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Vietnam's real estate (RE) market is forecasted to continue stable growth, with the development of industrial and residential real estate in highly urbanized areas. According to the Vietnam Real Estate Brokers Association, in August 2024, Vietnam’s real estate market continues to face many challenges and opportunities, reflecting global economic fluctuations and domestic regulatory policies.<img src="https://admin.otislawyers.vn/uploads/bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_2_85e53f21c2.jpg" alt="bat-dong-san-cong-nghiep-va-nha-o-la-diem-sang-cua-thi-truong-bat-dong-san-otis-kr (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_2_85e53f21c2.jpg 208w,https://admin.otislawyers.vn/uploads/small_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_2_85e53f21c2.jpg 500w,https://admin.otislawyers.vn/uploads/medium_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_2_85e53f21c2.jpg 750w," sizes="100vw">In this context, the housing segment remains the highlight of the market, especially in major cities like Hanoi and Ho Chi Minh City. However, financial accessibility remains a significant barrier for many homebuyers, leading to a decline in real estate transactions.Industrial real estate continues to thrive, particularly in the context of increasing FDI inflows into Vietnam. Specifically, new industrial zones in provinces like Bac Ninh, Binh Duong, and Long An are attracting foreign investors, primarily in manufacturing and logistics sectors.Tourism and resort real estate are gradually recovering in areas such as Phu Quoc, Da Nang, and Nha Trang.<img src="https://admin.otislawyers.vn/uploads/bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_3_a9efb7b0d1.jpg" alt="bat-dong-san-cong-nghiep-va-nha-o-la-diem-sang-cua-thi-truong-bat-dong-san-otis-kr (3).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_3_a9efb7b0d1.jpg 208w,https://admin.otislawyers.vn/uploads/small_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_3_a9efb7b0d1.jpg 500w,https://admin.otislawyers.vn/uploads/medium_bat_dong_san_cong_nghiep_va_nha_o_la_diem_sang_cua_thi_truong_bat_dong_san_otis_kr_3_a9efb7b0d1.jpg 750w," sizes="100vw">Real estate experts predict that in the short term, Vietnam's real estate market will continue to stabilize, with strong development in industrial and residential real estate in highly urbanized areas. However, it is important to note that factors such as inflation, monetary policy, and the global economic situation could significantly impact the market's development in the coming months.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

In August 2024, Vietnam’s real estate market continues to face many challenges and opportunities, reflecting global economic fluctuations and domestic regulatory policies.

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INDUSTRIAL AND RESIDENTIAL REAL ESTATE ARE THE HIGHLIGHTS OF THE REAL ESTATE MARKET - OTIS LAWYERS

Within the framework of the&nbsp;29th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting&nbsp;in Bangkok (Thailand) on November 18, President Nguyen Xuan Phuc had a meeting with Party General Secretary and President of China Xi Jinping.In an atmosphere of openness, sincerity and mutual trust, both two leaders expressed pleasure and appreciation for the good progress in the comprehensive strategic cooperative partnership between Vietnam and China in recent times. Especially the important results achieved during the official visit to China by Party General Secretary Nguyen Phu Trong (October 30 - November 1, 2022). President Nguyen Xuan Phuc respectfully conveyed the invitation of the Vietnamese Senior Leader to Party General Secretary and President of China Xi Jinping to visit Vietnam soon.President Nguyen Xuan Phuc warmly congratulated the success of the 20th National Congress of the Communist Party of China and expressed his belief that under the leadership of the Communist Party of China and Party General Secretary and President Xi Jinping, the Chinese people and the nation will successfully implement the goals set out by the 20th National Congress. The President affirmed that the Vietnamese Party, State, and People always attach great importance to consolidating and developing the friendship and cooperation relationship with the Chinese Party, State, and People, considering this a top priority in Vietnam's foreign policy; wishes to promote the two-party relations, the two countries to develop stable and long-term.In that spirit, President Nguyen Xuan Phuc suggested that the two sides will implement the common perception of major directions in cooperation; directing all levels and sectors of the two sides to well implement the "Vietnam - China Joint Statement on further promoting and deepening the Vietnam - China comprehensive strategic cooperative partnership". At the same time, the parties strive to bring the two countries' relations to a new stage with&nbsp;<a href="https://dictionary.cambridge.org/vi/dictionary/english-vietnamese/solid">solid</a>&nbsp;<a href="https://dictionary.cambridge.org/vi/dictionary/english-vietnamese/political">political</a> ties, trust, effective cooperation, a solid foundation of friendship, and control of disagreements.Party General Secretary and President of China Xi Jinping affirmed that the Chinese Party, Government, and people attach great importance to relations with Vietnam. Always ready to make efforts with the Party, State, and Vietnamese People to strengthen friendship and cooperation, bringing the two countries relations to develop in a new phase.Source:&nbsp;COMMUNIST PARTY OF VIETNAM&nbsp; &nbsp;

Vietnam - China: Promoting the comprehensive strategic cooperative partnership

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[VIETNAM- CHINA] PROMOTING THE COMPREHENSIVE STRATEGIC COOPERATIVE PARTNERSHIP 

Right after the meeting on December 5 in Seoul, South Korea, President Nguyen Xuan Phuc, and South Korean President Yoon Suk Yeol had a press conference to inform about important cooperation orientations that the senior leaders of the two sides have just agreed.Accordingly, based on great cooperation achievements in the past, the two leaders, on behalf of the two countries' states, agreed to elevate ties to a comprehensive strategic partnership. It is a landmark event, opening up great opportunities in the cooperation relationship between Vietnam and Korea in the coming time.Speaking at the press briefing after the meeting, President Nguyen, who is on a three-day State visit to the Republic of Korea, expressed his belief that the new partnership framework will usher in a new period of robust development in the bilateral ties for the benefits of the two countries and for peace, stability, and development in the region and the world.President Nguyen Xuan Phuc has outlined some important tasks to implement a Comprehensive Strategic Partnership. Accordingly, in terms of politics - foreign affairs, both sides will continue regular exchanges and contacts in a flexible manner and format, and timely share information and coordinate views on bilateral cooperation as well as the regional and international situation.In terms of economy, trade, and investment, the two leaders reaffirmed the goal of raising bilateral trade turnover to 100 billion USD by 2023 and towards 150 billion USD by 2030. Vietnam welcomes Korean enterprises will continue expand the investment scale associated with technology transfer and focus on the fields of&nbsp;electronics, infrastructure development, construction of green industrial parks, and smart urban development.President Nguyen Xuan Phuc also thanked the Republic of Korea for its aid grants and preferential credit loans, contributing to boosting development in the Southeast Asian country.Nguyen said both countries also agreed to step up and enrich the contents of manpower cooperation, and foster cultural and educational exchanges in a bid to increase mutual understanding and trust between the two people.On the multilateral aspect, the two leaders agreed to step up collaboration at regional and international forums.They reiterated the importance of ensuring security, safety, and freedom of navigation and aviation in the East Sea in line with international law and the 1982 United Nations Convention on the Law of the Sea.The pair also agreed to promote dialogue and cooperation for a nuclear-free Korean Peninsula in accordance with the Resolutions adopted by the United Nations Security Council, thereby contributing to peace, stability, and development in the region and the world.SOURCE: GOVERNMENT NEWS

President Nguyen Xuan Phuc, and South Korean President had a press conference to inform about important cooperation orientations 

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VIET NAM - SOUTH KOREA ELEVATE TIES TO COMPREHENSIVE STRATEGIC PARTNERSHIP

According to the Foreign Investment Department, Ministry of Planning and Investment, as of April 20, the total FDI capital (foreign investment capital) newly registered, adjusted and contributed reached 8.88 billion USD, equaling to 82.1% over the same period.In addition, FDI capital for implementing (disbursed capital) reached about 5.85 billion USD, down 1.2% over the same period in 2022.This is also a positive signal in the context of global FDI flow is in turmoil when many developed countries - where FDI capital exporters decide to impose a global minimum tax of 15% on multinational corporations having global sales of over 750 million euros by the end of the year.According to the Foreign Investment Department, accumulated to April 20, the country had 37,065 valid FDI projects, with a total registered capital of nearly 445.9 billion USD.The accumulated realized capital of foreign investment projects is estimated at more than 279.8 billion USD, equaling to nearly 62.8% of the total valid registered investment capital.And in the first four months of this year only, the country attracted 750 newly registered FDI projects, with a total newly registered capital of more than 4.1 billion USD.The number of FDI projects with adjusted investment capital was 386 times, the total additional investment capital reached nearly 1.66 billion USD.Besides, there were 1,044 transactions of capital contribution, share purchase, purchase of contributed capital, the total value of contributed capital reaching more than 3.1 billion USD.In the past 4 months, FDI investors have invested in 18 sectors out of 21 national economic sectors.Specifically, the processing and manufacturing industry took the lead with a total investment of more than 5.1 billion USD, accounting for 57.8% of the total registered investment capital. The finance and banking industry ranked second with a total investment of more than 1.5 billion USD, accounting for more than 17% of total registered investment capital. The real estate business ranked third with a registered capital of nearly 972 million USD.There were 77 countries and territories investing in Vietnam in the first 4 months of the year, in which Singapore led with a total investment of nearly 2.2 billion USD; Japan ranked second with nearly 2 billion USD; China ranks third with a total registered investment capital of nearly 752 million USD. But in terms of the number of projects, Korea leads the country in terms of the number of new investment projects and the number of projects with capital adjustment.In terms of investment location, in 4 months, FDI investors have invested in 46 provinces and cities across the country. Hanoi leads the country with a total registered FDI capital of more than 1.1 billion USD. Bac Giang ranked second with a total registered investment capital of more than 1 billion USD, followed by Ho Chi Minh City, Binh Duong, and Dong Nai respectively.In terms of the number of projects, Ho Chi Minh City is still the leading location in the country regarding the number of newly registered FDI projects and the number of adjusted projects, capital contribution and share purchase.Source: <a href="https://tuoitre.vn/gan-8-9-ti-usd-von-fdi-dau-tu-vao-viet-nam-trong-4-thang-dau-nam-202304241323492.htm">https://tuoitre.vn/gan-8-9-ti-usd-von-fdi-dau-tu-vao-viet-nam-trong-4-thang-dau-nam-202304241323492.htm</a>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111&nbsp;

The total FDI capital (foreign investment capital) newly registered, adjusted and contributed reached 8.88 billion USD

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[NEWS] NEARLY 8.9 BILLION USD OF FDI INVESTED IN VIETNAM IN THE FIRST 4 MONTHS OF THE YEAR

Full accounting services, making business licenses. Financial report Monthly tax report, Quarterly tax report, Annual tax finalization.

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Real estate is one of the fields that many investors are interested in when investing in Vietnam. However, this activity is limited by many provisions of current law. Join <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> to learn some restrictions when doing real estate business for foreign investors in Vietnam.<h2>Restrictions on the scope of real estate business</h2>The scope of real estate business of foreign-invested enterprises includes:<ul><li>Houses for lease and construction works for sublease;</li><li>For land leased by the State, it is allowed to invest in the construction of houses for lease; invest in the construction of buildings and construction other than houses for sale, lease, or lease-purchase;</li><li>Receive transfer of part or the whole real estate project of the investor to build houses, construction works for sale, lease, lease purchase;</li><li>For land allocated by the State, it is allowed to invest in building houses for sale, lease, or lease-purchase.</li><li>In addition, foreign organizations and individuals have the right to conduct business in real estate brokerage services, real estate trading floors, real estate consulting, and real estate management in accordance with the Law on Real Estate Business 2014.</li></ul>Thus, the scope of real estate business of foreign-invested enterprises is narrower than domestic enterprises. Accordingly, there are two business activities that foreign investors are not allowed to do while domestic investors can still proceed:<ul><li>Firstly, foreign investors are not allowed to subdivide plots for sale of land, invest in building technical infrastructure of cemeteries and graveyards to transfer land use rights associated with such infrastructure.</li><li>Second, for houses and other construction foreign investors are not allowed to buy for sale, lease, or lease-purchase but only rent for sublease.</li></ul><h2>Limits on the number of houses owned</h2>According to the provisions of Article 161 of the Law on Housing 2014, subjects include: foreign-invested enterprises, foreign investment funds and foreign bank branches operating in Vietnam. Foreign individuals who are allowed to enter Vietnam may buy, rent-purchase, receive as gifts, inherit and own no more than 30% of the number of apartments in an apartment building, if it is a separate house, including: Villas and adjacent houses in an area with a population equivalent to a ward-level administrative unit, they may only buy, rent-purchase, receive as gifts, inherit and own no more than 250 houses.<figure class="image"><img src="https://admin.otislawyers.vn/uploads/restrictions_in_real_estate_business_in_vietnam_that_investors_need_to_know_2_9fd4628910.jpg" alt="restrictions-in-real-estate-business-in-vietnam-that-investors-need-to-know (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_restrictions_in_real_estate_business_in_vietnam_that_investors_need_to_know_2_9fd4628910.jpg 208w,https://admin.otislawyers.vn/uploads/small_restrictions_in_real_estate_business_in_vietnam_that_investors_need_to_know_2_9fd4628910.jpg 500w,https://admin.otislawyers.vn/uploads/medium_restrictions_in_real_estate_business_in_vietnam_that_investors_need_to_know_2_9fd4628910.jpg 750w," sizes="100vw"><figcaption>Limits on the number of houses owned</figcaption></figure>Decree 99/2015/ND-CP issued on October 20, 2015 provides more detailed regulations, accordingly:The case in an area with a population equivalent to a ward-level administrative unit. There are investment projects to build commercial houses, including individual houses for sale, lease purchase. Foreign organizations and individuals may own the following number of separate houses:(i) In case there is only one project with the number of individual houses below 2,500 units. Foreign organizations and individuals may only own no more than 10% of the total number of houses in that project;(ii) In case there is only one project with the number of individual houses equivalent to 2,500 units. Foreign organizations and individuals are only allowed to own no more than 250 apartments;(iii) In case there are two or more projects where the total number of individual houses in these projects is less than or equal to 2,500 units. Foreign organizations and individuals may only own no more than 10% of the number of houses in each project.<h2>Limits on the amount of money earned before real estate business forms in the future</h2>The payment of contract value related to real estate formed in the future is made in installments. And it depends on the progress of construction. Before handing over houses and construction to customers. Foreign-invested enterprises are only allowed to collect up to 50% of the contract value. While this maximum rate applicable to domestic investors is up to 70%.<h2>The risk of land expropriation</h2>In fact, many real estate project investors were unable to complete the project on time. And the land was confiscated. The reason for this incident is that investors still face many difficulties in administrative procedures. And the failure to reach an agreement with the people when conducting compensation and ground clearance.At the same time, to be approved, real estate investment projects for business must conform to master plans, land use plans, urban planning, and rural construction planning. And must follow the implementation plan approved by the competent state agency.This causes many difficulties for foreign investors. Because they do not know the regulations on land as well as related administrative procedures at Vietnamese state agencies. Affecting the investment activities of foreign investors in Vietnam.To minimize risks when doing business in this field in Vietnam. Please contact an attorney for consultation. OTIS LAWYERS is always ready to accompany and support investors in the process of researching and investing in the Vietnamese market.&nbsp;Contact us now:OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

Real estate is one of the fields that many investors are interested in when investing in Vietnam. However, this activity is limited by many provisions of current law. Join OTIS LAWYERS to learn some restrictions when doing real estate business for foreign investors in Vietnam.

RESTRICTIONS IN REAL ESTATE BUSINESS IN VIETNAM THAT INVESTORS NEED TO KNOW

Mergers and acquisitions (M&amp;A) in the real estate sector have always been dynamic activities that attract significant interest and participation from both domestic and international investors. In this sector, M&amp;A transactions are largely regulated and influenced by the Land Law and the Real Estate Business Law. Recently, the National Assembly passed the Real Estate Business Law 2023 and the Land Law 2024. Both of these crucial laws will take effect at the beginning of 2025 and are expected to have significant impacts on M&amp;A activities in Vietnam's real estate sector.In the article below, we will outline some positive impacts of the Land Law 2024 and the Real Estate Business Law 2023 on upcoming M&amp;A activities.<h2 style="text-align:justify;">Regulation on Selling Leasehold Rights in Annual Land Lease Contracts</h2>The concept of leasehold rights in land lease contracts is newly introduced in the Land Law 2024. Accordingly, it refers to the rights of land users formed when the state leases land and collects annual rent. Land users can transfer their leasehold rights in land lease contracts; the transferee of these rights will inherit the rights and obligations of the land user according to the Land Law and other related legal provisions.Although the definition is quite broad, specific regulations on the transfer of leasehold rights in land lease contracts in Article 46 of the Land Law 2024 show that this is a provision for a rather specific case. Specifically, land users can sell assets attached to the land and the leasehold rights in the contract when they meet the conditions for selling the attached assets and have prepaid compensation, support, and resettlement costs that have not been fully deducted from the payable land rent. This regulation aims to resolve issues where land users leasing land with annual rent payments have prepaid compensation and support costs that have not been fully deducted from the land rent payable, allowing them to sell assets attached to the land.Under current regulations, selling assets attached to the land leads to the state reclaiming the leased land from the seller to lease it to the buyer, who must sign a land lease contract and fulfill financial obligations for the remaining lease period. The current regulation does not address the issue of offsetting or refunding the prepaid compensation and support costs that have not been fully deducted from the land rent payable. This has been a sticking point in many M&amp;A transactions involving the sale of assets attached to the land, as sellers often consider that they still have to pay land rent even though these costs may have been included in the sale price.The new regulation in the Land Law 2024 addresses this issue, allowing the prepaid compensation, support, and resettlement costs that have not been fully deducted from the payable land rent to be transferred to the buyer, who will not have to pay rent for this period. This promises to save the buyer a significant amount of transaction costs.<h2 style="text-align:justify;">More Favorable Conditions for Transferring Real Estate Projects</h2>According to Clause 2, Article 49 of the Real Estate Business Law 2014, one condition for transferring part or all of a real estate project is that the transferring investor must have a certificate of land use rights for the entire or part of the transferred project. This provision poses difficulties for actual transfers since a real estate project may meet all conditions for transfer but cannot be transferred if there are issues with obtaining the land use rights certificate.Therefore, the removal of the requirement for a land use rights certificate in Clause 3, Article 40 of the Real Estate Business Law 2023 creates a more favorable environment for project transfers. This regulation is also consistent with the reality, as Clause 10, Resolution 42/2017/QH14 of the National Assembly on pilot bad debt handling by credit institutions allows credit institutions, foreign bank branches, and debt management and asset recovery companies to transfer secured real estate projects when certain conditions are met without requiring the investor to have a land use rights certificate. This inconsistency created unfairness, as similar projects not used as collateral could not be transferred without the certificate.Thus, the adjustment in the Real Estate Business Law 2023 to remove the requirement for a land use rights certificate is reasonable and facilitates M&amp;A activities.In addition to creating a more favorable environment for M&amp;A activities, Clause 3, Article 40 of the Real Estate Business Law 2023 ensures necessary rigor by requiring transferring investors to complete all financial obligations related to land use fees, land rent, and related taxes, fees, and charges (if any) to the state before transferring the project. This requirement reflects the practical reality where parties often agree that the transferee will fulfill financial obligations for the project, making M&amp;A activities more transparent.<h2 style="text-align:justify;">Adjustments to Real Estate Project Transfer Procedures</h2>According to Clause 3, Article 51 of the Real Estate Business Law 2014, if the transferee of a real estate project is a foreign-invested enterprise, after the competent state authority approves the transfer, the transferring investor must return the land to the state. The competent state authority then decides to allocate or lease the land to the transferee within 30 days of receiving a complete application.However, Clause 3, Article 42 of the Real Estate Business Law 2023, when regulating this issue, introduces changes. After the competent state authority approves the transfer and the parties sign the transfer contract, land procedures will be conducted according to land law. This aims to align with changes in the Land Law 2024.According to the Land Law 2024, specifically Article 117 on land allocation and leasing for land with existing users to others, in the case of real estate project transfer under the Real Estate Business Law, the land of the transferor will not be reclaimed. Instead, the foreign-invested economic organization receiving the real estate project transfer will be allocated or leased land without auction or bidding, specifically being allocated land with land use fees according to Clause 3, Article 119 of the Land Law 2024. Although it is still unclear how land will be allocated to the transferee without reclaiming land from the transferor, eliminating the land reclamation procedure for the transferor could save time for parties in M&amp;A transactions, helping the transferee quickly complete the transfer process.In conclusion, these regulations will somewhat affect M&amp;A activities in the real estate sector and are important considerations for parties involved in transactions. Besides the mentioned provisions, the Land Law 2024 and the Real Estate Business Law 2023 contain many new regulations that may impact M&amp;A activities to varying degrees. These regulations promise positive changes for the real estate market and M&amp;A activities in the real estate sector.For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

In the article below, we will outline some positive impacts of the Land Law 2024 and the Real Estate Business Law 2023 on upcoming M&A activities.

POSITIVE IMPACTS OF THE NEW LAND LAW AND REAL ESTATE BUSINESS LAW ON M&A ACTIVITIES - OTIS LAWYERS

<h2>Conditions and Procedures for Transferring Investment Projects According to the Investment Law 2020</h2>Current market research shows the transfer of projects between different investors. So, what conditions must an investor meet to transfer a project, and what are the procedures for transferring investment projects and real estate projects (BĐS) according to the new regulations of the Investment Law 2020 and the Real Estate Business Law 2023?<h3>Conditions for Transferring Investment Projects</h3><h4>Conditions for the Project Transferor</h4>- The investment project or part of the investment project to be transferred must not be terminated under the provisions of Clauses 1 and 2 of Article 48 of the Investment Law 2020.- The project must have been approved by the competent state authority and have a detailed plan with a 1/500 scale or an approved general site plan.- The project or part of the project to be transferred must have completed the compensation and site clearance process.- In the case of transferring the entire investment project for infrastructure construction, the technical infrastructure works must be completed according to the approved project progress.- The project must not be involved in any land use rights disputes and must not be seized to ensure the execution of court rulings or administrative decisions from competent state agencies.- There should be no decisions to revoke the project or land from competent state agencies.- If there are violations during the project implementation, the investor must comply with the penalty decisions.- The transferring investor must have a land use rights certificate for the entire project or the part of the project being transferred.- The project must be within the land use duration as prescribed.<h4>Conditions for the Project Transferee</h4>- The transferee must be an enterprise operating in the real estate business sector.- The transferee must have sufficient financial capacity, demonstrated by financial statements from the past two years or audit reports of the investor's equity, financial support commitments from the parent company, financial institutions, guarantees of the investor's financial capacity, or other documents proving the investor's financial capability.- The transferee must also commit to continuing the investment, construction, and business in accordance with legal regulations, ensuring the project's progress and content.<h3>Procedures for Transferring Investment Projects</h3>There are six cases that may occur when transferring investment projects, and the procedures for each Case will vary accordingly. Here are the specific steps for transferring investment projects as per the provisions of the Investment Law 2020:Case 1: For Investment Projects Approved with Both Investment Policy and Investor Approval, Where the Investor Transfers the Entire Project Before It Becomes Operational or When There Are Changes in Investor ConditionsCase 2: For Investment Projects Approved with Investment Policy, Where the Project Transfer Alters the Content of the Approved Investment Policy in Any of the Cases Specified in Points a, b, c, d, đ, and e of Clause 3, Article 41 of the Investment Law 2020Procedures for cases 1 and 2:Step 1: Submit 8 sets of documents (as outlined in section 2.1) to the Ministry of Planning and Investment or 4 sets of documents to the Investment Registration Authority corresponding to the authority approving the investment policy for the project.Step 2: The competent authority reviews the conditions for transferring the investment project according to Clause 1, Article 46 of the Investment Law 2020 to decide on adjusting the investment project as per the corresponding provisions in Articles 44, 45, and 46 of Decree 31/2021/ND-CP.Case 3: For Investment Projects Approved with Investment Policy, Where the Project Transfer Does Not Alter the Content of the Approved Investment Policy in Any of the Cases Specified in Points a, b, c, d, đ, and e of Clause 3, Article 41 of the Investment Law 2020, the Investor Conducts Procedures to Adjust the Investor Approval DecisionProcedures for Case 3:Step 1: Submit 4 sets of documents to the Investment Registration Authority, replacing the proposal to adjust the investment project with a proposal to approve the investor adjustment.Step 2: Within 3 working days from receiving valid documents, the Investment Registration Authority sends the documents to relevant competent state agencies for opinions on meeting the requirements specified in Points b, c, and d of Clause 4, Article 33 of the Investment Law 2020.Step 3: Within 15 days from receiving valid documents, the consulted agencies provide their opinions on matters within their state management scope to the Investment Registration Authority.Step 4: Within 25 days from receiving valid documents, the Investment Registration Authority prepares an appraisal report containing content as per Points b, c, and d of Clause 4, Article 33 of the Investment Law 2020, and submits it to the provincial People's Committee.Step 5: Within 7 working days from receiving the documents and the appraisal report, the provincial People's Committee decides on approving the investor adjustment.Step 6: The investor adjustment approval decision records the transferring and receiving investors, and the transferred part of the project (if any), and is sent to the Investment Registration Authority, the transferring investor, and the receiving investor.Case 4: For Investment Projects Approved with Investment Policy and Already in Operation, the Investor Does Not Need to Conduct Procedures to Approve Investment Policy Adjustment When Transferring the ProjectCase 5: For Investment Projects Granted an Investment Registration Certificate and Not Subject to Investment Policy Approval or Approved with Investment Policy but Not Falling Under Clause 3, Article 41 of the Investment Law 2020Procedures for Case 5:Step 1: The transferring investor submits 1 set of documents to the Investment Registration Authority.Step 2: The Investment Registration Authority reviews the conditions for transferring the investment project as per Clause 1, Article 46 of the Investment Law 2020 to adjust the investment project according to Article 47 of Decree 31/2021/ND-CP.Step 3: The adjusted investment registration certificate is sent to the transferring investor and the receiving investor.Case 6: Procedures for Adjusting the Investment Project When the Transferring Investor Transfers the Project to a Foreign Investor Who Establishes an Economic Organization to Implement the Investment ProjectProcedures for Case 6:Step 1: The transferring investor conducts procedures to adjust the investment project according to the relevant cases mentioned above.Step 2: After completing the procedures, the foreign investor receiving the project conducts procedures to establish an economic organization in accordance with the relevant enterprise law for each type of economic organization.<img src="https://admin.otislawyers.vn/uploads/dieu_kien_va_thu_tuc_chuyen_nhuong_du_an_bat_dong_san_tu_1_1_2025_1_8c1595639c.jpg" alt="dieu-kien-va-thu-tuc-chuyen-nhuong-du-an-bat-dong-san-tu-1-1-2025- (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_dieu_kien_va_thu_tuc_chuyen_nhuong_du_an_bat_dong_san_tu_1_1_2025_1_8c1595639c.jpg 208w,https://admin.otislawyers.vn/uploads/small_dieu_kien_va_thu_tuc_chuyen_nhuong_du_an_bat_dong_san_tu_1_1_2025_1_8c1595639c.jpg 500w,https://admin.otislawyers.vn/uploads/medium_dieu_kien_va_thu_tuc_chuyen_nhuong_du_an_bat_dong_san_tu_1_1_2025_1_8c1595639c.jpg 750w," sizes="100vw"><h3>Documentation for Transferring Investment Projects</h3>The documentation for transferring an investment project according to investment laws includes:<ul><li>A document requesting the adjustment of the investment project.</li><li>A report on the implementation status of the investment project up to the time of transfer.</li><li>The contract or principle contract for transferring part or all of the investment project.</li><li>Copies of documents proving the legal status of both the transferring and receiving investors.</li><li>A copy of the Investment Registration Certificate.</li><li>The decision approving the investment policy.</li><li>The decision approving the investor (if any).</li><li>A copy of the BCC contract (for projects implemented in the form of a BCC contract).</li><li>A copy of one of the following documents of the investor receiving the project:<ul><li>Financial statements for the last two years or an audit report of the investor's equity.</li><li>A financial support commitment from the parent company.</li><li>A financial support commitment from a financial institution.</li><li>A guarantee of the investor's financial capability.</li><li>Documents explaining the investor's financial capability.</li></ul></li></ul>&nbsp;<h2>Conditions and Procedures for Transferring Real Estate Projects from January 1, 2025, According to the New Real Estate Business Law 2023</h2><h3>New Regulations on Conditions for Transferring Real Estate Projects</h3>Compared to the current regulations, the Real Estate Business Law 2023, effective from January 1, 2025 (Article 40), adds a condition that the transferring investor must fulfill all financial obligations regarding land for the project. This regulation tightens the transfer conditions for the transferring party, preventing project transfers aimed at profit-making and aligning with the principle that sellers can only transfer what they legally own. CBRE notes that this provision screens investors, allowing only those with strong financial capacity to engage in M&amp;A activities. However, it may also pose a burden on investors given the frequent delays in project implementation in Vietnam.Chapter V of the Real Estate Business Law 2023 also introduces several significant new points related to the transfer of real estate projects:*/ Firstly, the Real Estate Business Law 2023 specifies that after completing the transfer, the transferee inherits the rights and obligations of the transferring investor and becomes the investor for the project or project part received (Clause 3, Article 39).*/ Regarding the conditions for transferring all or part of a project, in addition to conditions inherited from Article 49 of the Real Estate Business Law 2014, Article 40 of the Real Estate Business Law 2023 adds important conditions such as:<ul><li>The land use rights for the project or project part being transferred must not be subject to any legal restrictions on transactions; it must not be under suspension or temporary suspension of transactions according to legal provisions (Point d, Clause 1).</li><li>If the project is mortgaged to ensure the fulfillment of obligations under legal provisions, it must be released from the mortgage (Point e, Clause 1).</li><li>The project must still be within the implementation period (Point g, Clause 1).</li><li>For transferring part of a real estate project, it must be ensured that the construction items or the intended use and business purposes of the construction items in the transferred part can be independent of other parts of the real estate project (Point h, Clause 1).</li><li>Notably, according to Clause 3, Article 40 of the Real Estate Business Law 2023, the condition for transferring a project does not require the investor to have a land use rights certificate under land law for the entire or part of the transferred project but only requires a decision on land allocation, land lease, or permission to change land use purpose to implement the project from a competent state agency and the fulfillment of financial obligations regarding land for the project or project part being transferred.</li></ul>*/ The Real Estate Business Law 2023 also includes specific regulations for determining the authority to approve the transfer of all or part of a real estate project. Article 41 specifies:<ul><li>For real estate projects approved for an investor or granted an Investment Registration Certificate under the Investment Law, the authority and procedures for transferring all or part of the real estate project follow the provisions of the Investment Law.</li><li>For real estate projects not covered by Clause 1 of this Article, the authority to approve the transfer of all or part of a real estate project is as follows:<ul><li>The Prime Minister decides on approving the transfer of all or part of a real estate project for projects where the Prime Minister decides on the investment policy, approves the investment policy, or approves the investment. If the Prime Minister authorizes the provincial People's Committee to decide on transferring part of the project, the provincial People's Committee decides on approving the transfer of part of the project according to Clause 2, Article 42 of this Law.</li><li>The provincial People's Committee decides on approving the transfer of all or part of a real estate project for projects where the provincial People's Committee decides on the investment policy, approves the investment policy, or approves the investment.</li></ul></li></ul><h3>Procedures for Transferring Real Estate Projects from January 1, 2025</h3>According to Article 42 of the Real Estate Business Law 2023, the procedures for transferring all or part of a real estate project are as follows:<ul><li>Procedures for transferring all or part of a real estate project under the authority of the Prime Minister (Clause 2, Article 41 of the Real Estate Business Law 2023):<ul><li>The project investor submits the transfer application to the provincial People's Committee where the project is located or the provincial-level state management agency in charge of real estate business authorized by the provincial People's Committee.</li><li>Within 45 days from the date of receiving a complete application, the provincial People's Committee consults the Ministry of Construction and relevant ministries, sectors, and agencies, organizes an appraisal, and submits it to the Prime Minister for consideration and approval. If the project does not meet transfer conditions, the receiving agency must notify the project investor in writing, stating the reasons.</li><li>After receiving the Prime Minister's approval, the transferring and receiving parties sign the transfer contract and hand over the project.</li></ul></li><li>Procedures for transferring all or part of a real estate project under the authority of the provincial People's Committee (Clause 2, Article 41 of the Real Estate Business Law 2023):<ul><li>The project investor submits the transfer application to the provincial People's Committee where the project is located or the provincial-level state management agency in charge of real estate business authorized by the provincial People's Committee.</li><li>Within 30 days from the date of receiving a complete application, the provincial People's Committee consults relevant agencies, organizes an appraisal, and issues a decision on approving the transfer. If the project or part of the real estate project does not meet the transfer conditions, the receiving agency must notify the project investor in writing, stating the reasons.</li><li>After receiving the provincial People's Committee's approval, the transferring and receiving parties sign the transfer contract and hand over the project.</li></ul></li><li>For cases where the transferee of all or part of the project (Clause 2, Article 41 of the Real Estate Business Law 2023) is an economic organization with foreign investment (Clause 4, Article 10 of the Real Estate Business Law 2023):<ul><li>After receiving approval from the competent state agency and signing the transfer contract, the foreign-invested economic organization must conduct land procedures according to land law.</li></ul></li></ul>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

