers have worked for the State owned sector for a period of time [suspending the labor

contract], this period of time shall not be calculated for purchase of preferential shares from the equitized State

owned companies. (OL No.1939/LDTBXH-LDVL dated 06/06/2007)

Management of labor and salary: On May 28, 2007, the Government issued Decree 86/2007/ND-CP making detailed

provisions on management of labor and salary in limited liability companies with one member, with 100% State

owned capital.

Accordingly, companies may apply a minimum salary levels higher than the minimum salary as stipulated by the

State in order to calculate salary unit price provided that they satisfy the conditions: making payment to the State

budget in accordance with the law; the average salary increase level is lower than the average increase of labor

productivity; and profits according to the plan is not lower than profits earned in the last year, except for special

case.

Salary and allowance of members of the Member Council, chairman of company; General Director and inspector

shall be paid in accordance with the implementation of profit and labor productivity of the company in accordance

with the following principle: if profit and labor productivity increase, the salary and allowance shall increase; if profit

and labor productivity reduces, the salary and allowance shall reduce. However, the salary and allowance shall not

be lower than the salary level as calculated in accordance with the salary coefficient; salary allowance and minimum

salary level.

Members of the Member Council, Chairman of Company, General Directors, Directors who do not ensure the

payment of salary and allowances to laborers, let the company have loss for two consecutive years or fail to reach

the rate between profit and capital for the two consecutive years, they shall be entitled to increase of salary or

bonus, but have their salary reduced.

This Decree shall be of full force and effect after 15 days as from the date of its publication on Cong Bao.



STATE-OWNED ENTERPRISE

Writing off tax debts with respect to State owned companies being converted : According to the Law on tax

administration passed on 29/11/2006 by the National Assembly, in case where enterprises declared bankruptcy and

gave all payments in accordance with the Law on bankruptcy so that they ran out of assets to pay taxes and fines,

tax and fine debts of such enterprises shall be written off. Therefore, in order to completely settle tax and fine debts

of enterprises being equitized, assigned, sold under Decree No.187/2004/ND-CP dated 16/11/2004 on conversion of

a State-owned company into joint-stock company, Decree No.80/2005/ND-CP dated 22/6/2005 on assignment, sale,

business contracting and lease of state companies, the Ministry of Finance requests ministries, People‟s Committee

of provinces and cities direct enterprises being subjects of tax write-off under the above-mentioned decrees

cooperate with related agencies to:

1. Complete procedural dossiers of requesting the remission of tax and state budget payments to budget in

accordance with the Finance Ministry‟s Decree No.32/2002/TT-BTC dated 10/4/2002 guiding the implementation of

the Prime Minister‟s Decision No.172/2001/QD-TTg of November 5, 2001 on the rescheduling, freezing and

remission of tax debts and state budget payments for enterprises and production and/or business establishments

meeting with difficulties due to objective causes and the Finance Ministry‟s Official Letter No.10945/BTC-TCT dated

31/8/2005 on remitting tax liabilities and budget payment accounts, then send them to the Ministry of Finance for

study and timely settlement.

Subjects of settlement are enterprises being rearranged, concerted before 01/7/2007.

2. In case where enterprises request the remission of prior-conversion tax debts and state budget payments after

being euitized, assigned, sold:

a. Equitized enterprise which has conversed officially to joint-stock company will be taken into consideration to remit

tax liabilities and budget payment accounts which were deducted temporarily while assessing enterprise‟s value.

Companies established from equitized enterprises is obliged to compile dossier under the regulations of Article 1 of

this official letter accompanied by the following documents:

- Documents requesting the remission of tax debts and state budget payments of state agency competent for

assessing enterprise‟s value.

- Financial Statements up to the time of converting into joint-stock companies.







Page 9

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





- Record delivering capital, assets of state-owned companies to jont-stok companies accompanied by the details of

payable debts (with regard to delivered enterprises).

- Competent agency‟s decision ratifying enterprise‟s value at the time on which enterprises are officially converted

equitized companies.

- Record inspecting tax finalization from the time of assessing enterprise‟s value up to the time of converting into

equitized companies.

The above-mentioned documents must be originals or valid copies.

b. If enterprise has finished its sale, only the case that liabilities of that enterprise is bigger than its asset or than

incomings from that sale will be taken into consideration.

Enterprises newly established from enterprises undergoing assignment or sale are obliged to compile the following

dossiers:

- Record assessing enterprise‟s value.

- Purchasing and selling contract or enterprise assignment contract which clearly indicates state budget liabilities).

- Written request of local tax department.

3. Enterprise has finished its sale or equitization and hand-over report, selling and purchasing contract: i) indicates

clearly tax liability, budget payment accounts in the total transferred assets and capital or ii) regulates

responsibilities of newly inherited or founded enterprise in implementing tax and budget liability obligations, this

enterprise‟s liabilities will not be remitted (including arisen loss). (OL No.6743/BTC-TCDN dated 22/05/2007)



BANKING

Regulations on establishment of joint-stock banks: On June 7, 2007, the Governor of State Bank issued Decision

24/2007/QD-NHNN promulgating Regulations on issuance of permit for establishment and operation of joint-stock

commercial banks.

Accordingly, in order to be issued with a permit for establishment, banks shall have to strictly comply with the

capital requirements from time to time. From now to the end of 2008, banks shall have the minimum charter capital

of VND 1,000 billion, and after December 31, 2008, all applicants shall have a charter capital of VND 3,000 billion.

Capital sources which are contributed for establishment of banks must be originated from shareholders. No loan

shall not be used for establishment of banks.

Foreign investors shall not be permitted to contribute capital for establishment of new banks. However, they are

only permitted to purchase 30% or less of shares from domestic banks having operated for at least two years.

Banks to be established shall have at least 100 shareholders, in which there are at least 3 founding shareholders.

Besides, banks must have total assets of VND 2,000 billion and the charter capital of VND 500 billion or more. In

case where founding shareholder is joint-stock commercial bank, the joint-stock commercial bank must have a total

assets of VND 10,000 billion, charter capital of VND 1,000 billion and bad debts of less than 2%. Shareholders shall

not be permitted to transfer shares within 3 years as from the date of issuance of permit for establishment.

Meanwhile, founding shareholders shall only be permitted to transfer shares among themselves within 5 years as

from the date of issuance of permit for establishment

Regulations on branches of foreign and joint-venture banks: On June 5, 2007, the State Bank of Vietnam issued

Circular 03/2007/TT-NHNN guiding the implementation of some articles of Decree 22/2006/ND-CP on organization

and operation of branches of foreign and joint-venture banks, banks with 100% foreign owned capital and

representative offices of foreign credit institutions in Vietnam.

Accordingly, one of the conditions for establishment of a bank with 100% foreign owned capital is that there are

total assets of at least of USD 10 billion at the end of the fiscal year before the year in which the application for the

permit is conducted.

Vietnamese banks which contribute capital for establishment of joint-venture bank or foreign organizations not

being foreign banks which contribute capital for establishment banks with 100% foreign capital must be banks or

organizations having prestige, finance capacity, healthy operations, efficient business and generating profits.

