The policies on capital and land will take effect from May 2023

DNHN - Some new policies regarding nominal interest on government bonds will go into effect in May 2023, along with new regulations regarding state capital investments in businesses.

The Ministry of Finance issued Circular No. 12/2023/TT-BTC on February 10, 2023, which amended and supplemented several articles of Circular No. 107/2020/TT-BTC governing the term repurchase transaction. The State Treasury issues government bonds with temporarily unused state funds.

Article 15a (Nominal interest on Government bonds) is supplemented by Circular 12 as follows: If the State Treasury receives the nominal interest of Government bonds during the period of repurchase with maturity Government bonds, it is responsible for returning the nominal interest to commercial banks based on the Government bond code for which the State Treasury receives the nominal interest.

The repayment of nominal interest on Government bonds occurs outside the debt instrument trading system of the Stock Exchange; the time of the return of nominal interest shall be mutually agreed upon by both parties, but no later than five business days after the date of actual payment of bond interest.

In the event of a late transfer of nominal interest, the State Treasury shall pay the commercial bank the prescribed late payment penalty interest rate for the number of days of late payment.

The effective date of this Circular is May 4, 2023.

New regulations governing state investments in businesses

The Ministry of Finance issued Circular No. 16/2023/TT-BTC on March 17, 2023, which amended and supplemenseveralr of articles of Circular No. 36/2021/TT-BTC, which governed several investment contents. State investment in enterprises, as well as the management and utilization of capital and assets in enterprises.

Circular No. 16/2023/TT-BTC amending regulations on "Adjustment of charter capital in enterprises in which 100% of the charter capital is held by the State" (amendment to point b, clause 1, Article 2) as follows:

The adjustment of charter capital for operating enterprises must be by Article 11 of Decree No. 91/2015/ND-CP, Clause 4 of Article 1 of Decree No. 32/2018/ND-CP, and Clause 7 of Article 2 of Decree No. 140/2020/ND-CP of the Government.

The owner's representative agency is responsible for reviewing, deciding, and directing the enterprise to pay the difference between the equity source and the charter capital to the state budget for enterprises that do not require additional charter capital or do not make plans to determine charter capital and additional investment sources for charter capital specified in Clause 7 Article 2 of Decree No. 140/2020/ND-CP. impact the enterprise's solvency and debt repayment obligations.

The enterprise is responsible for remitting the difference between its equity capital and its charter capital to the state budget within 10 days of the date on which the agency representing the owner issues its decision. When the enterprise transfers the difference between the equity source and the charter capital to the state budget, it must simultaneously record a decrease for each equity source capital component."

Article 7a of the additional circular specifies "Distribution of profits for joint-stock companies, limited liability companies with two or more members holding shares and State-contributed capital."

Accordingly, enterprises distribute profits by Clause 17, Article 2 of Government Decree No. 140/2020/ND-CP dated November 30, 2020; If the enterprise operates under the parent company - subsidiary company model, it shall use the parent company's separate financial statements to determine the after-tax profit as the distribution basis.

The effective date of this Circular is May 8, 2023.

Numerous amendments and additions to implementing regulations for the Land Law

The Government issued Decree No. 10/2023/ND-CP on April 3, 2023, amending and supplementing several Decrees governing the implementation of the Land Law. The Decree has added numerous significant new land management and use regulations.

Decree amending Article 17a of Decree No. 43/2014/ND-CP regarding the auction of land use rights when the state allocates land with land use levy collection or leases land.

To participate in the auction of land use rights, an organization must meet all of the following requirements: Being the subject of land allocation or land lease by the State under Articles 55 and 56 of the Land Law; satisfying the conditions specified in Clause 3, Article 58 of the Land Law, Clauses 2 and 3 of Decree 43/2014/ND-CP; paying an advance deposit equal to 20% of the total value of the land plot or land area calculated at the starting price for auction of land use rights; not being prohibited from participating in auctions as prescribed.

Participating households and individuals in the auction of land use rights must meet all of the following requirements: Belong to the subjects of land allocation or land lease by the state, and meet all other prescribed conditions. If households and individuals wish to participate in the auction of land use rights for the execution of an investment project, they must meet the requirements outlined in Article 17a of Decree 43/2014/ND-CP (as amended by Decree No. 10/2023).

In addition, the land offered for auction of land use rights must comply with the provisions of Clause 1, Article 119 of the Land Law; the starting price for the auction of land use rights has been determined by a competent state agency; the auction of land use rights is conducted for each land plot; and has a detailed planning 1/500 approved by a competent authority for land used in housing construction investment projects.

The deposit and interest (if any) will be converted into a deposit upon the announcement of the auction winner to ensure the land user's financial obligations are met.

The auction winner will not be refunded if he or she fails to pay or fails to pay the land use right auction winning amount as required by Point d, Clause 5, Article 68 of Decree No. 43/2014/ND-CP. deposits.

If the auction winner has paid more than the required deposit, the State will refund the excess amount.

In addition to the preceding provisions, the Decree also amends the order of land recovery if an investment project's operation is terminated by investment regulations.

The Decree also specifies the online distribution of land use rights certificates (red books). Consequently, individuals will be able to apply for a certificate online and receive the application by mail, rather than having to visit the management agency in person.

The Decree will become effective on May 20.

P.V (t/h)