Conditions And Procedures For Transferring Real Estate Projects From January 1, 2025, According To The New Real Estate Business Law 2023

CONDITIONS AND PROCEDURES FOR TRANSFERRING REAL ESTATE PROJECTS FROM JANUARY 1, 2025, ACCORDING TO THE NEW REAL ESTATE BUSINESS LAW 2023

<h2 style="text-align:justify;">What are foreign-invested enterprises?</h2>Foreign-invested enterprises are defined in Clause 7, Article 5 of the 2013 Land Law as follows:"Land usersLand users allocated land, leased land, recognized land use rights, and transferred land use rights by the State under this Law include:...7. Foreign-invested enterprises include 100% foreign-invested enterprises, joint venture enterprises, and Vietnamese enterprises where foreign investors purchase shares, merge, or acquire according to investment law."Accordingly, foreign-invested enterprises include:- 100% foreign-invested enterprises,- Joint venture enterprises, and Vietnamese enterprises where foreign investors purchase shares, merge, or acquire according to investment law.<h2 style="text-align:justify;">Through which transaction forms can foreign-invested enterprises obtain land use rights to implement investment projects in Vietnam?</h2>According to Clause 1, Article 169 of the 2013 Land Law on acquiring land use rights, foreign-invested enterprises can obtain land use rights to implement investment projects in Vietnam through the following forms:- Acquiring investment capital as the value of land use rights as regulated by the Government;- Acquiring land use rights through State land allocation for housing construction projects for sale or for sale combined with lease;- Acquiring land use rights through State land lease;- Acquiring land use rights through:+ Results of successful land dispute mediation recognized by competent People's Committees;+ Agreements in mortgage contracts to handle debt;+ Decisions of competent state agencies on resolving land disputes, complaints, denunciations, court judgments, or enforcement decisions by enforcement agencies;+ Documents recognizing auction results for land use rights in accordance with the law;+ Documents on the division of land use rights in accordance with the law for households or groups of people with common land use rights.<h2 style="text-align:justify;">For which projects are foreign-invested enterprises allocated land by the State with land use fees?</h2>According to Clause 3, Article 55 of the 2013 Land Law on allocating land with land use fees:"Allocating land with land use feesThe State allocates land with land use fees in the following cases:1. Households and individuals allocated residential land;2. Economic organizations allocated land to implement housing construction projects for sale or for sale combined with lease;3. Overseas Vietnamese, foreign-invested enterprises allocated land to implement housing construction projects for sale or for sale combined with lease;4. Economic organizations allocated land to implement cemetery and graveyard infrastructure investment projects to transfer land use rights associated with the infrastructure."Thus, according to the regulations, foreign-invested enterprises are allocated land by the State with land use fees to implement housing construction projects for sale or for sale combined with lease.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

Foreign-invested enterprises can obtain land use rights to implement investment projects in Vietnam through the following forms:

THROUGH WHICH TRANSACTION FORMS CAN FDI ENTERPRISES OBTAIN LAND USE RIGHTS TO IMPLEMENT INVESTMENT PROJECTS IN VIETNAM?

On the morning of July 17th, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), in coordination with the Vietnam International Arbitration Center (VIAC), organized the seminar "Land Law 2024: Effective Implementation Solutions for Investors". At the event, Mr. Phan Duc Hieu, Standing Member of the Economic Committee of the National Assembly, outlined the new points and improvements of the Land Law 2024 for investors. Additionally, he highlighted some issues to pay attention to in understanding and applying the new land law regulations.Specifically, Mr. Hieu stated that the Land Law 2024 approaches land resources comprehensively, focusing on balanced and reasonable development. The goal is to ensure fair development of various types of real estate, without favoring any specific segment. For instance, for commercial housing, enterprises need to have land to develop commercial housing projects."How to obtain land?" Mr. Hieu said and added that the State will only reclaim land for commercial housing projects, mixed-use housing and commercial, and service projects when it is an "urban area construction investment project" with synchronized functions. If the project does not fall under this category, the enterprise must negotiate. However, negotiations are only permitted for residential land transfers.Another option for enterprises is to change the land use purpose. However, the land must meet two conditions, one of which is that a portion of the land must be residential land to change the use purpose for commercial housing development. "If the enterprise has land but none of it is residential land, the use purpose cannot be changed to commercial housing," Mr. Hieu said.He added that this is an issue of great interest to many investors and businesses, with diverse opinions. However, the National Assembly has thoroughly discussed and decided to include this in the Law. The principle of the National Assembly in law-making is to aim for stability, generalize into law for widespread application. If any issues remain unclear, the Government will conduct pilot programs."National Assembly delegates understand this well, and the decision was intentional. The National Assembly discussed thoroughly, considering every detailed issue impacting each target group before making this decision," Mr. Hieu said.Contrary to commercial housing projects, the new mechanism for social housing will be more open, creating more favorable conditions for enterprises. Specifically, if the enterprise does not have land, the State will reclaim land. If the enterprise already has land, it can proceed normally, changing the land use purpose to develop the project.Regarding the issuance of certificates for officetel, condotel, etc., Mr. Hieu stated that investors need to distinguish between housing and construction works. Housing will be issued long-term ownership certificates, while new types of products like those mentioned above are construction works. Therefore, they will be certified according to the project's use, purpose and duration. It is essential to differentiate this clearly."The purpose of this Land Law is to promote the efficient and economical use of land. Therefore, investors must use land purposefully," Mr. Hieu said.Another content of great interest to many enterprises and investors in the Land Law concerns agricultural land. Specifically, issues related to the reclamation of agricultural land, conversion of agricultural land to non-agricultural land, and transfer of agricultural land.Addressing this content, Mr. Phan Duc Hieu said that agricultural land is also a crucial issue in the new Law. There are three main points to note.Firstly, compensation: the general principle is to compensate for the same type of land being reclaimed. Secondly, regarding transfers: previously, individuals could transfer up to 10 times the land quota; now, it is extended to 15 times the quota. For business organizations, there is no limit if there is a specific use purpose and plan."The goal of the previous Law was to limit possession, speculation, and non-use of agricultural land. Now, the input is more open, but the output is restricted. Specifically, if the land is not used for its intended purpose within 12 months, it will be reclaimed," Mr. Hieu said.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

On the morning of July 17th, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), in coordination with the Vietnam International Arbitration Center (VIAC), organized the seminar "Land Law 2024: Effective Implementation Solutions for Investors".

WHAT BUSINESS SHOULD NOTE WHEN THE LAND LAW 2024 COMES INTO EFFECT? - OTIS LAWYERS

Under the Business Cooperation Contract (BCC) structure, the parties in a BCC do not establish a legal entity but typically utilize their available resources, including land use rights (LUR), for business cooperation. The party with LUR (Landowner) will "contribute" their LUR to the BCC, allowing the other party (Developer) to develop houses/buildings on the land, while the Landowner retains ownership of the LUR.According to current land laws, it can be argued that projects utilizing land through a BCC structure are permitted. However, the relevant legal provisions seem unclear and may give rise to certain legal issues. With the new regulations in Land Law 2024, the BCC structure will have a more solid legal framework. Specifically:1.&nbsp;Articles 148 and 149 of Land Law 2024 have now codified the provision on issuing ownership certificates to owners of pre-existing houses/buildings who are not also land users, as per Decree 43/2014 guiding Land Law 2013. In this case, Land Law 2024 now clearly recognizes the BCC as legitimate evidence of the Landowner's land use rights, enabling the owner of houses/buildings to carry out construction on the land. Thanks to this clear regulation, Developers in a BCC can now feel confident that their ownership rights over houses/buildings on the land will be protected.2.&nbsp;Under the current Decree 43/2014, To obtain an ownership certificate for houses/buildings on the land, the Developer in a BCC must have written consent from the Landowner regarding the construction of assets attached to the land (landowner's consent), which must be notarized or certified according to legal regulations. It was unclear whether a BCC could be considered the landowner's consent or if the Developer needed both the BCC and a notarized landowner's consent. Under the new regulations of Land Law 2024, the Developer only needs to submit the BCC to obtain an ownership certificate for the houses/buildings on the land.3.&nbsp;The new regulations in Land Law 2024 will reduce the risk of a BCC being considered a sublease agreement between the Landowner and the Developer.4. Under the current&nbsp;Real Estate Business Law 2014, the sale of houses/buildings must be tied to LUR. This provision poses a risk that the Developer may not be able to sell their assets built under a BCC without also transferring the LUR. The new Real Estate Business Law 2023 also repeats this provision but adds an exception stating "unless otherwise provided by the Land Law." This exception can be reasonably interpreted to include cases where the Developer can sell assets attached to land used through BCC cooperation without needing to transfer the accompanying LUR.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

Under the Business Cooperation Contract (BCC) structure, the parties in a BCC do not establish a legal entity but typically utilize their available resources, including land use rights (LUR), for business cooperation

LAND LAW 2024 – A CLEARER LEGAL FRAMEWORK FOR BCC PROJECTS USING LAND - OTIS LAWYERS

The forecast for Vietnam's residential real estate market in the last three months of 2024 suggests more positive developments, with a significant improvement in new supply compared to Q3/2024. However, the level of growth and absorption rate will depend on various factors, shaping an ideal, expected, or challenging scenario for the market...According to data from the Economic-Financial-Real Estate Research Institute of Dat Xanh Services (Dat Xanh Services - FERI), Vietnam's residential real estate market in Q3/2024 witnessed a decline in supply, a slight increase in prices, and an improvement in the property absorption rate.Specifically, in Q3/2024, only the Hanoi area and neighboring provinces saw a 13% quarter-on-quarter increase, while total new housing supply slightly declined in the Central region, Ho Chi Minh City, and nearby provinces, as well as the Western region. This was due to investors limiting releases during the "Ghost Month" (Month of the Hungry Ghosts) and adjustments to meet new regulatory requirements, impacting investors' release plans.<img src="https://admin.otislawyers.vn/uploads/du_bao_03_kich_ban_tang_truong_cho_thi_truong_nha_o_cuoi_nam_otis_kr_2_41e586eb29.jpg" alt="du-bao-03-kich-ban-tang-truong-cho-thi-truong-nha-o-cuoi-nam-otis-kr (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_du_bao_03_kich_ban_tang_truong_cho_thi_truong_nha_o_cuoi_nam_otis_kr_2_41e586eb29.jpg 208w,https://admin.otislawyers.vn/uploads/small_du_bao_03_kich_ban_tang_truong_cho_thi_truong_nha_o_cuoi_nam_otis_kr_2_41e586eb29.jpg 500w,https://admin.otislawyers.vn/uploads/medium_du_bao_03_kich_ban_tang_truong_cho_thi_truong_nha_o_cuoi_nam_otis_kr_2_41e586eb29.jpg 750w," sizes="100vw">Despite this, the overall absorption rate of the primary market supply improved compared to the end of Q2/2024. For instance, Hanoi and neighboring provinces saw a 15-25% increase, while Ho Chi Minh City and its nearby provinces experienced a similar 15-25% growth. Additionally, primary sales prices continued to rise by 5-10% for apartments and began expanding to other types, though mainly concentrated in key markets in Hanoi, Da Nang, Ho Chi Minh City, and surrounding satellite towns. For secondary market prices, the situation of selling at a loss decreased, and a price gap of 10-20% began to appear for apartments.Forecasting the residential real estate market in Vietnam for the last three months of 2024, the unit anticipates more positive changes, with new supply expected to improve significantly compared to Q3/2024. However, the extent of growth and absorption will still rely on multiple factors, leading to three different scenarios:<ul><li>Ideal Scenario: New supply increases sharply by 40%-50%, floating interest rates are at 8%-9%, sales prices rise by 10-15%, and the absorption rate reaches 40%-45%. This is the most optimistic scenario, expecting an early recovery of the market.</li><li>Expected Scenario: New supply rises by 25%-35%, floating interest rates are at 9%-11%, sales prices grow by 5%-10%, and the absorption rate achieves 35%-40%. This is the most feasible scenario, reflecting positively improved market growth.</li><li>Challenging Scenario: New supply increases by 10%-20%, floating interest rates rise to 10%-12%, sales prices grow by 3%-5%, and the absorption rate only reaches 20%-25%. This is the most cautious scenario, indicating a slow recovery phase for the market.</li></ul>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

Forecasting the residential real estate market in Vietnam for the last three months of 2024, the unit anticipates more positive changes, with new supply expected to improve significantly compared to Q3/2024. 

FORECAST OF 3 GROWTH SCENARIOS FOR THE YEAR-END HOUSING MARKET - OTIS LAWYERS

OTIS LAWYER provides services related to work permits, temporary residence cards/visas for foreigners in Vietnam quickly, saving time and maximum costs for customers.

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OTIS律师为在越南的外国人提供工作许可证、暂住证/签证相关服务，为客户节省最大时间和费用。

工作许可证、暂住证、签证、子许可证等

OTIS LAWYER cung cấp các dịch vụ liên quan đến giấy phép lao động, thẻ tạm trú/VISA cho người nước ngoài tại Việt Nam một cách nhanh chóng, tiết kiệm được thời gian và chi phí tối đa cho khách hàng

Giấy phép lao động, thẻ tạm trú, VISA, giấy phép con... 

OTIS LAWYER는 베트남에서 외국인을 위한 취업 허가, 임시 거주 카드/VISA 관련 서비스를 신속하게 제공하여 고객의 시간과 비용을 최대한 절약합니다.

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With the open-door policies calling for preferential FDI capital of the Vietnamese Government and the ideal business investment environment, Vietnam is an attractive destination for foreign investors. The number of foreign investors in Vietnam is constantly increasing, especially investors from Korea. To create favorable conditions for individual investors with direct capital investment or representatives of foreign organizations investing in Vietnam to live and work in Vietnam, the Government has adopted flexible policies suitable for each type of investor granting temporary residence cards. In this article, <a href="https://otislawyers.vn/">OTIS LAWYERS</a>&nbsp;would like to advise investors on the legal provisions related to issuing temporary residence cards to foreign investors in Vietnam.<h2 style="text-align:justify;">Legal basis for granting temporary residence cards to foreign investors</h2>Currently, the issuance of temporary residence cards to foreign investors is regulated in the Law on entry, exit, transit, and residence of foreigners in Vietnam (Law No. 47/2014/QH13, dated June 16, 2014). ) revised and supplemented in 2019 and related guiding documents.<h2 style="text-align:justify;">Symbols and duration of temporary residence cards in each case of foreign investors</h2>Stamp of temporary residence card "ĐT": issued to foreign investors in Vietnam. Which is divided into 04 types of temporary residence cards for foreign investors according to the investment capital in Vietnam as follows:<ul><li style="text-align:justify;">ĐT1 – Term not exceeding five years - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a contributed capital of VND 100 billion or more or investing in sectors and trades eligible for investment incentives and geographical areas eligible for investment incentives shall be decided by the Government.</li><li style="text-align:justify;">ĐT2 – Term not exceeding five years - Granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a contributed capital of between VND 50 billion and under VND 100 billion or investment in industries and professions that encourage development investment are decided by the Government.</li><li style="text-align:justify;">ĐT3 – Term not exceeding three years - Granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contribution from 03 billion VND to less than 50 billion VND.</li><li style="text-align:justify;">ĐT4 – Term not exceeding 12 months - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a contributed capital of less than VND 03 billion.</li></ul>Note:&nbsp;This case is only issued with a ĐT4 visa, not a temporary residence card.<h2 style="text-align:justify;">Conditions for granting temporary residence cards to foreign investors</h2><ul><li style="text-align:justify;">The validity of a foreigner's passport must be more than 01 years;</li><li style="text-align:justify;">Are using the entry visa for the proper purpose;</li><li style="text-align:justify;">Papers prove the capital contribution or capital investment in the company in Vietnam (Depending on the specific case, it can be a confirmation of the bank related to the capital contribution or the transfer contract, the certificate of banks related to capital transfer).</li></ul><h2 style="text-align:justify;">Order and procedures for applying for a temporary residence card for foreign investors</h2><h3 style="text-align:justify;">Step 1: Prepare all required documents</h3>Profile includes:<ul><li style="text-align:justify;">Application form for a temporary residence card (Form NA8)</li><li style="text-align:justify;">Certified copy of Business Registration Certificate, Investment Registration Certificate</li><li style="text-align:justify;">Registration form of seal and signature of the company (Form NA16)</li><li style="text-align:justify;">Application for temporary residence card for foreigners (Form NA6)</li><li style="text-align:justify;">Documents proving the capital contribution or capital investment in the company in Vietnam</li><li style="text-align:justify;">Original passport;</li><li style="text-align:justify;">02 white background color photos with size 2cm x 3cm.</li><li style="text-align:justify;">Certificate related to temporary residence registration.</li></ul><h3 style="text-align:justify;">Step 2: Apply with the fee for a temporary residence card at</h3><ul><li style="text-align:justify;">Administration of Immigration:</li></ul>&nbsp;Head office: 44-46 Tran Phu, Ba Dinh, Hanoi.&nbsp;Office in City. HCM: 254 Nguyen Trai, District 1, Ho Chi Minh City.&nbsp;Office in Da Nang: 7 Tran Quy Cap, Da Nang City<ul><li style="text-align:justify;">Or the Immigration Department of the provincial police and centrally-run cities.</li></ul><h3 style="text-align:justify;">Step 3: Get the results according to the appointment card</h3>According to regulations, it is five working days from the date of submission of the application.Above are some of our consulting contents related to temporary residence cards for foreign investors.Thank you for reading this article. If you have any questions, please leave a comment or email us for advice.If customers and investors need to issue a temporary residence card, don't hesitate to contact our hotline or email for the fastest support. We are always proud and committed to always bring the best service quality in the shortest time to customers.OTIS LAWFIRM &amp; PARTNERS&nbsp;Address: K28 Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiMobile: 0987.748.111Email: info@otislawyers.vn

With the open-door policies calling for preferential FDI capital of the Vietnamese Government and the ideal business investment environment, Vietnam is an attractive destination for foreign investors. The number of foreign investors in Vietnam is constantly increasing, especially investors from Korea. To create favorable conditions for individual investors with direct capital investment or representatives of foreign organizations investing in Vietnam to live and work in Vietnam, the Government has adopted flexible policies suitable for each type of investor granting temporary residence cards. In this article, OTIS LAWYERS would like to advise investors on the legal provisions related to issuing temporary residence cards to foreign investors in Vietnam.

TEMPORARY RESIDENCE CARD FOR FOREIGN INVESTORS IN VIETNAM

The Vietnamese economy is developing. So more and more foreign workers come to Vietnam. In order to live and work in Vietnam, they must complete the temporary or permanent residence registration procedures. According to current law, how is the procedure to apply for a temporary residence card to foreigners carried out? Find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> about <a href="https://otislawyers.vn/en/dich-vu/work-permit-temporary-residence-card-visa-for-foreigners">temporary residence card for foreigners</a> in the article below!<h2>Legal basis of administrative procedures</h2><ul><li>Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam (Law No. 47/2014/QH13, dated June 16, 2014).</li><li>Circular No. 04/2015/TT-BCA, dated January 5, 2015 of the Ministry of Public Security, providing for forms related to entry, exit and residence of foreigners in Vietnam</li><li>Circular No. 219/2016/TT-BTC dated 10/11/2016 of the Ministry of Finance regulating collection, payment, management and use of fees and charges in the fields of exit, entry, transit and residence in Vietnam.</li></ul><h2>Cases in which temporary residence cards are issued&nbsp;</h2>Article 36 of the Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates cases in which temporary residence cards are issued as follows:<ul><li>Foreigners being members of diplomatic missions, consular offices, representative offices of international organizations of the UN, intergovernmental organizations in Vietnam, their spouses, children under 18 years of age, and housemaid that go along during their term of office shall be issued with temporary residence cards with the symbol NG3.</li><li>Foreigners issued with LV1, LV2, ĐT, NN1, NN2, DH, PV1, LĐ, TT visas shall be issued with temporary residence cards with the same symbols.</li></ul><h2>Meaning of visa symbols in temporary residence card registration for foreigners</h2><ul><li>LV1 – Issued to people who come to work with units affiliated to Vietnam’s Communist Party; the National Assembly, the government, Central Committee of Vietnamese Fatherland Front, the People’s Supreme Court, the People’s Supreme Procuracy, State Audit Agency, Ministries, ministerial agencies, Governmental agencies, the People’s Councils, the People’s Committees of provinces.</li><li>LV2 – Issued to people who come to work with socio-political organizations, social organizations, Vietnam Chamber of Commerce and Industry.0</li><li>LS – Issued to foreign lawyers practicing in Vietnam.;</li><li>DT1 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 100 billion or more or investing in business lines benefitting from investment incentives, in administrative divisions benefitting from investment incentives decided by the Government.</li><li>DT2 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 50 billion to less than VND 100 billion or investing in business lines benefitting from investment incentives treatment decided by the Government.</li><li>DT3 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 3 billion to less than VND 50 billion.</li><li>DT4 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of less than VND 3 billion.”;</li><li>NN1 - Issued to Managers of representative offices or projects of international organizations and foreign non-governmental organizations in Vietnam.</li><li>NN2 - Issued to heads of representative offices, branches of foreign traders, representative offices of other foreign economic, cultural, professional organizations in Vietnam.</li><li>NN3 - Issued to people who come to work with foreign non-governmental organizations, representative offices, branches of foreign traders, representative offices of other foreign economic, cultural, professional organizations in Vietnam.</li><li>DH - Issued to people who come to study or serve internship.</li><li>PV1 - Issued to journalists who have permanent residences in Vietnam.</li><li>PV2 - Issued to journalists who come to work for a short period of time in Vietnam.</li><li>LD1 – Issued to foreigners working in Vietnam and certified of eligibility for work permit exemption, unless otherwise specified by international agreements to which Vietnam is a signatory.”;</li><li>&nbsp;LD2 – Issued to foreigners working in Vietnam requiring work permit.”;</li><li>NG3 - Issued to members of diplomatic missions, consular offices, representative offices of international organizations affiliated to the UN, representative offices of intergovernmental organizations and their spouses, children under 18 years of age, and housemaids during their term of office.</li><li>TT – Issued to foreigners that are spouses or children under 18 years of age of foreigners issued with LV1, LV2, LS, DT1, DT2, DT3, NN1, NN2, DH, PV1, LD1 or LD2 visas or foreigners that are parents, spouses or children of Vietnamese citizens</li></ul>…<h2>Procedures for issuance of temporary residence card</h2><h3>Step 1: Preparing and submitting a dossier in accordance with the law.</h3>Article 37 of the Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates that a dossier includes:<ul><li>A written request from the inviting entity;</li><li>A declaration bearing a picture;</li><li>The passport;</li><li>Papers proving the status granted a temporary residence card</li></ul><h3>Step 2: Officers receiving the dossier shall check the legality and contents of the dossier</h3><ul><li>If the dossier is appropriately completed, officers shall receive it, print and hand over a receipt with the date of receiving results.</li><li>If the dossier is not appropriately completed, officers shall guide the applicant to supplement the dossier.</li></ul><h3>Step 3: Receiving the result</h3>Within 05 working days, the person who comes to receive the result shall present the receipt, the identity card, or passport to the officers handing over the result for examination. If a temporary residence card is issued, the officers will ask that person to pay fees, sign for receipt and hand over the temporary residence card (informing that person of the result in case the temporary residence card is not issued)<h2>The agency that receives dossiers</h2>Foreigners apply for temporary residence cards or representatives submit dossiers at one of the three headquarters of the Immigration Department – Ministry of Public Security:<ul><li>44-46 Tran Phu, Ba Dinh District, Hanoi City.</li><li>254 Nguyen Trai, District 1, Ho Chi Minh City.</li><li>7 Tran Quy Cap, Da Nang City.</li><li>Or the Immigration Department of the Police of the province or a centrally run city.</li></ul><h2>Duration of temporary residence card for foreigners in Vietnam</h2><ul><li>The duration of a temporary residence card is at least 30 days shorter than the remaining duration of the passport.</li><li>The duration of a NG3, LV1, LV2, ĐT or DH temporary residence card shall not exceed 05 years.</li><li>The duration of a NN1, NN2, TT temporary residence card shall not exceed 03 years.</li><li>The duration of a LĐ or PV1 temporary residence card shall not exceed 02 years.</li><li>Expired temporary residence cards may be extended.</li></ul><h2>Consulting service to apply for temporary residence card to foreigners of OTIS LAWYERS</h2>The above is the advice of OTIS LAWYERS on the procedures for temporary residence registration and applying for a temporary residence card for foreigners under the law. If you have any questions, please contact OTIS LAWYERS immediately for advice and support.OTIS LAWYERS is always proud to be a professional unit in the field of consulting on temporary residence registration for foreigners under the law. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide investors with the most professional services, at a reasonable cost and the fastest processing time. We commit that all customer information is confidential and customer interests always come first. Please contact:OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/ </a>Website: <a href="https://otislawyers.vn/">https://otislawyers.vn/</a>&nbsp;

In order to live and work in Vietnam, they must complete the temporary or permanent residence registration procedures. According to current law, how is the procedure to apply for a temporary residence card to foreigners carried out?

