1. RESOLUTION 01/2019/NQ-HDTP
“Guidance on interest, interest rate in property loan agreement”
Resolution No. 01/2019/NQ-HDTP (“Resolution 01”) dated 11/01/2019 of the Council of Justices providing guidance on several provisions of the law on interest, interest rate, and penalties, is effective as of 15/03/2019.
Resolution 01 provides regulations on interest, interest rate in property loan agreements other than credit agreements (“CA”) executed prior to 01/01/2017 as follows:
- 1st case: If disputes arise out of an agreement that has been completely performed prior to 01/01/2017, the Civil Code 2005 (“the CC 2005”), Resolution No. 45/2005/NQ-QH and other legal documents providing detail and guidance on application of the CC 2005 will be applied for settlement.
- 2nd case: The agreement has not been performed and in which the interest and interest rate are in accordance with the Civil Code 2015 (“the CC 2015”), CC 2015 and legal documents providing detailed regulations and guidance shall be applied for settlement; In case the interest, interest rate are not in compliance with the provisions of CC 2015, reference to the 1st Case shall be applied for settlement, unless the parties agreed upon amendment and supplementation of interest, interest rate in accordance with the CC 2015 and for the purpose of applying the CC 2015.
- 3rd case: The agreement is in progress in which the interest and interest rate are not in compliance with the CC 2015, reference to the 1st Case shall be applied for settlement; In case the interest and interest rate are in accordance with the CC 2015, the application of the law to determine interest and interest rate shall be as follows:
- For the period prior to 01/01/2016, the provisions of the Civil Code 1995 (“the CC 1995”), Resolution dated 28/10/1995 of the National Assembly and other guiding documents of the CC 1995 shall be applied.
- For the period from 01/01/2007 to the day before 01/01/2007, reference to the 1st case shall be applied.
- For the period from 01/01/2017, the CC 2015 and other legal documents providing detailed regulations and guidance on the CC 2015 shall be applied for settlement.
For property loan agreements other than credit agreements executed as of 01/01/2017, the provisions on interest and interest rate of the CC 2015 and other legal documents providing detailed regulations and guidance on the CC 2015 shall be applied for settlement.
9. DECREE 16/2019/ND-CP
“Amendments to several business conditions under the state management of the State Bank of Vietnam“
Decree No. 16/2019/ND-CP (“Decree 16”) dated 01/02/2019 of the Government amending and supplementing a number of provisions of several decrees on business conditions under the state management of the State Bank of Vietnam, is effective as of 20/03/2019.
According to Decree 16, one of the conditions for stock companies, fund management companies, insurance business enterprises, commercial banks, general financial companies to be granted the certificate of outward portfolio investment registration is gaining profit in 03 consecutive years preceding the applying year instead of 05 consecutive years as prescribed in Decree No. 136/2015/ND-CP.
It is worth noting that, Decree 16 has abolished several conditions for economic organizations engaging in foreign exchange activites stipulated in Decree No. 89/2016/ND-CP, including: (i) established or registered in accordance with the laws; (ii) having seperate transaction places and must be equipped with telephones, fax machines, safes; (iii) employees must have the Certificate issued by an authorizing credit institution, certifying that they have been trained to recognize genuine and counterfeit foreign currency.
10. DECREE 14/2019/ND-CP
“Amendents to several regulations on objects not subject to special excise tax“
Decree No.14/2019/ND-CP (“Decree 14”) dated 01/02/2019 amending and supplementing several provisions of Decree No.108/2015/ND-CP (“Decree 108”) dated 28/10/2015 of the Government providing detailed regulations guidelines for some articles of the law on special excise tax and the law on amendments to the law on special excise duty, is effective as of 20/03/2019.
Decree 14 provides for supplementation of objects not subject to special excise tax, whereby aircrafts used for the following purposes will not be subject to special excise tax:
- Spraying of pesticides;
- Firefightings;
- Film-making, photography, geodetic; and
- Cartographic activities, national defense and security.
Decree 14 also specifies Decree 108 on procedures, documents, timeline and authority for refund of special excise tax under Article 34 and Article 36 of Decree 134/2016/ND-CP.
