Cases that Foreigners Do Not Have to Apply for Work Permit

Pursuant to Decree No. 11/2016/ND-CP of the Government that will take effect April 1st 2016, the below cases of foreigner will not have to apply for work permit in Vietnam:

• As capital contributing members or the owner of limited liability company.
• As member of the Managing Board of the joint stock company.
• As Head of the representative office, project of international organizations, non-governmental organizations in Vietnam.
• Entry into Vietnam for less than 03 months to carry out the service offering.
• Entry into Vietnam for less than 03 months to handle the incidents, technical situations and complicated technology arising that influence or threaten to production and business that Vietnam expert and foreign experts that currently in Vietnam cannot handle.

• As foreign lawyers that are licensed to practice law in Vietnam under the provisions of the Law on Lawyers.
• Under the provisions of the international treaties in which the Socialist Republic of Vietnam is a member.
• As pupils and students studying in Vietnam and working in Vietnam but the employer must notify 07 days with state authorities on the provincial labor.
• Moving within the enterprises in the range of 11 service sectors in the service commitments of Vietnam to the World Trade Organization, including: business, communication, construction, distribution, education, environment, finance, health, tourism, culture and transport;
• Entry into Vietnam to provide advisory services and technical expertise or perform other tasks to serve the research, construction, appraisal, monitoring, evaluation, management and implementation of programs and projects funded with official development assistance (ODA) as prescribed or agreed in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;
• Granted the work permit on information and press in Vietnam by the Vietnam Ministry of Foreign Affairs in accordance with law;
• Sent to Vietnam by agencies and foreign organizations to teach and research in the international school under the jurisdiction of the foreign diplomatic representative agencies or international organizations in Vietnam or the Ministry of Education and Training certificated for teaching and researching in the educational and training institutions in Vietnam;
• Volunteers certified by the foreign diplomatic representative agencies or international organizations in Vietnam
• Entry into Vietnam working in the positions of professional, manager, executive or technical employees with working duration of less than 30 days and no more than 90 cumulative days in 01 years;
• Entry into Vietnam to implement international agreements that agencies and organizations at the central and province have signed as in accordance with law;
• Pupils and students studying in abroad schools and training institutions that have internship agreements in the agencies, organizations and enterprises in Vietnam;
• Relatives of members of foreign representatives in Vietnam working after licensed by the Ministry of Foreign Affairs, except the case where international treaties that the Socialist Republic of Vietnam is a member that have other regulations;
• Have official passport to work for state agencies, political organizations and political – social organizations;
• Other cases decided by the Prime Minister on the proposal of the Ministry of Labour – Invalids and Social Affairs.

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New Rules on the Work Permit Granting Conditions

This new regulations take effect from April 1st 2016.

Decree 11/2016/ND-CP dated February 3rd 2016 detailing the implementation of the provisions on the granting of work permit to foreign laborers working in Vietnam. This Decree replaces the Decree 102/2013/ND-CP.

Firstly, the Decree 11/2016/ND-CP (Decree 11) clearly stipulating the concept of professionals, managers and CEO. Besides the concepts of current job position, Decree 11 added the concept for other positions that foreign workers undertake.

Foreign workers are considered professionals when they meet one of the two conditions: There is a written confirmation confirmed that they are experts from the agency, organization and business in foreign countries; At least have university degree or equivalent and have at least 03 years working experience in specialized majors in line with the position that foreign workers are expected to work in Vietnam; Other special cases will be decided by the Prime Minister.

The case where foreign workers are considered managers and CEO: Managers are people who manage the enterprise as defined in Clause 18, Article 4 of the Law on Enterprise or the heads and deputy heads of the agency or organization; CEO is the head and directly operating subsidiary agencies, organizations and businesses.

Secondly, Decree 11 also supplements the cases that are not subject to work permit application. In addition to the cases under the old regulations, Point e, Paragraph 2, Article 7 of Decree 11 supplements the cases of foreigners working in Vietnam in the position of experts, managers, CEO or technical labor with working time of less than 30 days and the cumulative time not exceeding 90 days in 01 years, will not have to applying for work permit.

For cases that are not subject to work permit application, foreigners still need to have the certificate of the Department of Labour, Invalids and Social Affairs. The time limit for cases that are not subject to work permit application shall not exceed 02 years and in accordance with the terms of specific cases. (Old regulation did not specify the time limit).

Thirdly, the Decree 11 provides more details on the dossier requesting for the issuance of work permit. Specifically, Decree 11 provides that the health certificate must be valid for a period of 12 months from the signing date of the health argument, and still in effect at the time of work permit application.

Also in Article 10 of Decree 11, the dossier requesting for the issuance of work permit must have the criminal record card or written confirmation confirmed that foreign workers are not offenders or prosecuted for criminal responsibility, which are issued by foreign country. The case where foreign workers are residing in Vietnam, only the criminal record card must be granted by Vietnam. These documents are issued not more than 6 months from the date of issuance to the date of application.

Fourthly, the Decree also refers to dossier requesting for the issuance of work permits for some special cases. Compared with the old regulations, Decree 11 supplements Paragraph 8 of Article 10 on the dossier for some special cases as follows: Has been granted the work permit which is still valid and the employee works for another employer in the same job and position stating in the work permit; Has been granted the work permit which is still valid then the employee works in the different job and position stating in the work permit in accordance with the law but does not change the employer; Has been granted the work permit but it has expired as regulated in Article 174 of the Labor Code and then would like to continue to work in the same job and position stating in the work permit; Has been granted the work permit in the above cases based on the provisions in Decree 102/2013/ND-CP.