[2022] THE LATEST PROCEDURES FOR TEMPORARY RESIDENCE CARDS TO FOREIGNERS IN VIETNAM

Foreign employees who want to work in Vietnam shall apply for a Work Permit. To create favorable conditions for foreign workers, the law of Vietnam stipulates some cases of exemption from work permit in Vietnam. So, according to the law, what are those cases? What is the procedure for applying for the certificate of exemption from a work permit? Find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below!<h2 style="text-align:justify;">Legal grounds</h2>Labor code No. 45/2019/QH14 dated November 20, 2019 of The National Assembly&nbsp;Decree No 152/2020/ND-CP dated December 30, 2020 of the Government on Foreign workers working in Vietnam and recruitment and management of Vietnamese workers working for foreign employers in Vietnam<h2 style="text-align:justify;">20 cases of exemption from work permit</h2>According to Article 154 of the Labor Code 2019 and Article 7 of Decree 152/2020/ND-CP, foreign employees are not required to have a work permit if he/she:<ol><li style="text-align:justify;">Is the manager of a representative office, project or the person in charge of the operation of an international organization or a foreign non-governmental organization in Vietnam.</li><li style="text-align:justify;">Enters Vietnam for a period of fewer than 03 months to do marketing of a service.</li><li style="text-align:justify;">Enters Vietnam for a period of fewer than 03 months to resolve a complicated technical or technological issue which (i) affects or threatens to affect the business operation and (ii) cannot be resolved by Vietnamese experts or any other foreign experts currently in Vietnam.</li><li style="text-align:justify;">Is a foreign lawyer who has been granted a lawyer’s practicing certificate in Vietnam under the Law on Lawyers.</li><li style="text-align:justify;">In one of the cases specified in an international treaty to which the Socialist Republic of Vietnam is a signatory.</li><li style="text-align:justify;">Gets married to a Vietnamese citizen and wishes to reside in Vietnam.</li><li style="text-align:justify;">He/she is the owner or capital contributor of a limited liability company with a capital contribution value of at least 3 billion dongs.</li><li style="text-align:justify;">He/she is the Chairperson or a member of the Board of Directors of a joint-stock company with a capital contribution value of at least 3 billion dongs.</li><li style="text-align:justify;">He/she is an intra-company transferee within 11 sectors in the schedule of commitments in services between Vietnam and WTO, including business services, communication services, construction services, distribution services, educational services, environmental services, financial services, health services, tourism services, recreational and cultural services, and transport services.</li><li style="text-align:justify;">He/she enters Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management, and execution of programs and projects using official development assistance (ODA) under regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries.</li><li style="text-align:justify;">He/she is granted a communication and journalism practicing certificate in Vietnam by the Ministry of Foreign Affairs as per the law.</li><li style="text-align:justify;">He/she is sent by a foreign competent authority or organization to Vietnam to teach and study at an international school under the management of a foreign diplomatic mission or the United Nations; or of a facility established under an agreement to which Vietnam is a signatory.</li><li style="text-align:justify;">He/she is a volunteer as specified in clause 2 Article 3 of this Decree.</li><li style="text-align:justify;">He/she enters Vietnam to hold the position of a manager, executive, expert or technical worker for a period of work of fewer than 30 days and up to 3 times a year.</li><li style="text-align:justify;">He/she enters Vietnam to implement an international agreement to which a central or provincial authority is a signatory as per the law</li><li style="text-align:justify;">He/she is a student studying at a foreign school or training institution which has a probation agreement with an agency, organization or enterprise in Vietnam; or a probationer or apprentice on a Vietnam sea-going ship.</li><li style="text-align:justify;">He/she is a relative of a member of the foreign representative body in Vietnam as specified in point l clause 1 Article 2 hereof.</li><li style="text-align:justify;">He/she obtains an official passport to work for a regulatory agency, political organization, or socio-political organization.</li><li style="text-align:justify;">He/she takes charge of establishing a commercial presence.</li><li style="text-align:justify;">He/she is certified by the Ministry of Education and Training as a foreign worker entering Vietnam for teaching and research purpose.</li></ol><h2 style="text-align:justify;">Required documents in an application for exemption from a work permit in Vietnam</h2>Clause 3, Article 8 of Decree 152/2020/ND-CP stipulates that an application for exemption from a work permit includes the following documents:<ol><li style="text-align:justify;">An application form for certification of exemption from work permit No. 09/PLI Appendix I hereto appended;</li><li style="text-align:justify;">A fitness-to-work certificate in accordance with the law</li><li style="text-align:justify;">An acceptance of demand for foreign workers, unless it is not required;</li><li style="text-align:justify;">A valid certified true copy of passport as per the law;</li><li style="text-align:justify;">Documents justifying that the foreign worker is exempt from a work permit;</li></ol>Any document mentioned above is 1 original or certified true copy; if a document is written in a foreign language, it must be consular legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.&nbsp;<h2 style="text-align:justify;">Procedures for exemption from work permit in Vietnam&nbsp;</h2><ul><li style="text-align:justify;">The employer shall request the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province where the foreign worker is expected to work to certify that such foreign worker is eligible for exemption from a work permit at least 10 working days before he/she starts to work.</li><li style="text-align:justify;">Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall issue a certification of exemption from work permit.&nbsp;</li><li style="text-align:justify;">The validity period of certification of exemption from a work permit is up to 2 years.&nbsp;</li></ul>Note:&nbsp;For any of the circumstances in clauses 4, 6, and 8 of Article 154 of the Labor Code and clauses 1, 2, 8, and 11 of Article 7 of Decree 152/2020/ND-CP, the employer is not required to apply for the certification of exemption but it must report the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs of the province where the foreign worker is expected to work, at least 3 days before the such foreign worker starts to work in Vietnam, on the following: full name, age, nationality, passport number, name of employer, starting date and completion date.Above is our advice on&nbsp;the exemption from a work permit&nbsp;for foreign workers. We hope that it will be helpful information for you.&nbsp;<h2 style="text-align:justify;">Consulting service to apply for a work permit in Vietnam of OTIS LAWYERS</h2>OTIS LAWYERS is always proud to be a professional unit in the field of consulting for&nbsp;the issuance and re-issuance of work permits. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide&nbsp;foreign workers&nbsp;with the best professional services, at a reasonable cost and the fastest processing time. We commit that all client information is confidential and client interests always come first. Please contact:OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/</a>&nbsp; Website:&nbsp; https://otislawyers.vn/

To create favorable conditions for foreign workers, the law of Vietnam stipulates some cases of exemption from a work permit in Vietnam

HOW TO GET A CERTIFICATION OF EXEMPTION FROM WORK PERMIT IN VIETNAM

In the era of deepening economic integration, more and more foreign employees are joining Vietnam's labor market. To work in Vietnam, foreign workers need a work permit to apply for a temporary residence card or a working visa for Vietnam. So, how to get a <a href="https://otislawyers.vn/en/dich-vu/work-permit-temporary-residence-card-visa-for-foreigners">work permit in Vietnam</a>? Let's find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below!<h2 style="text-align:justify;">Legal grounds</h2>Labor code No 45/2019/QH14 dated November 20, 2019 of The National Assembly&nbsp;Decree No 152/2020/ND-CP dated December 30, 2020 of the Government on Foreign workers working in Vietnam and recruitment and management of Vietnamese workers working for foreign employers in Vietnam<h2 style="text-align:justify;">Requirements for foreigners to work in Vietnam</h2>Article 151, Labor Code 2019 stipulates the conditions of a foreign employee below:<ul><li style="text-align:justify;">is at least 18 years of age and has full legal capacity;</li><li style="text-align:justify;">has qualifications, occupational skills, practical experience, and adequate health as prescribed by the Minister of Health;</li><li style="text-align:justify;">is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law;</li><li style="text-align:justify;">has a work permit granted by a competent authority in Vietnam</li></ul>In addition, foreign employees working in Vietnam shall comply with and shall be protected by Vietnam's Labor Code, unless otherwise prescribed by treaties to which Vietnam is a signatory.<h2 style="text-align:justify;">Application for issuance of a work permit in Vietnam</h2>According to Article 9, Decree 152/2020 ND-CP, the application for issuance of a work permit includes:<ul><li style="text-align:justify;">An application form for issuance of a work permit No. 11/PLI Appendix I hereto appended.</li><li style="text-align:justify;">A fitness-to-work certificate issued by a foreign or Vietnamese competent health facility issued within 12 months before the submission date of the application or the certificate as specified in regulations of the Minister of Health</li><li style="text-align:justify;">A police (clearance) certificate or a document certifying that the foreign worker is not serving a sentence, has a criminal record expunged, or is not facing a criminal prosecution which is issued within 6 months before the submission date of the application</li><li style="text-align:justify;">Proof as a manager, executive, expert, technical and certain jobs, works</li><li style="text-align:justify;">02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application</li><li style="text-align:justify;">An acceptance of demand for foreign workers, unless it is not required.</li><li style="text-align:justify;">A valid certified true copy of passport as per the law</li><li style="text-align:justify;">Documents relevant to the foreign worker(depending on each foreign worker as prescribed by law)</li></ul>Note: All the mentioned documents are original or certified true copies; if a document is written in a foreign language, it must be consular legalized, translated into Vietnamese, and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.<h2 style="text-align:justify;">Procedures for issuance of a work permit in Vietnam</h2><h3 style="text-align:justify;">Step 1</h3>At least 30 days before the date on which foreign workers are expected to be employed, the employer (except contractor) shall determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified and send a corresponding report to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of province or central-affiliated city (hereinafter referred to as province) where the foreign workers are expected to workWithin 10 working days of receiving the foregoing report on demand for foreign workers or report on change thereof, the authority shall issue a document specifying accepted job positions and non-accepted job positions<h3 style="text-align:justify;">Step 2</h3>At least 15 working days before the day on which a foreign worker starts to work, the applicant shall submit an application for a work permit to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province where he/she is expected to work.<h3 style="text-align:justify;">Duration of work permit in Vietnam</h3>The maximum duration of a work permit is 02 years. A work permit may be extended once for up to 02 more years.The validity period of a renewed work permit shall coincide with any of the period/duration prescribed in Article 10, Decree No 152/2020/ND-CP but it is only renewed once for a period of up to 2 years.<h2 style="text-align:justify;">Consulting service to apply for a work permit of OTIS LAWYERS</h2>Above is the advice of OTIS LAWYERS on work permits under the law. If you have any questions about a work permit, please contact OTIS LAWYERS immediately for advice and support.OTIS LAWYERS is always proud to be a professional unit in the field of consulting for the issuance and re-issuance of work permits. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide foreign workers with the best professional services, reasonable fees, and the fastest processing time. We commit that all client information is confidential and client interests always come first.&nbsp;&nbsp;OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/</a>&nbsp; Website:&nbsp; https://otislawyers.vn/

To work in Vietnam, foreign workers need a work permit to apply for a temporary residence card. So, how to get a work permit in Vietnam?

[LATEST PROCEDURES] HOW TO GET A WORK PERMIT IN VIETNAM 

A Vietnam visa is a document issued by a competent authority of Vietnam, allowing foreigners to enter Vietnam, and which is proof that someone is allowed to enter or exit Vietnam. So what is the current law on visas - visa for foreigners? <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> would like to share with readers in the article below!<h2>Legal basis of administrative procedures</h2><ul><li>Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam (Law No. 47/2014/QH13, dated June 16, 2014).</li><li>Circular No. 04/2015/TT-BCA, dated January 5, 2015 of the Ministry of Public Security, provides for forms related to entry, exit, and residence of foreigners in Vietnam</li></ul><h2>Visa symbols (Visa for foreigners in Vietnam)</h2>Article 8, Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates types of visa with the following symbols:<ul><li>NG1 - Issued to members of delegations invited by the Secretary General of Vietnam’s Communist Party, the President of Vietnam, the President of the National Assembly, and the Prime Minister.</li><li>NG2 - issued to members of delegations invited by standing members of the Secretariat of Vietnam’s Communist Party, Deputy President of Vietnam, Deputy President of the National Assembly, Deputy Prime Minister, President of Vietnamese Fatherland Front, Executive Judge of The Supreme Court, Chief Procurator of the Supreme Procuracy, State Auditor General; members of delegations at the same levels of Ministers, Secretary Generals of Provincial Communist Authorities, President of the People’s Committees of provinces.</li><li>NG3 - Issued to members of diplomatic missions, consular offices, representative offices of international organizations affiliated with the UN, representative offices of intergovernmental organizations and their spouses, children under 18 years of age, and housemaids during their term of office.</li><li>NG4 – Issued to persons who come to work with diplomatic missions, consular missions, representative offices of international organizations affiliated to the UN, intergovernmental representative offices and accompanying spouses, children under 18 years of age; visitors of diplomatic missions, consular missions, representative offices of international organizations affiliated to United Nation and intergovernmental representative offices.”</li><li>LV1 - Issued to people who come to work with units affiliated with Vietnam’s Communist Party; the National Assembly, the government, the Central Committee of Vietnamese Fatherland Front, the People’s Supreme Court, the People’s Supreme Procuracy, State Audit Agency, Ministries, ministerial agencies, Governmental agencies, the People’s Councils, the People’s Committees of provinces.</li><li>LV2 - Issued to people who come to work with socio-political organizations, social organizations, Vietnam Chamber of Commerce and Industry.</li><li>LS – Issued to foreign lawyers practicing in Vietnam.</li><li>DT1 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 100 billion or more or investing in business lines benefitting from investment incentives, in administrative divisions benefitting from investment incentives decided by the Government.</li><li>DT2 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 50 billion to less than VND 100 billion or investing in business lines benefitting from investment incentives treatment decided by the Government.</li><li>DT3 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 3 billion to less than VND 50 billion.</li><li>DT4 - Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of less than VND 3 billion.”;</li><li>DN1 – Issued to foreigners working with other enterprises and organizations that have legal status as per the law of Vietnam</li><li>DN2 – Issued to foreigners making entry to promote services, establish a commercial presence, or conduct other activities according to international agreements to which Vietnam is a signatory</li><li>NN1 - Issued to Managers of representative offices or projects of international organizations and foreign non-governmental organizations in Vietnam.</li><li>NN2 - Issued to heads of representative offices, branches of foreign traders, and representative offices of other foreign economic, cultural, and professional organizations in Vietnam.</li><li>NN3 - Issued to people who come to work with foreign non-governmental organizations, representative offices, branches of foreign traders, and representative offices of other foreign economic, cultural, and professional organizations in Vietnam.</li><li>DH - Issued to people who come to study or serve an internship.</li><li>HN - Issued to people who come to attend conventions or conferences.</li><li>PV1 - Issued to journalists who have permanent residences in Vietnam.</li><li>PV2 - Issued to journalists who come to work for a short period of time in Vietnam.</li><li>LD1 -&nbsp; Issued to foreigners working in Vietnam and certified of eligibility for work permit exemption, unless otherwise specified by international agreements to which Vietnam is a signatory.</li><li>&nbsp;LD2 – Issued to foreigners working in Vietnam requiring a work permit.</li><li>DL - Issued to tourists.</li><li>TT – Issued to foreigners that are spouses or children under 18 years of age of foreigners issued with LV1, LV2, LS, DT1, DT2, DT3, NN1, NN2, DH, PV1, LD1 or LD2 visas or foreigners that are parents, spouses or children of Vietnamese citizens</li><li>VR - Issued to people who come to visit their relatives or for other purposes.</li><li>SQ - Issued to people in the cases mentioned in Clause 3 Article 17 of this Law.</li><li>EV - Electronic visas</li></ul><h2>Conditions for visa issuance (Visa for foreigners in Vietnam)</h2>Article 10 of the&nbsp;Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates the conditions for being granted a visa, including:<ul><li>Has a passport or laissez-passer</li><li>Invited or sponsored by agencies, organizations, or individuals in Vietnam, except for cases specified in this Law</li><li>Not suspended from entry</li><li>Proof of entry purposes must be provided when applying for a visa in the following cases:</li><li>Any foreigner who comes to make invest must have papers proving the investment in Vietnam in accordance with the Law on Investment;</li><li>Any foreigner who works as a lawyer in Vietnam must have a practice license in accordance with the Law of Lawyers;</li><li>Any foreigner who comes to work in Vietnam must have work permits in accordance with the Labor Code;</li><li>Any foreigner who comes to study in Vietnam must have written acceptance of a school or an educational institution in Vietnam.</li></ul><h2>Cases of visa-free entry (Visa for foreigners in Vietnam)</h2><ul><li>The cases prescribed in international agreements to which Vietnam is a signatory</li><li>Permanent residence cards and temporary residence cards&nbsp;</li><li>Entry to checkpoint economic zones, special administrative-economic units</li><li>Unilateral visa-free entry</li><li>Vietnamese people residing overseas who have passports or laissez-passers issued by foreign authorities, foreigners being their spouses or children; foreigners being spouses and children of Vietnamese citizens shall be granted visa-free entry as prescribed by the government</li><li>Entering coastal economic zones decided by the Government if fully satisfying the following conditions: having international airports; having private space; having a defined geographical border separate from inland; in conformity with socio-economic development policies and not harming national defense and security, social safety and order of Vietnam</li></ul><h2>&nbsp;Visa duration</h2><ul><li>The duration of SQ and EV visas do not exceed 30 days</li><li>The duration of HN and DL visas is not longer than 03 months.</li><li>The duration of a VR visa is not longer than 06 months.</li><li>The duration of NG1, NG2, NG3, NG4, LV1, LV2, DT4, DN1, DN2, NN1, NN1, NN3, DH, PV1, PV2 and TT visas do not exceed 12 months</li><li>The duration of LD1, and LD2 visas do not exceed 2 years.</li><li>The duration of LS, DT1, and DT2 visas do not exceed 5 years.</li><li>The duration of a DT3 visa does not exceed 3 years</li></ul>When a visa is expired, a new visa shall be considered. The duration of a visa shall be at least 30 days shorter than that of a passport or international laissez-passer.Above is the advice of OTIS LAWYERS on VISA under the law. We hope the article will be a useful reference for you.<h2>Visa consulting service for foreigners of OTIS LAWYERS</h2><ul><li>Consulting and answering clients' questions about the legal provisions of Visas for foreigners.</li><li>Advice on conditions for foreigners to be issued Visas</li><li>Guide clients to prepare necessary documents for applications</li><li>Representing clients to carry out visa application procedures at a competent authority</li></ul>OTIS LAWYERS is always proud to be a professional unit in the field of consulting for the issuance of VISA for foreigners. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide foreigners with the best professional services, reasonable fees, and the fastest processing time. We commit that all client information is confidential and client interests always come first.If you have any questions, please contact OTIS LAWYERS immediately for advice and support.OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/</a> <a href="mailto:luatsuphamoanh@gmail.com">luatsuphamoanh@gmail.com</a>&nbsp;&nbsp;Website:&nbsp; <a href="https://otislawyers.vn/">https://otislawyers.vn/</a>&nbsp;

A Vietnam visa is a document issued by a competent authority of Vietnam, allowing foreigners to enter Vietnam, and which is proof that someone is allowed to enter or exit Vietnam

VISA FOR FOREIGNERS IN VIETNAM - LATEST REGULATIONS 

A work permit for foreigners is a type of permit that allows foreigners to work legally in Vietnam. It is an important legal document for foreign workers working in Vietnam. Renewal of Vietnam work permits is a matter of concern for many businesses and foreign workers in Vietnam today, especially when there are many changes in regulations on the renewal of work permits in Vietnam according to the Labor code 2019 and Decree 152/2020/ND-CP of the Government. So what is a <a href="https://otislawyers.vn/en/dv/latest-procedures-how-to-get-a-work-permit-in-vietnam">renewal of a Vietnam work permit</a>? What is the renewal procedure? What does the application include? In this article, <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> will present an overview of the renewal of work permits for foreign workers.<h2>Legal grounds</h2>Labor code No. 45/2019/QH14 dated November 20, 2019 of The National Assembly&nbsp;Decree No 152/2020/ND-CP dated December 30, 2020 of the Government on Foreign workers working in Vietnam and recruitment and management of Vietnamese workers working for foreign employers in Vietnam<h2>What is a renewal of a Vietnam work permit?</h2>Renewal of a Vietnam work permit for a foreigner is an extension of the term of a work permit that is about to expire so that a foreigner can continue to work legally in Vietnam according to the correct position and title in which the work permit is about to expire.<h2>Requirements for renewal of a Vietnam work permit</h2>Article 16 of Decree 152/2020/ND-CP stipulates the conditions for renewal of work permit as follows:<ul><li>The remaining validity period of the work permit is at least five days but not exceeding 45 days.</li><li>The competent authority grants an acceptance of the demand for foreign workers&nbsp;</li><li>Document supporting that the foreign worker will continue employment with the employer as specified in the concerned work permit is available.</li></ul><h2>Application for renewal of a Vietnam work permit</h2>To renew of a work permit, the employer and the foreign worker need to prepare the following documents:<ol><li>An application form for renewal of work permit made by employer No. 11/PLI Appendix I hereto appended.</li><li>02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application.</li><li>The unexpired work permit.</li><li>An acceptance of demand for foreign workers, unless it is not required.</li><li>&nbsp;A valid certified true copy of passport as per the law.</li><li>Fitness to work certificate</li><li>Any document specified in clause 8 Article 9 hereof supports that the foreign worker will continue in employment with the employer as specified in the concerned work permit.</li></ol>Noted: Any document mentioned in clauses 3, 4, 6, and 7 hereof is 1 original or certified true copy; if a document is written in a foreign language, it must be consular legalized, translated into Vietnamese, and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.<h2>Procedures for renewal of a Vietnam work permit</h2>Step 1: Submit for renewal of work permitAt least 5 days, but not exceeding 45 days before the expiry date of the worker permit, the employer shall submit for renewal of a work permit to the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs which issued that work permit.Step 2: Processing application for renewal&nbsp; of work permitWithin five working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall renew the work permit.&nbsp;Step 3: Sign a labor contract&nbsp;In this case, foreign workers perform employment contracts; after his/her work permit is renewed, the employer and the foreign worker must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work.Step 4: The employer shall send that employment contract to the competent authority that issued that work permit. The employment contract is the original or a certified true copy.<h2>How many times can you renew your work permit?</h2>According to Article 19 of Decree 152/2020/ND-CP, a work permit is only renewed once for a period of up to 2 years. In this case, if a foreign worker has completed the procedures for renewing the work permit and continues to work at the enterprise in the same position, the procedures for applying for a new work permit must be carried out.<h2>Consulting service to renew a Vietnam work permit of OTIS LAWYERS</h2>Above is the advice of OTIS LAWYERS on the renewal of work permits under the law. If you have any questions about a work permit, please contact OTIS LAWYERS immediately for advice and support.OTIS LAWYERS is always proud to be a professional unit in the field of consulting for the renewal of Vietnam work permits. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide foreign workers with the best professional services, reasonable fees, and the fastest processing time. We commit that all client information is confidential and client interests always come first.OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/</a>&nbsp; Website:&nbsp; https://otislawyers.vn/

(OTIS LAWYERS) Renewal of a Vietnam work permit is a matter of concern for many businesses and foreign workers in Vietnam today. 

PROCEDURES FOR RENEWAL OF VIETNAM WORK PERMIT FOR FOREIGNERS

Nowadays, the demand for using high-quality foreign labor resources for specific positions requiring experience in Vietnamese enterprises is increasing, especially for foreign-invested enterprises. However, many enterprises have not yet understood the regulations on using foreign workers in Vietnam. Therefore, <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> would like to provide the following article to supply necessary legal notes for foreigners investing and working in Vietnam.<h2>REQUIREMENTS FOR FOREIGNERS TO WORK IN VIETNAM</h2>According to the provisions of Article 151 of the Labor Code 2019, requirements for foreigners to work in Vietnam<ul><li>is at least 18 years of age and have full legal capacity;</li><li>has qualifications, occupational skills, and practical experience, and adequate health as prescribed by the Minister of Health;</li><li>is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law;</li><li>has a work permit granted by a competent authority of Vietnam, except otherwise exempted.</li></ul><h2>APPLY FOR WORK PERMIT&nbsp;</h2><h3>Entities who issuance of work permits&nbsp;</h3>Workers who are foreign nationals moving to Vietnam for employment for the following purposes will be eligible to apply for a new work permit according to the provisions of Clause 1, Article 2, Decree No. 152/2020/ND-CP:&nbsp;<ul><li>performing employment contracts;&nbsp;</li><li>performing intra-company transfer program;</li><li>performing contracts or agreements on business, trade, finance, banking, insurance, science and technology, culture, sports, education, vocational training, and health;</li><li>providing services under contracts;</li><li>offering services;</li><li>taking charge of establishing the commercial presence;</li><li>working as managers, executives, experts, and technical workers;</li><li>performing packages or projects in Vietnam; or</li><li>accompanying members of foreign representative bodies in Vietnam who are authorized to work in Vietnam under an international treaty to which the Socialist Republic of Vietnam is a signatory as their relatives.</li></ul><h3>Procedures for issuance of a work permit</h3><h4>Step 1</h4>The employer (except the contractor) shall determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified. After sending a corresponding report to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of a province or central-affiliated city at least 30 days before the date on which foreign workers are expected to be employed.&nbsp;<h4>Step 2</h4>The applicant shall submit an application for a work permit to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province at least 15 working days before the day on which a foreign worker starts to work,<h4>Step 3</h4>Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs of the province where the foreign worker is expected to work shall issue a work permit to the foreign worker. If the application is rejected, a written explanation is required.<h3>The validity period of a work permits</h3>The validity period of a work permit shall coincide with any period/duration below but not exceeding 2 years:<ul><li>Validity period of the employment contract to be signed.</li><li>Duration of the foreign worker’s assignment in Vietnam.</li><li>Duration of the contract or agreement concluded between Vietnamese and foreign partners.</li><li>Duration of the service contract or agreement concluded between Vietnamese and foreign partners.</li><li>Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to negotiate the service provision.</li><li>Validity period in the operation license of the agency, organization, or enterprise.</li><li>Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to establish a commercial presence.</li><li>Duration stated in a document proving the foreign worker’s eligibility to participate in the operation of a foreign company that has established its commercial presence in Vietnam.</li><li>Duration stated in the acceptance of employment of foreign workers unless a report on demand for foreign workers as specified in point b clause 1 Article 4 hereof is not required.</li></ul><h3>Administrative sanction related to work permits</h3>According to Article 32, Decree No. 12/2022/ND-CP, violations against regulations on foreigners working in Vietnam are as follows:<ul><li>A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed upon an employer for a commission of one of the following violations: Failing to submit the original copy or certified true copy of the signed employment contract, after the foreign employee has been issued with the work permit or has his/her work permit extended, at the request of the competent authority that has issued or extended such work permit in case that foreign employee works under an employment contract.</li><li>A fine ranging from VND 5.000.000 to VND 10.000.000 per employee but not exceeding VND 75.000.000 shall be imposed upon an employer for hiring a foreign employee against his/her work permit or certification of eligibility for work permit exemption unless otherwise prescribed by law.</li><li>A fine ranging from VND 15.000.000 to VND 25.000.000 shall be imposed upon a foreigner working in Vietnam for a commission of one of the following violations:</li><li>Failing to obtain a work permit or certification of eligibility for work permit exemption when working in Vietnam as prescribed by law;</li><li>Using an expired work permit or certification of eligibility for a work permit exemption.</li><li>The following fines shall be imposed upon an employer for hiring a foreign employee who does not have a work permit or certification of eligibility for work permit exemption or who uses an expired one to work in Vietnam:</li><li>A fine ranging from VND 30.000.000 to VND 45.000.000 shall be imposed if the violation involves 01 - 10 employees;</li><li>A fine ranging from VND 45.000.000 to VND 60.000.000 shall be imposed if the violation involves 11 - 20 employees;</li><li>A fine ranging from VND 60.000.000 to VND 75.000.000 shall be imposed if the violation involves 21 employees or more.</li></ul><h2>APPLY FOR A VISA</h2><h3>Conditions for visa issuance (Visa for foreigners in Vietnam)</h3>Article 10 of the Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates the conditions for being granted a visa, including<ul><li>Has a passport or laissez-passer</li><li>Invited or sponsored by agencies, organizations, or individuals in Vietnam</li><li>Not suspended from entry</li><li>Proof of entry purposes must be provided when investor/worker applying for a visa</li></ul><h3>Visa duration</h3><ul><li>The duration of DN1, DN2, do not exceed 12 months</li><li>The duration of LD1, and LD2 visas do not exceed 2 years</li><li>The duration of DT1, and DT2 visas do not exceed 5 years</li><li>The duration of a DT3 visa does not exceed 3 years</li></ul><h2>APPLY FOR TEMPORARY RESIDENCE CARD</h2>Cases in which temporary residence cards are issued: Artice 36, Law No.47/2014/QH13 dated June 16, 2014, entry, exit, transit, and residence of foreigners in Vietnam stipulate foreigners issued with LV1, /Duration of temporary residence cards:&nbsp;<ul><li>The duration of a temporary residence card is at least 30 days shorter than the remaining duration of the passport.</li><li>The duration of a NG3, LV1, LV2, ĐT or DH temporary residence card shall not exceed 05 years.</li><li>The duration of a NN1, NN2, TT temporary residence card shall not exceed 03 years.</li><li>The duration of a LĐ or PV1 temporary residence card shall not exceed 02 years.</li><li>Expired temporary residence cards may be extended.</li></ul>&nbsp;

 OTIS LAWYERS would like to provide the following article to supply necessary legal notes for foreigners investing and working in Vietnam.

