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Question :: I am a member of the Supervisory Commission (the Commission) of a public company which is unlisted and termed from 2007 to 2010. Until now, my term is still valid. In 2009, I was [not] invited to attend any meeting of the company’s Commission. Recently, I also did not attend the Commission’s meeting to produce the Commission’s Report for submission to the General Shareholder’s Meeting (the Meeting) year 2010 on April 9. I was informed that this Commission’s Report was built by the Commissions’ Director (the another member of the Commission also did not attend). I would like to ask you whether the operation of the Commission like that is legal or not? Is the Report mentioned above legal? What should I do to comply with the rights, duties and obligations of a Commission’s member?
Question :: I am a president of the Management Board (“the Board”) of a public company. As per regulations, the term of the Board, Supervisory Commission (“the Commission”) is five (5) years. Therefore, the first term of the Board, Commission is due on November 2010. However, in order to facilitate the voting of the Board, the Commission in the second term, the Board would like to submit the General Shareholder’s Meeting (“the Meeting”) with the latest on April 19, 2010 for renewal of the first term of the Board, the Commission until April 2011. So, the question is that is the renewal true or not? If the shareholders are not taken opinions directly at the Meeting, can the Board collect opinions indirectly from shareholders in writing? If the Meeting does not pass the renewal, how can the voting of the Board, the Commission be taken in compliance with laws?
Question :: Our company registers shares at the Securities Depository Central (SDC), but cannot deposit, of which my 10.000 shares. So, can I transfer directly 2.000 shares to my brother and compliment 2.000 shares to my wife?

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LEGAL NEWS

Vietnam’s proposed personal income tax law harsh, say experts

Lowering the taxable income threshold is one of the proposed measures in Vietnam’s proposed personal income tax law but it has run into a storm of protest.

The Personal Income Tax (PIT) bill, to be discussed in the house later this year, envisages income tax on all incomes while currently taxes start at VND60 million (US$3,750) per year.

The bill proposes a 5% rate on those earning VND0-60 million, 10% on VND60-180 million, 20% on VND180-540 million, and 30% on VND540-1,620 million.

It, however, allows a standard deduction of VND12 million a year and a flat deduction for expenses on children and other dependents.

It allows deduction of VND3.6 million ($225) for the spouse and each child under 18, and VND6 million ($375) for other dependents.

Exemptions for foreigners residing in Vietnam will be 1.5 times higher.

Experts, officials wary

Tao Huu Phung, deputy chairman of the National Assembly’s Economy and Budget Committee, said the lowering of the tax floor without careful calculation could lead to everyone being subjected to PIT tax.

Phung, a former finance minister who said he had done a meticulous study on the issue while in office, warned that the law should not force citizens to resort to tax evasion.

Deputy Minister of Natural Resources and Environment Dang Hung Vo too felt that the VND12 million standard deduction was too low.

He also said that while in some countries all income was taxed, the threshold rate was 1% rather than the 5% proposed in the bill.

Prof Duong Trung Quoc said lowering the taxable income threshold was a backward step. He called for having “rich people for a strong country” and warned that tax evasion would become rampant if the threshold became too low.

The bill is being finalized for the National Assembly to consider in July. Income tax in Vietnam has for so long been governed by an ordinance.

Individuals paid VND4.4 trillion ($275 million) in taxes last year, a 25% increase over 2004.

Thanhnien news