Newsletter November 2008

2-December-2008
Measures for price stabilization may be applied in case of unusual fluctuation in the market price of those goods and services (i.e. the retail price of cement or construction steel averagely increases by 15% or more in 15 consecutive days or the retail price of liquefied gas averagely increases by 20% or more in 15 consecutive days).

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Newsletter October 2008

3-November-2008
Decision 133 regulates the allocation of trade union fees of 1% of the salary payroll payable to Vietnamese employees working in foreign-invested enterprises and management offices of foreign parties to business co-operation contracts in Vietnam which have a trade union operating under the Law on Trade Unions.

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Newsletter September 2008

2-October-2008
A sum of money shall be deducted from business income and/or income being salaries and wages of a resident individual before calculating PIT. Specifically, he/she shall enjoy (i) deduction for family conditions at the level of VND48 million per year and (ii) deduction of VND1,6 million applicable to each dependant whom he/she is responsible to rear as from the month when such responsibility arises.

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Newsletter August 2008

29-August-2008
Enterprise code number means the unique code number for each enterprise established to operate pursuant to the Law on Enterprises and which is recorded on the Business and Tax Registration Certificate of the enterprise. The enterprise code number shall concurrently be the tax code number of the enterprise. During the entire process of operation of an enterprise as from its registration for establishment up until the time the enterprise no longer exists, the enterprise code number shall be used to declare and pay all types of taxes payable, including when an enterprise conducts business in a number of different business lines and when it conducts production and business activities in a number of different localities.

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Newsletter July 2008

31-July-2008
Organisations and individuals involved in the field of electricity operation including transmission, distribution, generation, wholesale, retail, import, export of electricity or specialised electricity consultancy need to obtain a licence from the competent State agency.

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Newsletter June 2008

27-June-2008
The new Law on Corporate Income Tax shall take effect on 1 January 2009. Under the new CIT law, the standard CIT rate is reduced from current 28% to 25%. The new CIT law removes the preferential rate of 15%. The two preferential rates are now 10% and 20%.

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Newsletter May 2008

3-June-2008
The bank must obtain an approval from the SBV for the opening and termination of operations of main offices, branches, representative offices and administration units. Specifically for transaction bureaus, savings funds and ATMs, the bank is required to register the opening and termination of operations with the provincial branch of the SBV.

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Newsletter April 2008

29-April-2008
The duration of the work permit will depend on the term of a labour contract to be signed or depend on the period indicated in the decision of foreign party sending such foreign employees to work in Vietnam or depend on the term of a business contract. The maximum duration of work permits will be 36 months and may be extendable. The maximum duration of any extension is 36 months.

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Newsletter March 2008

31-March-2008
In general, investment projects, including investment projects for scale expansion in industrial zones shall enjoy (i) incentives as applicable to geographical areas with difficult socio-economic conditions or (ii) incentives as applicable to especially difficult socio-economic conditions if the industrial zones are located in areas with especially difficult socio-economic conditions.

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Newsletter February 2008

29-February-2008
Employees who participate in illegal strikes will have to compensate any damage that the employer has incurred due to the strike. The court will rule on the illegality of the strike. The level of compensation will not exceed three-month salaries of employees who participated in the strike.

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