NECESSARY LEGAL NOTES FOR FOREIGNERS INVESTING AND WORKING IN VIETNAM

Food safety is a very hot issue in today's society. The situation of restaurants not ensuring hygiene processing or enterprises producing dirty food for profit is no longer strange to each of us. Of course, facing this bad situation, the State cannot just ignore. To intervene in this matter, the State promulgates regulations on the Certificate of Food Hygiene and Safety. So how is this regulation, let's find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in this article.<h2>LEGAL BASIS</h2><ul><li>Law on Food Safety 2010;</li><li>Decree 15/2018/ND-CP;</li><li>Decree 115/20218/ND – CP.</li></ul><h2>CONCEPT OF FOOD SAFETY CERTIFICATE</h2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of food safety and hygiene, the full name is Certificate of qualified establishments for food safety, is a license issued by a competent authority to an enterprise or business household. food business, food production, and catering services to ensure that establishments meet food hygiene and safety conditions as prescribed by law.<img src="https://admin.otislawyers.vn/uploads/certificate_of_food_safety_and_hygiene_for_restaurants_and_diners_otis_lawyers_service_1_b0712505d4.jpg" alt="certificate-of-food-safety-and-hygiene-for-restaurants-and-diners-otis-lawyers-service (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_certificate_of_food_safety_and_hygiene_for_restaurants_and_diners_otis_lawyers_service_1_b0712505d4.jpg 208w,https://admin.otislawyers.vn/uploads/small_certificate_of_food_safety_and_hygiene_for_restaurants_and_diners_otis_lawyers_service_1_b0712505d4.jpg 500w,https://admin.otislawyers.vn/uploads/medium_certificate_of_food_safety_and_hygiene_for_restaurants_and_diners_otis_lawyers_service_1_b0712505d4.jpg 750w," sizes="100vw"><h2>CONDITIONS FOR ISSUANCE OF FOOD SAFETY AND HYGIENE CERTIFICATE</h2><h3>Food service establishments, food processing establishments</h3><ul><li>The kitchen is arranged to ensure that there is no cross-contamination between unprocessed food and processed food.</li><li>Having enough water meeting technical standards for processing and trading.</li><li>Having tools to collect and store garbage and waste to ensure hygiene.</li><li>Drains in store and kitchen areas must be clear and not stagnant.</li><li>The cafeteria must be airy, cool, well-lit, maintain a clean hygiene regime, and take measures to prevent harmful insects and animals.</li><li>There are equipment for food preservation, toilets, hand washing and daily cleaning of waste and garbage.</li><li>The head of the unit with collective kitchen is responsible for ensuring food safety.</li><li>Having registered food business lines in the Enterprise Registration Certificate.</li></ul><h3>Food production and trading establishments</h3><ul><li>Having an appropriate location and area, having a safe distance from toxic sources, pollution sources and other harmful factors;</li><li>Having enough water meeting technical regulations for food production and trading;</li><li>Having adequate equipment suitable for raw material handling, processing, packaging, storage and transportation of various foods; having sufficient equipment, tools, means of washing and disinfecting, antiseptic water, equipment for prevention and control of insects and harmful animals;</li><li>Having a waste treatment system operating regularly in accordance with the law on environmental protection;</li><li>Maintaining conditions to ensure food safety and keep records on the origin of food materials and other documents on the entire process of food production and trading;</li><li>Comply with regulations on health, knowledge and practice of people directly producing and trading food.</li><li>Having registered food business lines in the Enterprise Registration Certificate.</li></ul><h2>APPLICATION FOR FOOD SAFETY AND HYGIENE CERTIFICATE</h2>&nbsp;&nbsp;&nbsp;An application for a certificate of food hygiene and safety includes the following documents:<img src="https://admin.otislawyers.vn/uploads/chuyen_nhuong_du_an_dau_tu_trinh_tu_thu_tuc_moi_nhat_nam_2022_5fbb8db258.jpg" alt="chuyen-nhuong-du-an-dau-tu-trinh-tu-thu-tuc-moi-nhat-nam-2022.jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_chuyen_nhuong_du_an_dau_tu_trinh_tu_thu_tuc_moi_nhat_nam_2022_5fbb8db258.jpg 208w,https://admin.otislawyers.vn/uploads/small_chuyen_nhuong_du_an_dau_tu_trinh_tu_thu_tuc_moi_nhat_nam_2022_5fbb8db258.jpg 500w,https://admin.otislawyers.vn/uploads/medium_chuyen_nhuong_du_an_dau_tu_trinh_tu_thu_tuc_moi_nhat_nam_2022_5fbb8db258.jpg 750w," sizes="100vw"><ul><li>An application form for a Certificate of eligibility for food safety;</li><li>Copy of Enterprise Registration Certificate;</li><li>An explanation of the facilities, equipment and tools to ensure food hygiene and safety conditions as prescribed by the competent state management agency;</li><li>Health certificate of the establishment owner and the person directly producing and trading food, issued by a district-level or higher-level health facility</li><li>Certificate of training in food safety knowledge of the establishment owner and of the person directly producing and trading food according to regulations of the Minister of specialized management.</li></ul><h2>ORDER AND PROCEDURES FOR FOOD SAFETY AND HYGIENE CERTIFICATE</h2><h3>Step 1: Submit the application at the competent authority</h3><h4>Filed at the Ministry of Industry and Trade</h4>- Establishments producing food products with designed capacity:+ Alcohol: From 03 million liters of product/year or more;+ Beer: From 50 million liters of product/year or more;+ Beverage: From 20 million liters of product/year or more;+ Processed milk: From 20 million liters of product/year or more;+ Vegetable oil: From 50,000 tons of products/year or more;+ Confectionery: From 20 thousand tons of products/year or more;+ Flour and starch: From 100,000 tons of products/year or more.- Chain of food business establishments (except chains of mini supermarkets and chains of convenience stores with an area equivalent to mini supermarkets as prescribed by law); food wholesalers (including synthetic foods) in two or more provinces or centrally-affiliated cities.<h4>Filed at the Department of Industry and Trade or the One-Stop-Shop as prescribed by the Provincial People's Committee</h4>- Establishments producing food products with lower design capacity- Food business establishments of wholesalers or wholesalers in 01 province or centrally-affiliated city or food retail establishments in that province or city.<h3>Step 2: Receive and process the application</h3>When submitting the application, the receiving department will record it in the book and give the application receipt (in which the date of appointment to return the result of the application is clearly stated).From the date of receipt of complete and valid dossiers, competent state agencies shall conduct physical inspection of food safety assurance conditions at food production and trading establishments.<h3>Step 3: Return the result</h3>Within 15 days from the date of submission of a complete dossier, if all conditions are met, the state agency must issue a Certificate of food safety eligibility; In case of refusal, it must reply in writing and clearly state the reason.Note: The validity period of the Certificate of Food Hygiene and Safety is 03 years.Before the certificate expires, establishments need to carry out the procedures for re-issuance if they continue to carry out production and business activities.<h2>HOW TO HANDLE VIOLATIONS OF NO FOOD SAFETY AND HYGIENE CERTIFICATE?</h2>Pursuant to Article 18 of Decree 115/2018/ND-CP on Violations against regulations on Certificates of food safety eligibility, there will be penalties for acts without certificates as follows:<figure class="table"><table><tbody><tr><td>No.</td><td>Violations</td><td>Amount of fines</td><td>Remedial measures</td></tr><tr><td>1</td><td>Food service business without a Certificate of eligibility for food safety</td><td>From 20 to 30 million VND</td><td>&nbsp;</td></tr><tr><td>2</td><td>Producing and trading in food without a Certificate of eligibility for food safety, except for the third case.</td><td>From 30-40 million VND</td><td rowspan="2">Forcible recall of food for violations specified in Clauses;Forcible change of use purpose or recycling or destruction of food.</td></tr><tr><td>3</td><td>Producing health foods without a Certificate of eligibility for food safety meeting the requirements of good manufacturing practice (GMP) of health foods according to the roadmap</td><td>From 40 to 60 million VND</td></tr></tbody></table></figure>If the establishment has come into operation without a certificate of food hygiene and safety, it will be fined according to the provisions of law. Penalties range from warning to administrative fine according to different levels and cases mentioned above. It is even possible to close the facility and incur some additional penalties such as: confiscation of invalid documents.<h2>OTIS LAWYERS: Food Hygiene and Safety Certificate application service</h2>OTIS LAWYERS is always proud to be a professional unit in consulting and supporting the implementation of procedures related to sub-licenses in general and food safety licenses in particular. A team of highly qualified lawyers with extensive experience and dedication to clients, we believe that we will provide you with the best, most professional service, reasonable cost and time. Complete the process as quickly as possible. We commit that all client information is absolutely confidential and client interests always come first.<img src="https://admin.otislawyers.vn/uploads/doanh_nghiep_tu_nhan_la_gi_thanh_lap_doanh_nghiep_tu_nhan_1_ee2b0f6d8c.jpg" alt="doanh-nghiep-tu-nhan-la-gi-thanh-lap-doanh-nghiep-tu-nhan (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_doanh_nghiep_tu_nhan_la_gi_thanh_lap_doanh_nghiep_tu_nhan_1_ee2b0f6d8c.jpg 208w,https://admin.otislawyers.vn/uploads/small_doanh_nghiep_tu_nhan_la_gi_thanh_lap_doanh_nghiep_tu_nhan_1_ee2b0f6d8c.jpg 500w,https://admin.otislawyers.vn/uploads/medium_doanh_nghiep_tu_nhan_la_gi_thanh_lap_doanh_nghiep_tu_nhan_1_ee2b0f6d8c.jpg 750w," sizes="100vw">For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vn

The State promulgates regulations on the Certificate of Food Hygiene and Safety. So how is this regulation, let's find out with OTIS LAWYERS 

CERTIFICATE OF FOOD SAFETY AND HYGIENE FOR RESTAURANTS AND DINERS - OTIS LAWYERS SERVICE

In the current conditions of expanded integration, there is a strong exchange and interference between businesses and transnational business organizations. In addition to the exchange of business, goods and technology, there is now a trend that is not new but is being expanded and developed strongly. That is the exchange of labor, even the number of foreign workers is constantly increasing. In order for foreign workers to be able to work in Vietnam, they need to apply for a work permit. However, in some cases, the State has the right to revoke a work permit. So let's find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> the provisions of the law on the revocation of work permits of foreign workers in this article.<h2>Legal grounds</h2>Decree 152/2020/ND-CPLabor Code 2019<h2>Cases of revocation of work permits</h2>According to Article 20 of Decree 152/2020/ND-CP, the following cases are prescribed:<ul><li>Employers or foreign workers fail to comply with the provisions of this Decree;</li><li>The foreign worker, during his/her employment in Vietnam, fails to abide by Vietnam’s law which compromises security and social order;</li><li>The work permit expires as prescribed in article 156 of the Labor Code 2019;</li><li>The work permit has expired;</li><li>Termination of the labor contract between the employee and the enterprise;</li><li>The content of the labor contract does not match the content of the issued work permit;</li><li>Working contrary to the contents of the issued work permit;</li><li>Contracts in the fields that are the basis for the expiration or termination of the work permit;</li><li>There is a written notice from the foreign side to stop sending foreign workers to work in Vietnam;</li><li>Vietnamese enterprises, organizations, partners or foreign organizations in Vietnam employing foreigners cease to operate.</li></ul><img src="https://admin.otislawyers.vn/uploads/mien_giay_phep_lao_dong_khi_nao_2_897d3ab7f5.jpg" alt="mien-giay-phep-lao-dong-khi -nao (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_mien_giay_phep_lao_dong_khi_nao_2_897d3ab7f5.jpg 208w,https://admin.otislawyers.vn/uploads/small_mien_giay_phep_lao_dong_khi_nao_2_897d3ab7f5.jpg 500w,https://admin.otislawyers.vn/uploads/medium_mien_giay_phep_lao_dong_khi_nao_2_897d3ab7f5.jpg 750w," sizes="100vw"><h2>Procedure for revocation of work permit</h2>The order of revocation is specified in Article 21 of Decree 152/2020/ND-CP, specifically as follows:<h3>For the case specified in Clause 1, Article 20 of Decree 152/2020/ND-CP</h3>Within 15 days after the work permit expires, the employer:<ul><li>Revocation of foreign workers' work permits;</li><li>Attach a document stating the reason for the revocation;</li><li>Cases that have to be revoked but cannot be implemented;</li></ul>Then submit it to the Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs that issued the work permit.<h3>For the case specified in Clauses 2 and 3, Article 20 of Decree 152/2020/ND-CP</h3>The Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs has issued the work permit:<ul><li>Make a decision to revoke a work permit:</li><li>Notify the employer to revoke the foreign worker's work permit and return it to the Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs that issued the work permit;</li><li>Within 05 working days from the date of receiving the revoked work permit, the Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs shall issue a written confirmation to the employer.</li></ul><h2>Work permit service of OTIS LAWYERS</h2>OTIS LAWYERS is always proud to be a professional unit in consulting and supporting the implementation of procedures related to work permits. Apply for a work permit, re-issue a work permit, renew a work permit... A team of highly qualified lawyers with extensive experience and dedication to clients, we will provide clients with the best service, the most professional, reasonable cost and the fastest time to complete the procedure. We commit that all client information is absolutely confidential and client interests always come first.<img src="https://admin.otislawyers.vn/uploads/tu_van_mua_ban_doanh_nghiep_hop_dong_m_and_a_cho_cac_nha_dau_tu_tai_viet_nam_2_e0a3a5755b.jpg" alt="tu-van-mua-ban-doanh-nghiep-hop-dong-m-and-a-cho-cac-nha-dau-tu-tai-viet-nam (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_tu_van_mua_ban_doanh_nghiep_hop_dong_m_and_a_cho_cac_nha_dau_tu_tai_viet_nam_2_e0a3a5755b.jpg 208w,https://admin.otislawyers.vn/uploads/small_tu_van_mua_ban_doanh_nghiep_hop_dong_m_and_a_cho_cac_nha_dau_tu_tai_viet_nam_2_e0a3a5755b.jpg 500w,https://admin.otislawyers.vn/uploads/medium_tu_van_mua_ban_doanh_nghiep_hop_dong_m_and_a_cho_cac_nha_dau_tu_tai_viet_nam_2_e0a3a5755b.jpg 750w," sizes="100vw">For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRM&nbsp;Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

Let's find out with OTIS LAWYERS the provisions of the law on the revocation of work permits of foreign workers in this article.

REGULATIONS ON REVOCATION OF WORK PERMITS OF FOREIGN WORKERS

Do foreigners residing in Vietnam need to declare temporary residence? How is this issue regulated by the current law? Let's find out in the following article by <a href="https://otislawyers.vn/en">OTIS LAWYERS</a>!<h2>Legal basic</h2>Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014, amended and supplemented in 2019.Circular No. 04/2015/TT-BCA on the Form of Documents Related to Entry, Exit, and Residence of Foreigners in Vietnam.Circular No. 57/2020/TT-BCA amending and supplementing certain provisions of Circular No. 04/2015/TT-BCA dated January 5, 2015, by the Ministry of Public Security on the form of documents related to entry, exit, and residence of foreigners in Vietnam.Circular No. 53/2016/TT-BCA regulating the procedures for declaring and receiving temporary residence information of foreigners in Vietnam.<h2>What is temporary residence registration?</h2>Temporary residence registration is the act of individuals registering their temporary place of residence with the relevant authority of the State. Accordingly, foreigners temporarily residing in Vietnam are required to register their temporary residence through the person directly managing the accommodation facility.Based on Article 33, Clause 1 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014, foreigners temporarily residing in Vietnam must declare their temporary residence through the person directly managing and operating the accommodation facility, and register it with the communal police, ward police, town police, or police station where the accommodation facility is located.<h2>Declaration of temporary residence for foreigners</h2><h3>The period for temporary residence registration</h3>In Clause 2 of Article 33 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014, there are provisions regarding the period for temporary residence registration as follows:The person directly managing and operating the accommodation facility is responsible for fully recording the content of the temporary residence declaration form for foreigners and submitting it to the communal police, ward police, town police, or police station where the accommodation facility is located within a period of 12 hours. For remote and mountainous areas, the deadline is extended to 24 hours from the time the foreigner arrives at the accommodation facility.Therefore, within a period of 12 to 24 hours from the time a foreigner arrives at the accommodation facility, they must complete the temporary residence declaration and submit it to the local police where the accommodation facility is located.<h3>Forms of temporary residence registration</h3>Currently, there are two forms of temporary residence registration for foreigners. Specifically:– Declaration of temporary residence for foreigners using a temporary residence declaration form; or– Declaration of temporary residence for foreigners through the electronic information portal.<h2>Sequence and procedures for temporary residence declaration for foreigners</h2><h3>Declaration of temporary residence for foreigners using a temporary residence declaration form</h3><h4>Step 1: Foreigners fill in the information on the temporary residence declaration form</h4>Individuals declaring temporary residence contact the local communal police or ward police (local police at the commune level) to obtain the temporary residence declaration form according to Form NA17, issued in conjunction with Circular No. 04/2015/TT-BCA.Individuals declaring temporary residence record the information on the temporary residence declaration form and submit it directly to the local communal police where the accommodation facility is located within a period of 12 hours. For remote and mountainous areas, the deadline is extended to 24 hours from the foreigner's arrival for temporary residence registration.&nbsp;The temporary residence declaration form can be sent in advance via fax or the information can be provided by phone to the local communal police prior to submitting the actual temporary residence declaration form within the specified time frame.<h4>Step 2: Receipt of the temporary residence declaration form</h4>The local communal police receive the temporary residence information provided by the foreigner through the temporary residence declaration form within 24 hours/07 days.&nbsp;The local communal police check the temporary residence declaration form and, if any information is incomplete, they request immediate supplementation. They then confirm, photocopy, or record the received information in the police register and return the temporary residence declaration form to the individual declaring temporary residence.&nbsp;They also inform the local border guard station if the foreigner's temporary residence is at an accommodation facility located in the border area.<h3>Declaration of temporary residence for foreigners through the electronic information portal</h3><h4>Step 1: Access the electronic information portal to register an account</h4>– The individual declaring temporary residence accesses the electronic information portal of the Immigration Department under the provincial or centrally-governed City Police Department where the accommodation facility is located to register an account for declaration.&nbsp;– Electronic information portal: <a href="https://www.xuatnhapcanh.gov.vn/khai-bao-tam-tru">https://www.xuatnhapcanh.gov.vn/khai-bao-tam-tru</a> (If you are staying in a specific province/city, you should complete the online temporary residence declaration in that province/city).<img src="https://admin.otislawyers.vn/uploads/guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_1_9591165102.jpg" alt="guide-to-declaring-temporary-residence-for-foreigners-important-notes-when-declaring-temporary-residence (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_1_9591165102.jpg 208w,https://admin.otislawyers.vn/uploads/small_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_1_9591165102.jpg 500w,https://admin.otislawyers.vn/uploads/medium_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_1_9591165102.jpg 750w," sizes="100vw">Note:– In case of discovering stolen or misused declaration accounts that cannot be used, it is important to immediately notify the Immigration Department under the provincial or centrally-governed City Police Department.– Declaration accounts will automatically be invalidated if there is no new declaration information within a 12-month period or if false declarations, incorrect information about the foreigner, or the accommodation facility are detected.<h4>Step 2: Declare temporary residence information</h4><img src="https://admin.otislawyers.vn/uploads/guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_2_f770b56141.jpg" alt="guide-to-declaring-temporary-residence-for-foreigners-important-notes-when-declaring-temporary-residence (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_2_f770b56141.jpg 208w,https://admin.otislawyers.vn/uploads/small_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_2_f770b56141.jpg 500w,https://admin.otislawyers.vn/uploads/medium_guide_to_declaring_temporary_residence_for_foreigners_important_notes_when_declaring_temporary_residence_2_f770b56141.jpg 750w," sizes="100vw">The individual declaring temporary residence fills in the required information as requested. The data can be entered in the designated input fields or uploaded as an attachment using the provided template file on the electronic information portal.&nbsp;The individual declaring temporary residence checks, modifies, or supplements the information before confirming its submission and checks the information management section to ensure the system has received it. If not received, the information must be entered again.<h4>Step 3: Receipt of the declare temporary residence information</h4>The Immigration Department under the provincial or centrally-governed City Police Department receives the temporary residence information declared through the electronic information portal within 24 hours/07 days.&nbsp;They also notify the local border guard station if the foreigner's temporary residence is at an accommodation facility located in the border area.<h2>Temporary residence declaration and visa consulting services for foreigners provided by OTIS LAWYERS</h2>OTIS LAWYERS takes pride in being a professional firm specializing in consulting services for temporary residence declaration and visa for foreigners. With a team of highly knowledgeable and experienced lawyers, along with our commitment to client satisfaction, we believe in delivering the best, most professional services with reasonable costs and efficient processing times. We guarantee the absolute confidentiality of our clients' information and always prioritize their interests.For any questions or comments, please contact:<a href="https://otislawyers.vn/en">OTIS AND PARTNERS LAW FIRM</a>Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

Do foreigners residing in Vietnam need to declare temporary residence? Let's find out in the following article by OTIS LAWYERS...

GUIDE TO DECLARING TEMPORARY RESIDENCE FOR FOREIGNERS: IMPORTANT NOTES WHEN DECLARING TEMPORARY RESIDENCE

Foreigners working in Vietnam, in addition to the usual labor procedures, must also follow a number of separate regulations. Labor relationship management for foreigners, if done right from the beginning, will not only avoid risks but also help optimize taxes and insurance payments. <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> would like to share with you the basic regulations on labor relationship management for foreigners that any foreign worker or foreign employer must comply with.<h2>MANAGE EMPLOYEE PROFILES AND SET LABOR CONTRACT</h2><ul><li>Personal records.</li><li>Records proving professional competence and experience.</li><li>Decision appoint.</li><li>Received the invitation.</li><li>Labor contract.</li><li>Rental contract</li></ul>Employee records are a mandatory content for enterprises, for foreign workers, employee records are also related to the possibility of being granted a work permit, a residence card, the obligation to declare and pay taxes. personal income, procedures for opening a bank account, etc. Foreigners should clearly understand the requirements of each type of record and keep and update it fully to meet the requirements of local state authorities. during the time working in Vietnam.Labor contract is a very important procedure that establishes the rights and obligations between the employee and the enterprise. The labor contract is also related to the mandatory obligations of personal income tax, insurance, procedures for receiving wages, and repatriation of wages. Failure to manage the form, content and terms of the labor contract will lead to serious disputes or increase tax costs and hinder other work of foreigners.<h2>WORK PERMIT AND TEMPORARY RESIDENCE CARD</h2><ul><li>Foreign workers must present a work permit when completing immigration procedures and upon receiving requests from competent state authorities. Foreign workers working in Vietnam without a work permit will be expelled from Vietnam according to the Government's regulations. Employers who hiring non-permit foreign workers will be handled in accordance with the law.</li><li>After obtaining a valid work permit, a foreigner can be granted a temporary residence card. Temporary residence card can be seen as a type of long-term visa. However, unlike Visa, the temporary residence card has a longer duration, usually issued with a term of 1 to 5 years. Foreigners with temporary residence cards will be exempted from visas and can enter and exit many times according to their work needs during the validity of the card, thus saving time and costs. In addition, the holder of a temporary residence card can also guarantee the issuance of a card with an equivalent term to family members.</li><li>After obtaining a work permit and temporary residence card, foreigners will be allowed to open all kinds of bank accounts, credit cards, passbooks and fully use banking services like residents.</li></ul><h2>SALARY CALCULATION AND TAXABLE INCOME MANAGEMENT</h2><ul><li>The salary of foreigners is not only based on the agreement between the parties, but also must be consistent with nationality, professional qualifications, experience, and position. In case the salary is not reasonable, the tax authority will carry out inspection and verification procedures at home and abroad, affecting other jobs of employees.</li><li>In addition to salary, foreign workers can also receive other benefits such as work-trip allowances, house rent, accommodation, insurance, children's school fees, preferential cards, etc. may be subject to personal income tax or may not be required to pay personal income tax, as the case may be. There have been many foreigners who have incurred additional PIT and fines for not properly managing these incomes.</li><li>Foreigner's salary can be paid in USD or other foreign currency, the payment procedure in foreign currency with each bank will have different requirements.</li></ul><h2>REQUIRED SOCIAL INSURANCE AND HEALTH INSURANCE</h2><ul><li>Employees who are foreign citizens working in Vietnam are eligible to participate in compulsory social insurance when they have a work permit or a practice certificate or a practice license issued by a competent authority of Vietnam. and have an indefinite-term labor contract or a definite-term labor contract of full 01 year or more with an employer in Vietnam.</li><li>Regarding the employee's contribution rate, from January 1, 2022, employees who are foreign nationals working in Vietnam are subject to compulsory social insurance, paying 8% of the monthly payment amount. monthly salary to the retirement and survivorship fund. At the same time, the employer shall make monthly contributions to the employee's monthly salary on which social insurance premiums are based: 3% to the sickness and maternity fund; 0.5% to the labor accident and occupational disease insurance fund; 14% into retirement and survivorship funds from January 1, 2022.</li><li>Foreigners who are enjoying their monthly pension or social insurance allowance when they no longer reside in Vietnam can authorize another person to receive their pension or social insurance allowance. If they wish, they will be entitled to a onetime allowance.</li></ul><h2>PERSONAL INCOME TAX MANAGEMENT</h2><ul><li>To determine the valid method of personal income tax (PIT) declaration for foreigners, tax authorities will rely on passports, employment contracts, appointment letters / tax withholding documents, rental contract.</li><li>Depending on the case of a resident or non-resident individual. PIT must also be declared and finalized for incomes generated in Vietnam or worldwide. Taxable amounts/tax rates between resident and non-resident individuals are completely different. Failure to file a clear and valid PIT will result in fines for the tax authorities in the following years. A skilled consultant will assist the client in managing employee records / reports as required by law as well as reports / declarations to ensure that the records are correct from the very beginning and for 3 months. or the next 5 years.</li><li>Resident Individuals with incomes generated abroad who have calculated and paid personal income tax abroad shall be entitled to deduct the tax amount already paid abroad. The deductible tax amount must not exceed the payable tax amount calculated according to Vietnam's tax table distributed to the income generated abroad. The distribution ratio is determined by the ratio between the amount of income generated abroad and the total taxable income.</li><li>Residents earning incomes from wages or salaries in case the number of days present in Vietnam in the first calendar year is less than 183 days but counted in 12 consecutive months from the first day of presence in Vietnam is 183 days or more, the first tax period is 12 consecutive months from the date of entering Vietnam, the second tax period is according to the calendar year. The first tax year: to declare and submit the final settlement dossier within 90 days from the date of calculation of full 12 consecutive months. From the second tax year: declare and submit tax finalization documents no later than the 90th day from the end of the calendar year. The amount to be paid in the second tax year is determined as follows:</li><li>Resident foreigners who terminate working contracts in Vietnam shall finalize tax with tax authorities before leaving the country.</li><li>The personal income tax rate from salaries and wages of non-resident individuals is determined by taxable incomes from salaries and wages of workers (x) with the tax rate of 20%. Taxable income from salaries and wages of non-resident individuals is determined as for personal income taxable incomes from salaries and wages of resident individuals.</li><li>Tax rates and tax bases for resident individuals. Whose incomes from salaries and wages are determined by taxable incomes from business. Wages and salaries are assessable incomes. Assessable earnings are equivalent to taxable income minus (-) the following deductions: Family deductions; Insurance contributions and voluntary retirement funds; Charitable, humanitarian and study promotion contributions. Personal income tax rates for incomes from business, salaries and wages are applied according to the partially progressive taxation, specifically:</li></ul><figure class="table"><table><tbody><tr><td>Level</td><td>Taxable income/year (million VND)</td><td>Taxable income/month (million VND)</td><td>Tax rate (%)</td></tr><tr><td>1</td><td>Up to 60</td><td>Up to 5</td><td>5</td></tr><tr><td>2</td><td>from 60 to 120</td><td>Over&nbsp; 5 to 10</td><td>10</td></tr><tr><td>3</td><td>Over&nbsp; 120 to 216</td><td>Over&nbsp; 10 to 18</td><td>15</td></tr><tr><td>4</td><td>Over&nbsp; 216 to 384</td><td>Over&nbsp; 18 to 32</td><td>20</td></tr><tr><td>5</td><td>Over&nbsp; 384 to 624</td><td>Over&nbsp; 32 to 52</td><td>25</td></tr><tr><td>6</td><td>Over&nbsp; 624 to 960</td><td>Over&nbsp; 52 to 80</td><td>30</td></tr><tr><td>7</td><td>Over&nbsp; 960</td><td>Over&nbsp; 80</td><td>35</td></tr></tbody></table></figure><h2>TERMINATION OF LABOR RELATIONSHIP AND RELATED PROCEDURES</h2>When terminating the labor relationship, foreigners need to manage the following documents to avoid arising risks:<ul><li>Agreement to terminate the labor contract.</li><li>Decision to terminate the job.</li><li>Record of handing over work</li><li>Minutes of liquidation of labor contract.</li><li>Receipt withholding PIT.</li><li>Cancellation or refund of work permits and temporary residence cards.</li><li>Carry out tax finalization procedures and obtain a certificate of completion of tax obligations before leaving Vietnam.</li></ul>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

OTIS LAWYERS will share with you the basic regulations on labor relationship management for foreigners that any worker must comply with

LABOR RELATIONSHIP MANAGEMENT FOR FOREIGNERS IN VIETNAM

Currently, some foreign papers and documents that want to be used in Vietnam need to be consular legalized. So what is consular legalization? Find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below!<h2>Legal basis</h2>Decree No. 111/2011/ND-CP of the Government on consular legalization and certificationCircular 01/2012/TT-BNG of the Ministry of Foreign Affairs guiding the implementation of a number of provisions of Decree No. 111/2011/ND-CP on consular legalization and certification<h2>What is consular legalization?</h2>According to Clause 2, Article 2 of Decree No. 111/2011/ND-CP of the Government:“Consular legalization (CL) is the certification of seals, signatures and titles by a competent Vietnamese agency on foreign papers and documents so that those papers and documents can be recognized and used in Vietnam”.<h2>Documents that need to be consular legalized</h2>Unless otherwise exempt from CL, the following documents need CL in order to be used in the present country other than the issuing country:– Degrees and certificates;- Judicial Records;- Marriage registration;- Birth certificate;- Health Certification…Note: Papers, documents will not be consular legalized if:- Being corrected or erased but not corrected in accordance with law;– Forging or being granted or certified wrongly according to the provisions of law.;– Having a signature, a seal that is not the original signature, or an original seal;- Having content that infringes upon the interests of the State of Vietnam.<h2>Dossier of request for consular legalization</h2>For the CL of foreign papers and documents to be recognized and used in Vietnam, the dossier includes:– 01 CL declaration form No. LS/HPH-2012/TK.– The original identity document (ID card, passport or passport replacement) in case of direct application; or 01 photocopy of identity document (ID card, passport or passport replacement) for the case of submitting the application by post. This document does not need to be authenticated.- Papers and documents requested CL (certified by diplomatic missions, consular offices or other agencies authorized to perform consular functions of foreign countries).– 01 photocopy of papers and documents requested CL– 01 translation of papers and documents requested CL into Vietnamese or English (if such papers and documents are not made in these languages). The translation is not certified. The applicant is responsible for the accuracy of the translation.- 01 photocopy of translation of papers and documents.– 01 envelope clearly stating the recipient's address (if the application is sent by post and the results are returned by post).Note: In case it is necessary to check the authenticity of papers and documents requested for consular certification, the application-receiving officer may request the applicant for consular certification to produce additional originals and submit 01 photocopy of this document. Papers with 2 or more sheets must have a border stamp between the sheets.<h2>Process and procedures for consular legalization</h2><img src="https://admin.otislawyers.vn/uploads/consular_legalization_of_foreign_documents_latest_regulations_of_2023_that_you_need_to_know_1_390c1402be.jpg" alt="consular-legalization-of-foreign-documents-latest-regulations-of-2023-that-you-need-to-know (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_consular_legalization_of_foreign_documents_latest_regulations_of_2023_that_you_need_to_know_1_390c1402be.jpg 208w,https://admin.otislawyers.vn/uploads/small_consular_legalization_of_foreign_documents_latest_regulations_of_2023_that_you_need_to_know_1_390c1402be.jpg 500w,https://admin.otislawyers.vn/uploads/medium_consular_legalization_of_foreign_documents_latest_regulations_of_2023_that_you_need_to_know_1_390c1402be.jpg 750w," sizes="100vw"><h3>Step 1: Authentication of papers and documents abroad</h3>Papers and documents that have been certified in foreign countries; and signed and certified by the Ministry of Foreign Affairs of that country.<h3>Step 2: Apply for consular certification at foreign embassies in Vietnam</h3>Papers and documents when coming to Vietnam will be brought to foreign embassies in Vietnam for consular certification.<h3>Step 3: Apply for consular legalization at the Ministry of Foreign Affairs of Vietnam</h3>Papers and documents will be brought to the Ministry of Foreign Affairs of Vietnam for consular legalization.<h3>Step 4: Receive documents that have completed the consular legalization procedure</h3>After completing the above procedures, you will receive documents that have been approved CL. Conduct notarized translation into Vietnamese for use in Vietnam. You do not need to do this section if the document is already in Vietnamese.<h2>Some notes when conducting consular legalization</h2><h3>Consular legalization costs</h3>CL fee is 30,000 VND/time. Fee for issuing copies of papers and documents is 5,000 VND/time.Note:– The cost of CL and consular certification is paid in Vietnam Dong (VND);– This cost is only an expense from the competent authority of Vietnam. But to use those papers and documents in Vietnam/or abroad, you need to add consular legalization fees at the diplomatic mission of that country. This fee will vary by country.<h3>Papers and documents that do not have to pay consular legalization fees</h3>– Directly serving the activities of agencies of the Party, National Assembly, Government and ministries, ministerial-level agencies;- Exemption from payment of CL fees under international treaties which the Socialist Republic of Vietnam has signed, acceded to or otherwise agreed upon, shall comply with such provisions;– Exemption from payment of consular legalization fees by foreign organizations and individuals on the basis of “reciprocal” diplomatic relations; and other foreign affairs cases under specific decisions of the Ministry of Foreign Affairs.<h3>Time for consular legalization</h3>According to Clauses 5 and 6 of Article 11, Clause 4 of Article 14 and Clause 4 of Article 15 of Decree 111/2011/ND-CP, the time to handle CL requests is:– 01 working day from the date of receipt of complete and valid documents, or– No more than 05 working days if the application has 10 or more papers and documents;– It can be longer if it is necessary to check the authenticity of the seal; signature; title on paper; proposed documents are consular legalizedThus, how long the consular legalization takes depends on the quantity and nature of the type of records and documents. But in general, this time is usually no more than 1 working week.<h2>Consular legalization consulting service of OTIS LAWYERS</h2>OTIS LAWYERS is always proud to be a professional unit in the field of consular legalization consulting. A team of highly qualified lawyers with extensive experience and dedication to clients, we believe that you will be provided with the best, most professional service, reasonable cost and time. Complete the process as quickly as possible. We commit that all client information is absolutely confidential and client interests always come first.For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

Currently, some foreign papers and documents that want to be used in Vietnam need to be consular legalized. So what is consular legalization?

