HANOI, Apr. 19 – The Vietnamese government is considering cutting corporate income taxes for small and medium-sized enterprises, Deputy Prime Minister Hoang Trund Hai said on Friday.
Speaking at an economic conference in Hanoi, the deputy PM said that the government had issued a resolution aimed at helping the country achieve its growth target of 6.5 percent in 2010. Read the rest of this entry »
Apr. 15 – In this issue of Vietnam Briefing magazine we tackle the legal aspects of managing human resources in the country.
Many foreign investors move operations to Vietnam to take advantage of its large, skilled and inexpensive labor force. As the economy expands further and more business enters the country, it will increasingly become an important part of corporate strategy to find ways to effectively motivate staff while also complying with local labor laws. The magazine covers various topics under recruitment and hiring including salary, mandatory benefits, labor contract, work permits, working hours, bonuses, trade unions and insurance.
We will also look at the ongoing urban renewal of Hanoi and Ho Chi Minh city as its expands the scope of its area to accommodate more local and foreign investment. Read the rest of this entry »
Apr. 7 – The Ministry of Finance announced last month that companies may use their own customized personal income tax receipts to issue to employees.
Prior to Circular 37, employers had to get pre-printed PIT receipt books from local tax authorities. Employers will be allowed to print their own receipts if they meet the following conditions: withholding organization is a legal entity in accordance with the law; withholding organization has a tax code; suitable computer and software system are maintained; and withholding organization has not been penalized for more than two tax offenses in the last year. Read the rest of this entry »
Apr. 6 – A circular issued by the Ministry of Finance last month clarified details of the extension of 2010 corporate income tax payment for small and medium enterprises.
Following the previously issued Decision 12, small and medium enterprises will be allowed CIT payment deferral based on their total capital or annual average number of employees. Specifically, SMEs with total employees numbering not more than 300 persons or total capital resource of up to VND100 billion will be qualified. Circular 39 clarifies on this issue by detailing how to determine total capital and workforce. Read the rest of this entry »
By Joyce Roque
Mar. 25 – Companies operating in Vietnam should be aware that the Vietnamese government has delayed the schedule for quarterly payments of corporate income tax for 2010. Tax payments for the first quarter of the year has been moved to July 30, 2010 and the second quarter payment deadline is now October 30, 2010 while the third quarter payment deadline is on January 31, 2011. The fourth quarter payment is due on April 30, 2011.
Corporate income tax is based on the sales of goods and services. In 2009, the CIT rate changed from 28 percent to 25 percent. Businesses in the oil and gas industry are subject to higher CIT rates ranging from 32 to 50 percent based on their projects. A company computes its taxable profits based on the difference between total revenue, be it locally or foreign sourced, and deductible expenses in addition to assessable income. Read the rest of this entry »
By Joyce Roque
Mar. 11 – A foreign investor looking to enter the Vietnamese market must be aware of the taxes that will affect them in the long-term since taxes are implemented on a national level and no state or provincial taxes are in place.
These taxes include:
Corporate Income Tax
Withholding Taxes
Capital Assignment Profits Tax 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:
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