Specifically, they have operated for at least 5 years; have total assets of at least of VND 10,000 billion; bad debt

rate of 02% of total outstanding debts; not violating regulations on safety with respect to banking operation from

the year before applying for issuance of permit until the time at which the State Bank considers the application

dossier for issuance of permit; and have generated profit for 3 consecutive years.

Joint-venture banks, banks with 100% foreign owned capital and parent banks (with respect to branches of foreign

banks) shall have to ensure the full contribution of charter capital and the lack of the charter capital within 6 months

as from the date the actual charter or allocated capital is reduced lower than the charter capital.

This Circular shall be of full force and effect after 15 days as from the date of its publication on Cong Bao.

Monetary policy: On May 23, 2007, the Government issued Decree 82/2007/ND-CP stipulating the provision of

information for formulating and managing the national monetary policy.







Page 10

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





Accordingly, organizations not being credit institutions shall have to provide reports on situation of assets and debts

in the month, quarter, and year as well as other information at the request of the State Bank to be used for

formulating and managing the national monetary policy of the State Bank.

The provision of information shall have to ensure the truthfulness, objectiveness, accuracy, sufficiency and in

accordance with the time-limit.

This Decree shall be of full force and effect after 15 days as from the date of its publication on Cong Bao.



INVESTMENT

CIT incentives to sea forwarding agents: Maritime, airline, rail, road transport and inland waterway services fall

within the list of trades and sectors where investment incentives apply.

Maritime services include sea-transport agency service (called sea transport reception agency service); sea transport

agency service means the service for performing the following tasks: organizing and carrying out works in service of

the process of goods transport, delivery and reception, passenger and luggage transport on the basis of sea

transport contracts or multi-mode transport contracts; leasing, renting on behalf of goods owners sea transport

means, loading and unloading equipment, warehouse, wharves, piers and other special use maritime equipment;

acting as container agents; settling other matters as authorized. (OL No.2322/TCT-PCCS dated 14/06/2007).

Investment incentives: Breeding, rearing and growing agricultural, forestry and aquaculture products on

uncultivated land, unexploited waters fall within the list of investment incentive sectors issued with Decree

108/2006/ND-CP dated 29/09/2006. However, such exploitation shall not violate Point 13, Article 6 of the Law on

Fisheries (Prohibited acts in fishery activities: Conducting aquaculture not in line with plannings, obstructing water

flows, obstructing activities of exploiting aquatic resources, adversely affecting activities of other branches or

occupations.) (OL No.2130/TCT-PCCS dated 01/06/2007).



SECURITIES

Controlling scale, quality, and lending for investment and securities business : Under Directive No.03/2007/CT-

NHNN dated 28/05/2007 on controlling scale, quality of credit and lending for securities investment and trading in

order to control inflation and promote economic growth, the Governor of State bank requests to enhance the

inspection, supervision, settlement of violations of credit institutions in the sector of lending, discounting valuable

papers for securities investment and trading.

Credit institutions shall conduct the following safety measures: limit the loan capital balance, discounting valuable

papers for securities investment and trading at 3% or less of their total credit loan balances; lending, discounting

valuable papers with regard to securities companies; providing loans secured with the mortgage of stocks or other

assets for securities investment and trading with respect to individuals and other organizations; discounting valuable

papers with respect to organizations and individuals who engaged in securities investment and trading; enhancing

the internal inspection and control with regard to loans for consumption, production, business secured with assets in

order to discover and timely settle the loans given for securities investment and trading instead of the aforesaid

purposes.



OTHER REGULATIONS

Debt-recovering business: On June 14, 2007, the Government issued Decree on debt collection service business.

Accordingly, only enterprises with debt collection service- registration certificates may provide debt collection

services, which, however, may not deal in any other business lines.

Under this 6-chapter and 29-article Decree, debt collection services apply only to overdue debts arising in civil

transactions with legally valid papers, not to debts under effective judgments or decisions of courts, debts of

creditors or debtors being political organizations or people‟s armed forces units, or debts between Vietnam and

international organizations or other countries.

Debt collection service providers are prohibited to commit, by themselves or through others, acts of infringing upon

life, health, dignity, honor or freedom of debtors, creditors or concerned organizations or individuals. They may not

use information obtained from creditors or debtors to place the latter at a disadvantage.

Creditors and debtors may not authorize debt collection service providers to carry out activities beyond their rights

recognized by law; commit, by themselves or through others, acts of deceiving, using force or threatening to use

force towards, debt collection service providers.

A debt collection service-providing enterprise should have legal capital of VND 2 billion. It should maintain its charter

capital not below this level throughout its operation duration.

Regulations on technology and equipment market (Techmart): According to Decision 13/2007/QD-BKHCN dated

June 12, 2007 of the Minister of Science and Technology, Techmart shall only be organized upon satisfaction of the

following conditions: the registered stands, technologies or equipment is more than 60% of the anticipated stands,

technologies or equipment as stated in the Plan for organization of Techmart. Agencies which organize the

Techmart shall have to send closing report on Techmart and successive activities after the Techmart (if any) to the

Ministry of Science and Technology.





Page 11

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





Transactions, purchase and sale which are prohibited at the Techmart shall be as follows: violating intellectual

property and right to transfer technologies; transactions, purchase or sale of technologies falling within the list of

technologies, the transfer of which is prohibited or limited; fraudulent transaction, purchase or sale of technologies

and equipment.

With respect to scale: nationwide multi-sector Techmart must have at least 200 stands and 1,000 technologies and

equipment; Techmart of the specialized sector must have at least 150 stands and 500 technologies and equipment;

and the regional and multi-sector Technmart must have at least 100 stands and 350 technologies and equipment.

This Decision shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Management of expense for work construction investment: According to Decree 99/2007/ND-CP dated June 13,

2007, estimate for construction works shall be formulated on the basis of work volume as determined in accordance

with the technical designs or drawings for construction, construction unit price, necessary expense for the work and

task. With respect to small construction works, only economic-technical report is formulated, the total investment

level shall be estimate for the construction work.

Advancing capital for construction works shall be as follows: with respect to consulting contracts, the advanced

amount is at least 25% of the value of the contract; with respect to construction contracts, the advanced amount is

at least 10%, 15% and 20% with respect to contracts with value of more than VND 50 billion, from VND 10 billion

to VND 50 billion and less than VND 10 billion. With respect to contracts on provision of supplies, the advanced

amount shall not be less than 10% of the value of the contract.

Advanced capital shall be recovered gradually after each time of payment. The recovery of advanced capital shall

begin the first payment and shall be finished when the payment of 80% of the value of the contract. With respect to

ground clearance, the recovery of advanced capital is finished after the ground clearance is completed.

Within 10 working days as from the date of submission of valid application dossier for payment by contractors, the

investors shall have to pay the value of the implemented work to the contractor. With respect to works using the

State budget, within 3 working days as from receipt of valid application dossier for payment, the investor shall have

to complete the procedure and shall send the application dossier for payment to the capital allocating body or loan

provider.

