Dates: 29-31 March, 2018

Time: 9.00am – 6.00pm

Location: National Convention Centre (NCC), Gate 1 Thang Long Avenue, Me Tri, Nam Tu Liem, Hanoi.

From 29th March to 31st March 2018, two representatives of VCI Legal are Mr. Tuan Phung Anh (Managing Partner) and Mr. Kent Wong (Partner and Head of Banking and Financial Market) had a chance to attend the 6th Greater Mekong Sub-region Summit (GMS) and the 10th Cambodia-Laos-Vietnam (CLV) Summit which were held in Hanoi, Vietnam. The event attracted the participation of more than 2,000 delegates from foreign and domestic businesses, which manifests businessmen and investors’ belief in the Government’s open and transparent policies and creates more business opportunities in the upcoming time. On the occasion of the organization, PM Nguyen Xuan Phuc emphasized the meaning of the Greater Mekong Sub-region Summit (GMS) and the Cambodia-Laos-Viet Nam Development Triangle Summit (CLV) and he also pointed out Viet Nam’s contributions to the mechanism.

In his speech, PM Nguyen Xuan Phuc said the GMS needs to effectively utilize both internal and outside resources, and harness the technological advancements and breakthroughs with top priority given to ensuring rapid and sustainable development.

The Mekong Sub-region is not only the space of security and development but it also directly affects Viet Nam. Mr. Phuc underscored that Vietnam has always actively taken part in initiatives and different cooperation fields. Besides forming a peace and favorable environment in the region, the region contributes to the sustainability and development of Viet Nam and brings specific benefits for the nation. Therefore, Vietnam will realize initiatives of the Greater Mekong Subregion (GMS) and translate them into reality, he promised that the country will promote management capacity bring about equal opportunities for all economic sectors and take heed to personnel training and human resource development and infrastructure.

In addition to the Mekong River Commission (MRC), Viet Nam has joined hands with other nations to implement projects on environmental protection and water resource security at other Mekong cooperative framework. Mr. Phuc also committed to protect intellectual property, innovative ideas and inventions of start-ups and promot investment in transport infrastructure on the East-West, North-South, and southern economic corridors.

Viet Nam has actively cooperated with other MRC members in negotiating and completing procedures on data sharing, supervision of water use, actively participated in GMS environmental protection strategy, monitor and protect mangrove land in the Lower Mekong and strengthen institution and training on environmental protection, the Government of Vietnam also places priorities on intensifying in the vital transport routes, Mr. Phuc said while noting that the country will forge ahead with tax policy reforms and preferential regulations for investment in advanced technology, support industries, and high-tech organic agriculture, and other labor intensive sectors.

Vietnam pledges to undertake initiatives to support border trade, investment, tourism, agriculture and economy, as well as other forms of cross-border economic cooperation, he said. Moreover, in field of education and training, the nation joined hands in Strategic Framework and Action Plan for Human Resource Development in the GMS in the 2009-2012 and 2013-2017 periods and supported the implementation of regional initiatives on human resource cooperation and addressing trans-border issues on human resources between GMS nations.

The country will further boost deeper international integration in the GMS and the CLV. From 2018 to 2019, Vietnam will concentrate on the signing and approval of two new-generation free trade agreements, namely Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and EU-Vietnam Free Trade Agreement (EVFTA).

The GMS Business Summit, a highlight of the sixth Greater Mekong Sub-region Summit (GMS-6) is designed to promote dialogues between enterprises and governments and connect businesses in the region and the world. The GMS cooperation was launched in 1992 as an initiative of the ADB.

CIT:

Decree 146 stipulates some new regulations on VAT and CIT on exemption of VAT in exporting natural resources and minerals and non-deductible expenses in determining CIT.

Exporting natural resources and minerals which are not subject to VAT

Pursuant to Decree 146, exports which are natural resources or minerals will not be subject to tax if they fall into one of the following cases:

Exports which are raw natural resources or minerals and have not been processed into other products;

Exports which are goods processed directly and mainly from natural resources or minerals where the total value of natural resources or minerals plus energy costs make up at least 51% of the product production costs, excluding cases which are subject to 0% VAT as specified in article 12.2(c) of the Law on VAT.

Also prescribed by Decree 146, the value of processed natural resources or minerals is determined as follows:

– For natural resources, minerals which are directly exploited: direct or indirect costs for exploitation, excluding transport costs from the exploiting site to the processing place;

– For natural resources, minerals which are purchased for processing: the actual purchasing price excluding transport costs from the supplier to the processing place.

Amending non-deductible expenses in determining CIT

Regarding the content of expenses, Decree 146 adds life insurance to non-deductible expenses in determining CIT in case the expenses exceed the norm.

Regarding the expenditure norm of the voluntary pension fund, purchase of voluntary pension fund insurance, and insurance for employees, Decree 146 raises this norm from 01 million dong to 03 million dong, and the expenses in excess of the norm shall not be deducted when determining CIT.

Decree 146 came into force from February 1, 2018.

About VCI Legal:

VCI Legal is an international award-winning, full service business law firm in Vietnam. The firm provides a wide range of advisory services and has gained a strong reputation for successfully handling corporate, commercial, financial and contentious matters. The firm’s practice areas which have been highly recommended by various international magazines and agencies include: Corporate/M&A, Banking and Finance, Capital Markets, Insurance, FDI, cross-border transactions, Competition, Dispute Resolution, Energy, Infrastructure, IPRs Management and Real Estate.

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