Aug. 20 – Following Government Decree 87/2010/ND-CP, Vietnam will exempt export and import express packages from tax beginning October 1.
The decree will also waive tax on imported raw materials or appliances for specific investment sectors or those not made in the country five years after production date. Read the rest of this entry »
Aug. 19 – Tax authorities clarified in June that corporate income tax incentives shall not apply to new business activities after a foreign company has already been granted an investment certificate.
Official Letter 2057 says a foreign invested company that decides to offer business activities in addition to the activities stated on its investment certificate shall be considered as expanding its business. The new activity will not be qualified for CIT incentives but will be charged a 25 percent tax. Read the rest of this entry »
Aug. 4 – In this issue of Vietnam Briefing, we look at the process of establishing representative offices in Vietnam. As the second best performing economy in the region this year, many foreign investors are now considering building a presence in Vietnam to take advantage of the robust growth. A representative office is the simplest way to do so initially as a company tests the viability of the Vietnamese market.
We also cover related topics that include comparing representative offices with branch and wholly foreign-owned enterprises to determine which type is the most suited for your company; obtaining a foreign work permit in Vietnam; and regulations on applying as a foreign contractor. Read the rest of this entry »
Jun. 24 – An official letter released by the Ministry of Finance on June 7 provided additional guidelines on the 2009 Corporate Income Tax finalization process.
Letter 7250/BTC-TCT states that tuition fees for children of expatriates up to the high school level will be considered tax deductible as long as it meets administrative requirements. It further states that tax loss beginning in 2009 will be carried forward and offset against taxable income of a maximum of five years. Read the rest of this entry »
Jun. 23 – Authorities have released a letter clarifying the tax treatment of interest income and expense.
Letter 1713/TCT-CS provides that net interest income and net foreign exchange gains should be considered as other income. Under corporate income tax regulations, other income is meted a 25 percent tax applicable for the 2009 tax finalization. Read the rest of this entry »
Jun. 18 – Authorities have extended the deadline for 2009 personal income tax (PIT) finalization from May 31 to July 31, 2010.
Official Letter 7209/BTC-TCT is the second deadline extension announced for the year. Personal income tax in Vietnam is computed on the average monthly taxable income (divided by 6) and monthly tax rates. Read the rest of this entry »
Jun. 9 – In an effort to increase transparency and modernize the economy, the Vietnamese government announced plans to reduce 256 administrative procedures on Monday.
The reform is the keystone of Project 30, a sweeping four-year overhaul of government administration that aims to simplify Vietnam’s 24 ministries and 63 provinces.
Included in the reform are 20 tax procedures allowing businesses to use their own invoices printed in accordance with government regulations. Under the new reform, only newly established businesses and small companies are required to use special invoices issued by the finance ministry. Read the rest of this entry »
Jun. 2 – Deputies of Vietnam’s National Assembly debated and discussed the new Law on Environmental Protection Tax on Monday as the government tries to find a way to mitigate the negative environmental externalities the country is experiencing as a result of its rapid economic development and modernization.
The new environmental legislation is an attempt by the government to counter the escalating pollution levels in the water, soil, and air with the first national tax on the commodities that cause pollution. The government is hoping that the robust legal framework will simultaneously deter harmful behavior towards the environment while also raising funds to help mitigate the negative effects caused by the inevitable consumption of energy resources. Read the rest of this entry »
HANOI, Jun. 1 – Vietnam’s central bank announced on Monday that it will leave its benchmark interest rate unchanged next month, keeping the measure at the same level held since early December.
The base rate will stay at 8 percent in June, the State Bank of Vietnam said in a statement on its web site yesterday. The benchmark was raised to 8 percent from 7 percent on Dec. 1. Read the rest of this entry »
May 17 – Starting June 7, authorities are increasing the tax applicable for foreign investors doing business or earning income in Vietnam on interest earned from bonds – not including government bonds and certificates of deposit to 10 percent.
Currently, interest from bonds held by foreign investors are charged a lower effective tax rate of 0.1 percent multiplied by the face value of the bond plus interest. The new Circular 64/2010/TT-BTC clarifies regulations on tax costs for foreign businesses in the country. The circular states that the transfer of bonds and CDs will be treated the same as transfer of securities, with a tax rate of 0.1 percent of the total transfer’s value. Read the rest of this entry »
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