CONSULAR LEGALIZATION OF FOREIGN DOCUMENTS: LATEST REGULATIONS OF 2023 THAT YOU NEED TO KNOW

<h2>What is Vietnam visa expiration?</h2>A Vietnam visa is issued by the Vietnam Immigration Department to foreigners to enter and stay short-term in Vietnam for legal purposes such as tourism, visiting relatives, working, investment, study abroad, work... On each visa issued to foreigners, the validity period of the visa is printed specifically.Vietnam visa expiration is the act of a foreigner staying beyond the time limit printed on the issued Vietnam visa and still not having submitted an application to extend the stay period or not yet excited Vietnam. This is considered an illegal stay and will be subject to administrative penalties according to the Immigration Law.<h2>Validity period of Vietnam visa</h2>Depending on the type, the validity period of a Vietnam entry visa will be different. Below are the deadlines for some popular types of Vietnam visas today:<ul><li>LS Visa – Valid for a maximum of 1 year (12 months) or a maximum of 2 years in case of applying for a temporary residence card. Issued to foreign lawyers practicing in Vietnam.</li><li>DL Visa – Maximum duration is 3 months (90 days) but only temporary residence is allowed for a maximum of 1 month (30 days) for tourists coming to Vietnam.</li><li>DT visa - (Divided into DT1, DT2, DT3, DT4) Has a maximum term of 1 year (12 months) and is issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam.</li><li>DN visa – (Divided into DN1, DN2) Normally it is 3 months (90 days). Issued to foreigners who work with businesses and other organizations with legal status according to the provisions of Vietnamese law. Foreigners offer services and carry out activities according to international treaties to which Vietnam is a member.</li><li>LĐ visa - (Including LĐ1, LĐ2) Has a maximum term of 1 year (24 months) or 2 years for temporary residence card applications. Issued to foreigners working in Vietnam with a work permit, or confirmation that they are not subject to a work permit.</li><li>EV Visa – This type of electronic visa is valid for 1 month (30 days)</li><li>SQ visa: If a foreigner is eligible to apply for an SQ visa, the visa period is no more than 30 days.</li><li>HN, DL visa: With this type of visa, foreigners have a period of no more than 03 months to stay, enter and exit Vietnam.</li><li>VR Visa: Foreigners entering Vietnam for personal reasons should apply for this type of visa, which will be valid for no more than 6 months.</li><li>Visa NG1, NG2, NG3, NG4, LV1, LV2, DN, NN1, NN2, NN3, DH, PV1, PV2 and TT: valid for no more than 12 months or apply for a temporary residence card with a longer term.</li></ul><h2>What are the penalties for overstaying a Vietnam visa?</h2>When foreigners overstay their Vietnam visa, they will be considered as illegal residents and fined according to the law.Pursuant to Article 18, Decree 144/2021/ND-CP issued by the Government, effective from January 1, 2022, the penalty for overstaying a visa depends on the overstay period of the foreigner. Specifically:<img src="https://admin.otislawyers.vn/uploads/what_to_do_when_your_vietnam_visa_expires_penalty_for_letting_vietnam_visa_expire_otis_lawyers_1_ab1647528f.jpg" alt="what-to-do-when-your-vietnam-visa-expires-penalty-for-letting-vietnam-visa-expire-otis-lawyers (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_what_to_do_when_your_vietnam_visa_expires_penalty_for_letting_vietnam_visa_expire_otis_lawyers_1_ab1647528f.jpg 208w,https://admin.otislawyers.vn/uploads/small_what_to_do_when_your_vietnam_visa_expires_penalty_for_letting_vietnam_visa_expire_otis_lawyers_1_ab1647528f.jpg 500w,https://admin.otislawyers.vn/uploads/medium_what_to_do_when_your_vietnam_visa_expires_penalty_for_letting_vietnam_visa_expire_otis_lawyers_1_ab1647528f.jpg 750w," sizes="100vw"><ul><li>Late less than 16 days: fine from 500,000 to 2,000,000 VND</li><li>Late from 16 to 29 days: fine from 3,000,000 to 5,000,000 VND</li><li>Late from 30 to 59 days: fine from 5,000,000 to 10,000,000 VND</li><li>Late from 60 to 89 days: fine from 10,000,000 to 15,000,000 VND</li><li>Late 90 days or more: fine from 15,000,000 to 20,000,000 VND</li></ul>In addition to paying administrative fines for visa overstay. Foreigners will leave the country if they no longer want to stay in Vietnam. Besides, depending on the severity of the violation, whether it is minor or serious, it is possible to apply for an extension of the stay in Vietnam for a short time. If the violation is serious, the foreigner will be deported back to the country, even banned from re-entering Vietnam for a definite or permanent time.<h2>What should foreigners do when their Vietnamese visa expires?</h2>If you want to stay longer than the allowed visa period, you need to apply for a visa extension or a temporary residence card.However, it is possible that for some reason, a foreigner who has expired his Vietnam visa but has not yet performed one of the above two procedures can reduce the settlement by two options: extending the visa or exiting the country. Return to Vietnam with a new visa.Specifically how to do it as follows:<ol><li>Vietnam visa extension</li></ol>When foreigners want to continue to stay in Vietnam for a short time and do not need to leave the country, they can do this procedure.To be able to extend an overdue Vietnam visa, foreigners need to meet the following 4 prerequisites:<ul><li>Passport valid for at least 1 month longer than visa validity</li><li>There is a legal guarantee by a company or individual in Vietnam</li><li>Must declare temporary residence</li><li>Overdue fines have been paid.</li></ul>Procedures for visa extension are as follows:Visa extension application<ul><li>Form NA5 visa extension application</li><li>Original passport with Vietnam visa sticker</li><li>Copy of temporary residence declaration</li><li>Other documents depending on each type of visa: Work permit/ Investment certificate/ Family relationship certificate: Certified copy.</li><li>Some other forms: Letter of introduction, application explaining the reason for extension</li></ul>Submit your application to one of the following two agencies:<ul><li>Immigration Department of provinces and cities</li><li>Vietnam Immigration Department<ul><li>Headquarter in Hanoi: 44-46 Tran Phu Street, Ba Dinh District, Hanoi</li><li>Representative office in the city. Ho Chi Minh: 333-335-337 Nguyen Trai Street, District 1, City. Ho Chi Minh</li></ul></li></ul>Processing time is about 5 - 7 working days.<ol><li>Exit Vietnam then enter with a new visa</li></ol>Foreigners bring their passports to the Immigration Department. Here you will be instructed to pay overdue fines and complete procedures to exit Vietnam.After exiting the country, if you want to return to Vietnam, you must apply for a new visa (in case the foreigner is not blacklisted).For any questions or comments, please contact:<a href="https://otislawyers.vn/en">OTIS AND PARTNERS LAW FIRM</a>Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

A Vietnam visa is issued by the Vietnam Immigration Department to foreigners to enter and stay short-term in Vietnam for legal purposes...

What to do when your Vietnam visa expires? Penalty for letting Vietnam visa expire - OTIS LAWYERS

<h2 style="text-align:justify;">Can foreigners working in Vietnam get their work permits reissued if they change their passport numbers?</h2>According to Article 12 of Decree No. 152/2020/ND-CP, the following cases are eligible for reissuing work permits:<ol style="list-style-type:decimal;"><li style="text-align:justify;">The work permit is lost while still valid.</li><li style="text-align:justify;">The work permit is damaged while still valid.</li><li style="text-align:justify;">Changes in name, nationality, passport number, or workplace address stated in the valid work permit.</li></ol>Based on this provision, foreigners working in Vietnam who change their passport numbers will be eligible to have their work permits reissued if the work permits are still valid.<img src="https://admin.otislawyers.vn/uploads/thu_tuc_cap_lai_giay_phep_lao_dong_moi_nhat_2023_otis_lawyers_1_7290b93981.jpg" alt="thu-tuc-cap-lai-giay-phep-lao-dong-moi-nhat-2023-otis-lawyers (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_thu_tuc_cap_lai_giay_phep_lao_dong_moi_nhat_2023_otis_lawyers_1_7290b93981.jpg 208w,https://admin.otislawyers.vn/uploads/small_thu_tuc_cap_lai_giay_phep_lao_dong_moi_nhat_2023_otis_lawyers_1_7290b93981.jpg 500w,https://admin.otislawyers.vn/uploads/medium_thu_tuc_cap_lai_giay_phep_lao_dong_moi_nhat_2023_otis_lawyers_1_7290b93981.jpg 750w," sizes="100vw"><h2 style="text-align:justify;">The application dossier for reissuing a work permit for foreigners working in Vietnam</h2>The application dossier for reissuing a work permit for foreigners working in Vietnam includes the following documents:(1) A written request for work permit reissuance from the employer, using Form No. 11/PLI in Appendix I issued with Decree No. 152/2020/ND-CP.(2) 02 color photos (size 4 cm x 6 cm, white background, front view, without wearing colored glasses), taken within the last 06 months from the submission date.(3) The valid work permit:- In case the work permit is lost as per Article 12(1) of Decree No. 152/2020/ND-CP, there must be confirmation from the commune-level police agency where the foreigner resides or from the competent authority of the foreign country as per the law.(4) A letter of approval for using foreign labor, except for cases where there is no need to specify the demand for using foreign labor.(5) The documents specified in Article 3 and 4 of this Decree are either originals or certified copies, except for cases specified in Article 12(1) of Decree No. 152/2020/ND-CP. If the documents are from a foreign country, they must be legalized by the consulate and translated into Vietnamese, except for cases exempted from legalization based on international treaties to which Vietnam and the foreign country are parties or as per the law.<h2 style="text-align:justify;">The process for reissuing work permits for foreigners working in Vietnam</h2>The process for reissuing work permits for foreigners working in Vietnam is governed by Article 14 of Decree No. 152/2020/ND-CP:Within 03 working days from the date of receiving a complete application dossier for work permit reissuance, the Ministry of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs shall reissue the work permit.If the work permit cannot be reissued, a written response stating the reason must be provided.<h2 style="text-align:justify;">How long is a work permit valid for foreigners working in Vietnam after being re-issued?</h2>Regarding the validity period of the reissued work permit, Article 15 of Decree No. 152/2020/ND-CP stipulates:The validity period of the reissued work permit is equal to the remaining validity period of the original work permit, minus the duration of the foreign worker's employment up to the time of the request for reissuance of the work permit.For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, HanoiEmail:&nbsp;<a href="mailto:info@otislawyers.vn">info@otislawyers.vn</a>Hotline: 0987748111

Based on this provision, foreigners working in Vietnam who change their passport numbers will be eligible to have their work permits reissued if the work permits are still valid.

CAN FOREIGNERS WORKING IN VIETNAM GET THEIR WORK PERMITS REISSUED IF THEY CHANGE THEIR PASSPORT NUMBERS?

On February 6, 2024, the Prime Minister issued Decision No. 163/QD-TTg approving the Plan to implement the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea on the mutual recognition of international driving licenses.Accordingly, the organization of the implementation of the mutual recognition agreement of international driving licenses between Vietnam and the Republic of Korea (South Korea) is as follows:<h2>Task 1: Recognition of South Korean driving licenses, handling violations, and establishment of coordination channels to implement the Agreement</h2>Recognize South Korean Driving Licenses and handle violations according to the provisions of the Agreement and the national laws of each party. Establish coordination channels with competent State agencies in South Korea.Designate and notify the focal points and contact information between Vietnam and South Korea regarding all issues related to the Agreement; ensure technical conditions to facilitate connectivity, exchange, and sharing of information between the two parties.-&nbsp;Proposed implementing agency:+&nbsp;Ministry of Transport to lead and coordinate with relevant ministries, sectors, and localities to implement the Agreement according to their functions, tasks, and authorities; compile information and provide it to the Ministry of Foreign Affairs as the official liaison and for any relevant information regarding the implementation of the Agreement to be formally communicated to South Korea.+&nbsp;Ministry of Public Security to organize the implementation of the Agreement according to its functions, tasks, and authorities; provide the Ministry of Transport with relevant contact points regarding inspection, verification, and handling of violations for the implementation of the Agreement.Relevant ministries, sectors, and localities are responsible for coordinating and providing the Ministry of Public Security with relevant contact points related to inspection, verification, and handling of violations according to their functions, tasks, and authorities.+&nbsp;The Ministry of Foreign Affairs, based on the information provided by the Ministry of Transport, will inform South Korea: the focal points implementing the Agreement on the Vietnamese side; international driving license templates, national driving licenses; relevant legal regulations.-&nbsp;Implementation period: Annually, until the Agreement terminates.<h2>Task 2: Construction of a Handbook for implementing the Agreement</h2>-&nbsp;Proposed implementing agency: Ministry of Transport as the lead agency and Ministry of Public Security as the coordinating agency, specifically:+&nbsp;Ministry of Transport as the coordinating agency with competent state agencies in South Korea to develop a Handbook for using international driving licenses in both paper and electronic forms to provide timely and comprehensive information about the mutual recognition of international driving licenses between the two countries; the use and issuance of driving licenses in both countries; information on:International driving license templates; validity period, types of vehicles allowed to be driven; traffic law documents; procedures for issuing driving licenses to citizens of both countries; hotline information, addresses of functional agencies, specialized agencies for handling emerging issues, violations of the law by drivers; regulations on compulsory insurance for drivers, national highways, expressways, etc.+ Ministry of Public Security to coordinate: develop content on administrative violation laws; hotline information, addresses of functional agencies, specialized agencies for handling emerging issues, violations of the law by drivers.+&nbsp;Ministry of Foreign Affairs to coordinate and direct the Vietnamese Representative Office in South Korea to compile suggestions from the Vietnamese community in South Korea during the implementation of the Agreement.-&nbsp;Implementation period: In 2024, discuss with the competent state agencies in South Korea to agree on the content of the Handbook; in 2025, develop and finalize the Handbook; annually, review, update, and adjust the content of the Handbook until the Agreement terminates.<h2>Task 3: Annual conference to coordinate the implementation of the Vietnam - South Korea bilateral Agreement on mutual recognition of international driving licenses</h2>Coordinate with South Korea to organize a Conference to exchange, evaluate the situation, results of implementing the Agreement to timely address difficulties and propose specific measures/solutions to improve the effectiveness of implementing the Agreement; share experiences in managing the issuance of driving licenses and driver management.-&nbsp;Proposed implementing agency: Ministry of Transport as the lead agency, Ministry of Foreign Affairs, and Ministry of Public Security as the coordinating agencies, specifically:+&nbsp;Ministry of Transport responsible for leading the implementation, with the following responsibilities: compiling assessments of the situation, results of implementing the Agreement, and proposing specific measures/solutions to improve the effectiveness of implementing the Agreement.+&nbsp;Ministry of Public Security to coordinate: assess the situation of implementation and propose necessary measures regarding inspection, handling of administrative violations by drivers.+&nbsp;Ministry of Foreign Affairs to coordinate and direct the Vietnamese Representative Office in South Korea to compile suggestions from the Vietnamese community in South Korea during the implementation of the Agreement.-&nbsp;Implementation period: Annually, until the Agreement terminates.For detailed content, refer to Decision No. 163/QD-TTg effective from February 6, 2024.For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

The organization of the implementation of the mutual recognition agreement of international driving licenses between Vietnam and Korea

IMPLEMENTATION OF THE MUTUAL RECOGNITION AGREEMENT OF INTERNATIONAL DRIVING LICENSES BETWEEN VIETNAM AND SOUTH KOREA

<h2 style="text-align:justify;">Who can apply for a visa to enter Vietnam?</h2>All foreign citizens are permitted to enter and exit Vietnam except for those who are prohibited or restricted from entry according to Vietnamese law. Currently, foreigners enter Vietnam for a variety of purposes including: foreign experts, foreign workers in Vietnam, investors, those entering for family visits, tourism, attending meetings, conferences, and more.<h2 style="text-align:justify;">Visa application procedures for foreigners entering Vietnam for work or business</h2><h3 style="text-align:justify;">Who can sponsor foreigners entering Vietnam?</h3>Individuals, companies, and organizations eligible to invite or sponsor foreigners to enter Vietnam include:- Companies and enterprises: Limited Liability Companies, Joint Stock Companies, Partnerships; Cooperatives (including both domestic and foreign-invested companies).- Authorized sponsorship: Branches, representative offices of domestic and foreign enterprises.- Organizations based in Vietnam: Non-governmental organizations, international organizations, social organizations, professional associations, unions, etc.- Individuals: Vietnamese citizens (not restricted in their civil rights) and foreigners temporarily or permanently residing in Vietnam can sponsor their relatives to enter Vietnam.<h3 style="text-align:justify;">Procedures and documents for obtaining a visa approval letter online or in person for foreigners:</h3>Important notes before applying for a visa approval letter and visa for foreigners:- Mandatory condition: Passport with a minimum validity of 6 months.- Determine the place to receive the visa: Foreigners can receive their visa at international airports, land border gates, or at the Vietnamese embassy/consulate abroad.Note: International border gates include: Land border gates like Huu Nghi, Mong Cai, Lao Cai, Moc Bai, Bo Y, etc., and international airports like Noi Bai, Tan Son Nhat, Cam Ranh, Da Nang, Cat Bi, Phu Quoc.Currently, the visa approval letter application can be submitted online or in person at the Immigration Department in Hanoi and Ho Chi Minh City.Online visa approval application for foreigners through the public service portal:- Step 1: Individuals or enterprises access the National Public Service Portal and the Ministry of Public Security's Public Service Portal to register an electronic account (register once only). Upon approval, they can apply for the visa approval letter online.- Step 2: Enterprises use the approved account to fill out the visa approval application form on the National Public Service Portal. Enterprises upload all required documents and complete the information fields as per regulations. Sign electronically as per electronic signature regulations.- Step 3: Enterprises supplement documents as requested by the National Public Service Portal (if any) while waiting for the results.- Step 4: Receive the results online on the National Public Service Portal by logging in and downloading the visa approval letter after 5 working days.Direct visa application at the Immigration Department in Hanoi and Ho Chi Minh City:Documents for sponsoring visa approval for foreign experts, workers, investors, conference attendees, etc., sponsored by organizations or enterprises:- A certified copy of the sponsoring organization's business license.- Registration form for the seal and signature of the legal representative of the organization or enterprise as per form NA16 (for first-time applicants).- Visa application form for entry into Vietnam for foreigners as per form NA2. This form is filled out online on the official website of the Immigration Department, printed, and signed and stamped by the sponsoring organization as per regulations.For Vietnamese citizens sponsoring their foreign relatives, the documents include:- Application form for visa approval for family visits as per form NA3.- Certified copy of the sponsor's identity card.- Certified documents proving the family relationship, such as birth certificates for children or parents, marriage certificates for spouses, household registration books, family certificates, etc.<h2 style="text-align:justify;">Receiving the visa and entering at international airports or Vietnamese embassies/consulates abroad:</h2>- The visa approval letter will indicate the place to receive the visa, whether at the embassy, consulate, or at the airport (Noi Bai, Tan Son Nhat, Da Nang, Nha Trang, Phu Quoc, Cat Bi, etc.) or at a land border gate (Moc Bai, Huu Nghi, Lao Cai, Mong Cai, Cau Treo, Lao Bao, Bo Y, etc.).- At the place of visa receipt, foreigners need to present:+ Original passport with validity.+ Visa approval letter (printed on A4 paper or electronic version on the phone).+ NA1 form with a 4x6cm photo attached.+ Pay the visa fee.For the latest information on entry procedures for foreigners to Vietnam and visa services, you can contact OTIS LAWYERS for necessary information.For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

All foreign citizens are permitted to enter and exit Vietnam except for those who are prohibited or restricted from entry according to Vietnamese law. 

ENTRY PROCEDURES FOR FOREIGNERS INTO VIETNAM - OTIS LAWYERS

<h2>What is a Permanent Residence Card?</h2>According to Clause 14, Article 3 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019), a permanent residence card is a document issued by the immigration management authority allowing foreigners to reside indefinitely in Vietnam and serves as a substitute for a visa.Specifically, a foreigner is a person holding documents identifying foreign nationality or a stateless person entering, exiting, transiting, and residing in Vietnam.(Clause 1, Article 3 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019))<h2>Conditions for Foreigners to be Granted a Permanent Residence Card in Vietnam</h2>According to Article 40 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019), foreigners must meet the following conditions to be considered for a permanent residence card in Vietnam:- Foreigners specified in Article 39 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019) will be considered for a permanent residence card if they have legal accommodation and stable income to ensure their living in Vietnam:(i) Foreigners who have contributed to the construction and protection of the Vietnamese Fatherland, awarded medals or state honorary titles by the Vietnamese government.(ii) Foreigners who are scientists or experts currently residing temporarily in Vietnam.(iii) Foreigners being sponsored by their parents, spouses, or children who are Vietnamese citizens permanently residing in Vietnam.(iv) Stateless persons who have been continuously residing in Vietnam since before 2000.- Foreigners specified in (ii) must be recommended by the Minister, Heads of ministerial-level agencies, or agencies under the government that manage the field of the foreigner's expertise.- Foreigners specified in (iii) must have continuously resided in Vietnam for three years or more.Specifically, continuous temporary residence in Vietnam for three years or more is determined based on the entry and exit stamps issued at border gates, with a total residence time in Vietnam of three years or more within the four most recent years from the date of application for a permanent residence card.(Point a, Clause 2, Article 5 of Circular 31/2015/TT-BCA)<h2>Procedures for Issuing a Permanent Residence Card to Foreigners in Vietnam</h2><h3>Application for a Permanent Residence Card for Foreigners in Vietnam</h3>According to Clause 1, Article 41 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019), the application for a permanent residence card for foreigners in Vietnam includes:- Application for a permanent residence card;- Judicial record issued by the competent authority of the country of which the person is a citizen;- Official letter from the representative agency of the country of which the person is a citizen requesting Vietnam to grant the person permanent residence;- Notarized copy of passport;- Documents proving eligibility for a permanent residence card as specified in section 2;- Guarantee document for foreigners specified in Clause 3, Article 39 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019).Where to submit the application:- Foreigners who have contributed to the construction and protection of the Vietnamese Fatherland, awarded medals or state honorary titles by the Vietnamese government, or are scientists or experts currently residing temporarily in Vietnam, should submit their applications to the Immigration Department.- Foreigners being sponsored by their parents, spouses, or children who are Vietnamese citizens permanently residing in Vietnam, or stateless persons who have been continuously residing in Vietnam since before 2000, should submit their applications to the Immigration Management Office of the provincial or central city police department where they apply for a permanent residence card.(Clause 3, Article 5 of Circular 31/2015/TT-BCA)<h3>Processing Time for Issuing a Permanent Residence Card for Foreigners in Vietnam</h3>Within four months from the date of receiving a complete application, the Minister of Public Security will review and decide on the permanent residence. If further verification is needed, this period may be extended by up to two months.The immigration management authority is responsible for notifying in writing the result of the application for permanent residence to the applicant and the provincial or central city police department where the foreigner applies for permanent residence.Within five working days from the date of receiving the notification from the immigration management authority, the provincial or central city police department where the foreigner applies for permanent residence must inform the foreigner of the decision.Within three months from the date of receiving the notification of the decision, the foreigner must go to the immigration management authority of the provincial or central city police department where they apply for permanent residence to receive the permanent residence card.(Clauses 2, 3, 4, and 5 of Article 41 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014 (amended 2019))For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

A permanent residence card is a document issued by the immigration management authority allowing foreigners to reside indefinitely in Vietnam and serves as a substitute for a visa.

PROCEDURES FOR ISSUING PERMANENT RESIDENCE CARDS TO FOREIGNERS IN VIETNAM - OTIS LAWYERS

An International Driving Permit (IDP) is a driving permit issued by a competent state authority in countries (including administrative regions) that are participants in the Vienna Convention, based on a unified template. The procedures for issuing an International Driving Permit (IDP) are carried out in accordance with Circular No. 29/2015/TT-BGTVT (amended and supplemented by Circular No. 01/2021/TT-BGTVT, Circular No. 05/2023/TT-BGTVT, and Circular No. 05/2024/TT-BGTVT).Step 1:An individual applying for an IDP, following the form specified in Appendix X attached to Circular No. 05/2024/TT-BGTVT, must submit the application directly to the Vietnam Road Administration or the Department of Transport. They are required to present the original national driving license issued by Vietnam, their passport, and residence card (for foreigners) for verification of the accuracy and legality of the IDP issuance. The individual must also fulfill the fee payment obligations upon the receipt of the application as per the regulations. If applying via the online public service system, the individual must fill out the form as instructed and be responsible for the accuracy and legality of the information declared, complete the payment through the online fee payment function, and pay additional service fees as per personal needs. If the application is not in accordance with the regulations, the receiving agency is responsible for notifying the applicant, either directly, in writing, or via the online public service system, regarding the required amendments within 2 working days from the date of receipt of the application.Step 2:Within 5 working days from the date of receipt of the application, provided it complies with regulations, the Vietnam Road Administration or the Department of Transport will issue the IDP to the individual. If the IDP is not issued, the authority must provide a response stating the reasons. The process includes:(1) Department of Transport- Receives the application for the IDP and uses the IDP management information system built by the Vietnam Road Administration to create an electronic file;- Photocopies the passport and residence card (for foreigners) for verification during the IDP issuance process;- Checks, updates, and verifies the electronic file in the IDP management information system;- Verifies the digital signature of the authorized person on the electronic documents related to the IDP;- Carries out the IDP printing process;- Inspects the quality of the IDP after printing and synchronizes the data into the IDP management information system of the Vietnam Road Administration as per regulations.(2) Vietnam Road Administration- Receives and manages IDP data updated by the Departments of Transport to synchronize with the IDP management information system;- Updates and operates the IDP management information system in accordance with regulations;- In cases where it receives an individual’s IDP application, it follows the same procedures as in step (1).Note:- If the IDP is lost or damaged, the individual must submit a reissuance application following the same process.- IDPs will not be issued in the following cases:&nbsp;&nbsp;+ The national driving license has been altered, damaged, or lacks the necessary information, or there are discrepancies in identification;&nbsp;&nbsp;+ The national driving license is not issued by a competent authority according to regulations.- In cases where individuals are found to have committed fraudulent acts to obtain an IDP, altered or falsified information on the issued IDP, in addition to the IDP being revoked by the issuing authority, the individual will also be subject to legal liability and will not be eligible to receive an IDP for 3 years from the date of detection of the violation.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

The procedures for issuing an International Driving Permit (IDP) are carried out in accordance with Circular No. 29/2015/TT-BGTVT

THE LATEST PROCEDURES FOR ISSUING INTERNATIONAL DRIVING PERMITS IN 2024

Currently, the number of foreigners married to Vietnamese citizens who wish to live in Vietnam is increasing. Accordingly, foreigners married to Vietnamese citizens will be issued a temporary residence card to live legally in Vietnam according to specific regulations…<h2 style="text-align:justify;">Symbol of the Temporary Residence Card for Foreigners Married to Vietnamese Citizens</h2>TT – Issued to foreigners who are spouses or children under 18 years old of foreigners who have been granted a visa with symbols LV1, LV2, LS, ĐT1, ĐT2, ĐT3, NN1, NN2, DH, PV1, LĐ1, LĐ2 or to foreigners who are the parents, spouses, or children of Vietnamese citizens.<img src="https://admin.otislawyers.vn/uploads/temporary_residence_card_for_foreigners_married_to_vietnamese_citizens_otis_lawyers_1_9f6dc84655.jpg" alt="temporary-residence-card-for-foreigners-married-to-vietnamese-citizens-otis-lawyers (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_temporary_residence_card_for_foreigners_married_to_vietnamese_citizens_otis_lawyers_1_9f6dc84655.jpg 208w,https://admin.otislawyers.vn/uploads/small_temporary_residence_card_for_foreigners_married_to_vietnamese_citizens_otis_lawyers_1_9f6dc84655.jpg 500w,https://admin.otislawyers.vn/uploads/medium_temporary_residence_card_for_foreigners_married_to_vietnamese_citizens_otis_lawyers_1_9f6dc84655.jpg 750w," sizes="100vw"><h2 style="text-align:justify;">Conditions for Issuing a Temporary Residence Card to Foreigners Married to Vietnamese Citizens</h2>- The foreigner's passport must have a validity of more than one year;- The visa currently being used in Vietnam must have the symbol TT;- A marriage certificate registered in Vietnam or a marriage record in Vietnam for marriages registered abroad (if it's a foreign document, it must be legalized and translated with a certified translation).<h2 style="text-align:justify;">Documents Required for a Temporary Residence Card Application for Foreigners Married to Vietnamese Citizens</h2>- A notarized copy of the marriage certificate registered in Vietnam, or a consular legalized copy of the marriage record in Vietnam for marriages registered abroad;- Guarantee and application form for a temporary residence card for foreigners (Form NA7);- Application form for a temporary residence card for foreigners (Form NA8);- Original passport and visa (passport must be valid for at least 13 months, and the visa must be issued for the correct purpose);- Notarized copy of the Vietnamese spouse’s household registration book;- Notarized copy of the Vietnamese spouse’s ID card or citizen ID card;- 02 personal photos (2cm x 3cm);- Marriage certificate (if issued abroad, it must be legalized and translated with a certified translation);- Temporary residence confirmation form or a temporary residence declaration form from the local police where you reside.<h2 style="text-align:justify;">Procedure for Applying for a Temporary Residence Card for Foreigners Married to Vietnamese Citizens</h2><h3 style="text-align:justify;">Step 1: Prepare the application as per legal regulations</h3>Prepare the application as mentioned above.<h3 style="text-align:justify;">Step 2: Submit the application</h3>Submit the application for a temporary residence card at:<ul><li>44-46 Tran Phu, Ba Đinh, Hanoi.</li><li>254 Nguyen Trai, District 1, Ho Chi Minh City.</li><li>7 Tran Quy Cap, Da Nang City.</li><li>Or at the Immigration Department of the provincial or municipal police.</li></ul>The Immigration Department will receive the application, check the legality and the content of the application.<ul><li>If complete and valid, they will receive the application, print, and issue a receipt, and schedule a date to return the results.</li><li>If the application is incomplete, the officer will guide the applicant in supplementing the missing documents.</li></ul>Application submission hours: Monday to Saturday morning (except for holidays and Sundays).<h3 style="text-align:justify;">Step 3: Receive the results</h3>Within 5 working days, the applicant comes to receive the result by presenting the receipt, ID card, or passport for the officer to verify and check. If the temporary residence card is approved, the applicant will pay the fee, sign, and receive the temporary residence card (even if the application is not approved).The applicant must pay the fee, sign, and receive the temporary residence card within 5 working days.Result collection hours: Monday to Friday (except for holidays, and Saturdays and Sundays).Note: The temporary residence card for foreigners married to Vietnamese citizens with the symbol TT is valid for no more than 3 years.

