Jul. 13 – Vietnam’s Ministry of Finance has issued Circular No. 91/2011/TT-BTC dated June 20, 2011, amending import tax rates for certain goods in the Preferential Import Tariff.
Beginning August 4, 2011, import tax rates increase for some items in the Preferential Import Tariff according to the list of taxable goods issued together with Circular No. 184/2010/TT-BTC by the Ministry of Finance. Continue reading
Jul. 7 – Last April, Vietnam’s Prime Minister executed a tax extension for small and medium-sized enterprises (SMEs) for 2010 corporate income taxes with the total amount of around VND7 trillion. The eligible enterprises for this incentive are about 200,000 of the total 360,000 small and medium enterprises currently operating in Vietnam.
In the government’s regular meeting in May, the government has asked the Ministry of Finance (MoF) to consider tax exemption options for SMEs in June. This would assist the SMEs to overcome the hard time to stabilize and boost production. Continue reading
By Bich Lien
Jun. 29 – On June 8, 2011, Vietnam’s Ministry of Finance issued Circular No.78/2011/TT-BTC regarding personal income tax exemption. Accordingly, allowances provided by the company to employees for medical treatment to cure serious diseases of those employees or their direct family members shall not be subject to personal income tax if the amount paid is from profits after tax, or the welfare fund, or the reward fund of the company. Continue reading
Jun. 20 – Vietnam’s Ministry of Finance will propose that the government consider the National Assembly Standing Committee’s report covering a number of urgent solutions to help taxpayers awaiting repairs to the personal income tax law.
With the stock market down sharply recently, many investors are seeing almost no income, and some are even experiencing losses. Therefore, the Ministry of Finance has proposed tax exemptions for stock investors from August 1, 2011 to 2012. Income received from dividends will be exempt from personal income tax to make it fair to persons who have money in bank savings accounts. Continue reading
Apr. 14 – A decision concerning small and medium-sized enterprises’ (SMEs’) corporate income tax was published, and thereby became effective, on April 6, 2011. This decision from the Vietnamese prime minister allows SMEs to defer their CIT settlements of one year. This new incentive should help the SMEs to overcome their hardships and also stimulate economic development in 2011.
The enterprises entitled to this extension are the SMEs defined in Decree 56/2009/ND-CP: according to the size of their total capital or to their average annual number of laborers, those criteria requirements varying depending on the sectors of activity of the company. In any case, a SME’s capital and number of laborers cannot be higher than VND100 billion or 300 persons (for companies in the trade and services sector, those criteria’s maxima are VND50 billion and 100 persons). Continue reading
Mar. 29 – The Vietnamese government’s monetary policy seems to have been stuck in a dilemma. While raising interest rates and restricting lending amounts seem to be the common ways to exacerbate the high inflation rate, the reduction in loan issuance is directly hurting the business operation and development of the country’s small and medium sized enterprises (SMEs).
Cao Sy Kiem, chairman of the Association of SMEs, warned at a National Assembly meeting on March 26 that more than 30 percent of SMEs now lack access to bank loans. Admitting a tightened monetary policy is necessary for inflation control, Cao believes the policy also brings significant challenges to SMEs. Continue reading
Mar. 22 – In this new issue of Vietnam Briefing, we discuss the issues of tax and foreign exchange control.
Tax finalization is compulsory for foreign invested enterprises in Vietnam, so we look a little deeper into the procedures for corporate income tax and personal income tax, including documentation, deductible expenses, carrying losses forward, and allocation between headquarters and subsidiaries.
We also discuss the two value-added tax calculation methods – the credit method and the direct method – and the invoice, filing, and refund requirements for each.
Finally, an issue of paramount concern of all foreign investors entering into Vietnam: foreign exchange control. What are the details of transferring capital in and out? Which of the four types of bank accounts available to an FIE do you need? How do you go about borrowing and paying back foreign loans? This article answers these three questions. Continue reading
Mar. 17 – Vietnam’s DongA Commercial Joint Stock Bank is seeking more foreign investors to participate in its capital raising program. The bank announced on Wednesday that it plans to sell 15 percent of its stake to foreign investors during the fourth quarter of 2011, but did not name any possible buyers.
As DongA looks to raise another VND1.5 trillion in 2011 to add to its current VND4.5 trillion of registered capital, it hopes the VND900 billion-revenue from its share sale to foreign buyers will help realize the fund-raising goal. Continue reading
Mar. 15 – Vietnam’s Finance Ministry plans to cut import duties to 15 percent in April. Currently, the tariff on refined sugar is 40 percent, while raw sugar is taxed at 25 percent.
The cuts will help keep prices stable, according to statements made by the finance ministry. However, the Ministry of Industry has set import quotas at 250,000 tons total for both raw and refined sugar, compared to the 300,000 tons of sugar that was allowed to be imported in 2010. Both import quotas and import duties exert the same upward pressure on the price of imports. Continue reading
Feb. 15 – The State Bank of Vietnam decided to lower the Vietnamese dong by 9.3 percent to VND20,693 to a U.S. dollar. The decision came into effect February 11.
Dr. Tran Hoang Ngan, member of the national advisory council for monetary and financial policies, said the decision will help reduce the psychological need to hold dollars. It will also make transactions in U.S. dollars more transparent. Continue reading
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