On construction
Exempt from building permits for the following cases: re-construction, repair and renovation of damaged buildings without altering the architecture, main bearing structures, utility and safety, as well as location compared to those prior to the damage. Enterprises only need to send a written notification to the competent licensing authorities.
For remaining cases, enterprises are allowed to design and construct prior to receiving the building permit. Yet, enterprises have to ensure compliance with works quality, safety for people and adjacent buildings, fire safety, zoning, utilities protection, traffic safety, etc.
In terms of formalities, competent authorities are requested to provide fast and efficient services and enterprises are encouraged to directly contact appropriate licensing agencies. If your business is located in VSIP, please contact VSIP Management Board. In other IPs, please contact Binh Duong IPs Management Board. Outside of IPs, please contact the Department of Construction.
The reception of the Department of Construction in Binh Duong Integrated Administration Center
On tax
Enterprises are allowed to be extended time for tax filing, tax payment; tax deduction and refund of value added tax, corporate income tax; Reduction in excise tax; reduction and exemption from land and infrastructure rent, depending on the scale of damage.
For tax filing of April 2014, the filing deadline is extended to June 20th, 2014 without the need to submit any written request.
Tax eligible for extension includes total tax amount accrued to April 30th, 2014 that has not been paid and which is related to the damage incurred. This amount should not exceed the value of the damage. Extension limit lasts two years from the expired date of tax obligations. During this extension, taxpayer shall not be subject to any fines for late payment on the outstanding amount of tax eligible for extension.
Enterprises that are not compensated by insurance companies are allowed to file for deduction or refund of input VAT for damaged goods and services. In case of lost documents and invoices, records retained by tax agencies shall be used.
On corporate income tax, enterprises can count as deductible expenses value of the damage that is not compensated or out of the compensation’s scope as well as interest payments for the charter capital required for damage remedy. Affected enterprises are allowed to get a reduction of 30% of excise tax due in 2014, yet should not exceed the value of the damaged assets after insurance compensation. Amount of excise tax due in 2014 used as the base for calculating tax reduction shall be the excise tax levied on goods subjected to excise tax and which had been declared.
On customs
Enterprises are allowed to get the exemption and deduction of import duties and VAT for imported goods used for the repair and replacement of damaged machinery and equipment. A 30-day tax grace period is applied for enterprises importing machinery and equipment for business restoration. No administrative penalties for late submission of liquidation documents due to the damage.
Applying the rescheduled payments for debts of import duties and VAT arising before May 2014 (rescheduled duration is 2 years). Tax refund for raw materials imported to produce goods for domestic consumption and which were damaged…
On natural resources & environment (NRE)
Postpone scheduled NRE audits in 2014 of damaged enterprises. Also proposed to Ministry of Natural Resources & Environment to stop or postpone NRE audits planned for 2014 in Binh Duong and carry over to 2015. For violations found during past NRE audits, Binh Duong province will consider reducing and delaying impose penalties for damaged enterprises.
27 seriously damaged enterprises have been extended the license to exploit and use underground water to May 19, 2015
On banking
According to the direction of Binh Duong People’s Committee and Vietnam State Bank, provincial commercial banks actively support to providing physical facilities (computer, safe, money counting machine, fax machine, etc) to 22 enterprises, totaling 400 million VND; Commercial banks commit to honor lending limits signed with enterprises prior to the incident.
Reschedule and restructure outstanding debts for 8 enterprises, totaling 90 billion VND. Reschedule duration is 3-6 months (depending on the scale of damage). Propose the Central Bank to consider raising lending limit for 3 enterprises, with an outstanding loan of 94 billion VND. Interest-free loan of 17 billion VND for 01 enterprise seriously damaged.
On employment, labour
The province has directed the departments of Labor, Social Insurance, Labor Union, etc. to simplify procedure to receive unemployment insurance, creating favorable condition for workers; at the same time suggest the Government and Ministries, Central Agencies to carry out unemployment insurance policies towards tackling difficulties of enterprises and workers.
The province has directed its related departments and organizations to co-ordinate with each damaged enterprise to carry out the problems of salary, unemployment allowance, unemployment insurance and labor law implementation; consultant to get compromised salaries and appropriate policies.
Organizing consultancy group at enterprises or industrial parks, connecting technical worker sources from schools and vocational centers, labor forces from connecting provinces and cities in the country.
In term of foreign workers: the province has shortened time for procedures of: re-issue working permit in 01 day (3 days by regulation); new issue: 03 days (10 days by regulation); 7 days to register for foreign employment demand (30 days by regulation). Towards foreign experts, need 01 out of 02 criteria: experts are required to have BA degree or 5-year experience (need both criteria by regulation); Experts currently reside in Vietnam for over 6 months only need to submit Criminal Records Certificate issued by the Department of Justice where the experts reside.
On social insurance
Binh Duong Insurance Agency has promptly sent missions to damaged enterprises to collect insurance books, avoid further loss, as well as receiving all books submitted by enterprises. Immediately print or reissue insurance books to replace burn or lost ones.
More than 80% (approx. 24,000 books) has been reissued until June 18th, 2014
Social Order
Binh Duong People Committee has instructed provincial Public Security forces to investigate, retrieve stolen assets in the neighborhood and facilitate procedures for damaged enterprises to quickly identify and claim back these assets. Continue to deploy homogenously measures to ensure absolute safety for business operation and employees, including experts. Having directed to establish self-defense forces among the workers of enterprises to protect enterprises in case.
On the issues concerning the administrative procedures; retrieving of documents/records for damaged enterprises
Provincial People’s Committee directed to simplify fast and efficiently procedures for damaged enterprises; temporarily postpone the collection of admin service fees for damaged enterprises (e.g., business license certification, seal production, work permit, retrieving records, etc). Binh Duong PC will propose the central government to exempt these fees, which normally are mandatory, for damaged enterprises.
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In June 18th, 2014, at the Lucky Square Convention, Binh Duong People’s Committee released the specific support policies for damaged enterprises (phase I). 37 affected enterprises are supported the total amount of about 286 billion dongs in supporting to building permit exemption, construction document procedures, tax extension, exemption and refund on VAT, water exploitation and use permit extension, delaying of environmental audits, maintain the credit limit, reduction of loan interest, deduction of work permit limit for foreign workers, simplifying the unemployment allowance procedures…In the coming time, the province continues to organize the support phases for affected enterprises in different modes by it competence.
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Hoang Pham