This Decree shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Guidelines for granting land use right certificate: On June 15, 2007, the Ministry of Natural Resources and

Environment issued Circular No.06/2007/TT-BTM guiding the implementation of some Articles of Decree

84/2007/ND-CP dated May 25, 2007 of the Government on addition to regulations on issuance of certificate on land

use right, recovering land and exercise of land use right, procedure for compensation for land, support and

resettlement when the State recovers land as well as settlement of land complaints.

Accordingly, land plots have been created through separation of land plots being used by land user since documents

of provincial people‟s committee on minimum plot separation became effective, and those land plots are smaller

than the minimum separated area, the land user shall not be granted land use right certificate and shall not be

allowed to conduct the rights to exchange, transfer, donate, lease land use rights or to mortgage, provide guarantee

or contribute capital with the land use right;

In case where land user applies for separating land plot into a smaller one than the minimum land plot and

concurrently consolidating it with an adjacent plot into a new one which is the same as or larger than the minimum

plot separation, such land user shall be entitled to plot separation and plot consolidation as well as be granted land

use right certificate for the new plot.

In cases where investors are local economic organizations, overseas Vietnamese who have leased land from the

State in form of land lease with land rents paid annually to implement the project of building houses for rent and

have the demand of selling dwelling house on rented land, there must be a shift to form of being assigned land by

the state with collection of land use levies.

In case where investors are overseas Vietnamese, foreign organizations and individuals who have leased land from

the state in form of land lease with land rents paid in lump sum for the whole leasing terms to implement project of

building dwelling houses for lease before Decree No.84/2007/ND-CP comes into effect and have demand of selling

dwelling houses on such leased land, they have to pay the difference between land use fees as stipulated in Clause

1 Article 5 of Decree No.17/2006/ND-CP and land rents paid in lump sum for the whole leasing terms.

This Circular shall take into effect after 15 days since its publication in the Official Gazette.

Management of finance with respect to Social Insurance Body: According to Circular 58/2007/TT-BTC dated June

12, 2007, capital source that the State budget allocates for social insurance must be used in accordance with the

regulations, policy and shall be finalized fully in accordance with the regulations. After annual finalization, the capital

balance may be used for the next year or deducted from the amount allocated for the next year.

Units using laborers shall be responsible for fully paying social insurance and health premiums in accordance with

law and guideline of Vietnam Social Insurance Body. In case where they delay the payment of insurance premium

for 30 day or more, they shall not only be dealt with in accordance with laws, but also have to pay the insurance

premiums and interest calculated at the interest rate of the investment fund of Vietnam Social Insurance Body.







Page 12

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





This Circular shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Guiding the implementation of the Cinema Law: According to Decree 96/2007/ND-CP dated June 6, 2007 of the

Government, in order to be issued with a permit, cinema enterprises must have a legal capital of VND 1 billion. Film

production enterprises which established and operate before January 1, 2007 shall have to conduct the procedure

for issuance of certificate on satisfaction of business conditions within 1 year as from the effective date of this

Decree.

When producing films, cinema establishments may enjoy VAT, CIT and export duty incentives. Enterprises and units

financed by the State budget which construct movie houses or other movie works may rent land or may be assigned

with land from the State. Besides, cinema establishments may be exempt from registration fee of land.

This Decree shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Answering complaints: According to the prevailing regulations, complaints made in one of the following

circumstances shall not be accepted for settlement: the statute of limitations for complaints and the time-limit for

further complaints have expired.

Within 30 days as from the date on which the time-limit for settlement of complaint has expired, but the complaint

has not been settled if the complainant maker does not agree, the complainant may continue to make complaint

with the competent person for further settlement, except for the case where the decision on settlement of complaint

is final. In remote and deep-lying areas, the above time-limit may last to 45 days. (OL No.2188/TCT-PCCS dated

06/06/2007).

Guiding the implementation of tourism law: According to Decree 92/2007/ND-CP dated June 1, 2007, foreign

tourism enterprises which wish to open branches or representative offices in Vietnam shall have to be tourism

enterprises as recognized by the foreign law and have conducted tourism activities for at least 5 years as from the

date of establishment. When opening representative offices, the head of the representative office shall not

concurrently be the head of representative office of the same foreign tourism enterprise in Vietnam or shall not

concurrently be the head of representative office or branch of another foreign enterprise in Vietnam.

The tourism enterprises shall only be permitted to persons with international tour guide‟s card to guide the foreign

tourists. With respect to domestic tour guides, they shall not have infectious diseases or not be addicted. Besides

they must have professional skills and qualifications.

Travel operators must be 3 years of experience with respect to domestic travel business and must be 4 years of

experience with respect to international travel business; such as promoting tourism, preparation and operating of

tourist programs, studying and teaching travel and tourist guiding. Enterprises conducting international travel

business shall have to pay a security deposit of VND 250 million, which is used for making compensation for tourists

if the enterprises violate contract as signed with the tourists.

Tourist zone with at least of 1000 hectare under the master planning which is approved by the competent body and

which may serve 1 million tourists per year shall be recognized as international tourist zone.

This Decree shall be of full force and effect after 15 days as from the date of its publication in Cong Bao.

Addition to regulations on issuance of certificates on land use rights : On May 25, 2007, the Government issued

Decree No.84/2007/ND-CP on addition to regulations on issuance of certificates on land use rights, recovering and

implementing the land use right ; as well as procedure for compensation, support and resettlement when the State

recovers land and settle land complaints. Accordingly, the following cases shall be granted land use right

certificates: Land for agricultural production; agricultural land used for building farms in rural areas land used by

population communities, religious establishments, cases where land use right has been transfer but the procedures

of the transfer have not been conducted as stipulated by law; individual land users died before receiving land use

right certificate; heir of land use right is a foreigner or an overseas Vietnamese entitled to buying dwelling house

closely associated to the residential-land use rights; land used by households, individuals before 15/10/1993 without

any documents stipulated in Clause 1 Article 50 of the Land Law; land used by households, individuals since

15/10/1993;

The grant of certificate in case of arising difference between actual measurement and records in documents of land

use rights shall be settled as follows:

1. In case where actual measurement is in accordance with technical standard of cadastral measurement and the

measurement is lower than the records, the certificate shall be granted on the basis of the measurement; land user

shall not be entitled to refund of land use fees paid for the difference.

2. In case where actual measurement is in accordance with technical standard of cadastral measurement and the

measurement is higher than the records, the settlement is as follows:

a) In case where the current land boundary is the same as the land border at the time of receiving land use right

documents, there is no dispute with the user of adjacent land, the actual measurement upon grant of certificate is

higher than the records in documents of land use right, certificate shall be granted upon the actually measured land

areas; land users do not pay land use fee for the difference between the actual measurement and records in

documents;

b) In cases where the current land boundary is changed compared with the land border at the time of receiving land

use right documents, the actual measurement is higher than the records in documents of land use right and now





Page 13

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





certified by the commune People‟s Committees of the localities where exists the land that it results from virgin land

reclamation or transfer of land use right, the land has been used in a stable manner and free of disputes, land use

right certificate shall be granted for the actually measured land area;

c) In cases where the current land boundary is different from that at the time of granting land use right documents,

the actual measurement is higher than the records in land use right documents and now being certified by the

commune People‟s Committee of the localities where exists the land that it result from encroaching, occupying,

Clause 4 and 5, Article 14 or Clause 2, Article 15 of this Decree shall be applied.

