Hot policies take effect on July, 2022

1. Increase in the region-based minimum wage levels

Takes effect on July 01, 2022, Decree No. 38/2022/ND-CP adjusts the region-based minimum wage levels with an average increase of 6%. This is the minimum wage for employers to use as the base for paying employees.

Therefore, employees who are working in enterprises shall have the minimum wage levels from July 01, 2022 as follows:

This is also the first time that the Government prescribes hourly minimum wage levels for employees working under hourly work. These new regulations hope to ensure the hourly wage for employees who are working flexible or part-time jobs in households, small business establishments such as restaurants, supermarkets, coffee shops...

2. Usage of e-invoice instead of paper invoice

The Decree No. 123/2020/ND-CP and the Circular No. 78/2021/TT-BTC guiding the Decree 78 (all take effect on July 01, 2022) prescribe the application of e-invoices as follows:

* Before July 01, 2022: Use e-invoices for the establishments after receiving the tax agency’s notice to switch to using e-invoices if these establishments satisfy all the information technology infrastructure conditions (Article 60, Decree No. 123/2020/ND-CP).

At the same time, encourage agencies, organizations, and individuals who satisfy all information technology infrastructure conditions to apply e-invoices (Clause 1, Article 11 of Circular No. 78/2021/TT-BTC).

* From July 01, 2022: E-invoice is compulsory except for some cases as small and medium-sized enterprises, cooperatives, and business households in regions with difficult and extremely difficult socio-economic conditions that cannot have transactions with tax agencies in electronic methods, do not have accounting software...

Therefore, enterprises, households, or individuals must use e-invoices instead of paper invoices from July 01, 2021, except for some special cases.



In reality, the application of e-invoices is implemented in 63 provinces and cities around the country from April, 2022 but enterprises still have some problems and difficulties because the application time is not long enough.

3. Adjust the collection rates of charges and fees

In order to support and remove difficulties for people and enterprises affected by the Covid-19 pandemic, the Ministry of Finance issues Circular No. 120/2021/TT-BTC prescribing the rates of a number of charges and fees which are applicable from January 01, 2022, to June 30, 2022.

This Circular supplements 03 types of charges and fees to the list of rates of a number of charges and fees, increasing the number of charges and fees from 34 to 37.

By July 01, 2022, these 37 charges and fees shall be back to the previous collection rates.

4. Supplement the charge for derivatives operation supervision

On April 28, 2022, the Minister of Finance issues Circular No. 25/2022/TT-BTC providing for charge and fee rates and the collection, remittance, management and use of the securities charges and fees.

Accordingly, this Circular supplement a number of regulations on the charge for operation supervision of derivatives as follows:

- Charges for operation supervision of derivatives for Vietnam Securities Depository and Clearing Corporation (hereinafter referred to as VSDC): 10% of the turnover of the prices of the services of position management/clearing and management of deposited assets.

- Charges for operation supervision of derivatives for Stock exchanges: 10% of the turnover of the derivative trading service price.

Besides, the Circular 25 also supplements the charge for securities operation supervision for reimbursing banks, in particular:

- Stocks, fund certificates and covered warrants: 0.001% of the clearing, net settlement value/payment day, but not more than VND 01 million/day.

- Corporate bonds: 0.0001% of the clearing, net settlement value/payment day, but not more than VND 100,000/day.

A number of charges and fees are the same as in previous regulations such as: Fee for grant of an establishment and operation license for a securities company is VND 20 - 100 million/license; Fee for grant of an establishment and operation license for a securities investment fund management company is VND 30 million/permit...

This Circular takes effect on July 01, 2022.
 

5. Construction contractors must buy insurance for the third party

This is the important content prescribed at the Decree No. 20/2022/ND-CP on amending and supplementing a number of articles of the Decree No. 119/2015/ND-CP prescribing compulsory insurance in construction investment activities.

In accordance with law provisions, from July 01, 2022, construction contractors shall buy compulsory insurance for workers working on the construction sites and compulsory civil liability insurance for third parties.

Duration of compulsory civil liability insurance for the third party is a specific span, counting from the date of starting to the date of finishing the construction time, based on the construction contract and written in the insurance contract.

For compulsory civil liability insurance for third parties:

- The minimum insurance sum for damage to health and life is one hundred (100) million dong/person/case, and there is no limit to the number of loss cases.

- The minimum insurance sum for property damage and related legal costs (if any) shall be determined as follows:

+ For a work valued at less than 1,000 (one thousand) billion dong, the minimum insurance sum for property damage and related legal costs (if any) is 10% of the value of the work for the entire insurance duration, and there is no limit to the number of loss cases.

+ For a work valued at 1,000 (one thousand) billion dong or more, the minimum insurance sum for property damage and related legal costs (if any) is 100 (one hundred) billion dong for the entire insurance duration and there is no limit to the number of loss cases.

This Resolution takes effect on July 01, 2022.

6. Support the tuition fees of USD 25,000/year for learners receiving doctoral and master's training

In order to implement the Scheme on improving the capacity of lecturers and administrators of higher education institutions, the Ministry of Finance issues the Circular No. 30/2022/TT-BTC, within that, the Circular 30 guides the fundamental and comprehensive renovation of education and training as follows:

- Tuition fees: Shall not exceed USD 25,000/learner/academic year The amount in excess of VND 25.000/learner/year shall be paid by the learner or the higher education institution that appoints the lecturers to study courses.

- Fees for passports and visas: Due to actual charges.

- Cost of living: Subsistence allowances shall be granted according to the actual period of study.

- Compulsory health insurance: Make payment according to regulations of the host country and at most VND 1.000/learner/school year.

- Flight tickets:  01 one ticket

- Travel expenses: Shall be provided once with USD 100/person for the entire training period.

This Circular is formally applied from July 20, 2022.

7. Stop the premiums for labor accident and occupational disease insurance

At the Resolution No. 68/NQ-CP in 2021, the Government allows the employers who having difficulties are entitled to pay 0% of the salary fund, which serves as the basis for paying social insurance premiums to the Insurance Fund for Labor Accidents and Occupational Diseases for 12 months (from July 1, 2021 to the end of June 30, 2022).

This policy shall be stopped on July 01, and enterprises must pay the premiums for labor accident and occupational disease insurance.

In particular, in accordance with the Article 4, the Decree No. 58/2020/ND-CP, the rates of compulsory social insurance premiums from July 01, 2022 are defined as follows:

- Eligible enterprises have the payment of social insurance premiums with the low level: 0.3% of the salary fund

- Other enterprises: 0.5% of the salary fund.