- Increasing the region-based statutory minimum wages paid to employees from
On June 12, 2022, the Government issued Decree No. 38/2022/ND-CP prescribing statutory minimum wages paid to employees working under labor contracts.
According to Decree, monthly minimum wages is stipulated as follows:
- For enterprises in Region I, minimum wage is 4.680.000 VND per month;
- For enterprises in Region II, minimum wage is 4.160.000 VND per month;
- For enterprises in Region III, minimum wage is 3.640.000 VND per month;
- For enterprises in Region IV, minimum wage is 3.250.000 VND per month;
In addition, compared with Decree No 90/2019/ND-CP that not mentioned hourly minimum wage, Decree No 38/2022/ND-CP stipulated:
- For enterprises in Region I, minimum wage is 22.500 VND per hour;
- For enterprises in Region II, minimum wage is 20.000 VND per hour;
- For enterprises in Region III, minimum wage is 17.500 VND per hour;
- For enterprises in Region IV, minimum wage is 15.600 VND per hour.
Besides, Decree No 38/2022/ND-CP convert some subregions applied minimum wage, specifically:
- Ha Long City (Quang Ninh Province), Xuan Loc District (Dong Nai Province) convert Region II into Region I;
- Quang Yen Town, Dong Trieu Town (Quang Ninh Province), Luong Son District (Hoa Binh Province), Cua Lo Town, Nghi Loc District, Hung Nguyen (Nghe An Province) convert Region III into Region II;
The application of region is determined by employers’ location.
In conclusion, compared with Decree No 90/2019/ND-CP, minimum wage increase of about 6% (approximate 180.000 VND – 260.000 VND), hourly minimum wage is mentioned and the region applied minimum wage has some changes according to Decree No 38/2022/ND-CP.
Decree No 38/2022/ND-CP takes effect from July 01, 2022 and replaces Decree No 90/2019/ND-CP prescribing region-based statutory minimum wages paid to employees working under labor contracts issued November 15, 2019 by the Government.
2. Converting invoice into e-invoice
Decree No. 123/2020/ND-CP prescribing invoices and records and Circular No 78/2021/TT-BTC providing guidance this Decree stipulated route to apply e-invoice, specially:
- Before July 01, 2022: E-invoices are only required to be applied to business establishments that have been notified by tax authorities to convert to using e- invoices and have met the conditions for information technology infrastructure (according to Article 60 of Decree 123/2020/ND-CP).At the same time, agencies, organizations and individuals that have met the conditions for information technology infrastructure are encouraged to apply e- invoices (Clause 1, Article 11 of Circular 78/2021/TT-BTC).
- From July 1, 2022: Compulsory application of electronic invoices, except for some cases such as small and medium enterprises, cooperatives, households and individuals doing business in areas with especially difficult, difficult socio- economic conditions not to conduct transactions with tax authorities by electronic means, no accounting software system,…
Thus, except for some special cases mentioned above, from July 01, 2022, enterprises, households and business individuals will not be allowed to use paper invoices but must switch to using e- invoices.
In fact, the application of e-invoices has been implemented synchronously in 63 provinces and cities across the country since April 2022, but due to the short application time, in the process of using e-invoices, enterprises are still facing many problems.
Decree No 123/2020/ND-CP and Circular No 78/2021/TT-BTC take effect from July 01, 2022.
3. Detailed regulations on compulsory civil liability insurance for third parties in construction
Decree 20/2022/ND-CP of the Government issued on March 10, 2022 amending and supplementing a number of articles of the Government’s Decree No. 119/2015/ND-CP dated November 13, 2015 on compulsory insurance for construction investment activities takes effect from July 01, 2022.
Decree 20/2022/ND-CP supplements regulations on purchasing compulsory civil liability insurance for third party.
Specifically, on subjects who must buy compulsory insurance in construction investment activities, the Decree amending and supplementing Clause 3, Article 4 is as follows: Engineering construction contractors must buy compulsory insurance for employees working at construction sites and compulsory third-party civil liability insurance.
4. Guidance on accounting for domestic taxes
On December 14, 2021, the Ministry of Finance issued Circular 111/2021/TT-BTC guidance on domestic tax accounting. There are some outstanding point:
- The tax authority needs to adjust the state budget collection data upon the request of the state treasury or the competent regulatory authority, and such adjustment only affects tax accounting data without prejudice to tax obligations of taxpayers in the subsystem for management of obligations of taxpayers. There are any changes in policies that result in any adjustments in tax accounting data without prejudice to tax obligations of taxpayers.
- Content, methods for preparation and signing of tax accounting documents must conform to regulations laid down in the Accounting Law to ensure that they contain all information required. Tax accounting documents reflecting the amounts to be collected, already collected, the residual amounts to be collected; the amounts to be refunded, already refunded, the residual amounts to be refunded; amounts of debt discharge, reduction, relief or write-off.
Circular No 111/2021/TT-BTC takes effect from July 01, 2022 and applies to the 2022 tax period.