Besides, this Decree provides details on settling some cases of changing land use right; on recovering land and

compensating and supporting with land; land –recovering order and procedures, compensation, support,

resettlement when the State recovers land for use for defense or security purposes, for national interests, public

interests, economic development, settling complaints on land.

Model application dossier for bidding invitation for purchase of goods: On May 22, 2007, the Ministry of Planning

and Investment issued Decision 521/2007/QD-BKH on promulgating model dossiers for bidding invitation for

purchase of goods.

Accordingly, these model dossiers for bidding invitation for purchase of goods (including spare parts for

replacement, technical documents and attached technical services if any) of projects regulated by the Tendering

Law when implementing forms of selection of contractors. Investors may amend and add to some contents of these

model dossiers for compliance.

With respect to projects using ODA capital, these model dossiers may be applied if the donor accepts. In case where

the donor does not accept some contents of these model dossiers, the model dossiers may be amended.

This Decision shall be of full force and effect after 15 days as from the date of its publication on Cong Bao.







Inter-bank exchange rates of VND against USD in June 2007

Date Rate Date Rate



01/6 16.112 19/6 16.122



05/6 16.115 20/6 16.120



06/6 16.113 21/6 16.119



07/6 16.111 22/6 16.121



08/6 16.110 23/6 16.123



12/6 16.113 25/6 16.103



13/6 16.112 27/6 16.126



14/6 16.115 28/6 16.129



15/6 16.120 29/6 16.131



18/6 16.124 30/6 16.131







List of new legal documents in May and June 2007

The Government

1. Decision No.86/2007/QD-TTg (11/06/2007) on responsibility allowance applicable to investigators for execution of civil

judgments.

2. Decree No.104/2007/ND-CP (14/05/2007) on debt-recovering business.

3. Decree No.103/2007/ND-CP (14/06/2007) on stipulating the responsibility of the heads of agencies, organizations and

units as well as responsibility of State officials and employees in practicing thrift and fighting wastefulness.

4. Decree No.102/2007/ND-CP (14/06/2007) on stipulating the duration for which the State officials and employees do

not conduct business after resigning from office with respect to State agencies and units financed by State budget.









Page 14

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





5. Decree No.101/2007/ND-CP (13/06/2007) on collection, management, exploitation and use of sea natural resources

and environment.

6. Decree No.100/2007/ND-CP (13/06/2007) on inspectors and inspectors‟ collaborators.

7. Decree No.99/2007/ND-CP (13/06/2007) on management of expense on investment and construction of works.

8. Decree No.98/2007/ND-CP (07/06/2007) on settlement of administrative violation of tax regulations and

implementation of administrative decision on tax.

9. Decree No.97/2007/ND-CP (07/06/2007) on settlement of administrative violation of customs regulations and

implementation of administrative decision with respect to the field of customs.

10. Decree No.96/2007/ND-CP (06/06/2007) on making detailed provisions for implementation of some articles of the

Cinema Law.

11. Decree No.92/2007/ND-CP (01/06/2007) on making detailed provisions for implementation of some articles of the

Tourism Law.

12. Resolution No.07/NQ-CP (01/06/2007) on issuance of the Government‟s international bonds to the International

Capital Market.

13. Decision No.674/QD-TTg (01/06/2007) on approving the Plan on establishment of Vietnam Post and

Telecommunication Corporation.

14. Decree No.95/2007/ND-CP (04/06/2007) on amendment of and addition to some articles of Decree 126/2005/ND-CP

dated October 10, 2005 on Penalties for Administrative Offences in Relation to Measurement and Quality of Goods.

15. Decree No.94/2007/ND-CP (04/06/2007) on management of flying activities.

16. Decree No.93/2007/ND-CP (04/06/2007) on stipulating functions, tasks, power and organizational structure of the

General Department of Statistics [directly under the Ministry of Planning and Investment].

17. Decree No.91/2007/ND-CP (01/06/2007) on Penalties for Administrative Offences in Relation to Civil Aviation.

18. Decree No.90/2007/ND-CP (31/05/2007) on the foreign business entities‟ right to export and import in case where

they do not present in Vietnam.

19. Decree No.89/2007/ND-CP (28/05/2007) on establishment of Ha Tinh City, in Ha Tinh Province.

20. Decree No.88/2007/ND-CP (28/05/2007) on drainage in urban area and industrial zones.

21. Official Letter No.663/TTg-KTTH (31/05/2007) on inspection of management and use of assets of the Board of

Management of projects using the State budget.

22. Decision No.77/2007/QD-TTg (28/05/2007) on promulgating regulations on speaking and providing information for

the press.

23. Decision No.76/2007/QD-TTg (28/05/2007) on function, tasks, power and organizational structure of the General

Department of Taxation.

24. Decision No.73/2007/QD-TTg (25/05/2007) on allowance for people directly implementing civil judgments.

25. Decision No.72/2007/QD-TTg (23/05/2007) on particular allowance for judicial and inspectorate titles in military force.

26. Decree No.87/2007/ND-CP (28/05/2007) on promulgating regulations on implementation of democracy at limited

liability companies and joint-stock companies.

27. Decree No.86/2007/ND-CP (28/05/2007) on stipulating management of laborers and salary in limited liability

companies with one members that the State owes 100% of the charter capital.

28. Decree No.85/2007/ND-CP (25/05/2007) on making detailed provisions for implementation of the Law on

management of tax.

29. Decree No.84/2007/ND-CP (25/05/2007) on addition to regulations on issuance of certificates on land use rights,

recovering and implementing the land use right ; as well as procedure for compensation, support and resettlement

when the State recovers land and settle land complaints.

30. Decree No.83/2007/ND-CP (25/05/2007) on management and exploitation of airports.

31. Decree No.82/2007/ND-CP (23/05/2007) stipulating the provision of information for formulation and administration

of the national monetary policy.

32. Decree No.81/2007/ND-CP (23/05/2007) stipulating the organization of specialized division for protection of the

environment at the State agencies and enterprises.

Ministry of Finance

1. Decision No.2089/QD-BTC (15/06/2007) on correcting Decision 28/2007/QD-BTC dated April 24, 2007 of the Minister

of Finance on promulgating rules and fire and explosion insurance premiums (compulsory insurance).

2. Decision No.45/2007/QD-BTC (05/06/2007) on promulgating regulations on establishment and management of

securities investment fund.

3. Circular No.65/2007/TT-BTC (18/06/2007) providing detailed guidelines for Decree No.30/2007/ND-CP (01/3/2007) on

lottery business.







Page 15

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





4. Circular No.64/2007/TT-BTC (15/06/2007) on guiding the formulation of State budget draft in the year of 2006.

5. Circular No.63/2007/TT-BTC (15/06/2007) on guiding the tendering for purchase of assets in order to maintain the

regular operations of the State bodies.

6. Circular No.59/2007/TT-BTC (14/06/2007) on guiding the implementation of the import and export taxes as well as

management of taxes applicable to imported and exported goods.

7. Circular No.67/2007/TT-BTC (19/06/2007) on guiding the conversion of price assessing Center into price assessing

enterprises.