Lastly, Decree 11 mentions the cases that need to re-issue the work permit. Specifically, Decree 11 supplements in Article 13 that if the work permit is still valid for at least 5 days but not more than 45 days, it will be re-issued. (Old regulation does not have this case).

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Official Letter 3593/TCT-KK on Value-Added Tax Refund

On August 11th 2016, the General Department of Taxation issued Official Letter 3593/TCT-KK to implement and introduce the new contents of Circular 99/2016/TT-BTC providing guidelines on the management of value-added tax (VAT) refund.

Accordingly, the preparation and submission of VAT refund document have some new features:

Guide to the object that must have written authorization document of the enterprise’s head office when recommending for VAT refund as follows:

+ Is a branch, subsidiary unit of taxpayer under Paragraph 1, Article 45 of the Law on Enterprise 2014; and

+ Is not an accounting unit that preparing financial statement in accordance with Paragraph 4, Article 3 of the Law on Accounting 2015.

(Previously, it is required to have the written authorization document of the enterprise’s headquarters in the process of VAT refund implementation, which is prescribed in Document 18832/BTC-TCT on December 17th 2015).

Supplement new regulation in the case that taxpayer has sent the tax refund request to the tax authorities but later submitting a written cancellation document for tax refund.

Taxpayer is allowed to adjust and supplement the amount of tax that is suggested for gyration and deduction in the VAT declaration form of the next declaration period if eligible for VAT deduction.

ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing representation or legal services in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.

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New Guidelines on the Time of Submission of C/O

The Ministry of Finance has issued Official Letter 12802/BTC-TCHQ provides for the time of submission of the Certificates of Origin (C/O).

Accordingly, the time of submission of the C/O forms (except C/O with VK form) is as follows:

– For paper customs declaration form, the original C/O must be submitted at the time of registration of customs declaration.

– For electronic customs declaration form, the original C/O must submitted at the time of submission of customs declaration.

The customs authorities only consider the C/O additional filling suggestion in the following cases:

– At the time of registration of the customs declaration, with the HS code declaration, the MFN tax rate is lower than or equal to the special preferential tax but after customs clearance, identifying that the MFN tax rate is higher than the special preferential tax rate;

– At the time of registration of customs declaration, goods that are subject to investment incentives are exempt from import tax but after the customs clearance, identifying that goods are not subject to investment incentives.

Official Letter 12802/BTC-TCHQ is issued in September 14th 2016.

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ANT Lawyers is a Vietnam law firm with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

The firm has been advising and representing foreign companies and individual clients interested in either doing business, or needing representation or legal services in Vietnam who are seeking reasonable and competitive solutions without compromising on service quality.

For advice or service request, please contact us via email ant@antlawyers.vn, or call +84 8 3520 2779.  To learn more about us, visit www.antlawyers.vn.

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Decree 125/2016/ND-CP: Preferential Import Tariff for Goods from Japan

Decree 125 stipulated the Vietnam’s preferential import tariff in particular to implement the Vietnam – Japan agreement on economic partnership in the period 2016 -2019 and the conditions for enjoying this preferential import tariff under this agreement. The Decree is issued by the Vietnam Government.

Issued together with this Decree is a long list of goods and commodities with specific tax rates.

Decree 125 includes 7 specific provisions: the scope of regulation, subjects of application, the preferential import tariff tables, conditions for applying the preferential import tariff, goods from the duty free area of Vietnam, validity and responsible for implementation.

Decree 125 comes into effect from September 1st 2016. Along with this issuance is the abolition of Circular 25/2015/TT-BTC dated February 14th 2015 issued the preferential import tariff tables of Vietnam in particular to implement the agreement between Vietnam and Japan on economic partnership in the period 2015 – 2019.

ANT Lawyers is Vietnam exclusive member of Prae Legal, an international law firm network, providing full ranges of legal services in Vietnam

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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Decree 129/2016/ND-CP on ATIGA Preferential Import Tariff for ASEAN goods

The Government has issued Decree 129/2016/ND-CP on preferential import tariff of Vietnam in particular to implement the ASEAN Trade in Goods Agreement (ATIGA) in the period 2016 – 2018.

This Decree prescribed the preferential import tariff of Vietnam to implement the ATIGA period 2016 – 2018 and the conditions for enjoying the preferential import tariff under this Decree.

Issued together with this Decree is the preferential import tariff of Vietnam in particular to implement the ATIGA Agreement in the period 2016 – 2018 (often referred to as ATIGA tax).

Imported goods are applied the ATIGA tax when satisfying the following conditions:

1. Included in the preferential import tariff attaching to this Decree.
2. Being imported into Vietnam from countries that are members of the ASEAN Trade in Goods Agreement, including: Brunei Darussalam; Kingdom of Cambodia; Republic of Indonesia; People’s Democratic Republic of Laos; Malaysia; Federal Republic of Myanmar; Republic of the Philippines; Republic of Singapore, Singapore; Kingdom of Thailand; Socialist Republic of Vietnam (goods in duty free area importing to the domestic market).
3. Being shipped directly from the exporting country to Vietnam.
4. Satisfy the regulations on goods origin in the ATIGA, have certificates of goods origin (C/O) – form D, prescribed by the Ministry of Industry and Trade.

ANT Lawyers is a reputable law firm in Vietnam with English speaking lawyers whom understand the laws of Vietnam within the business and the local culture context.

For Vietnam legal matters or services, the clients could reach ANT Lawyers, the exclusive Vietnam law firm members via email at ant@antlawyers.vn or call the telephone at +848 35202779.

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