5. Increasing financial penalties for administrative violations related to national defense, cryptography
On June 06, 2022, Government issued Decree No. 37/2022/ND-CP prescribing amendments to Article of Decree on penalties for administrative violations related to national defense, cryptography; national border management and protection; within territorial waters, islands and continental shelf of The Socialist Republic of Vietnam.
Accordingly, Decree No 37/2022/ND-CP reform, amend some Articles of Decree No 123/2019/ND-CP, specially:
- Increasing financial penalties from 800.000 VND – 1.200.000 to 10.000.000 VND – 12.000.000 VND for the act of not having a right time or place to check-up in the command call from commander of the military command in accordance with the law on military service without valid reasons.
- If a check-up command from the District Commander of the military is refused intentionally without valid reason, there is a fine of 12.000.000 VND – 15.000.000 VND.
- Increasing financial penalties from 2.000.000 VND – 4.000.000 VND to 15.000.000 VND-20.000.000 VND for acts: person receiving the medical examination commit fraud falsifying their health classification results in order to evade military service; give money, property or other benefits less 2.000.000 VND to health care worker or other in order to false the medical result.
- Not complying check-up command is penaltied 25.000.000-35.000.000 VND.
In addition, the Decree also amends and supplements Article 7 to violate regulations on military enlistment as follows:
- Increasing financial penalties from 1.500.00 VND – 2.500.000 VND to 30.000.000 VND – 40.000.000 VND for the act of not having the right time or place in command without valid reason.
- With the aim of avoiding military service, the act of cheating the medical result shall be fined 40.000.000 VND – 50.000.000 VND.
- The act of not agreeing command shall be fined 50.000.000 VND – 75.000.000 VND expect 2 mentioned cased.
Decree No. 37/2022/ND-CP will take effect from July 22, 2022.
6. Amendments to circulars on rules of origin in the ASEAN Trade in Goods Agreement
On June 01,2022, Ministry of Industry and Trade issued Circular No 10/2022/TT – BCT prescribing amendments to circulars on rules of origin in the ASEAN Trade in Good Agreement.
Accordingly, Circular No 10/2022/TT – BCT replaces some appendices of Circular No 19/2020/TT – BCT prescribing amendments to Circulars on Rules of Origin in the ASEAN Trade in Goods Agreements, specially:
- Replace Annex I – Issuance and Verification of C/O in Clause 1 Article 1 of Circular No 19/2020/TT – BCT;
- Replace Annex II – Specimen of C/O Form D in Clause 2 Article 1 of Circular No 19/2020/TT – BCT;
- Replace Annex III – Guidelines for completing C/O Form in Clause 3 Article 1 of Circular No 19/2020/TT – BCT.
In addtion, Circular No 10/2022/TT – BCT abrogate Clause 1, Clause 2, Clause 3 Article 1 of Circular No 19/2020/TT – BCT.
Circular No. 10/2022/TT – BCT will take effect from July 16, 2022. C/O Form D enclosed with this Circular shall be issued from November 01, 2022.
8. Some national technical regulations is issued
- Circular No 09/2021/TT – BTTTT on “National technical regulation on Radar equitment operating in the frequency range 76 GHz to 77 GHz for ground based vehicle” takes effect from July 01, 2022;
- Circular No 09/2021/TT – BCT on “National technical regulation on explosives – TNP1 explosives” takes effect from July 01, 2022;
- Circular No 07/2021/TT – BTTTT on “National technical regulation on quality of Internet access on the 5G Land Mobile Network” takes effect from July 01, 2022;
- Circular No 28/2021/TT – BTTTT on “National technical regulation on Non- Standalone 5G User Equitment – Radio Access” takes effect from July 01, 2022;
- Circular No 23/2021/TT – BTTTT, abolishing some Articles of Circular No 18/2010/TT – BTTTT and some Articles of Circular No 29/2011/TT- BTTTT on “National technical regulation on telecommunication”, takes effect from July 01, 2022;
- Circular No 16/2021/TT – BCT on “National technical regulation on safety for explosion-proof electromagnetic starter used in underground mine” takes effect from July 01, 2022;
- Circular No 15/2021/TT – BCT on “National technical regulation on safety for explosion-proof circuit breaker used in underground mine” takes effect from July 01, 2022;
- Circular No 14/2021/TT – BCT on “National technical regulation on electromagnetic compatibility (EMC) of cable network for distribution of television sound and interactive services” takes effect from July 01, 2022;
- Circular No 13/2021/TT – BCT on “National technical regulation on electrical safety requirements for terminal equitment to be connected to information and communication networks” takes effect from July 01, 2022;
- Circular No 13/2021/TT – BCT on “National technical regulation of Verification on the basic of the risk based inspection for pressure vessels in the refinary, gas processing and nitrogenous fertilizer Plant” takes effect from July 01, 2022;
- Circular No 11/2021/TT- BCT on “National technical regulation on explosives – Oversize rock blasting” takes effect from July 01, 2022;
- Circular No 10/2021/TT – BCT on “National technical regulation on explosives – Bulk emulsion explosives in packages” takes effect from July 01, 2022.
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