8. Circular No.58/2007/TT-BTC (12/06/2007) on guiding the management of finance with respect to Social Insurance

Body.

9. Decision No.47/2007/QD-BTC (13/06/ 2007) on stipulating the collection, payment, management and use of toll paid

for use of Highway 1K.

10. Circular No.57/2007/TT-BTC (11/06/2007) on stipulating the spending for receiving foreign guests, which come to

work in Vietnam as well as spending for organization of international conferences and seminars in Vietnam .

11. Circular No.56/2007/TT-BTC (08/06/2007) guiding the extraction and use of 2% from the sum actually paid to the

state budget discovered by the state audit.

12. Decision No.1968/QD-BTC (06/06/2007) on mechanism of management of selling prices of oil and petrol.

13. Decision No.46/2007/QD-BTC (06/06/ 2007) on amendment of and addition to Decision 77/2006/QD-BTC dated

December 29, 2006 of the MOF on promulgating list of goods and tax import rates, which is used for application.

14. Decision No.44/2007/QD-BTC (04/06/2007) on suspension of refund of special sales tax with respect to cigarettes with

foreign label, which are locally produced for export.

15. Decision No.43/2007/QD-BTC (04/06/2007) on promulgating Regulations on receiving and settling the complaints and

denunciation from citizens.

16. Decision No.42/2007/QD-BTC (04/06/2007) on assignment of tasks to implement and protect the intellectual property

and fighting of counterfeit goods in the field of customs.

17. Decision No.41/2007/QD-BTC (31/05/2007) on promulgating Vietnam‟s specially preferential import tariff to implement

the ASEAN – Korean Free Trade Area.

18. Circular No.55/2007/TT-BTC (29/05/2007) on guiding the exemption from income tax applicable to high income

earners with respect to foreign specialists implementing programs and projects on foreign non-governmental aid in

Vietnam.

19. Decision No.40/2007/QD-BTC ( 31/05/2007) on promulgating import duty rates applicable to some goods in Heading

2710 of the preferential import tariff.

20. Decision No.39/2007/QD-BTC ( 30/05/2007) on promulgating import duty rates applicable to some goods in Heading

2710 of the preferential import tariff.

21. Decision No.37/2007/QD-BTC (17/05/2007) on promulgating codes of the lists of key science and technology programs

of the State.

22. Decision No.33/2007/QD-BTC (15/05/2007) on promulgating procedure for settlement after finance inspection and

examination.

23. Official Letter No.6949/BTC-TCT (25/05/2007) on invoices and vouchers.

24. Official Letter No.6743/BTC-TCDN (22/05/2007) on writing off tax debts with respect to State owned companies being

converted.

Ministry of Labor, War Invalids and Social Affairs

1. Official Letter No.2113/BLDTBXH-LDVL (15/06/2007) on guiding the salary ratings for redundant laborers in

accordance with Decree 41/2002/ND-CP.

2. Official Letter No.2102/BLDTBXH-BHXH (14/06/2007) on settlement of social insurance for laborers.

3. Official Letter No.2100/BLDTBXH-BHXH (14/06/2007) on guiding the calculation of average salary used for payment of

social insurance premium.

4. Official Letter No.2099/BLDTBXH-BHXH (14/06/2007) on regime applicable to laborers.

5. Official Letter No.2082/BLDTBXH-LDVL (14/06/2007) on policy applicable to laborers working for joint-stock companies

converted from the State owned companies.

6. Official Letter No.2081/BLDTBXH-LDVL (14/06/2007) on guiding the implementation of policy applicable to redundant

laborers in accordance with Decree 41/2002/ND-CP.

7. Official Letter No.2080/BLDTBXH-LDVL (14/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.

8. Official Letter No.2079/BLDTBXH-LDVL (14/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.









Page 16

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





9. Official Letter No.2027/BLDTBXH-LDVL (12/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.

10. Official Letter No.2026/BLDTBXH-LDVL (12/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.

11. Decision No.17/2007/QD-BLDTBXH (29/05/2007) on promulgating regulations on conditions, procedure, competence

and permission for establishment of vocational training center.

12. Decision No.15/2007/QD-BLDTBXH (29/05/2007) on promulgating models of diploma and certificates on practising

profession.

13. Official Letter No.1985/LDTBXH-TL (08/06/2007) on salary used for implementation of insurance regime.

14. Official Letter No.1972/LDTBXH-BHXH (07/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.

15. Official Letter No.1967/LDTBXH-TL (07/06/2007) on salary rating with respect to managers of companies

16. Official Letter No.1939/LDTBXH-LDVL (06/06/2007) on actual period of time, for which the laborers work for State

owned sector, to be used for purchase of preferential shares when the company is equitized.

17. Official Letter No.1938/LDTBXH-LDVL (06/06/2007) on settlement of social insurance for redundant laborers in

accordance with Decree 41/2002/ND-CP.

18. Official Letter No.1824/LDTBXH-TL (30/05/2007) on regime applicable to laborers

19. Official Letter No.1823/LDTBXH-TL (30/05/2007) on determining the salary fund of limited liability companies with one

members.

20. Official Letter No.1758/LDTBXH-TL (25/05/2007) on regime applicable to laborers.

Ministry of Science and Technology

1. Decision No.13/2007/QD-BKHCN (12/06/2007) on promulgating Regulations on technology and equipment market.



Ministry of Trade

1. Decision No.13/2007/QD-BTM (31/05/2007) on authorizing the management board of Vung Ang economic zone in Ha

Tinh province to do some tasks.

2. Decision No.12/2007/QD-BTM (31/05/2007) on promulgating regulations on issuance of certificate of origin, form E

for enjoying preferential treatment in accordance with the Agreement on trade in goods under the framework

Agreement on economic cooperation between Association of South East Asia Countries and Republic of China.

3. Circular No.06/2007/TT-BTM (30/05/2007) guiding the import of motorcycles with cylinder of 175 cubic centimeter

or more.

Ministry of Planning and Investment

1. Decision No.521/2007/QD-BKH (22/05/2007) on promulgating model dossiers for bidding invitation for purchase of

goods.

Ministry of Post and Telematics

1. Decision No.20/2007/QD-BBCVT (19/06/2007) on promulgating Model Regulations on certifying digital signatures

2. Decision No.12/2007/QD-BBCVT (06/06/2007) promulgating regulations on preparation, appraisal, issuance, reviewing

and systematizing legal documents.

3. Decision No.11/2007/QD-BBCVT (24/05/2007) on amendment of and addition to Decision 20/2006/QD-BBCVT dated

June 30, 2006 of the Minister of Post and Telecommunication promulgating list of secondhand information technology

products, which are prohibited from import.

Ministry of Construction

1. Decision No.24/2007/QD-BXD (07/06/2007) stipulating Vietnam Construction Standard 397: 2007 "Natural rodioactive

activity of construction materials – Safety level in usage and test method".

2. Decision No.23/2007/QD-BXD (04/06/2007) stipulating Vietnam Construction Standard 395: 2007 “Mineral Additions

for Concrete”.

3. Decision No.22/2007/QD-BXD (30/05/2007) stipulating Vietnam Construction Standard 104: 2007 "Throroughfares –

Design requirements".

