Notable policies will take effect from December 2021

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1. Changes in regulations on tax incentives consideration period

On November 15, 2021, the Government issued Decree 101/2021/ND-CP amending and supplementing several articles of Decree No. 122/2016/ND-CP dated September 1, 2016 of the Government and Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government amending and supplementing several articles of the Government's Decree No. 122/2016/ND-CP dated September 1, 2016 on tax schedules export, preferential import tariff, list of goods and absolute tax rates, mixed tax, import tax outside the tariff quota and Decree No. 125/2017/ND-CP dated November 16, 2017 amending and supplementing several articles of Decree No. 122/2016/ND-CP. Changes in regulations on tax incentives consideration period.
One of the new highlights in this Decree is to allow enterprises manufacturing and assembling cars using gasoline and oil to choose a six-month or 12-month tax incentive consideration period. Specifically:
+ The six-month tax incentive review period is from January 1 to June 30 or from July 1 to December 31.
In case the enterprise chooses a 6-month tax incentive consideration period, and the overpaid tax amount has been handled for the number of components manufactured and assembled for automobiles shipped in the first six months of the year and the last six months of the year that do not meet the requirements as prescribed by the Tax Incentive Program Even though the total output of the whole year meets the production conditions of the 12-month tax incentive consideration period as defined by the Tax Incentive Program, it will still be considered for tax incentives for the last six months of the year.
Along with that, if the enterprise met the requirements in Clause 2, 3, 5, 6, 7, Article 7a, Decree 125/2017/ND-CP (amended and supplemented by Decree 57/2020/ND-CP), they will be entitled to receive the overpaid tax on the number of components used to manufacture and assemble automobiles shipped in the period.
+ The 12-month tax incentive review period is from January 1 to December 31 annually.
Decree No. 101/2021/ND-CP will take effect from December 30, 2021.

2. The State Treasury web portal receives electronic documents 24/7

Circular 87/2021/TT-BTC issued by the Ministry of Finance on October 8, 2021, regulating electronic transactions in professional activities of the State Treasury will take effect from December 1, 2021. 2021.
Accordingly, in cases where agencies, organizations and individuals have completed a transaction by an electronic method, such transaction is not required to be done by another transaction method.
Clause 1, Article 6 of Circular 87/2021/TT/BTC stipulates the types of transactions that can be carried out electronically through the Website and the websites of the State Treasury include:
• Electronic transactions related to the receipt and settlement of administrative procedures in the field of State Treasury in the electronic environment;
• Electronic transactions related to the conclusion and performance of electronic contracts in professional activities of State Treasury;
• Electronic transactions related to digital information on professional activities of State Treasury;
• Other electronic transactions in professional activities of State Treasury.
In addition, this Circular also stipulates that electronic documents in professional activities of the State Treasury must be digitally signed by competent agencies, organizations or individuals or authenticated by other measures as prescribed in Article 5 of Decree No. 165/2018/ND-CP on electronic transactions in financial activities.

3. Increase deposit insurance payment limit

Decision 32/2021/QD-TTg, issued by the Prime Minister on October 20, 2021, stipulating the limit of insurance payment. Accordingly, Article 3 of Decision 32/2021/QD-TTg stipulates the deposit insurance payment limit as follows:
When an insurance payment obligation arises, the maximum amount the deposit insurance organization pays for all insured deposits under the Law on Deposit Insurance (including principal and interest) for a person at a deposit insurance participating institution will be 125,000,000 VND (one hundred and twenty-five million VND).
Thus, this insurance payment limit has increased compared to the insurance limit according to current regulations in Article 3 of Decision 21/2017/QD-TTg, which is VND 75,000,000.
Note: For deposits that have incurred an obligation to pay insurance but have not been paid according to the Law on Deposit Insurance provisions before December 12, 2021, the insurance payment limit shall comply with the specifications of Decision 21/2017/QD-TTg dated 15/6/2017.
This regulation has updated the deposit limit by Article 24 of the 2012 Law on Deposit Insurance on updating the limit over time to be more suitable with the current situation.
Decision 32/2021/QD-TTg will take effect from 12/12/2021 and replace Decision 21/2017/QD-TTg.

