As the result, individuals that transfer shares have to pay PIT according to the regulations on securities transfer at the tax rate of 0.1% on transfer price (Article 16 of Circular No. 92/2015/TT-BTC).
Accordingly, in comparison with the current regulations, this Decree adds new type of bonds issued by the Government which are named “green bonds”. Green bonds are government bonds issued for raising funds for environmental projects (Article 21).
In addition, regarding permissible limit to buy government bonds, according to Clause 1 Article 6, domestic and foreign organizations and individuals are allowed to purchase government debt instruments with unlimited quantity, unless otherwise prescribed by law.
With regard to government bonds issued on the international market, buyers are organizations and individuals authorized by laws applicable in the issuing market (Clause 2 Article 6).
Another new point of this Decree is the regulation on “market makers”. These are organizations (commercial banks or securities companies) selected by the Ministry of Finance in order to be given priority to participate in issues, repurchases or swaps of government bonds by bidding (the details are provided in Section 4 Chapter II of this Decree).
This Decree takes effect from July 1st, 2018.
Regulations in Section 1 Chapter II, Section 1 Chapter III and other regulations on government bonds of the Government’s Decree No. 01/2011/ND-CP dated January 5th, 2011 are abrogated.
Accordingly, under this Circular, the regulation on banning banks from buying convertible bonds regulated at Article 4 of Circular No. 22/2016/TT-NHNN has been removed.
However, under this Decree, banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer.
In addition, this Circular also supplements requirement according to which banks have to provide specific regulations on sectors posing potential risks subject to special control in their internal regulation.
- Providing margins at a depository bank for securing payment obligations for the offering of warrants;
- Distributing warrants to investors on the primary market;
-Conducting transactions in warrants (buy/ sell) for the market-making purpose;
- Warrants are marked to market;
- Warrants’ maturity;
Accordingly, upon preparation of financial statements relating to covered warrants, enterprises shall still use the form of financial statement used for securities companies issued together with Circular No. 210/2014/TT-BTC (which has been amended, supplemented at Circular No. 334/2016/TT-BTC), but it is required to add Credit balance of account 329 - Payable warrants to Item 6 - Payables for trading securities in the current liabilities part of Entry 318 of the balance sheet.
In addition, Item “Warrants” (Debit balance of account 018) – Entry 014 is added to Part A. Assets of the securities company and those managed according to firm commitment.
Income statement, cash flow statement, notes to financial statements are also supplemented some contents. The details are provided in Chapter III of this Circular.
Accordingly, one of the new points of this Circular is the supplementation of securities companies that are banned from providing online securities transaction: companies that are under dissolution or bankruptcy process, terminated brokerage operation, terminated operation.
Regarding requirements for provision of online securities transaction services, there are some changes such as: Online securities transaction system shall be equipped with a dedicated server. Personal computer shall not be used as a server and it is not allowed to share other units or companies’ servers, etc.
Regarding online securities transaction software system, cyberinformation security risk to online securities transaction system shall be assessed once a year.
This Circular takes effect from March 1st, 2018 and replaces Circular No. 87/2013/TT-BTC dated June 28th, 2013.