Currently, the number of foreigners married to Vietnamese citizens who wish to live in Vietnam is increasing. Accordingly, foreigners married to Vietnamese citizens will be issued a temporary residence card to live legally in Vietnam according to specific regulations…

TEMPORARY RESIDENCE CARD FOR FOREIGNERS MARRIED TO VIETNAMESE CITIZENS - OTIS LAWYERS

<h2 style="text-align:justify;">Scenario</h2>I am a foreigner who entered Vietnam with a tourist visa (DL) and later secured employment as a technical worker with a Vietnamese company. After signing an employment contract, the company promised to apply for a work permit for me. However, due to the lengthy processing time, my tourist visa expired. I was subsequently found to be overstaying in Vietnam and was fined 20 million VND and ordered to leave the country. Can I request the company to compensate me for the fine? Thank you.<h2 style="text-align:justify;">Response</h2>Thank you for contacting&nbsp;<a href="https://otislawyers.vn/en">OTIS LAWYERS</a> with your question. Our legal team has provided the following response for your case:<h3 style="text-align:justify;">(1) Responsibility for Applying for a Work Permit for Foreign Workers</h3>Based on the information provided, you do not fall under the category of individuals exempt from a work permit. Article 151 of the 2019 Labor Code requires foreign workers to have a valid work permit to work in Vietnam. Additionally, under Clause 2, Article 152, before hiring a foreign worker, an employer must justify the need for foreign labor and obtain written approval from a competent authority.Article 4, Clause 1 of Decree 152/2020/ND-CP on foreign workers in Vietnam mandates that at least 30 days before employing foreign workers, employers must determine the need for foreign labor for each position that cannot be filled by Vietnamese workers and submit a justification report to the Ministry of Labor, Invalids and Social Affairs or the provincial People’s Committee where the foreign worker is to be employed.&nbsp;Furthermore, under Clause 1, Article 11 of this Decree, if the foreign worker is employed as a technical laborer on a labor contract, the employer is responsible for submitting the work permit application. Thus, the Vietnamese company you work for is responsible for obtaining the work permit on your behalf.<h3 style="text-align:justify;">(2) Responsibility of Foreigners Upon Expiry of a DL Visa</h3>According to Article 30 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, foreigners must exit Vietnam upon expiry of their temporary residence period, or they may be subject to mandatory exit orders. Additionally, Article 44 of this law requires that foreign nationals in Vietnam must fulfill the purpose of their entry.Since you entered Vietnam on a DL (tourist) visa, you were required to change the visa type to a work visa when you began employment. Although the company delayed the work permit process, overstaying on the expired tourist visa is your personal responsibility, as it violates the provisions under the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam. Therefore, you are liable for your violation.Furthermore, Article 18 of Decree 144/2021/ND-CP on administrative penalties in areas related to public security, social safety, and order stipulates that foreigners who overstay their temporary residence from 16 to 90 days may face fines from 500,000 VND to 20 million VND, depending on the length of the overstay. Overstaying may also result in additional penalties, including deportation.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

After signing an employment contract, the company promised to apply for a work permit for me. However, due to the lengthy processing time, my tourist visa expired...

PENALTIES FOR FOREIGNERS WITH EXPIRED TOURIST VISAS WHO FAIL TO EXIT VIETNAM

<h2 style="text-align:justify;">Legal Query:</h2>Dear Lawyer, I am a South Korean citizen working for a Vietnamese company in Hanoi. I have signed an indefinite-term labor contract and hold all necessary professional licenses. I would like to ask whether I am required to participate in social insurance (SI) like other Vietnamese employees. Additionally, what is the rate of social insurance contribution for me? Thank you.<img src="https://admin.otislawyers.vn/uploads/nguoi_nuoc_ngoai_lam_viec_theo_hop_dong_khong_xac_dinh_thoi_han_tai_viet_nam_thi_co_phai_dong_bhxh_khong_otis_kr_1_76664df96f.jpg" alt="nguoi-nuoc-ngoai-lam-viec-theo-hop-dong-khong-xac-dinh-thoi-han-tai-viet-nam-thi-co-phai-dong-bhxh-khong-otis-kr (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_nguoi_nuoc_ngoai_lam_viec_theo_hop_dong_khong_xac_dinh_thoi_han_tai_viet_nam_thi_co_phai_dong_bhxh_khong_otis_kr_1_76664df96f.jpg 208w,https://admin.otislawyers.vn/uploads/small_nguoi_nuoc_ngoai_lam_viec_theo_hop_dong_khong_xac_dinh_thoi_han_tai_viet_nam_thi_co_phai_dong_bhxh_khong_otis_kr_1_76664df96f.jpg 500w,https://admin.otislawyers.vn/uploads/medium_nguoi_nuoc_ngoai_lam_viec_theo_hop_dong_khong_xac_dinh_thoi_han_tai_viet_nam_thi_co_phai_dong_bhxh_khong_otis_kr_1_76664df96f.jpg 750w," sizes="100vw"><h2 style="text-align:justify;">Response:</h2>Thank you for trusting OTIS with your question. Based on current legal regulations, OTIS provides the following information:<h3 style="text-align:justify;">Regulations on Social Insurance Contributions for Foreigners Working in Vietnam</h3>According to Clauses 1 and 2, Article 2 of Decree No. 143/2018/ND-CP:“Foreign employees working in Vietnam are subject to mandatory social insurance if they possess a work permit, practicing certificate, or practicing license issued by a competent Vietnamese authority and have signed an indefinite-term labor contract or a definite-term labor contract with a duration of at least 12 months with an employer in Vietnam.”Furthermore, foreign employees working in Vietnam are exempt from mandatory social insurance contributions under Decree No. 143/2018/ND-CP if they fall under one of the following cases:<ul><li>Internal transfer within an enterprise as stipulated in Clause 1, Article 3 of Decree No. 152/2020/ND-CP, which provides detailed guidance on the Labor Code 2019 regarding foreign employees in Vietnam.</li><li>Employees who have reached the retirement age as prescribed in Clause 1, Article 187 of the Labor Code 2019.</li></ul>Based on the above regulations, since you meet all the conditions, you are required to participate in social insurance as stipulated by law.<h3 style="text-align:justify;">Social Insurance Contribution Rates and Payment Methods for Foreign Employees</h3>The rates and methods for social insurance contributions are specified in Section 2.1, Article 2 of Official Letter No. 5251/BHXH-QLT, providing temporary guidance on mandatory social insurance contributions for foreign employees under Decree No. 143/2018/ND-CP. The contributions are as follows:<ul><li>From January 1, 2022:<ul><li>Employers must contribute monthly, based on the employee's monthly salary used for SI contributions:<ul><li>3% to the&nbsp;Sickness and Maternity Fund.</li><li>0.5% to the&nbsp;Occupational Accident and Disease Fund.</li><li>14% to the&nbsp;Retirement and Survivorship Fund.</li></ul></li><li>Employees must contribute monthly:<ul><li>8% of their monthly salary to the&nbsp;Retirement and Survivorship Fund.</li></ul></li></ul></li></ul>The&nbsp;monthly salary used for SI contributions includes the base salary, salary allowances, and other additional payments as prescribed by labor laws. If the monthly salary exceeds 20 times the base salary, the contribution is capped at 20 times the base salary.<h3 style="text-align:justify;">Final Note</h3>The above is OTIS's legal advice based on an analysis of current Vietnamese legal provisions. We hope this information will serve as a useful reference for you.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

 I would like to ask whether I am required to participate in social insurance (SI) like other Vietnamese employees...

ARE FOREIGNERS WORKING UNDER INDEFINITE-TERM CONTRACTS IN VIETNAM REQUIRED TO CONTRIBUTE TO SOCIAL INSURANCE?

The Ministry of Science and Technology (MOST) is proposing new policies to streamline visa and work permit procedures for foreign experts coming to Vietnam to work in the fields of science, technology, and innovation.<h2 style="text-align:justify;">Work Permit Exemption and Simplified Entry Procedures</h2>According to the draft resolution under development, foreign experts coming to Vietnam for less than three months to address complex technical and technological issues or participate in key scientific and innovation projects will not be required to obtain a work permit.<img src="https://admin.otislawyers.vn/uploads/quy_dinh_ve_thu_hoi_giay_phep_lao_dong_kr_1_1601000828.jpg" alt="quy-dinh-ve-thu-hoi-giay-phep-lao-dong-kr (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_quy_dinh_ve_thu_hoi_giay_phep_lao_dong_kr_1_1601000828.jpg 208w,https://admin.otislawyers.vn/uploads/small_quy_dinh_ve_thu_hoi_giay_phep_lao_dong_kr_1_1601000828.jpg 500w,https://admin.otislawyers.vn/uploads/medium_quy_dinh_ve_thu_hoi_giay_phep_lao_dong_kr_1_1601000828.jpg 750w," sizes="100vw">Additionally, these individuals will be exempt from providing documents proving the purpose of entry when applying for a visa, provided they are working in the fields of science, technology, innovation, digital transformation, strategic technology development, or human resource training.<h2 style="text-align:justify;">Preferential Visa Policy for Startup Investors</h2>Foreign citizens, experts, advisors, and investors supporting or investing in innovative startups in Vietnam will be eligible for a visa with a maximum validity of two years. They may apply for an extension if they meet one of the following conditions:<ul><li>Establishing an innovative startup enterprise in Vietnam.</li><li>Possessing a project, technology, intellectual property, product, service, or new business model.</li><li>Receiving investment commitments from venture capital funds or startup support organizations.</li></ul>These individuals must also meet specific requirements, including having no criminal record, holding a passport valid for at least two years at the time of application, and demonstrating sufficient financial resources to cover living expenses and business operations during their stay in Vietnam.<h2 style="text-align:justify;">Reasons for Policy Adjustments</h2>Currently, the procedures for obtaining work permits and visas remain complex, creating difficulties for foreign experts working in Vietnam on short-term assignments. Additionally, short visa durations hinder investors in the innovative startup sector. This new policy aims to attract foreign talent and investors while fostering the development of science, technology, and innovation, aligning with Resolution No. 57/2024 of the Politburo on the advancement of these fields in Vietnam.<h2 style="text-align:justify;">Personal Income Tax Exemption for Science and Technology Personnel</h2>The draft proposal also suggests exempting personal income tax for individuals engaged in scientific and technological tasks, including:<ul><li>Salaries and wages paid by innovation and startup organizations.</li><li>Other income related to scientific and technological activities.</li></ul>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

The Ministry of Science and Technology (MOST) is proposing new policies to streamline visa and work permit procedures for foreign experts coming to Vietnam to work in the fields of science, technology, and innovation.

EXPECTED SIMPLIFICATION OF VISA PROCEDURES FOR FOREIGN EXPERTS IN VIETNAM - OTIS LAWYERS

OTIS LAWYERS provides professional and reputable tax accounting services for businesses

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OTIS律师为国内外企业提供专业、信誉良好的税务会计财务服务。特别是越南的外国直接投资企业和中小企业。

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OTIS LAWYERS cung ứng dịch vụ kế toán thuế chuyên nghiệp, uy tín cho cho các doanh nghiệp trong và ngoài nước. Đặc biệt là các doanh nghiệp FDI và doanh nghiệp vừa và nhỏ tại Việt Nam. 

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Tax is one of the most important obligation of Company. According to current Vietnamese law, a Company has to pay various types of tax. In the article below, <a href="https://otislawyers.vn/">OTIS LAWYERS</a> will share with readers the taxes that companies in VietNam must pay.<h2 style="text-align:justify;">License fee</h2>License fee is amount of money which has to be annually paid by Company. The amount of licensing fee is based on the charter capital written in the certificate of enterprise registration or investment capital written in the certificate of investment registration (for organization).According to Clause 1, Article 4 of Circular No. 302/2016/TT-BTC, the amounts of licensing fees for organizations engaging in business as follows:<figure class="table" style="height:144px;width:100%;"><table><tbody><tr><td style="height:48px;text-align:center;">Licensing fee level</td><td style="height:48px;text-align:center;">Registered capital (Charter capital of investment capital)</td><td style="height:48px;text-align:center;">Payment rate (VND/year)</td></tr><tr><td style="height:24px;">– Level 1</td><td style="height:24px;">Greater than VND 10 billion</td><td style="height:24px;">3.000.000</td></tr><tr><td style="height:24px;">– Level 2</td><td style="height:24px;">Less than equal to VND 10 billion</td><td style="height:24px;">2.000.000</td></tr><tr><td style="height:48px;">– Level 3: Branches, representative offices, business premises, public service providers, other business entities.</td><td style="height:48px;">&nbsp;</td><td style="height:48px;">1.000.000</td></tr></tbody></table></figure>New organizations shall be exempted from license fees for the first year from the date of establishment (according to point c, clause 1, article 1 of Decree No. 22/2020/ND-CP). After exemption period, company shall pay license fees according to law regulation.<h3 style="text-align:justify;">Deadline for declaring and paying the license fees:</h3>* The declaration of license fees:According to Clause 1, Article 5 of Decree No. 139/2016/ND-CP amended by Clause 3, Article 1 of Decree No. 22/2020/ND-CP, the declaration of license fees shall be made once when starting production/business or upon establishment. Company shall make and submit their declarations of license fee to their supervisory tax authorities by January 30 of the year following the year of commencement of production/business or the year of establishment.* Payment of license feesDeadline for paying license fees is every January 30 (according to point b, clause 1, Article 5 of Circular No. 302/2016/TT-BTC)<h2 style="text-align:justify;">Corporate income tax</h2>Corporate income tax (CIT) is one of the types of tax that FDI enterprises have to pay to the State.CIT is a direct tax, levied on the taxable income of company including income from manufacturing activity, trading goods and services activity and other incomes as prescribed in regulations of law.The corporate income tax period is determined according to the financial year and is calculated based on the business results shown in the annual financial statements. Previously, quarterly, based on the business situation as well as quarter declarations and reports submitted to the tax agency, the enterprise must temporarily pay CIT no later than the 30th day of quarter succeeding the quarter in which tax is incurred. Enterprises are not required to submit the provisional CIT declaration quarterly. (According to Article 17 of Circular No. 151/2014/TT-BTC).<h3 style="text-align:justify;">Caculating CIT</h3><figure class="image"><img src="https://admin.otislawyers.vn/uploads/WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_1_1bf8fa0523.jpg" alt="WHAT TAXES DO BUSINESSES IN VIETNAM HAVE TO PAY (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_1_1bf8fa0523.jpg 208w,https://admin.otislawyers.vn/uploads/small_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_1_1bf8fa0523.jpg 500w,https://admin.otislawyers.vn/uploads/medium_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_1_1bf8fa0523.jpg 750w,https://admin.otislawyers.vn/uploads/large_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_1_1bf8fa0523.jpg 1000w," sizes="100vw"><figcaption>Caculating CIT</figcaption></figure>CIT rate: The current CIT rate is 20% applied to all enterprises (Article 11 of Circular No.78/2014/TT-BTC), excluding some enterprises applied preferential tax rates (Article 19 of Circular No.78/2014/TT-BTC) and some specific enterprises (searching, exploring, exploiting oil and rare resources)<h2 style="text-align:justify;">Value Added Tax</h2>Value Added Tax (VAT) is a tax calculated on the added value of goods and services arising in the process of manufacture, circulation and consumption in the territory of Vietnam.Goods and services subject to VAT are those used for manufacture, trading, and consumption in Vietnam (including those purchased from overseas organizations and individuals), except for the goods and services in Article 4 of this Circular No. 219/2013/TT-BCT.Payers of VAT are the organizations and individuals that manufacture, trade in taxable goods and services in Vietnam and the organizations and individuals that import goods or purchase services from abroad.VAT calculation methods includes:<figure class="image"><img src="https://admin.otislawyers.vn/uploads/WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_2_76c2a27da6.jpg" alt="WHAT TAXES DO BUSINESSES IN VIETNAM HAVE TO PAY (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_2_76c2a27da6.jpg 208w,https://admin.otislawyers.vn/uploads/small_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_2_76c2a27da6.jpg 500w,https://admin.otislawyers.vn/uploads/medium_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_2_76c2a27da6.jpg 750w,https://admin.otislawyers.vn/uploads/large_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_2_76c2a27da6.jpg 1000w," sizes="100vw"><figcaption>VAT calculation methods</figcaption></figure><h3 style="text-align:justify;">VAT declaration and payment period</h3>Tax declaration period is divided according to each case: declaration by month, by quarter or by each time arising.For business operations, most of companies apply the quarterly VAT declaration regime. This regime is applied to VAT payers whose total revenue from selling goods and providing services in the preceding year is VND 50 billion or less.<h3 style="text-align:justify;">Deadlines for submitting tax declarations</h3>According to Clause 3, Article 10 of Circular No.156/2013/TT-BTC, the deadlines for submitting tax declaration are:<ul><li style="text-align:justify;">The deadline for submitting a monthly tax declaration is the 20th of the month succeeding the month in which tax is incurred.</li><li style="text-align:justify;">The deadline for submitting a quarterly tax declaration or provisional quarterly tax declaration is the 30th of the quarter succeeding the quarter in which tax is incurred.</li><li style="text-align:justify;">The annual tax declaration must be submitted by the 30th of the first month of the calendar year.</li><li style="text-align:justify;">The annual terminal declaration must be submitted within 90 days from the end of the calendar year or tax year.</li></ul><h3 style="text-align:justify;">Deadlines for paying tax</h3>According to Clause 2, Article 26 of Circular No.156/2013/TT-BTC, deadline for paying tax is the deadline for submitting the tax declaration if tax is calculated by the taxpayer, or the deadline imposed by the tax authority or a competent authority.<h2 style="text-align:justify;">Personal income tax</h2>Personal income tax (PIT) is one of the taxes that businesses need to pay on behalf of employees calculated on a monthly basis. PIT is declared monthly or quarterly, but finalized annually.<figure class="image"><img src="https://admin.otislawyers.vn/uploads/WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_3_92a6252925.jpg" alt="WHAT TAXES DO BUSINESSES IN VIETNAM HAVE TO PAY (3).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_3_92a6252925.jpg 208w,https://admin.otislawyers.vn/uploads/small_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_3_92a6252925.jpg 500w,https://admin.otislawyers.vn/uploads/medium_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_3_92a6252925.jpg 750w,https://admin.otislawyers.vn/uploads/large_WHAT_TAXES_DO_BUSINESSES_IN_VIETNAM_HAVE_TO_PAY_3_92a6252925.jpg 1000w," sizes="100vw"><figcaption>How to calculate personal income tax</figcaption></figure>The deductions include family deduction in which: deduction for taxpayer is 11,000,000 VND/person/month; deduction for each dependent is VND 4,400,000/person/month.<h2 style="text-align:justify;">Some other taxes based on the operation field of enterprises</h2>Resource tax is an indirect tax which is paid to the State by organizations and individuals when exploiting natural resources.Import and export tax is an indirect tax, levied on goods exported or imported through Vietnam's border; goods traded and exchanged by border residents and other goods considered as imported and exported goods.Environmental protection tax is an indirect tax, levied on products and goods causing adverse impacts on the environment. Environment tax is applied to enterprises producing and importing taxable goods as prescribed in the Law on Environmental Protection Tax 2010.Special consumption tax is an indirect tax, levied on a number of special goods directly produced and sold by enterprises or imported and sold by enterprises. Special consumption tax is applied to enterprises producing or importing taxable goods or services.Non-agricultural land use tax is a direct tax levied on non-agricultural land used for production, implementation of investment projects, and construction of offices.This is OTIS LAWYERS's advice regarding taxes that FDI enterprises may have to pay when operating in Vietnam. When operating in Vietnam, if investors and companies have difficulties in the process of declaring and paying taxes, please contact us for being supported and provided with our accounting service. If you have any questions about taxes, please contact us by phone or email for advice.&nbsp;OTIS LAWFIRM &amp; PARTNERSAddress: K28 Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiMobile: 0987.748.111Email: info@otislawyers.vn

Tax is one of the most important obligation of Company. According to current Vietnamese law, a Company has to pay various types of tax. In the article below, OTIS LAWYERS will share with readers the taxes that companies in VietNam must pay.

WHAT TAXES DO BUSINESSES IN VIETNAM HAVE TO PAY ?

License fee is an amount that any business entity must pay when conducting business activities. So what is license fee? How much is the license fee? If there is a violation of license fee, how are the penalties? Find out with<a href="https://otislawyers.vn/en"> OTIS LAWYERS</a> in the sharing post below!<h2>Legal grounds</h2>Decree 139/2016/ND-CP dated October 04, 2016 of Government stipulating license feesDecree 126/2020 ND-CP dated October 19, 2020 of Government stipulating in detail a number of articles of the Law on Tax AdministrationDecree 125/2020/ND-CP&nbsp;dated October 19, 2020 of Government stipulating penalties for administrative violations on taxes and invoices<h2>WHAT IS LICENSE FEE?</h2><figure class="image"><img src="https://admin.otislawyers.vn/uploads/quy_dinh_phap_luat_ve_le_phi_mon_bai_36b5a49b50.jpg" alt="quy-dinh-phap-luat-ve-le-phi-mon-bai.jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_quy_dinh_phap_luat_ve_le_phi_mon_bai_36b5a49b50.jpg 208w,https://admin.otislawyers.vn/uploads/small_quy_dinh_phap_luat_ve_le_phi_mon_bai_36b5a49b50.jpg 500w,https://admin.otislawyers.vn/uploads/medium_quy_dinh_phap_luat_ve_le_phi_mon_bai_36b5a49b50.jpg 750w,https://admin.otislawyers.vn/uploads/large_quy_dinh_phap_luat_ve_le_phi_mon_bai_36b5a49b50.jpg 1000w," sizes="100vw"><figcaption>License fee (formerly known as license tax)</figcaption></figure>License fee (formerly known as license tax). License tax, also known as license fee, is one of the taxes and other state budget revenues declared annually.<h2>LICENSE FEE PAYERS</h2>According to the provisions of Article 2 of Decree 139/2016/ND-CP, the payers are organizations, individuals, groups of individuals and households engaged in production and business of goods and services, including:<ul><li>Enterprises established in accordance with the law.</li><li>The organization is established under the Cooperative law.</li><li>Non-business units established in accordance with the law.</li><li>Economic organization of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed forces units.</li><li>Other organizations engaged in production and business activities.</li><li>Branches, representative offices and business locations of the above organizations (if any).</li><li>Individuals, groups of individuals, households engaged in production and business activities.</li></ul><h2>IN WHICH CASES IS LICENSE FEE EXEMPTED?</h2>Cases that license fee is exempted, including:<ul><li>Individuals, groups of individuals, households engaged in production and business activities with annual revenue of 100 million VND or less.</li><li>Individuals, groups of individuals and households engaged in non-regular business and production activities; there is no fixed place according to the guidance of the Ministry of Finance.</li><li>Individuals, groups of individuals and households producing salt.</li><li>The organizations, individuals, groups of individual and households that do the aquaculture, fisheries and fishing logistic services.</li><li>Commune cultural post office; press agencies (print press, audio press, video press, electronic press).</li><li>Branches, representative offices and business locations of cooperatives provide technical services directly serving agricultural production.</li><li>The communal people’s credit fund; cooperatives specialized in service business for agricultural production; branches, representative offices and business locations of cooperatives and private enterprises carrying on their business in the mountainous areas which are determined by the regulations of the Committee for Ethnic Minorities.</li></ul><h2>LICENSE FEE RATE</h2><h3>License fee rate for organizations engaged in production and business of goods and services</h3><figure class="table"><table><tbody><tr><td>Subject</td><td>Rate</td></tr><tr><td>Organizations with charter capital or investment capital over 10 billion VND</td><td>3,000,000 VND/year</td></tr><tr><td>Organizations with charter capital or investment capital of 10 billion VND or less</td><td>2,000,000 VND/year</td></tr><tr><td>Branches, representative offices, business locations, non-business units, other economic organizations</td><td>1,000,000 VND/year</td></tr></tbody></table></figure>The rate of license fee for organizations is based on the charter capital stated in the business registration certificate; if there is no charter capital, the investment capital stated in the investment registration certificate shall be based on.<h3>License fees for individuals and households engaged in production and business of goods and services</h3><figure class="table"><table><tbody><tr><td>Subject</td><td>Rate</td></tr><tr><td>Individuals, groups of individuals, households with a turnover of over 500 million VND/year</td><td>1.000,000 VND/year.</td></tr><tr><td>Individuals, groups of individuals, households with a turnover of over 300 to 500 million VND/year</td><td>500.000 đồng/năm500,000 VND/year.</td></tr><tr><td>Individuals, groups of individuals, households with a turnover of over 100 to 300 million VND/year</td><td>&nbsp;300.000 đồng/năm.300,000 VND/year.</td></tr></tbody></table></figure>The revenue used as a basis for determining the license fee rate for individuals, groups of individuals and households is calculated as follows: total revenue for calculation of personal income tax in accordance with the law on personal income tax.<ul><li>If an individual, group of individuals or household changes in revenue, the basis for determining the license fee rate is the taxable revenue of the personal income of the year preceding the year in which the license fee is calculated.</li><li>For individuals, groups of individuals and households that have just started doing business in the year, the revenue rate used as the basis for determining the license rate is the revenue of the tax year according to the provisions of the law on personal income tax.</li></ul><h3>Some other cases</h3><ul><li>Small and medium-sized enterprises converted from business households (including branches, representative offices, business locations) when the license fee exemption period expires (the fourth year from the year of business establishment): in cases the ending within the first 6 months of the year, pay the annual license fee; in the case ending in the last 6 months of the year, 50% of the annual license fee shall be paid.</li><li>Dissolved households, individuals, groups of production and business individuals that resume production and business activities during the first 6 months of the year shall pay the license fee for the whole year, 50% of the license fee for the last 6 months of the year</li><li>The active fee payer sends a written notice to the tax authority directly managing the suspension of production and business activities in the calendar year without having to pay the license in the year of business suspension with the following conditions: draft a document of suspending production and business activities and send it to the tax authority before the prescribed fee payment deadline (January 30 of each year) and have not paid the license fee of the year of application for suspension of production and business activities.</li><li>In case of temporary suspension of production and business activities, if the above conditions are not satisfied, the license fee rate for the whole year shall be paid.</li></ul><h2>DEADLINE FOR SUBMISSION OF RETURNS AND LICENSE FEE PAYMENT&nbsp;</h2><h3>Deadline for payment of license fee</h3>The deadline for paying license tax is January 30 of each year. In case the fee payer has just started production and business activities or has just run a production and business establishment, the deadline for submitting the license fee is the same with the one for submitting the fee return dossier.<h3>Deadline for submission of license fee return</h3>Clause 1, Article 10 of Decree 126/2020/ND-CP stipulates as follows:<ul><li>License fee applicants (except business households and business individuals) newly established (including small and medium-sized enterprises converted from household businesses) or have established additional dependent units, business locations or started Business and production activities shall submit license fee return dossiers no later than January 30 of the year following the one of establishment start of production and business activities. If there is a change in capital during the year, the applicant shall submit the license fee return dossier no later than January 30 of the year following the one in which the change information arises.</li><li>Business households and individuals are not required to submit license fee return dossier. Tax authorities shall base on tax return dossiers and tax administration databases to determine revenue as a basis for calculating the payable license fee amount and notify the payers.</li></ul><h2>PENALTIES FOR LATE SUBMISSION OF RETURNS, FAILURE TO PAY</h2><figure class="image"><img src="https://admin.otislawyers.vn/uploads/quy_dinh_phap_luat_ve_le_phi_mon_bai_1_5b45776a26.jpg" alt="quy-dinh-phap-luat-ve-le-phi-mon-bai (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_quy_dinh_phap_luat_ve_le_phi_mon_bai_1_5b45776a26.jpg 208w,https://admin.otislawyers.vn/uploads/small_quy_dinh_phap_luat_ve_le_phi_mon_bai_1_5b45776a26.jpg 500w,https://admin.otislawyers.vn/uploads/medium_quy_dinh_phap_luat_ve_le_phi_mon_bai_1_5b45776a26.jpg 750w,https://admin.otislawyers.vn/uploads/large_quy_dinh_phap_luat_ve_le_phi_mon_bai_1_5b45776a26.jpg 1000w," sizes="100vw"><figcaption>How are business entities penalized for late payment or failure to pay license fees?</figcaption></figure><h3>Fines rate</h3>Article 13 of Decree 125/2020/ND-CP stipulates the following fine rate:<figure class="table"><table><tbody><tr><td>Violation</td><td>Form</td><td>Penalty rate</td></tr><tr><td>Submitting tax returns within 01 - 05 days and there are extenuating circumstances</td><td>Warning</td><td>&nbsp;</td></tr><tr><td>Submitting tax returns within 01 - 30 days, except for the above warning.</td><td rowspan="4">Monetary fine</td><td>From 02 - 05 million VND</td></tr><tr><td>Submit tax returns overdue from 31 to 60 days.</td><td>From 05 - 08 million VND</td></tr><tr><td>Submitting tax returns overdue from 61 - 90 days.- Submit tax returns overdue for 91 days or more. But there is no tax payable.- Tax returns are not submitted but no payable tax- Failing to submit the appendices according to regulations on tax administration for enterprises having associated transactions and the finalization dossier of corporate income tax.</td><td>From 08 - 15 million VND</td></tr><tr><td>Submitting a tax return over 90 days after the deadline, a payable tax amount has arisen and the taxpayer has fully paid the tax and late payment interest to the state budget before the time the tax authority announces the decision on tax inspection or before the time the authority makes a record of late submission of tax return dossiers.&nbsp;Note: In case the fine amount applied under this clause is larger than the one of tax incurred on the tax return, the maximum fine in this case is equal to the amount of payable tax on the return tax but not low 11.5 million VND.</td><td>From 15 - 25 million VND</td></tr></tbody></table></figure><h3>Remedial measures</h3><ul><li>Forcing to pay the full amount of late payment to the state budget in case taxpayers are late in submitting tax returns, leading to late payment of tax.</li><li>Forcing to submit tax return dossiers and appendices attached to tax return dossiers for the following 02 acts:</li></ul>+ Failing to submit tax return dossiers but no payable tax amounts;+ Failing to submit appendices according to regulations on tax administration for enterprises having associated transactions and the finalization dossier of enterprise income tax.Above is our consultation on license fee according to current law. We hope that this will be a useful reference for readers when they want to learn about the provisions of the tax law.<h2>Tax &amp; Accounting consulting service of OTIS LAWYERS</h2>The above is the advice of OTIS LAWYERS on License fee under the law. If you have any questions, please contact OTIS LAWYERS immediately for advice and support.<figure class="image"><img src="https://admin.otislawyers.vn/uploads/quy_dinh_phap_luat_ve_le_phi_mon_bai_2_4f0a6d9224.jpg" alt="quy-dinh-phap-luat-ve-le-phi-mon-bai (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_quy_dinh_phap_luat_ve_le_phi_mon_bai_2_4f0a6d9224.jpg 208w,https://admin.otislawyers.vn/uploads/small_quy_dinh_phap_luat_ve_le_phi_mon_bai_2_4f0a6d9224.jpg 500w,https://admin.otislawyers.vn/uploads/medium_quy_dinh_phap_luat_ve_le_phi_mon_bai_2_4f0a6d9224.jpg 750w,https://admin.otislawyers.vn/uploads/large_quy_dinh_phap_luat_ve_le_phi_mon_bai_2_4f0a6d9224.jpg 1000w," sizes="100vw"><figcaption>&nbsp;OTIS LAWYERS - a professional unit in the field of Tax &amp; Accounting for enterprises under the law</figcaption></figure>OTIS LAWYERS is always proud to be a professional unit in the field of Tax &amp; Accounting for enterprises under the law. With a team of highly qualified lawyers, extensive experience, and dedication to clients, we believe that we will provide investors with the most professional services, at a reasonable cost and the fastest processing time. We commit that all client information is confidential and client interests always come first. Please contact:OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/ </a>Website: <a href="https://otislawyers.vn/">https://otislawyers.vn/</a>&nbsp;

License fee is an amount that any business entity must pay when conducting business activities. So what is license fee?