4. Convert magnetic ATM card to chip form

In Clause 2, Article 27a of Circular 19/2016/TT-NHNN, as amended and supplemented by Circular 22/2020/TT-NHNN, the State Bank of Vietnam requires:
“By December 31, 2021, 100% of ATMs and card-accepting devices at sale operator in Vietnam of card payment organizations must comply with the Basic Standard on domestic chip cards."
Thus, from December 31, 2021, 100% of active ATM cards in Vietnam must be chip-formed cards instead of old magnetic form.
Also, according to Circular 22/2020/TT-NHNN, from March 31, 2021, banks will stop issuing magnetic ATM cards and only issue chip cards.
It also means, from 31/12/2021, costumer will be provided new chip cards, and they will need to change their old magnetic cards into chip cards before 31/12/2021.

5. 50% reduction of the registration fee for domestically produced cars for six months

On November 26, 2021, the Government issued Decree 103/2021/ND-CP stipulating the registration fee for cars, trailers, or semi-trailers to be towed by cars and other similar vehicles domestically manufactured assembled cars. This Decree stipulates that from December 1, 2021 to May 31, 2022, the registration fee is first paid for cars, trailers or semi-trailers, trailers towed by cars and similar vehicles manufactured and assembled domestically are reduced by 50% within the mentioned six months.
From June 1, 2022 onwards: The registration fee rate will continue to comply with the provisions of Decree No. 20/2019/ND-CP dated February 21, 2019 of the Government amending and supplementing several regulations of Article of Decree No.140/2016/ND-CP dated October 10, 2016 of the Government on registration fees: Current resolutions of the People's Council or current decisions of the People's Committees of provinces and cities, centrally-affiliated cities on the local registration fee rates and amendments, supplements and replacement documents (if any).
Reducing the registration fee by half will not help reduce car prices but will raise demand for domestic cars. To roll out a new car model, buyers need to pay several fees besides the car purchase, such as registration fee (10-12% of the listed car price), registration fee, road maintenance fee, civil liability insurance, license plate fee, etc.
The registration fee for sedan cars is currently calculated as a percentage of each type of vehicle and each locality when registering. For example, the first registration fee for vehicles in Hanoi, Quang Ninh, Hai Phong,... is 12% of the car's value; Ho Chi Minh City is 10%, Ha Tinh is 11%. Particularly for pickup trucks, the registration fee is 60% of the first charge for passenger cars. From the second registration fee payment, the registration fee rate is 2% and uniformly applied nationwide.
The Decree will take effect from December 1st, 2021 until May 31st, 2022.

6. Last chance to submit applications to receive allowances from Unemployment Insurance Fund

According to Decision 28/2021/QD-TTg, December 20, 2021 is the deadline to submit an application to receive allowances from the Unemployment Insurance Fund for employees who have stopped participating in unemployment insurance. Or who are participating but have not received the support as of November 30, 2021.
Also, according to this Decision, December 31, 2021 is the deadline for the insurance agency to pay allowances to employees. Employees should also note that December 31, 2021 is the last time to consider benefits for employees whose labour contracts are suspended, unpaid leave, job termination and termination of labour contracts in accordance with Resolution 68/NQ-CP.
Resolution 68 only supports employees who suspend labor contracts, take unpaid leave, stop working and terminate labor contracts from May 1, 2021 to December 31, 2021.

7. Transport business vehicles’ license plates must be changed from white to yellow

Vehicles operating in the transportation business must change to a yellow background number plate, black letters and numbers before December 31, 2021 instead of the white background as before. The Ministry of Public Security emphasizes this content in Circular 58/2020/TT-BCA.
Vehicles that must be changed to yellow number plates include: Taxi; fixed fixed-routeing bus (intra-province, inter-provincial); contract passenger vehicles, not on designated routes; tourist car.
Suppose an individual or organization do not change to a yellow license plate before December 31, 2021, the car owner will be fined from 2 to 4 million dong if it is an individual and from 4 to 8 million dong if it is an organization for not complying with regulations. Regarding number plates according to Decree 100/2019/ND-CP, individuals, especially businesses providing transport services by car should pay attention to avoid fines.


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