by Joyce Roque
Mar. 11 – Foreign investment into the region’s new Asian tiger has been steady despite setbacks from the financial crisis that severely depressed exports that contribute 70 percent to Vietnam’s gross domestic product.
Foreign investors tend to gravitate towards investing in Vietnam as a hedge on their operations in China, a China plus one strategy that follows the advice of not putting all your eggs in one basket. Read the rest of this entry »
Mar. 9 – Letter 451/TCT-TNCN issued by the General Department of Taxes last month shed light on several tax issues associated with finalizing personal income tax for 2009.
The new issues highlighted in the letter include the following:
Feb. 24 – The Cau Treo border gate economic zone in Ha Tinh Province in central Vietnam will soon be exempt from import tariffs according to the Ministry of Finance.
The decision will allow materials, equipment and unfinished products imported for production and installation at the zone to be exempted from taxes for five years beginning March 1. Read the rest of this entry »
HANOI, Feb. 23 – The government has announced it would allow delayed corporate income tax payments for the rest of the year as part of its efforts to support the economy.
The decision will cover small and medium-sized enterprises (SMEs), companies in production and textile industries as well as footwear outsourcing firms. Qualifying SMEs must have a charter capital ranging from VND20 billion (US$1.08 million) to VND100 billion ($5.4 million) or have less than 300 employees. Read the rest of this entry »
Feb. 20 – The State Bank of Vietnam has issued a circular setting the maximum interest rate applicable to U.S. dollar deposits of economic entities with credit institutions and adjusting the average inter-bank exchange rate.
Circular No. 03/2010/TT-NHNN in particular states:
Feb. 5 – The Ministry of Finance has sent Letter 118/BTC-TCT informing provincial tax authorities on how to treat interest income earned for companies in their pre-operating phase.
Interest income earned for a company in construction or pre-operating phase shall not be included under corporate income tax (CIT) incentives. The company must pay CIT on interest income following applicable regulations and the tax recognition of this income will not begin the commencement of the CIT incentive period. Read the rest of this entry »
Jan. 29 – Vietnam’s Finance Ministry has announced that local companies will be given value added tax exemptions for goods sold overseas.
The new circular does not exempt local companies from export and import tariffs, corporate income taxes and double taxation avoidance agreements with other countries. Local companies reported revenue losses or profits abroad although not reaching taxable threshold will just need to submit their financial reports to the government to calculate for corporate tax income. Read the rest of this entry »
Jan. 26 – Vietnam’s Ministry of Finance is now allowing foreign firms in the country to choose the currency unit they want to use for accounting purposes.
Previously, accounting records were required to be maintained in Vietnamese dong. Foreign companies wanting to use another currency for their financial records needed to submit an application form to the ministry. Read the rest of this entry »
Jan. 25 – Vietnam will impose a new special consumption tax of 45 percent on beer and other alcoholic drinks until 2012.
The General Department of Taxation announced that beer and spirits higher than 40 proof will slapped a 45 percent tax and 50 percent afterward. Alcohol with less than 40 proof will be meted a lower tax of 25 percent.
Previously, wine labeled less than 40 proof was charged a 20 percent tax and stronger drinks were charged a 30 percent to 65 percent tax. Vietnam has been imposing high tax rates on alcohol in the past years. For 2006-2007, beer was taxed 30 percent and 40 percent to 75 percent for 2008-2009.
Jan. 22 – Vietnam’s Ministry of Finance has proposed three options for levying tax on houses.
The first option will base taxes on the area of the house with a threshold of 200 square meters and above including the balcony. The second option will determine the tax based on the value of the house; levying a tax for property valued one billion dong and above. The house value will be calculated by multiplying total area multiplied with the unit price. Read the rest of this entry »
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit 
and due diligence. To learn more about the firm, please contact one of our specialists at vietnam@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