LATEST LEGAL REGULATIONS ON LICENSE FEE IN 2022

Value-added tax is a common one that enterprises and business households need to know in order to declare and pay taxes in accordance with current laws. What is the current law on value-added tax? Find out further details with<a href="https://otislawyers.vn/en"> OTIS LAWYERS</a> in the article below!<h2 style="text-align:justify;">Legal Grounds</h2>Law on Value-Added Tax 2008Circular 219/2013/TT-BTC<h2 style="text-align:justify;">What is Value-Added Tax?</h2>What is Value-Added Tax? How is the meaning?Value-Added Tax is also known as VAT. According to the provisions of Article 2 of Law on value-added tax, "VAT is a tax imposed on the added value of goods and services arising in the process from production, circulation to consumption."<h2 style="text-align:justify;">Characteristics of Value-Added Tax</h2><h3 style="text-align:justify;">As an indirect tax</h3>VAT is an indirect tax levied on the added value of goods and services, arising from the process of production, circulation to consumption. Consumers will be taxable. Production and business establishments, enterprises providing goods services will be taxpayers to the state budget on behalf of consumers by adding tax to the selling prices that consumers have to pay when buying goods. service.<h3 style="text-align:justify;">As a tax with a large taxable object</h3>Taxable objects of VAT are goods and services used for production, business and consumption in Vietnam, which are subject to value added tax, except for the objects stipulated in Article 5 of Law on VAT.<h3 style="text-align:justify;">Calculating on the added value of goods and services only</h3>This is one of the basic characteristics to distinguish VAT from other indirect taxes. VAT at all stages. From the production process to the circulation of goods and even the consumption process. Taxation is only on the added value but not on the entire value of goods and services.<h2 style="text-align:justify;">Role of value-added tax</h2><ul><li style="text-align:justify;">VAT has the effect of regulating income of organizations and individuals consuming taxable goods and services&nbsp;</li><li style="text-align:justify;">VAT is an important revenue of the State Budget. VAT generates a large and relatively stable source of revenue for the state budget.</li><li style="text-align:justify;">Encourage the export of goods and services.</li><li style="text-align:justify;">Promote the implementation of the accounting and use of invoices.</li></ul><h2 style="text-align:justify;">Objects of value-added tax imposition&nbsp;</h2><h3 style="text-align:justify;">Tax payment objects</h3>Value-added tax payers are organizations and individuals that produce and trade in value-added taxable goods and services, and organizations and individuals that import value-added taxable goods.<h3 style="text-align:justify;">Taxable objects</h3>Taxable objects of VAT are goods and services used for production, business and consumption in Vietnam that are subject to value added tax, except for the objects specified in Article 5 of Law on VAT.<h3 style="text-align:justify;">Non-taxable Objects&nbsp;</h3><figure class="image"><img src="https://admin.otislawyers.vn/uploads/value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_3_33c0b555fc.jpg" alt="value-added-tax-what-should-know-about-the-latest-legal-regulations-for-2022 (3).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_3_33c0b555fc.jpg 209w,https://admin.otislawyers.vn/uploads/small_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_3_33c0b555fc.jpg 500w,https://admin.otislawyers.vn/uploads/medium_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_3_33c0b555fc.jpg 750w,https://admin.otislawyers.vn/uploads/large_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_3_33c0b555fc.jpg 1000w," sizes="100vw"><figcaption>Non-taxable VAT Objects</figcaption></figure><ul><li style="text-align:justify;">Cultivation and husbandry products, and reared and fished aquatic products which have not yet been processed into other products or have been just preliminarily processed and sold by producing and fishing organizations and individuals, and products at the stage of importation.…</li><li style="text-align:justify;">Products which are animal breeds and plant varieties, including breeding eggs, breeding animals, seedlings, seeds, sperms, embryos and genetic materials.</li><li style="text-align:justify;">Irrigation and drainage; soil ploughing and harrowing; dredging of intra-field canals and ditches for agricultural production; services of harvesting farm produce.</li><li style="text-align:justify;">Salt products made of seawater, natural rock salt, refined salt and iodized salt.</li><li style="text-align:justify;">State-owned residential houses sold by the State to current tenants.</li><li style="text-align:justify;">Transfer of land use rights;</li><li style="text-align:justify;">Life insurance, student insurance, insurance on domestic animals, insurance on plants and reinsurance.</li><li style="text-align:justify;">Credit provision services; securities trading; capital transfer; derivative financial services, including interest-rate swap contracts, forward contracts, futures contracts, call or put options, foreign currency sales, and other derivative financial services as prescribed by law</li><li style="text-align:justify;">Healthcare and animal health services, including medical examination and treatment and preventive services for humans and domestic animals.</li><li style="text-align:justify;">Public post and telecommunications and universal Internet services under the Governments programs.</li><li style="text-align:justify;">Public services on sanitation and water drainage in streets and residential areas; maintenance of zoos, flower gardens, parks, street greeneries and public lighting; funeral services;</li><li style="text-align:justify;">Renovation, repair and construction of cultural, artistic, public service and infrastructure works and residential houses for social policy beneficiaries, which are funded with people contributions or humanitarian aid.</li><li style="text-align:justify;">Teaching and vocational training as provided for by law.</li><li style="text-align:justify;">State budget-funded radio and television broadcasting.</li></ul><h2 style="text-align:justify;">How to calculate value-added tax</h2>&nbsp;<figure class="image"><img src="https://admin.otislawyers.vn/uploads/value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_2_242319bbc3.jpg" alt="value-added-tax-what-should-know-about-the-latest-legal-regulations-for-2022 (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_2_242319bbc3.jpg 209w,https://admin.otislawyers.vn/uploads/small_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_2_242319bbc3.jpg 500w,https://admin.otislawyers.vn/uploads/medium_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_2_242319bbc3.jpg 750w,https://admin.otislawyers.vn/uploads/large_value_added_tax_what_should_know_about_the_latest_legal_regulations_for_2022_2_242319bbc3.jpg 1000w," sizes="100vw"><figcaption>Formula for determining VAT</figcaption></figure>VAT can be calculated by 2 methods<h3 style="text-align:justify;">Deduction method</h3>Payable VAT = output VAT – deducted input VAT&nbsp;<h3 style="text-align:justify;">Direct calculation method</h3>VAT amount = revenue x percentage %<h3 style="text-align:justify;">VAT rate</h3>VAT rate is the tax payment per unit of taxable goods or services. VAT rates include 3 levels: 0%, 5% and 10%. The tax rate will be different depending on the type of goods<h2 style="text-align:justify;">Tax consulting service of OTIS LAWYERS</h2>Above is the consultation of OTIS LAWYERS on VAT in accordance with the law. We hope that the above article will be a useful reference for you when learning about taxes.&nbsp;OTIS &amp; PARTNERS LAWFIRMAddress: No. K28, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi City.Hotline: (+84) 987 748 111Email: <a href="about:blank">info@otislawyers.vn/ </a>Website: <a href="https://otislawyers.vn/">https://otislawyers.vn/</a>&nbsp;

Value-added tax is a common one that enterprises and business households need to know in order to declare and pay taxes in accordance with current laws.

VALUE-ADDED TAX: WHAT SHOULD KNOW ABOUT THE LATEST LEGAL REGULATIONS FOR 2022

Currently, the phrase digital signature is becoming more and more popular, especially for enterprises. Along with the advancement of science and technology, in the current 4.0 technology era, the development of digital signatures is an indispensable thing for every enterprise. So what is digital signature? What are digital signatures used for? Why is a business required? Learn more about digital signatures with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below!<h2>Legal grounds</h2>Decree 130/2018/ND-CP<h2>What is digital signature?</h2>According to the provisions of Clause 6, Article 3 of Decree 130/2018/ND-CP detailing digital signatures and digital signature authentication services: What is digital signature?"Digital signature" means a form of electronic signature created by the transformation of a data message using an asymmetric cryptography in which those who have initial data messages and the public key of the signer can be determined exactly:<ul><li>The above transformation is created by the correct private key corresponding to public key in the same key pair;</li><li>The integrity of the content of data messages since the implementation of the mentioned above transformation.&nbsp;</li></ul><h2>Structure of digital signature</h2>The signature can be divided into two main parts as follows:<ul><li>Hardware - like a USB stick (called a USB token) and secured with a password or PIN;</li><li>A digital certificate is an integral part of a digital signature, containing all encrypted data of an enterprise.</li></ul><h2>Features of digital signature</h2><h3>High confidential public encryption &nbsp;</h3>Digital signature is designed based on the most advanced public cryptography technology today (RSA): the user will have 1 key pair. This key pair contains the public key and the private key. This helps the owner of the signature to increase security, limiting bad ones to take advantage of the signature for illegitimate purposes.<ul><li>"Secret key" is a key in an asymmetric cryptographic system key pair used to generate digital signatures.</li><li>"Public key" is a key in a key pair of an asymmetric cryptosystem used to verify the digital signature generated by the corresponding secret key in the key pair.</li></ul><h3>Digital signing</h3>Digital signing is the introduction of a secret key into a software program to automatically generate and attach a digital signature to data messages.<h3>Recipient</h3>Signature recipients can be individuals or business organizations, social organizations, the State. When the signature is sent, the recipient can use the signer's digital certificate to check the data inside. After verifying the correct trusted account, the information is correct, you can proceed with the transaction. Digital signatures contain a lot of information, images that help a lot in the process of checking information for transactions.<h2>Legal validity of digital signatures&nbsp;</h2>Article 8 of Decree 130/2018/ND-CP stipulates the legal value of digital certificates as follows:<ul><li>Where the law defines that a document required to be signed, the requirement for a data message is considered as met if the data message is signed with digital signature and such digital signature is adequately secured&nbsp;</li><li>Where the law defines that a document required to be stamped by the agency, organization, such requirement for a data message is considered as met if the data message is signed by digital signature of the agency or organization and such digital signature is adequately secured</li></ul><h2>Conditions to ensure security for digital signatures</h2>A digital signature is considered a secure electronic signature when satisfying the following conditions:<ul><li>The digital signature is generated during the validity of the digital certificate and is verifiable by the public key recorded on the digital certificate.</li><li>The digital signatures are created by using the private key corresponding to public key recorded on digital certificates granted by one of the following authorities:</li></ul>+ Root Certification Authority;+ Specialized certification authorities of the Government;+ Public certification authorities;+ Specialized certification authorities of agencies and organizations issued with certificates of eligibility for special-use digital signature security as prescribed in Article 40 of this Decree.<ul><li>Private Key is only under the control of the signer at the time of signing.&nbsp;</li></ul><h2>Functions of digital signature</h2>Nowadays, in order to optimize work efficiency and reduce costs, most procedures are carried out through electronic networks. Therefore, digital signatures are an effective way to carry out these procedures. Digital signatures have the following functions:<ul><li>Digital signatures are used to declare, submit declarations, pay financial obligations in the fields of tax, customs and securities transactions, etc. When enterprises use digital signatures in electronic transactions, they are not required to reprint the declarations and stamp them;</li><li>Enterprises that carry out enterprise registration procedures such as changing business registration, notifying changes, establishing branches, representative offices, business locations, etc. can also use digital signatures. to sign directly on documents, which simplifies administrative procedures;</li><li>Digital signatures are also used when enterprises sign contracts with customers and partners online without having to spend time traveling or meeting.</li><li>As proof of non-disclaimer on signed content because of its high confidentiality and accuracy</li></ul><h2>Some popular types of digital signatures at present</h2>Some types of digital signatures are widely used todayViettel digital signature has good security and leading utility service today. You can use the digital signature for 1 year, 2 years or 3 years from Viettel depending on the purpose of use: tax declaration, customs declaration or social insurance.Vina digital signature has received certification from the Ministry of Information about the number of certificates to ensure safety and security for customers, so Vina digital signatures are trusted and chosen by many users.VNPT digital signature has high security, so it is trusted and chosen by many customers and business organizations.CA2 digital signature with attentive customer care service and many high-tech utilities.FPT's online signatureFPT has a good customer care regime and many utilities for registration and renewal services for electronic signatures. In addition, the quality of signatures and security is something that FPT are good at. Besides, the price is also reasonable, so many users choose FPT's digital signature serviceAbove is the answer to the question "What is a digital signature?". As our consultation on digital signatures according to current law. We hope that this will be a useful reference for readers when they want to learn the provisions of law in the field of accounting - tax.<h2>Accounting - tax consulting services of OTIS LAWYERS</h2>OTIS LAWYERS is always proud to be a professional unit in the field of tax accounting. Having a team of lawyers with high expertise, extensive experience and dedication to clients, OTIS LAWYERS believes in providing clients with the best, most professional service, reasonable cost and fastest processing time. We commit that all information of clients is absolutely confidential and interests of clients always come first.&nbsp;&nbsp;For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vn

What is digital signature? What are digital signatures used for? Why is a business required? Learn more about digital signatures with OTIS

DIGITAL SIGNATURES: THINGS ENTERPRISES SHOULD KNOW ABOUT DIGITAL SIGNATURE

To carry out enterprise tax accounting effectively, without errors, the accounting department needs to follow a certain process. What is process for tax accounting? Let's find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below about this issue.<h2>Enterprise tax accounting process</h2>The current general enterprise tax accounting process is basically done according to the following steps:Step 1: Solve all accounting transactions arising in the enterpriseStep 2: Make accounting vouchersStep 3: Record bookkeepingStep 4: Carry out accounting work at the end of the monthly, quarterly and annual periodStep 5: Make a balance sheet of books, expenses and incurred dataStep 6: Prepare financial statements and make tax finalization&nbsp;&nbsp;Above are some of our advice on tax accounting. Hopefully, the article will be a useful reference to help you gain basic knowledge about tax accounting.<h2>Some frequently asked questions about tax accounting and tax declaration in enterprises</h2>Quarterly, if the company does not generate anything, does it have to file a VAT return?For value-added tax declaration: Enterprises that do not generate input and output invoices will still have to submit a value-added tax (VAT) declaration by the deadline for tax declaration and payment.Is it necessary for the company without revenue and expenses to submit year-end financial statements?Enterprises note that even though the company has no business activities, it still has to prepare and submit year-end financial statements for the year of operation.What is the minimum qualification as a tax accountant?Companies and enterprises often require a college degree for the tax accountant position because this position needs to be trained for a while.How to limit risks when doing tax accounting?It is recommended to use support software from reputable suppliers to limit errors and optimize the management of invoices and documents.<h2>Enterprise tax accounting services of OTIS LAWYERS</h2><h3>Complete tax accounting service</h3>We provide our clients with a package of tax accounting services, including:<ol><li>Surveying the status of accounting records, vouchers and data</li><li>Receiving and handing over documents, documents and data</li><li>Sorting and analyzing the status of documents – documents</li><li>Preliminary check of data status at the beginning of the period</li><li>Information to clients about problems with records, documents, data</li><li>Work plan and handling options with the consent of clients</li><li>Data entry on accounting software</li><li>Accounting operations, preliminary data balance</li><li>Checking the status of VAT declaration and invoice receipt</li><li>Dialogue with enterprises on data</li><li>Preparing a set of annual financial statements (balance sheet, income statement, cash flow table, financial statement footnotes)</li><li>Making corporate income tax finalization reports, personal income tax finalization</li><li>Additional declaration of VAT, report on the use of invoices (if any)</li><li>Printing accounting voucher system</li><li>Establishing a system of annual bookkeeping according to regulations</li><li>Storage of books, vouchers, accounting records according to regulations</li><li>Protect data explanation with tax authorities</li><li>Calculation of monthly salary and procedures for social insurance for new employees (if any)</li></ol><h3>OTIS LAWYERS - a reputable and professional provider of tax accounting service&nbsp;</h3>The bookkeeping and accounting system shall be optimized when you come to OTIS LAWYER. With a team of experienced and highly specialized accountants in tax, we guarantee to help enterprises carry out the procedures in accordance with regulations, saving time and costs. Please contact OTIS LAWYER immediately for support, consulting and answers to issues related to enterprise tax accounting as well as company establishment procedures.OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

To carry out enterprise tax accounting effectively, without errors, the accounting department needs to follow a certain process.

ENTERPRISE TAX ACCOUNTING PROCESS - SOME FREQUENTLY ASKED QUESTIONS ABOUT TAX ACCOUNTING

According to current Vietnamese laws, enterprises doing business in Vietnam may be imposed various taxes ( taxes FDI corporates must pay ). Many FDI enterprises believe that taxes are causing legal barriers for them during their business operations . Therefore, with the desire to provide necessary legal knowledge to minimize risks for clients, <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> would like to share the following article content.<h2>TAXES FDI CORPORATES MUST PAY: LICENSE FEE</h2>License fee is the annual payable amount by the enterprise based on the charter capital stated in the enterprise registration certificate/investment capital stated in the investment registration certificate (for organizations).License fee rates as prescribed in Clause 1, Article 4 of Circular 302/2016/TT-BTC are as follows:<ul><li>Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 VND/year;</li><li>Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 VND/year;</li><li>Branches, representative offices, business locations, non-business units, other economic organizations: VND 1,000,000/year.</li></ul>The deadline for payment of license fee is January 30 every year (According to point b, clause 1, Article 5 of Circular 302/2016/TT-BTC).Enterprises are exempt from license fees for the first year of establishment. In the following years, the enterprise shall pay the license fee according to the prescribed rate.<h2>TAXES FDI CORPORATES MUST PAY: CORPORATE INCOME TAX</h2>Corporate income tax is a direct tax, levied on taxable income of enterprises, including income from production and trading activities of goods and services and other incomes as prescribed by law.The CIT period is determined according to the financial year and is calculated based on the business results shown in the annual financial statements. Previously, quarterly, based on the production and business situation and the declarations and reports sent to the tax agency, the enterprise must temporarily pay the CIT amount determined on a quarterly basis no later than the 30th day of the quarter following the quarter in which the tax liability arises.Tax calculation: CIT = [Taxable income – (Exempt income + Loss forward from the previous year)] × Tax rate.In which: Taxable income = Revenue – (Deducted expenses + Other income)CIT rate: The current tax rate is 20% applicable to enterprises (Article 11, Circular 78/2014/TT-BTC), except for some enterprises enjoying preferential tax rates (Article 19, Circular No. Circular 78/2014/TT-BTC) and a number of specific enterprises (searching, exploration, exploitation of oil and gas, rare and precious resources).<h2>TAXES FDI CORPORATES MUST PAY: PERSONAL INCOME TAX</h2>Personal income tax is one of the taxes that enterprises need to pay on behalf of employees, calculated on a monthly basis. Declare monthly or quarterly, but settle on an annual basis.<ul><li>Payable PIT = PIT taxable income × Tax rate</li></ul>In which: PIT taxable Income = PIT taxable Income - Deductions (PIT taxable income = Total PIT received - Exemptions)The deductions include: Family circumstances deduction (For self is 11,000,000 VND/person/month; For dependents is 4,400,000 VND/person/month)<h2>V.A.T</h2>VAT is calculated on the added value of goods and services arising in the process from production, circulation to consumption in the territory of Vietnam.Objects which imposed VAT are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from overseas organizations and individuals), except for non-taxable ones as prescribed in Article 4 of Circular 219/2013/TT-BCT.Taxpayers are organizations and individuals that produce and trade in VAT – taxable goods and services in Vietnam and the ones that import VAT taxable goods or purchase services from abroad&nbsp;The deadline for paying VAT is the last day of the deadline for submitting tax returns:<ul><li>For monthly tax declaration dossiers: the deadline for tax payment is the 20th of the following month.</li><li>For quarterly tax declaration dossiers, provisional quarterly calculation: the deadline for tax payment is the 30th day of the next quarter in which the tax payment obligation arises.</li><li>For annual tax dossiers: the deadline for paying tax is the 30th day of the first month of the calendar year.</li><li>For tax declaration dossiers for each time a tax obligation arises: the time limit for paying tax is the 10th day from the date of arising tax payment obligation.</li><li>For annual tax finalization dossiers: the deadline for paying tax is the 90th day from the end of the calendar year or fiscal year.</li></ul>The method of calculating value added tax includes two methods:<ul><li>VAT deduction method: VAT = Input VAT – Output deducted VAT</li><li>Tax direct calculation method: VAT = VAT of sold goods and services × VAT rate of such goods and services.</li></ul><h2>SOME TAXES BASED ON THE CHARACTERISTICS OF THE ENTERPRISE</h2>Resource tax: an indirect tax, this is the amount that organizations and individuals must pay to the state when exploiting natural resources.<ul><li>Tax bases: The bases for calculating natural resource tax are the taxable output, the taxable price, and the tax rate.</li><li>Resource tax = Resource output x taxable price x tax rate</li></ul>Import and export tax: indirect tax, levied on goods exported or imported through Vietnam's border gates or borders; goods bought, sold and exchanged by border residents and other goods traded and exchanged are considered imported and exported goods.Environmental protection tax: an indirect tax, levied on products and goods (hereinafter referred to as goods) when used, causing adverse impacts on the environment. Applied to enterprises producing and importing goods subject to environmental protection tax as prescribed in the Law on Environmental Protection Tax 2010.Special consumption tax: An indirect tax levied on a number of special goods directly produced and sold by enterprises or imported and sold by enterprises. Applicable to enterprises with production or importation of goods or business services subject to excise tax.Non-agricultural land use tax: a direct tax levied on non-agricultural land used for production, implementation of investment projects, construction of office buildings, etc.

Taxes FDI corporates must pay - Many FDI enterprises believe that taxes are causing legal barriers for them during their business operations

TAXES FDI CORPORATES MUST PAY UNDER VIETNAM LAW

All enterprises must submit annual financial statements to competent state agencies. So what is financial statement? What is the financial statement law? Find out with <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> in the article below!<h2>Legal grounds</h2>Law on accounting 2015Circular 200/2014/TT-BTC<h2>What is financial statement?</h2>Clause 1, Article 3 of the 2015 Accounting Law defines financial statements as follows: Financial statement means a system of financial information of an accounting unit demonstrated according to a form provided for by accounting standards and accounting regime.Understandably, financial statements (FS) provide information about the financial position, business and cash flows of an enterprise. According to the law, all enterprises under the business lines must prepare and present annual FS. For companies (general corporations) with affiliated units, in addition to the annual FS, the consolidated FS at the end of the annual accounting period must be based on the financial statements of the affiliated units.In addition, state-owned enterprises and enterprises listed on the stock market next to annual financial statements must prepare interim FS (quarterly-except for the fourth quarter).<h2>Purpose of financial statements</h2>According to Article 97 of Circular 200/2014/TT-BTC, FS have the following purposes:FS are used to provide information about financial situations, trading performance and cash flows of enterprises, meet the requirements for management of employers, regulatory agencies and useful demands of users in making economic decisions. Financial statements must provide information about an enterprise about:- Assets;- Liabilities;- Owner’s equity;- Revenue, other income, production and business costs and other expenses;- Profit, loss and allocation of income- The cash flows.In addition to this information, an enterprise must also provide other information in the "Notes to the Financial Statements" for further explanation of standards recorded in general financial statements and accounting policies applied to record the economic transactions arising, preparation and presentation of financial statements.<h2>Disclosure form of financial statements</h2>Clause 1, Article 32 of the 2015 Law on Accounting stipulated:The disclosure of FS shall be made in one or several of the following forms:- Publication;- Written notice;- Posting;- Publication on a website;- Other manners prescribed by law.<h2>Deadline for disclosing financial statements</h2>Clause 2, Article 32 of the 2015 Law on Accounting stipulated:The form and deadline for disclosing FS of accounting units using the state budget shall comply with the law on state budget. As follows:- For state-owned enterprises:<ul><li>Deadline for submission of quarterly FS: 20 days at the latest from the end of the quarterly accounting period. Holding companies, State corporations: 45 days at the latest. Accounting units affiliated to holding companies and State corporations shall submit financial statements to the holding company according to the deadline prescribed by the holding company.</li><li>Deadline for submission of annual FS: 30 days from the end of the annual accounting period. Holding companies, State corporations: 90 days at the latest. The affiliated accounting units shall submit financial statements to the holding company within the prescribed deadline.</li></ul>- Accounting units that do not use the state budget, accounting units that use contributions from the People must disclose their annual financial statements within 30 days from the date of submission of FS.- Accounting units engaged in business activities must disclose annual FS within 120 days from the end of the annual accounting period. In case the law on securities, credit and insurance has specific regulations on the form and deadline for disclosing financial statements different from those of this Law, the provisions of law on that field shall be apply.<h2>Disclosure content of financial statements</h2>- Accounting units using the state budget shall disclose information on state budget revenues and expenditures in accordance with the provisions of the Law on State Budget.- Accounting units not using the state budget shall disclose the annual FS of revenues and expenditures.- The accounting unit using the People's contributions shall disclose the purpose of mobilizing and using the contributions, the subjects of the contribution, the level of mobilization, the results of use and the finalization of the receipts and expenditures of each contribution.&nbsp;- Accounting units engaged in business activities shall disclose the following contents:<ul><li>Status of assets, debt liabilities and owners' equity;</li><li>Business results;</li><li>Setting up and using funds;</li><li>Employee's income;</li><li>Other contents as prescribed by law.</li></ul>The FS of the accounting units that are required to be audited by law must be accompanied by the audit report of the auditing organization.Above is our consultation on FS. We hope that this will be a useful reference for readers who want to learn the legal provisions in the field of accounting - tax.<h2>Accounting - tax consulting services of OTIS LAWYERS</h2>OTIS LAWYERS are always proud to be a professional unit in the field of accounting and tax consulting. With a team of highly qualified and extensively experienced lawyers. Along with the dedication to clients, we believe in providing investors with the best and the most professional services, also reasonable cost and fastest time to complete the procedure. We guarantee that all client information is strictly confidential. And client interests always come first.&nbsp;For any questions or comments, please contact:Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: luatsuphamoanh@gmail.comHotline: 0987748111 Website: https://otislawyers.vn/

All enterprises must submit annual financial statements to competent state agencies. So what is financial statement? What is the financial statement law? Find out with OTIS LAWYERS in the article below!

