mask
New regulations in effect

* Business registration becomes more convenient from June 1 as Government Decree No. 43/2010/ND-CP of April 15 allows businesses to conduct their operation registration online through a national business registration portal.

Registrants will also receive business registration certificates within a shorter time (5 days against current 10 days) after filing valid dossiers.

An enterprise can use its enterprise identification number as both business registration code and tax identification number throughout its existence.

From January 1, 2011, enterprises will be disallowed to use names identical or confusingly similar to those of other enterprises already registered nationwide. Entrepreneurs will have to search through a national database on enterprise registration to avoid repetitive enterprise names.

* Also from June 1, foreign fishing in Vietnam’s sea areas will be subject to stricter rules set out in Government Decree No. 32/2010/ND-CP of March 30, and may be conducted only after a Vietnamese authority’s permission is obtained.

Each foreign ship’s fishing will be supervised by two watchmen who may request observance of Vietnamese laws by the ship or its call at the nearest port in case of detecting a serious violation.

Fished items may only be sold in Vietnam, except for contracted export.

* Effective as of June 6, Finance Ministry Circular No. 64/2010/TT-BTC of April 22 prescribes a corporate income tax to be levied at 10% of interests received from bonds by foreign businesses without legal entity status or with enterprise status.

This tax will be imposed on foreign entities that are not physically present but earn business incomes in the country. Transfer of bonds and deposit certificates by Vietnam-based foreign entities is now treated like securities transfer and liable to a tax of 0.1% of total transfer value.

However, deposit interests earned by non-business foreigners and interests on deposit accounts of foreign diplomatic missions, international organizations or NGOs are still tax-free.

* Vietnamese and foreign entities, including foreign-invested businesses, will pay a registration fee for their asset ownership or use right registration at the rate of 5% for land and homes, 2% for licensed guns, 2% or 5% for motorbikes (in rural or urban areas), 10-15% for under 10 seat cars and 2% for other vehicles, starting June 10.

However, under Finance Ministry Circular No. 68/2010/TT-BTC of April 26, foreign diplomats and consulates will be exempt from land and home registration fee. Vehicles and licensed guns of diplomatic missions and staff will also be fee-free.-

back to top