Is it possible to use gold bars to pay for land purchases in accordance with Vietnamese law?
“Hello, Lawyer. My family forgot to save some gold bars, now my family wants to buy land. My lawyer asked me if I can use gold bars to pay for the land purchases. What is the law on the use of gold bars? Is it free to buy and sell? Looking forward to being answered by a lawyer, I sincerely thank you!”. Thanks for your question. To answer the above question, today, LSX Lawfirm will give you an article about “Is it possible to use gold bars to pay for land purchases in accordance with Vietnamese law?“, as follows:
Legal grounds
- Decree 88/2019/ND-CP
- Decree 24/2012/ND-CP
What is the gold bar?
Pursuant to Clause 2, Article 3 of Decree 24/2012/ND-CP, gold bars are defined as gold stamped into pieces, stamped with letters, and numbers indicating volume, quality, and symbols of enterprises and organizations. production of credits permitted by the State Bank of Vietnam (hereinafter referred to as the State Bank) or gold bars produced by the State Bank in each period. And gold bars are strictly prohibited from using gold as a means of payment according to the provisions of Clause 4, Article 19 of Decree 24/2012/ND-CP.
Accordingly, Clause 3, Article 2 of Decree 24 also introduced the principle that the state monopolizes the production of gold bars, exports raw gold and imports raw gold to produce gold bars, and assigns them to the State Bank to organize the production of gold bars. and manage gold bar production by deciding the appropriate production limit, time, and method of gold bar production in each period.
At the same time, in Clause 3, Article 21 of Decree 24, the licenses for gold bar production previously issued by the State Bank of Vietnam expire from May 25, 2012. Therefore, the licenses to produce gold bars issued by the State Bank to credit institutions and gold trading enterprises in the past have expired. These regulations are aimed at preventing the production of gold bars from smuggled raw materials, ensuring that the State strictly manages the supply of gold bars, contributing to stabilizing the market and limiting speculation.
Is it free to buy and sell gold bars?
Pursuant to the provisions of Article 10 of Decree 24/2012/ND-CP on the management of the business of buying and selling gold bars as follows:
Article 10. Management of business activities of buying and selling gold bars
The purchase and sale of gold bars by organizations and individuals may only be carried out at credit institutions and enterprises licensed by the State Bank to buy and sell gold bars.
Thus, according to the law, currently, organizations and individuals will not be free to buy and sell gold bars on the market, according which, the activities of buying and selling gold bars of organizations and individuals can only Currently, credit institutions and enterprises are licensed by the State Bank to buy and sell gold bars.
Conditions for granting a business license to buy and sell gold bars are specified in Article 11 of Decree 24/2012/ND-CP. Enterprises and credit institutions need to meet the following conditions, specifically:
Article 11. Conditions for granting a business license to buy and sell gold bars
- An enterprise shall be considered for a license to trade in gold bars by the State Bank when it fully meets the following conditions:
a) Being an enterprise established and operating in accordance with the law.
b) Having a charter capital of 100 billion VND or more.
c) Having 2 (two) years of experience in the business of buying and selling gold.
d) Having paid tax on gold business from 500 (five hundred) million dong/year or more in the last 2 (two) consecutive years (certified by the tax authority).
dd) Having a network of branches and sales locations in Vietnam from 3 (three) provinces or centrally-run cities or more.
In addition
- Credit institutions shall be considered by the State Bank to grant a business license to buy and sell gold bars when fully meeting the following conditions:
a) Having a charter capital of 3,000 (three thousand) billion VND or more.
b) Having registered for gold trading activities.
c) Having a network of branches in Vietnam from 5 (five) provinces or centrally run cities or more.
- The State Bank shall stipulate procedures and dossiers for the issuance of business licenses. To buy and sell gold bars for enterprises and credit institutions.
In addition, businesses and credit institutions when trading gold bars need to comply with the provisions of Article 12 of Decree 24/2012/ND-CP as follows:
Article 12. Responsibilities of enterprises and credit institutions engaged in the business of buying and selling gold bars
Enterprises and credit institutions engaged in the business of buying and selling gold bars are responsible for:
- Only buy and sell gold bars specified in Clause 2, Article 3 of this Decree.
- Trading in gold bars through authorized dealers is not allowed then.
- Comply with the provisions of the law on accounting regime, making and using invoices and vouchers then.
- To publicly post up at transaction locations the buying and selling prices of gold bars.
- Having measures and equipment to ensure safety in business activities then.
- Comply with the provisions of this Decree and other relevant laws.
According to current practice, there is almost no sign of distinction between gold shops that are allowed to buy and sell gold bars and other gold shops. In this regard, there has been a document requiring authorized transaction points to publicly post the license of the state bank in front of the transaction counters for easy identification by the people.
Is it possible to use gold bars to pay for land purchases?
Pursuant to Article 19 of Decree 24/2012/ND-CP on violations in gold trading activities as follows:
Acts of violating the provisions of the law in gold trading activities include:
- Gold jewelry and fine art production activities without a Certificate of eligibility for business issued by the State Bank then.
- Trading in buying and selling gold bars; exporting and importing raw gold. Without a license issued by the State Bank then.
- Carrying gold on exit or entry of individuals exceeding the prescribed limit. Without a permit issued by the State Bank then.
- Use gold as a means of payment.
- The production of gold bars is contrary to the provisions of this Decree then.
- Other gold trading activities without the permission of the Prime Minister and the State Bank’s license then.
- Violations against other provisions of this Decree and other relevant laws
Thus, according to current regulations, the use of gold as a payment method is one of the prohibitions in gold trading activities. Therefore, gold bars should not be used as a payment method when buying land.
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Related questions
Currently, there are many payment methods such as cash payment, payment via bank account, payment in foreign currency, etc. So depending on the general conditions of the seller and the buyer, it will be agreed upon. payments. However, this is also a concern of both sellers and buyers.
When individuals and organizations buy and sell gold bars at credit institutions or enterprises without business licenses for buying and selling gold bars, according to Clause 2, Article 25 of Decree No. 96/2014/ND-CP, they will be sanctioned. . Depending on each case and the seriousness of the violation, individuals and organizations that buy and sell gold bars at credit institutions or enterprises without business licenses for buying and selling gold bars will be fined from 30,000,000 VND 60,000,000.
According to Clause 7, Clause 8, Article 25 of Decree No. 96/2014/ND-CP, when enterprises and credit institutions do business in buying and selling gold bars but do not have a business license to buy and sell gold bars, they will be sanctioned. . Accordingly, depending on each case and severity of the violation, when businesses and credit institutions trade in gold bars but do not have a business license to buy and sell gold bars, they will be fined from 450,000. 000 VND to 500,000,000 VND. In addition, there will be an additional penalty of confiscation of gold for the above violations
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