FINANCIAL STATEMENTS – LEGAL REGULATIONS ENTERPRISES NEED TO KNOW

Finalization of personal income tax for foreigners is a rather complicated issue. In fact, there are many cases where the settlement is wrong because the individual foreign worker or the enterprise does not comply with the law. So, how is the finalization of personal income tax for foreigners done? Specifically, what are the relevant laws? Readers, please follow the article below of <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> to get answers to the above questions.<h2>Determining whether a foreigner is an individual residing or not residing in Vietnam</h2>Determining whether a resident or a non-resident helps us understand the scope of the taxpayer's taxable income, specifically:<ul><li>For resident individuals, taxable income is income generated inside and outside the territory of Vietnam, regardless of where the income is paid;</li><li>For non-resident individuals, taxable income is income generated in Vietnam, regardless of where the income is paid and received.</li></ul>So how to determine whether a foreigner is a resident or non-resident in Vietnam? The Personal Income Tax Law provides as follows:<h3>The foreigner is an individual residing in Vietnam when one of the following conditions is met:</h3><ol><li>a) Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam, in which the arrival and departure dates are counted as one (01) day. The date of arrival and departure is based on the certification of the immigration authority on the passport (or travel document) of the individual upon arrival and departure from Vietnam. In case of entry and exit on the same day, it will be counted as one day of residence.</li><li>b) Having a regular place of residence in Vietnam in one of the following two cases:</li></ol>b.1) Having a regular place of residence which is the place of permanent residence stated in the permanent residence card or the temporary residence when applying for a temporary residence card issued by a competent agency of the Ministry of Public Security.b.2) Having a rented house to live in in Vietnam in accordance with the law on housing, with the term of the lease contract from 183 days or more in the tax year.<h3>Foreigners are individuals who do not reside in Vietnam when they do not meet the above conditions.</h3><h2>Determining the subjects of personal income tax finalization for foreigners in Vietnam</h2><h3>In case of authorizing organizations and individuals to pay income for tax finalization</h3>Foreigners earning income from salaries or wages authorize organizations and individuals to pay tax finalization income in the following cases:<ul><li>Foreign individuals who only earn income from salaries and wages of a labor contract with three (03) months or more at a unit and are actually working at the unit at the time of authorization for settlement, even the case of not working full 12 months in the year.</li><li>Foreign individuals earning incomes from salaries and wages of a labor contract with three (03) months or more and have other current incomes as prescribed by law.</li></ul>Note: Income-paying organizations and individuals only make tax finalization on behalf of foreigners for the income from salaries and wages paid by income-paying organizations or individuals.<h3>In case of direct implementation of personal income tax finalization</h3><ul><li>When the individual is a foreigner who has income from business, wages, salaries, or multiple sources subject to PIT. At the same time, the additional tax payable or overpaid tax shall be refunded or cleared in the next tax period, except for some other special cases.</li><li>Individuals who are foreigners with only income but come from two or more places.</li><li>The individual is a foreigner whose income only comes from business.</li><li>If the individual is a foreigner transferring securities and has a request for PIT finalization.</li></ul><h2>How to calculate PIT for foreigners?</h2><h3>In the case of resident foreigners</h3><ul><li>If a foreigner signs a labor contract of 3 months or more in Vietnam, the tax calculation will be applied according to the partially progressive taxation.</li><li>If a labor contract is signed for less than 3 months, the tax rate will be calculated according to the full taxation x 10% tax rate.</li></ul><figure class="image"><img src="/uploads/finalization_of_personal_income_tax_for_foreigners_accordance_with_vietnam_law_2_4b135bab4b.jpg"><figcaption>How to calculate PIT for foreigners?</figcaption></figure><h3>In case of non-resident foreigners</h3>Pursuant to Clause 1, Article 18, Circular 111/20213/TT-BTC, for non-resident individuals, PIT will be calculated according to the following formula:Amount payable = Taxable income x 20%.<h2>Dossiers of PIT finalization for foreigners</h2>Dossier in case organizations or individuals pay income for tax finalization<ul><li>PIT finalization declaration</li><li>A detailed list of individual according to the partial progressive taxation</li><li>A detailed list of individual according to the full taxation</li><li>List of dependents with family deductions</li></ul>Dossier in case individuals directly finalize tax<ul><li>PIT finalization declaration</li><li>Photocopies of documents proving the tax amount already withheld, temporarily paid in the year, tax paid abroad (if any)</li></ul><h2>Some other regulations on tax finalization</h2>- In case the resident individual earns income in a foreign country and has calculated and paid personal income tax according to foreign regulations; the tax amount already paid abroad may be deducted. The deductible tax amount does not exceed the payable tax amount calculated according to Vietnam's tax table and distributed to the income generated abroad. The distribution ratio is determined by the ratio between the amount of income generated abroad and the total taxable income.- Resident individuals with incomes from business, wages or salaries, in case the number of days present in Vietnam in the first calendar year is less than 183 days, but calculated in 12 consecutive months from the first day of presence in Vietnam is 183 days or more.<ul><li>The first tax year: declare and submit tax finalization documents no later than the 90th day from the date of calculation for 12 consecutive months.</li><li>From the second tax year: declare and submit tax finalization documents no later than the 90th day from the end of the calendar year. The remaining tax payable in the second tax year is determined as follows:</li></ul>The remaining tax payable in the 2nd tax year = The payable tax amount of the 2nd tax year - Deducted duplicate tax amountIn there:The payable tax amount of the 2nd tax year = Taxable income of the 2nd tax year x Personal income tax rate according to the partially progressive taxation.The deducted duplicate tax amount = Tax payable in the first tax year/12 x Number of months for duplicate calculation- Resident foreigners who terminate their working contracts in Vietnam shall finalize tax with tax authorities before leaving the country.<img src="https://admin.otislawyers.vn/uploads/qua_trinh_hoa_giai_tranh_chap_dat_dai_tai_ubnd_dien_ra_nhu_the_nao_ad0356db01.jpg" alt="qua-trinh-hoa-giai-tranh-chap-dat-dai-tai-ubnd-dien-ra-nhu-the-nao.jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_qua_trinh_hoa_giai_tranh_chap_dat_dai_tai_ubnd_dien_ra_nhu_the_nao_ad0356db01.jpg 208w,https://admin.otislawyers.vn/uploads/small_qua_trinh_hoa_giai_tranh_chap_dat_dai_tai_ubnd_dien_ra_nhu_the_nao_ad0356db01.jpg 500w,https://admin.otislawyers.vn/uploads/medium_qua_trinh_hoa_giai_tranh_chap_dat_dai_tai_ubnd_dien_ra_nhu_the_nao_ad0356db01.jpg 750w," sizes="100vw">The above is the regulation on PIT finalization for foreigners. If you have any questions or need legal assistance, please contact us for answers and consultations.OTIS AND PARTNERS LAW FIRMOffice address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

So, how is the finalization of personal income tax for foreigners done? Find out with OTIS LAWYERS in the article below!

FINALIZATION OF PERSONAL INCOME TAX FOR FOREIGNERS ACCORDANCE WITH VIETNAM LAW

Import tax is a type of duty imposed by the state on goods produced in other countries and territories. So, what exactly is import tax? How is import tax calculated? Read&nbsp;<a href="https://otislawyers.vn/en">OTIS LAWYERS</a>' article below for detailed explanations.<h2 style="text-align:justify;">Overview of Import Tax</h2><h3 style="text-align:justify;">What is Import Tax?</h3>"Import tax is a type of indirect tax levied by a country/territory on goods imported from abroad."When goods are transported by means of transportation to the border gate, customs officials inspect the goods based on the declaration and calculate the import tax according to regulations. Import tax must be paid before clearance so that the importer can circulate the goods within the country. To calculate import tax, goods subject to tax are classified under the Harmonized Commodity Description and Coding System (established and continually developed by the World Customs Organization).<h3 style="text-align:justify;">Purpose of Import Tax</h3>The primary purpose of import tax is to increase revenue for the budget. Additionally, import tax aims to:- Make imported goods more expensive compared to domestic substitutes, reducing trade deficits;- Counteract dumping by increasing the price of dumped goods to the general market level;- Counteract tariff barrier actions by other countries that impose taxes on Vietnamese exports, especially in trade wars;- Protect important production sectors (such as agriculture);- Safeguard new industries until they are strong enough to compete internationally;- Provide a basis for trade negotiations when implementing trade preferences or retaliatory trade measures due to transparency and ease of implementation.<h2 style="text-align:justify;">Regulations on Import Tax to be Aware of</h2><h3 style="text-align:justify;">Entities Subject to Import Tax</h3>Based on Article 3 of the Law on Export and Import Duties 2016, entities subject to import tax include:- Enterprises or organizations, individuals as owners of imported goods;- Organizations entrusted with importing goods;- Individuals importing goods upon entry or receiving goods at Vietnam's border;- Customs clearance agents authorized to pay taxes;- Banks, credit institutions paying taxes on behalf as per regulations.<h3 style="text-align:justify;">Import Tax Schedule</h3>The import tax schedule is a comprehensive table of tax rates prescribed by the state for entities subject to import tax. It serves as a basis for identifying tariff rates for imported goods.The import tax schedule includes the following types:-&nbsp;Preferential import tax: A type of import tax for goods originating from countries with trade relations under the Most Favored Nation policy (MFN). This policy applies to approximately 180 countries worldwide.-&nbsp;Special preferential import tax: A special type of import and export duty applied to goods imported from countries with bilateral/multilateral trade agreements with Vietnam, such as ACFTA, ATIGA, AJCEP, VJEPA, AKFTA, AANZFTA, AIFTA, VKFTA, VCFT, VN-EAEU; special preferential import tax rates may be higher than preferential rates.-&nbsp;Common import tax: This is a standard tariff rate for goods originating from countries with which Vietnam does not participate in preferential trade agreements or does not have MFN treatment. The common import tax rate is generally 150% of the preferential tax rate for each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister decides on the application of the common tax rate based on Article 10 of this Law.-&nbsp;Additional tax: In addition to import duties, certain goods may also be subject to additional taxes in the following cases:<ul><li>The selling price of imported goods is significantly lower than the domestic price, causing difficulties for the production of similar goods in our country.</li><li>Goods imported from countries or territories that differentiate treatment of imported goods or import duties on Vietnamese goods.</li></ul><h3 style="text-align:justify;">Time of Import Tax Calculation</h3>According to the Law on Export and Import Duties 2016, the time of import tax calculation is when registering the customs declaration before the goods arrive at the border gate or within 30 days from the date the goods arrive at the border gate.<h2 style="text-align:justify;">Current Types of Import Taxes</h2><h3 style="text-align:justify;">Classification by Calculation Method</h3>In cases where import duties are classified by calculation method, there are two types of customs duties:- Ad valorem tariff: A percentage rate on the CIF price of imported goods.- Specific tariff: Calculated based on the weight of imported goods (e.g., $5 per ton).<h3 style="text-align:justify;">Classification by Taxation Purpose</h3>In cases where import duties are classified by taxation purpose, there are three types of customs duties:- Revenue-generating import tax: A tax primarily aimed at increasing state budget revenue rather than protecting domestic production.- Protective import tax: A tax intended to artificially increase prices of imported goods to protect domestic production from foreign competition.- Prohibited import tax: A high-rate tariff almost no importer dares to import such goods anymore.<h2 style="text-align:justify;">Detailed Calculation Methods for Import Tax</h2>Corresponding to each method of import tax calculation, there are specific calculation formulas:<h3 style="text-align:justify;">Calculation Method by Percentage %</h3>For the calculation method based on percentage %, the import tax amount to be paid is determined based on the value of imported goods and the percentage tax rate of each item at the time of taxation.Specifically, the formula for calculating import tax by percentage % is as follows:<img src="https://admin.otislawyers.vn/uploads/import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_1_4147bf50bd.jpg" alt="import-tax-definition-and-detailed-calculation-according-to-vietnamese-law-otis-lawyers (1).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_1_4147bf50bd.jpg 208w,https://admin.otislawyers.vn/uploads/small_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_1_4147bf50bd.jpg 500w,https://admin.otislawyers.vn/uploads/medium_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_1_4147bf50bd.jpg 750w," sizes="100vw">Where:Tax value per unit: The customs value specified in the Customs Law.Import tax rate: Specifically stipulated for each item in the export tax schedule.<h3 style="text-align:justify;">Absolute Calculation Method for Import Tax</h3>For the absolute calculation method, the import tax amount to be paid is determined based on the quantity of imported goods and the absolute tax rate per unit of goods at the time of taxation.Specifically, the formula for calculating absolute import tax is as follows:<img src="https://admin.otislawyers.vn/uploads/import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_2_2ae8896b94.jpg" alt="import-tax-definition-and-detailed-calculation-according-to-vietnamese-law-otis-lawyers (2).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_2_2ae8896b94.jpg 208w,https://admin.otislawyers.vn/uploads/small_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_2_2ae8896b94.jpg 500w,https://admin.otislawyers.vn/uploads/medium_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_2_2ae8896b94.jpg 750w," sizes="100vw">Note: To determine the tax rate for each item, businesses need to consider:- Nature and structure of imported goods.- Application of 6 classification rules in Appendix II issued with Circular No. 103/2015/TT-BTC.<h3 style="text-align:justify;">Hybrid Calculation Method for Import Tax</h3>For the hybrid calculation method, the import tax amount to be paid is determined based on the total tax amount based on the percentage % and the total tax amount based on the absolute rate.Specifically, the formula for calculating hybrid import tax is as follows:<img src="https://admin.otislawyers.vn/uploads/import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_3_3d2d0dcd17.jpg" alt="import-tax-definition-and-detailed-calculation-according-to-vietnamese-law-otis-lawyers (3).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_3_3d2d0dcd17.jpg 208w,https://admin.otislawyers.vn/uploads/small_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_3_3d2d0dcd17.jpg 500w,https://admin.otislawyers.vn/uploads/medium_import_tax_definition_and_detailed_calculation_according_to_vietnamese_law_otis_lawyers_3_3d2d0dcd17.jpg 750w," sizes="100vw">For any questions or comments, please contact:OTIS AND PARTNERS LAW FIRMOffice address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, HanoiEmail: info@otislawyers.vnHotline: 0987748111

So, what exactly is import tax? How is import tax calculated? Read OTIS LAWYERS' article below for detailed explanations.

IMPORT TAX: DEFINITION AND DETAILED CALCULATION ACCORDING TO VIETNAMESE LAW - OTIS LAWYERS

During business operations, a company may need to change its headquarters address for various reasons. When a company changes its main office address, it must carry out the procedure for registering the change of address with the Business Registration Office. So, what should the company be aware of when proceeding with this procedure?&nbsp;<a href="https://otislawyers.vn/en">OTIS LAWYERS</a> will provide legal information on the procedure for changing a company's headquarters address.<h2 style="text-align:justify;">Conditions for the Company's Address</h2>The company's address, also known as the company's headquarters address, is defined in Article 42 of the 2020 Law on Enterprises. The headquarters must be located on Vietnamese territory, serve as the company’s contact address, and be determined according to administrative boundaries. It must have a phone number, fax number, and email address (if available).The headquarters cannot be located in an apartment building, on land designated for projects that have not yet been approved, on agricultural land, or in certain other specific cases. At the registered address, the company must display a sign with the following information: the company name, business registration number, and specific address.The company's address must not be located in a collective housing unit or an apartment building as per Article 6 of the 2014 Law on Housing.For certain conditional business sectors (such as medical examination and treatment services), in addition to meeting the requirement for a clearly defined company address not located in an apartment or collective housing unit, there are additional conditions that must be met, such as scale, area, and distance, as required by specialized laws.<h2 style="text-align:justify;">Changing the Company's Address</h2>The company's headquarters address is a key element in the Business Registration Certificate. Therefore, when a company changes its headquarters address, it also changes the content of the Business Registration Certificate. According to Article 30 of the 2020 Law on Enterprises, a company may change its address under the following circumstances:<ul><li>Proactive Change: The company must register the change in the Business Registration Certificate within 10 days from the date of the change.</li><li>Change by Court or Arbitration Decision: The person requesting the registration of the change must submit the application to the competent Business Registration Office within 15 days from the date the court judgment or arbitration decision takes legal effect.</li></ul><h2 style="text-align:justify;">Procedure for Changing the Company's Headquarters Address Without the Need for Tax Finalization Procedures</h2>When changing the company's address does not involve a change in the direct tax management agency, the company only needs to proceed with the procedure for registering the change in business registration content and does not need to carry out tax finalization procedures with the tax office.A change in address that does not involve a change in the direct tax management agency occurs when the company moves from its registered location to a new address within the same district/city under the provincial jurisdiction.The procedure for changing the headquarters address in this case is carried out according to the provisions of Decree 01/2021/ND-CP and the specific instructions in Decision 885/QD-BKHĐT. Specifically:<h3 style="text-align:justify;">Required Documents</h3><ol><li>Notification of Change in Business Registration Content signed by the legal representative of the company, following the form in Appendix II.1 of Circular 01/2021/TT-BKHĐT.</li><li>Resolution or Decision by the company owner for a single-member limited liability company; or the resolution, decision, and a copy of the meeting minutes by the Board of Members for a multi-member limited liability company, a partnership, or the General Meeting of Shareholders for a joint-stock company regarding the change of the company’s headquarters address.</li><li>Copy of the court judgment or arbitration decision that has taken legal effect in case the company's address is changed by court or arbitration decision (if applicable).</li><li>Power of Attorney (if applicable).</li></ol><h3 style="text-align:justify;">Implementation Procedure</h3><ul><li>In case of direct registration or via postal service:<ol style="list-style-type:decimal;"><li>The company submits the business registration change application to the Business Registration Office where the new headquarters is located.</li><li>After receiving the application, the Business Registration Office will issue a receipt, check the validity of the application, and issue a new Business Registration Certificate according to regulations.</li><li>If the application is not valid, the Business Registration Office will notify in writing the content that needs to be amended or supplemented within 3 working days from the date of receipt of the application.</li></ol></li><li>In case of online registration using a public digital signature:<ol style="list-style-type:decimal;"><li>The applicant submits the necessary information, uploads the electronic documents, and signs to authenticate the business registration change application online. They also pay the registration fee on the national business registration portal.</li><li>The applicant receives a receipt of the business registration application.</li><li>If the application meets the conditions, the Business Registration Office will update and issue the new registration. If the application does not meet the conditions, the Business Registration Office will send an electronic notice to the company requesting amendments or additional documents.</li></ol></li><li>In case of online registration using a business registration account:<ol style="list-style-type:decimal;"><li>The applicant uses a business registration account to submit the application following the process on the national business registration portal. If authorizing another party to carry out the procedure online using a business registration account, the power of attorney must include the contact information of the authorizer.</li><li>The applicant receives an electronic receipt.</li><li>The result (as mentioned above) will be issued.</li></ol></li></ul>For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

So, what should the company be aware of when proceeding with this procedure? OTIS LAWYERS will provide legal information on the procedure for changing a company's headquarters address.

CHANGING THE COMPANY'S HEADQUARTERS ADDRESS WITHOUT THE NEED FOR TAX FINALIZATION PROCEDURES

The following article by <a href="https://otislawyers.vn/en">OTIS LAWYERS</a> will answer readers' questions about whether the school fees for children of foreign workers can be deducted from corporate income tax and personal income tax in accordance with the law.<h2>Corporate Income Tax on School Fees for Children of Foreign Workers</h2>Article 6 of Circular No. 78/2014/TT-BTC, amended by Article 4 of Circular No. 96/2015/TT-BTC, stipulates that, except for non-deductible expenses mentioned in Clause 2 of this Article, enterprises can deduct all expenses if the following conditions are met:- The expenses are actually incurred and related to the business and production activities of the enterprise.- The expenses are supported by lawful invoices and documents as required by law.- If the expense involves a purchase of goods or services worth VND 20 million or more per transaction (including VAT), the payment must be made via non-cash methods.Wage, salary, and bonus payments to employees fall under the following cases:- The enterprise has signed a labor contract with a foreign worker that specifies school fees for the foreign worker's children studying in Vietnam (from kindergarten to high school), and the company pays these fees as part of the salary. In this case, if there are sufficient invoices and documents, the school fees are deductible when determining corporate income tax liability.Thus, the school fees for children of foreign workers can be included as deductible expenses for corporate income tax purposes if the following conditions are met:<ol><li>The company has signed a labor contract with a foreign worker employed in Vietnam, and the contract specifies school fees for the worker's children (from kindergarten to high school), which are paid by the company as part of the salary.</li><li>There are valid invoices and documents with the company's name, address, and tax code as required.</li></ol><h2>Personal Income Tax on School Fees for Children of Foreign Workers</h2>According to point g.7, Clause 2, Article 2 of Circular 111/2013/TT-BTC, which provides guidance on the Personal Income Tax Law:- School fees paid by employers for the children of foreign workers working in Vietnam (studying in Vietnam) and for the children of Vietnamese workers working abroad (studying abroad) from kindergarten to high school are not included in the taxable income for personal income tax purposes.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: 0987748111

whether the school fees for children of foreign workers can be deducted from corporate income tax and personal income tax...

HOW ARE SCHOOL FEES FOR CHILDREN OF FOREIGN WORKERS TAXED? - OTIS LAWYERS

Under current law, submitting investment monitoring and evaluation reports is a mandatory obligation for foreign-invested enterprises (FDI companies). In practice, many companies fail to comply with this requirement due to various reasons, such as a lack of awareness of the regulations or the belief that government agencies will not inspect. This results in these companies facing consequences: they cannot adjust their Investment Registration Certificate or modify their investment project and may also be subject to administrative fines.<h2 style="text-align:justify;">Obligation to Submit Investment Monitoring and Evaluation Reports&nbsp;&nbsp;</h2>According to Article 100.11 of Decree 29/2021/ND-CP, investors are required to submit investment monitoring and evaluation reports directly to the Department of Planning and Investment where the company is headquartered by the following deadlines:<ul><li>Semi-annual report: Due by July 10 of the reporting year.</li><li>Annual report: Due by February 10 of the following year.</li></ul>As of September 1, 2023, these reports must be prepared in accordance with Forms 13 and 17 issued under Circular 05/2023/TT-BKHDT, replacing Forms 12 and 14 under Circular 22/2015/TT-BKHĐT.<h2 style="text-align:justify;">Consequences for Failing to Submit Investment Monitoring and Evaluation Reports</h2><h3 style="text-align:justify;">Difficulty in Adjusting Investment Registration Certificate or Project</h3>Although current law does not explicitly state that companies cannot adjust their Investment Registration Certificate or investment project if they fail to submit investment reports, in certain localities, the Department of Planning and Investment may require companies to fulfill their reporting obligations and pay fines for failure to submit or delayed submission of reports before proceeding with any adjustments.&nbsp;For example, a company, X LLC, headquartered in City Y, encountered difficulties in adjusting its Investment Registration Certificate due to delayed and missed submissions of investment monitoring and evaluation reports. The department issued a notice stating that X LLC’s application was invalid because the company had not complied with reporting obligations and requested that the company contact the relevant authority to pay administrative fines within 30 days from the notice issuance date. To proceed, the company was required to provide additional documents, including a notarized administrative violation report, a notarized administrative penalty decision, and a copy of the fine receipt. However, completing this process within the 30-day limit was infeasible due to the following challenges:(1) Lack of a Formal ProcedureThere is no specific law governing the procedure for companies to contact authorities directly to address administrative violations, and the inspection division of the Department often experiences a backlog of cases, leading to delays. Based on AZLAW's experience, the resolution of administrative violations in these cases generally takes one to two months from the date the company submits its explanation, following the steps below:<ul><li>Step 1:&nbsp;The company submits a written explanation for failing to submit or delaying submission of the investment monitoring and evaluation report to the Department’s office.</li></ul>At this stage, if the company has not yet submitted the report, it should submit it to the Department to mitigate the consequences. This may be considered a mitigating factor when the inspection division determines the administrative penalty.<ul><li>Step 2:&nbsp;The Department’s office forwards the explanation to the inspection division.</li><li>Step 3:&nbsp;The inspector reviews and assesses the explanation and requests additional documents if necessary.</li><li>Step 4:&nbsp;The company collaborates with the inspector to prepare an administrative violation report and issues an administrative penalty decision.</li><li>Step 5:&nbsp;The company pays the fine and submits a copy of the receipt to the inspection division.</li></ul>(2) Challenges with the 2-Day Violation Report Deadline&nbsp;Although Article 12.2 of Decree 118/2021/ND-CP stipulates a 2-day deadline for issuing an administrative violation report, this requirement is difficult to enforce in these cases due to the lack of specific legal grounds to demand that the inspection division meets this timeframe, as well as the complexity of inter-departmental coordination.(3) Lack of Clear Procedures&nbsp;There is no specific regulation governing the inspection division’s administrative violation handling procedures, making it challenging for companies to understand the steps required. Consequently, companies often struggle to complete the required steps within the 30-day period, unless they are familiar with the procedure from past experience.As a result, companies often cannot submit the necessary documentation within the Department’s deadline and must resubmit their application. This delays the process and disrupts business plans, especially for companies intending to increase or decrease capital. To avoid these difficulties in adjusting the Investment Registration Certificate or investment project, companies should comply with all reporting obligations.<h3 style="text-align:justify;">Administrative Fines for Non-compliance with Reporting Obligations</h3>For late or non-submission of investment monitoring and evaluation reports, companies may be fined between VND 20,000,000 and VND 30,000,000, according to Article 15.1 and Article 4.2 of Decree 122/2021/ND-CP.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

Under current law, submitting investment monitoring and evaluation reports is a mandatory obligation for foreign-invested enterprises

CONSEQUENCES FOR NON-COMPLIANCE WITH INVESTMENT MONITORING AND EVALUATION REPORTING OBLIGATIONS - OTIS LAWYERS

How to Issue Invoices with Two Different Tax Rates? The tax reduction regulation, effective from July 1, 2024, under Decree 72/2024/ND-CP, has raised several issues in the invoicing process. When selling goods or providing services, if a single transaction includes items subject to tax reduction alongside those without, or items with varying tax rates, accountants should pay attention to how tax rates are recorded.<h2 style="text-align:justify;">Regulations for Issuing Invoices with Two Different Tax Rates&nbsp;&nbsp;</h2>To address the issue of dual tax rates on invoices, accountants must understand the regulations on displaying tax rates on invoices.<h3 style="text-align:justify;">Regulations on Recording VAT Rate and VAT Amount on Electronic Invoices&nbsp;&nbsp;</h3>According to Clause 6, Article 10 of Decree 123/2020/ND-CP, the requirements for recording VAT rate and VAT amount are clearly specified as follows:&nbsp;&nbsp;<ul><li>Name, unit, quantity, selling price of goods or services, total amount before VAT, VAT rate, total VAT for each tax rate, total VAT, and total payment amount inclusive of VAT.</li><li>VAT Rate: The VAT rate shown on the invoice should correspond to each specific good or service according to VAT regulations.</li><li>Total amount before VAT, total VAT for each rate, total VAT, and total amount inclusive of VAT must be displayed in Vietnamese Dong using Arabic numerals, except when foreign currency sales are recorded without converting to Vietnamese Dong.</li></ul>Additionally, under Article 11 of Circular 219/2013/TT-BTC, VAT declaration for businesses with goods or services at different VAT rates states:&nbsp;&nbsp;“10% VAT Rate&nbsp;...&nbsp;Businesses selling multiple types of goods or services with different VAT rates must declare VAT for each applicable rate per product or service; if this is not done, the highest VAT rate among the items will apply.”Thus, businesses with goods or services at different VAT rates must declare VAT according to the specific rate for each item, and the electronic invoice must clearly indicate the applicable VAT rate for each item and the total VAT amount for each tax rate.<h3 style="text-align:justify;">Recording Tax Rates on Electronic Invoices&nbsp;&nbsp;</h3>According to Appendix 5 attached to Decision 1450/QD-TCT, as amended by Clause 17, Appendix attached to Article 1 of Decision 1510/QD-TCT, the tax rates on VAT invoices issued electronically should be recorded as follows:<figure class="table" style="float:left;"><table><tbody><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">No.</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">Tax Rate</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">Content on Electronic Invoice</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">1</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">0%</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">0%</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">2</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">5%</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">5%</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">3</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">8%</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">8%</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">4</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">10%</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">10%</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">5</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">VAT</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">KCT</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">6</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">Non-taxable</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">KKKNT</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">7</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">Other cases:</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">&nbsp;</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">&nbsp;</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">If a specific VAT rate can be determined, the taxpayer must specify the rate in the format "KHAC: AB.CD%", where A, B, C, D are integers from 0 to 9.</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">KHAC: AB.CD%</td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">&nbsp;</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">If the taxpayer is a Vietnamese business paying taxes on behalf of a foreign contractor or subcontractor, a specific rate is not required; “KHAC” is sufficient.</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">KHAC</td></tr></tbody></table></figure><h3 style="text-align:justify;">Regulations for Invoices with Different Tax Rates&nbsp;&nbsp;</h3>Per Clause 4, Article 1 of Decree 72/2024/ND-CP:&nbsp;&nbsp;"In cases where businesses apply different tax rates to goods or services sold, the VAT invoice must specify the tax rate for each item as outlined in Clause 3 of this Article."Thus, if a business sells goods or provides services at varying tax rates, the VAT invoice must clearly display the specific tax rate for each good or service in accordance with Clause 3 of Decree 72/2024/ND-CP.<h2 style="text-align:justify;">Guidance on Issuing Invoices with Two Tax Rates&nbsp;&nbsp;</h2>Guidance on issuing invoices with two tax rates is detailed in Decree 72/2024/ND-CP, broken down into two scenarios:<h3 style="text-align:justify;">For Businesses Calculating VAT Using the Deduction Method&nbsp;&nbsp;</h3>Under Point a, Clause 2, Article 1 of Decree 72/2024/ND-CP, businesses calculating VAT using the deduction method apply an 8% VAT rate for goods and services specified in Clause 1, Article 1 of the Decree. When issuing invoices with different rates, sellers must display:<ul><li>The specific VAT rate for each item or service.</li><li>Record “8%” for tax-reduced goods and “10%” for non-reduced goods.</li><li>Display the VAT amount and total payment due for each tax rate.</li></ul><h3 style="text-align:justify;">For Businesses Calculating VAT Using the Direct Method&nbsp;&nbsp;</h3>According to Point b, Clause 2, Article 1 of Decree 72/2024/ND-CP, businesses (including individuals) that calculate VAT as a percentage on revenue receive a 20% reduction in the percentage rate for goods and services eligible for VAT reduction, as outlined in Clause 1 of this Article.When issuing invoices for goods or services with tax reduction:<ul><li>In the "Total Amount" column, display the full pre-discount amount.</li><li>In the "Total Goods and Services Amount" line, show the amount after the 20% discount and note “reduced by… (amount) in line with 20% rate reduction under Resolution 142/2024/QH15.”</li></ul><img src="https://admin.otislawyers.vn/uploads/huong_dan_xuat_hoa_don_2_loai_thue_suat_tu_otis_kr_6_79bdef7670.jpg" alt="huong-dan-xuat-hoa-don-2-loai-thue-suat-tu-otis-kr (6).jpg" srcset="https://admin.otislawyers.vn/uploads/thumbnail_huong_dan_xuat_hoa_don_2_loai_thue_suat_tu_otis_kr_6_79bdef7670.jpg 208w,https://admin.otislawyers.vn/uploads/small_huong_dan_xuat_hoa_don_2_loai_thue_suat_tu_otis_kr_6_79bdef7670.jpg 500w,https://admin.otislawyers.vn/uploads/medium_huong_dan_xuat_hoa_don_2_loai_thue_suat_tu_otis_kr_6_79bdef7670.jpg 750w," sizes="100vw"><h2 style="text-align:justify;">How to Issue Invoices with Taxable and Non-taxable Items&nbsp;&nbsp;</h2>Per section 1 above, when issuing electronic invoices that include both VAT-applicable and non-VAT-applicable items, sellers can consolidate these on one electronic invoice for the buyer. The invoice must:<ul><li>Separate each line by tax rate for VAT-applicable items and non-VAT-applicable items.</li><li>Clearly show the total VAT per rate for items with different rates.</li></ul>The invoice must include:<ul><li>Total amount before VAT.</li><li>VAT Rate: Use "KCT" for non-VAT items.</li><li>Total VAT by rate.</li><li>Total VAT amount.</li><li>Total payment including VAT.</li></ul>Above is the guidance for issuing invoices with two tax rates. Businesses must ensure that invoices for goods or services with multiple rates display the specific tax rate for each item per Decree 72/2024/ND-CP.For any questions or comments, please contact: OTIS AND PARTNERS LAW FIRM Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi Email: info@otislawyers.vn Hotline: (+84)987748111

How to Issue Invoices with Two Different Tax Rates? The tax reduction regulation, under Decree 72/2024/ND-CP, has raised several issues in the invoicing process

INDUSTRIAL AND RESIDENTIAL REAL ESTATE ARE THE HIGHLIGHTS OF THE REAL ESTATE MARKET - OTIS LAWYERS

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