4. Decision No.21/2007/QD-BXD (28/05/2007) on promulgating Regulations on standards for construction of headoffice

for administrative agencies.

Ministry of Internal Affairs

1. Circular No.02/2007/TT-BNV (25/05/2007) on guiding the salary ratings for State employees and officials.



Ministry of Natural Resources and Environment









Page 17

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





1. Circular No.05/2007/TT-BTNMT (30/05/2007) on guiding the land incentives as well as management of land with

respect to establishments for education, training, health, culture, physical training, sport, science, technology,

environment, social, population, family, protection and caring of children.

2. Decision No.814/QD-BTNMT (24/05/2007) on authorization to the Director of Geology and Mineral Resource with

respect to legal documents relating to mineral resource activities.

Ministry of Industry

1. Decision No.2014/QD-BCN (13/06/ 2007) promulgating the provisional regulations contents of calculation, analysis of

economic and finance investments as well as electricity price brackets at electricity source projects.

2. Decision No.28/2007/QD-BCN (12/06/2007) on issuing regulations on preparing and promulgating legal documents of

MOI.

3. Decision No.26/2007/QD-BCN (31/05/2007) promulgating the Charter on organization and operation of the Food

Industry Institute.



State Bank of Vietnam

1. Decision No.25/2007/QD-NHNN (18/06/2007) on amendment of and addition to Regulations on organization and

operation of the Organization and Personnel Department as issued in conjunction with Decision 1133/2004/QD-NHNN

dated September 9, 2004 of the Governor of the State Bank.



2. Decision No.24/2007/QD-NHNN (07/06/2007) promulgating Regulations on issuance of permit for establishment and

operation of joint-stock commercial banks.



3. Decision No.23/2007/QD-NHNN (05/06/2007) on promulgating regulations on banking codes used for banking

operation and business.



4. Circular No.03/2007/TT-NHNN (05/06/2007) on guiding the implementation of some articles of Decree 22/2006/ND-

CP dated February 28, 2006 of the Government on organization and operation of branches of foreign banks, joint-

venture banks and banks with 100% foreign owned capital, representative offices of foreign credit institutions in

Vietnam.



State Auditing Body

1. Decision No.01/2007/QD-KTNN (21/05/2007) on promulgating regulations on examination and issuance of certificate

to State auditors.



Inter-Ministerial

1. Joint-Circular No. 08/2007/TTLT-BYT-BNV (05/06/2007) guiding the norm of non-productive workforce in the state

medical establishments.

2. Joint-Circualr No.50/2007/TTLT-BTC-BNN-BTS (21/05/2007) on amendment of and addition to Circular

No.30/2006/TTLT-BTC-BNN&PTNT-BTS (06/4/2006) instructing the management and utilizatin of semi-govermental

budget for economic development in the areas of agricultural and fiheries extension.



General Department of Tax

1. Official Letter No.2388/TCT-DNNN (21/06/2007) on deduction of VAT.

2. Official Letter No.2385/TCT-TNCN (21/06/2007) on answering petition at the dialog with enterprises.

3. Official Letter No.2376/TCT-DNNN (19/06/2007) on recording invoices with repsect to services not subject to tax.

4. Official Letter No.2374/TCT-DNNN (19/06/2007) on declaration and deduction of VAT.

5. Official Letter No.2359/TCT-PCCS (11/06/2007) on establishment and operation of entrepôt warehouse.

6. Official Letter No.2358/TCT-PCCS (11/06/2007) on VAT applicable to fixed assets.

7. Official Letter No.2357/TCT-PCCS (11/06/2007) on VAT rate.

8. Official Letter No.2354/TCT-PCCS (15/06/2007) on loss of VAT invoices.

9. Official Letter No.2353/TCT-PCCS (15/06/2007) on license tax applicable to non-public education establishments.

10. Official Letter No.2352/TCT-TS (15/06/2007) on collection of land and housing tax.

11. Official Letter No.2351/TCT-TS (15/06/2007) on land and housing tax.

12. Official Letter No.2350/TCT-TS (15/06/2007) on price used for collection of land use fee.

13. Official Letter No.2349/TCT-PCCS (15/06/2007) on tax policy applicable to transfer of capital among companies of

the same group.

14. Official Letter No.2348/TCT-PCCS (15/06/2007) on deduction of land compensation from the land rent.









Page 18

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





15. Official Letter No.2337/TCT-TNCN (14/06/2007) on calculation of personal income tax with respect to foreign

employees.

16. Official Letter No.2336/TCT-PCCS (14/06/2007) on taxes applicable to contractors.

17. Official Letter No.2335/TCT-PCCS (14/06/2007) of GDT on VAT policy.

18. Official Letter No.2334/TCT-PCCS (14/06/2007) on VAT rates.

19. Official Letter No.2333/TCT-PCCS (14/06/2007) on VAT rates.

20. Official Letter No.2332/TCT-PCCS (14/06/2007) on CIT.

21. Official Letter No.2331/TCT-PCCS (14/06/2007) on CIT

22. Official Letter No.2330/TCT-PCCS (14/06/2007) on answering enterprise‟s petition.

23. Official Letter No.2329/TCT-PCCS (14/06/2007) on answering enterprise‟s petition.

24. Official Letter No.2328/TCT-PCCS (14/06/2007) on answering enterprise‟s petition.

25. Official Letter No.2327/TCT-PCCS (14/06/2007) on answering enterprise‟s petition.

26. Official Letter No.2326/TCT-TS (14/06/2007) on land use fee.

27. Official Letter No.2325/TCT-PCCS (14/06/2007) on proper expense.

28. Official Letter No.2323/TCT-PCCS (14/06/2007) on answering the tax policy.

29. Official Letter No.2322/TCT-PCCS (14/06/2007) on application of CIT incentives to sea forwarding agents.

30. Official Letter No.2315/TCT-TS (13/06/2007) on answering letter of citizens.

31. Official Letter No.2314/TCT-TS (13/06/2007) on collection of land use fee.

32. Official Letter No.2313/TCT-PCCS (13/06/2007) on VAT rate applicable to equipment installed in construction works.

33. Official Letter No.2312/TCT-PCCS (13/06/2007) on land use fee incentives for projects in which the investment is

encouraged.

34. Official Letter No.2263/TCT-TS (11/06/2007) on land use fee.

35. Official Letter No.2286/TCT-PCCS (12/06/2007) on reduction of and exemption from tax.

36. Official Letter No.2285/TCT-PCCS (12/06/2007) on tax policy.

37. Official Letter No.2267/TCT-DNNN (11/06/2007) on tax applicable to operations in Vietnam.

38. Official Letter No.2261/TCT-TS (11/06/2007) on collection of land use fee.

39. Official Letter No.2255/TCT-PCCS (11/06/2007) on VAT policy.

40. Official Letter No.2254/TCT-PCCS (11/06/2007) on CIT incentives.

41. Official Letter No.2253/TCT-PCCS (11/06/2007) on VAT policy.

42. Official Letter No.2246/TCT-DNNN (11/06/2007) on determination of entities who are refunded with CIT.

43. Official Letter No.2230/TCT-PCCS (08/06/2007) on registration fee and income tax applicable to incomes earned

from transfer of land renting right.

44. Official Letter No.2228/TCT-PCCS (08/06/2007) on customs declaration on exported goods.

45. Official Letter No.2227/TCT-PCCS (08/06/2007) on tax policy.

46. Official Letter No.2226/TCT-PCCS (08/06/2007) on determination of proper expense with respect to commissions

paid for sale agents.

47. Official Letter No.2225/TCT-PCCS (08/06/2007) on income tax applicable to incomes earned from transfer of land use

right.

48. Official Letter No.2224/TCT-PCCS (08/06/2007) on taxable prices of natural resources.

49. Official Letter No.2223/TCT-TS (08/06/2007) on collection of land use fee.

50. Official Letter No.2222/TCT-DNNN (08/06/2007) on deduction of input VAT of more than 3 months.

51. Official Letter No.2220/TCT-TS (08/06/2007) on prices used for collection of registration fee.

52. Official Letter No.2207/TCT-PCCS (07/06/2007) on tax policy.

53. Official Letter No.2205/TCT-PCCS (07/06/2007) on tax policy.

54. Official Letter No.2196/TCT-TS (06/06/2007) on land use fee collection policy.

55. Official Letter No.2195/TCT-PCCS (06/06/2007) on CIT incentives.

56. Official Letter No.2194/TCT-PCCS (06/06/2007) on taxes applicable to supports received from foreign countries.

57. Official Letter No.2193/TCT-PCCS (06/06/2007) on tax policy applicable to finance-leasing activities.

58. Official Letter No.2192/TCT-PCCS (06/06/2007) on provision of receipts on collection of fines.

59. Official Letter No.2191/TCT-PCCS (06/06/2007) on making depreciation of fixed assets.





Page 19

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





60. Official Letter No.2190/TCT-PCCS (06/06/2007) on turnovers used for calculation of CIT.

61. Official Letter No.2189/TCT-TS (06/06/2007) on collection of tax arrears with respect to land and housing.

62. Official Letter No.2188/TCT-TS (06/06/2007) on answering complaints.

63. Official Letter No.2187/TCT-TS (06/06/2007) on VAT policy.

64. Official Letter No.2186/TCT-TS (06/06/2007) on reduction of and exemption from tax.

65. Official Letter No.2185/TCT-PCCS (06/06/2007) on VAT applicable to transfer of land use right.

66. Official Letter No.2183/TCT-PCCS (06/06/2007) on CIT incentives for branches implementing independent cost-

accounting system.

67. Official Letter No.2182/TCT-DNK (06/06/2007) on unpaid VAT.

68. Official Letter No.2166/TCT-PCCS (05/06/2007) on VAT policy.

69. Official Letter No.2165/TCT-PCCS (05/06/2007) on application of VAT rate of 0%.

70. Official Letter No.2164/TCT-PCCS (05/06/2007) on VAT policy.

71. Official Letter No.2159/TCT-PCCS (04/06/2007) on making depreciation of fixed assets being land use right.

72. Official Letter No.2158/TCT-PCCS (04/06/2007) on procedure for registration of personal income tax code.

73. Official Letter No.2156/TCT-PCCS (04/06/2007) on invoices and vouchers.

74. Official Letter No.2153/TCT-PCCS (04/06/2007) on expense paid for renting.

75. Official Letter No.2152/TCT-PCCS (04/06/2007) on depreciation of fixed assets.

76. Official Letter No.2150/TCT-PCCS (04/06/2007) on CIT incentives.

77. Official Letter No.2149/TCT-PCCS (04/06/2007) on tax policy applicable to foreign contractors.

78. Official Letter No.2148/TCT-PCCS (04/06/2007) on CIT.

79. Official Letter No.2137/TCT-PCCS (01/06/2007) on writing off tax debts with respect to State owned companies being

converted.

80. Official Letter No.2136/TCT-PCCS (01/06/2007) on answering tax policy.

81. Official Letter No.2135/TCT-PCCS (01/06/2007) on reduction of and exemption from CIT.

82. Official Letter No.2134/TCT-TS (01/06/2007) on land and housing tax policy.

83. Official Letter No.2130/TCT-PCCS (01/06/2007) on investment incentives in accordance with Decree 108/2006/ND-

CP.

84. Official Letter No.2124/TCT-PCCS (31/05/2007) on VAT and CIT applicable to contractors and freight tax.

85. Official Letter No.2123/TCT-PCCS (31/05/2007) on calculation of loan interest.

86. Official Letter No.2122/TCT-PCCS (31/05/2007) on VAT.

87. Official Letter No.2120/TCT-PCCS (31/05/2007) on settlement of administrative violation.

88. Official Letter No.2119/TCT-PCCS (31/05/2007) on CIT incentives.

89. Official Letter No.2118/TCT-PCCS (31/05/2007) on CIT

90. Official Letter No.2110/TCT-PCCS (31/05/2007) on collection of land rent.

91. Official Letter No.2094/TCT-PCCS (30/05/2007) on expense paid before establishment of enterprises.

92. Official Letter No.2093/TCT-PCCS (30/05/2007) on application of preferential CIT rate.

93. Official Letter No.2092/TCT-PCCS (30/05/2007) on reduction of and exemption from CIT.

94. Official Letter No.2091/TCT-PCCS (30/05/2007) on declaration of and deduction of VAT of dependent branches.

95. Official Letter No.2090/TCT-PCCS (30/05/2007) on VAT policy.

96. Official Letter No.2089/TCT-PCCS (30/05/2007) on refund of VAT.

97. Official Letter No.2088/TCT-PCCS (30/05/2007) on VAT policy.

98. Official Letter No.2087/TCT-PCCS (30/05/2007) on VAT policy.

99. Official Letter No.2086/TCT-PCCS (30/05/2007) on refund of VAT.

100.Official Letter No.2084/TCT-PCCS (30/05/2007) on determining CIT taxable income.

101.Official Letter No.2083/TCT-PCCS (30/05/2007) on VAT policy.

102.Official Letter No.2082/TCT-PCCS (30/05/2007) on refund of VAT.

103.Official Letter No.2080/TCT-PCCS (30/05/2007) on VAT policy.

104.Official Letter No.2079/TCT-TS (30/05/2007) on reduction of and exemption from land use fee.

105.Official Letter No.2078/TCT-PCCS (30/05/2007) on VAT rate applicable to .







Page 20

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





106.Official Letter No.2077/TCT-PCCS (30/05/2007) on VAT applicable to ODA projects.

107.Official Letter No.2076/TCT-PCCS (30/05/2007) on procedure for payment made via banks.

108.Official Letter No.2075/TCT-PCCS (30/05/2007) on taxes applicable to foreign contractors.

109.Official Letter 2074/TC-/PCCS (30/5/2007) on VAT policy.

110.Official Letter 2073/TCT-PCCS (30/5/2007) on making depreciation of fixed assets.

111.Official Letter 2072/TCT-PCCS (30/5/2007) on refund of VAT.

112.Official Letter 2065/TCT-DNNN (30/5/2007) on declaration and deduction of VAT.

113.Official Letter 2060/TCT-PCCS (29/5/2007) on VAT rate.

114.Official Letter 2050/TCT-PCCS (29/5/2007) on settlement of violations of regulations on tax.

115.Official Letter 2049/TCT-PCCS (29/5/2007) on tax policy.

116.Official Letter No.2048/TCT-PCCS (29/05/2007) on VAT applicable to clean water supplied to export processing

zones.

117.Official Letter 2047/TCT-PCCS (29/5/2007) on payment of land use fee.

118.Official Letter 2046/TCT-PCCS (29/5/2007) on decreasing turnover.

119.Official Letter No.2044/TCT-PCCS (29/05/2007) on banking fee collection receipt

120.Official Letter No.2043/TCT-PCCS (29/05/2007) on tax policy.

121.Official Letter No.2032/TCT-PCCS (28/05/2007) on banking fee collection receipt.

122.Official Letter 2031/TCT-PCCS (28/5/2007) on reduction and exemption from taxes applicable to offshore fishing

activities.

123.Official Letter 2030/TCT-PCCS (28/5/2007) on investment incentives.

124.Official Letter 2028/ TCT-PCCS (28/5/2007) on CIT incentives.

125.Official Letter 2026/TCT-PCCS (28/5/2007) on answering the tax policy.

126.Official Letter No.2021/TCT-PCCS (28/05/2007) on declaration and payment of CIT.

127.Official Letter No.2018/TCT-DNNN (28/05/2007) on deduction of VAT.

128.Official Letter No.2015/TCT-PCCS (25/05/2007) on answering questions of the Government‟s website readers..

129.Official Letter 2013/TCT-PCCS (25/5/2007) on determination of VAT with respect to infrastructure business and

transfer of projects.

130.Official Letter 2012/TCT-PCCS (25/5/2007) on determining the time at which business establishment is entitled to CIT

incentives.



General Department of Customs

1. Official Letter 3342/TCHQ-KTTT (19/6/2007)on provision of information on dutiable price of imported automobiles.

2. Official Letter 3333/TCHQ-GSQL (19/6/2007)on determination of code of imported goods.

3. Official Letter No.3328/TCHQ-KTTT (19/06/2007) on settlement of tax applicable to imported goods.

4. Official Letter No.3326/TCHQ-KTTT (19/06/2007) on answering VAT tax questions.

5. Official Letter No.3301/TCHQ-KTTT (18/06/2007) on application of preferential tax rate.

6. Official Letter 3292/TCHQ-GSQL (18/6/2007)on customs procedure applicable to goods imported and exported in

conjunction with luggage upon entry or exit.

7. Official Letter 3280/TCHQ-KTTT (18/6/2007)on customs procedure applicable to goods imported by export processing

enterprises.

8. Official Letter No.3246/TCHQ-KTTT (15/06/2007) on dutiable price of air-conditioners

9. Official Letter No.3093/TCHQ-GSQL (08/06/2007) on customs procedure applicable to goods brought in and out of

Lao Bao Commercial Zone.

10. Official Letter No.3090/TCHQ-KTTT (08/06/2007) on guiding the procedure for refund of tax.

11. Official Letter 3232/TCHQ-GSQL (14/6/2007)on application of CEPT incentives for processed goods which exported on

spot.

12. Official Letter 3228/TCHQ-GSQL (14/6/2007)on processing secondhand automobiles.

13. Official Letter No.3206/TCHQ-KTTT (13/06/2007) on import of machinery, equipment and supplies for formation of

fixed assets.

14. Official Letter No.3197/TCHQ-KTTT (13/06/2007) on not collecting VAT applicable to specialized and imported means

of transportation.

15. Official Letter No.3163/TCHQ-KTTT (12/06/2007) on specially preferential tax rates.





Page 21

June 2007 AUDITING AND ACCOUNTING COMPANY - AAC





16. Official Letter No.3162/TCHQ-KTTT (12/06/2007) on settlement of liquidated and re-exported goods.

17. Official Letter No.3115/TCHQ-KTTT (11/06/2007) on tax rate applicable to automobiles imported for formation of

fixed assets.

18. Official Letter No.3114/TCHQ-KTTT (11/06/2007) on settlement of imported automobiles, the origin of which is not

clear.

19. Official Letter No.3113/TCHQ-KTTT (11/06/2007) on dutiable price of motorcycles imported in accordance with

trademark.

20. Official Letter No.2995/TCHQ-KTTT (01/06/2007) on settlement of tax debts.

21. Official Letter No.2990/TCHQ-KTTT (01/06/2007) on classification of imported goods.

22. Official Letter No.2962/TCHQ-GSQL (31/05/2007) on affixing stamps to goods imported for production of exported

goods.

23. Official Letter No.2943/TCHQ-GSQL (31/05/2007) on conducting customs procedure for processing goods.

24. Official Letter No.2942/TCHQ-GSQL (31/05/2007) on discriminating coarse ore and pure ore in accordance with

Circular 02/2006/TT-BCN.

25. Official Letter No.2900/TCHQ-GSQL (29/05/2007) on procedure for importing goods on spot.

26. Official Letter No.3038/TCHQ-KTTT (06/06/2007) on provision of information on dutiable price of automobiles.

27. Official Letter No.2613/TCHQ-GSQL (15/06/2007) on settlement of difficulties relating to C/O.

28. Official Letter No.2920/TCHQ-KTTT (30/05/2007) on settlement of penalty applicable to delaying payment of duty.

29. Official Letter No.2912/TCHQ-GSQL (30/05/2007) on labelling exported aquaculture products.

30. Official Letter No.2911/TCHQ-GSQL (30/05/2007) on guiding the customs procedure with respect to wood originated

from import.

31. Official Letter No.2799/TCHQ-GSQL (25/05/2007) on temporary import of automobiles.

32. Official Letter No.2788/TCHQ-GSQL (24/05/2007) on stamping imported engines.

33. Official Letter No.2786/TCHQ-GSQL (24/05/2007) on location for conducting the customs procedure with respect to

processing goods.





Do not hesitate to contact us at the following addresses if you need further information or want to

share your comments.



Headquarters in Danang city

217-Nguyen Van Linh St. Danang City Phan Xuan Van General Director

Tel: (0511)655886 Fax: (0511)655887 Le Khac Minh Deputy General Director

E-mail: aac@dng.vnn.vn Tran Thi No Editor in charge



…………………………………………………………………………………………………………………………………………….

This Newsletter is tailored for informative and synthetic purposes only. It, therefore, can be

considered as neither legal advice nor the content of the corresponding legal documents.

We, AAC, are willing to supply any document listed in this Newsletter to our regular clients. For

other clients, a fee will be charged to cover administration costs. Details as follows:

- The whole year subscriptions: USD 50 (12 issues);

- Irregular subscriptions: VND 25,000/issue

If any reader wants further detailed information a part from the ones stated in the monthly

newsletters, he/she shall be subject to an additional charge as follows:

- For regular clients and whole-year subscribers, we will supply the newsletters free via Email. If

sent through post or fax, a fee of VND 1.500/page will be additionally calculated.

- For other readers, a fee of VND 2.000/page will be calculated if directly supplied at our

company‟s office.

Please notify us any change in your addresses or contact details.









Page 22