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Navigating Personal Income Tax in Vietnam
Paying Personal Income Tax (PIT) is one of the key financial obligations that employers and employees have in Vietnam. In this article, we attempt to clarify some of the key regulations and tax rates involved with the payment of PIT.
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PIT Update: Vietnam Implements 50 Percent Reduction in Personal Income Tax for Individuals Working in Economic Zones
On October 20, 2014, Vietnam implemented a 50 percent reduction in personal income tax (PIT) for individuals who are working in the country’s economic zones. The recent tax change was outlined in the Ministry of Finance’s Circular 128/2014/TT-BTC, replacing Circular 176/2009/TT-BTC.
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Vietnam Seeks to Boost Foreign Direct Investment (FDI)
According to Vietnam’s Foreign Investment Agency, FDI approvals for the first 10 months of 2014 are 23.9 percent lower than the same period last year. However, capital disbursements by FDI enterprises have increased 5.9 percent year-on-year (YoY) to a total of US$10.15 billion.
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Understanding How to Hire and Pay Staff in Vietnam
Having a clear understanding of how to hire and pay your employees in Vietnam is crucial to ensuring your company's success. In this article we take you through the regulations surrounding the hiring of employees and provide a discussion on wages.
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Vietnam-U.S. Relationship Shows Continued Signs of Improvement, TPP Progressing
Recent high-level government meetings have confirmed that Vietnam and the United States are continuing to strengthen their bilateral relations. Among the important agreements are trade deals such as the Trans-Pacific Partnership (TPP) and the removal of a US arms embargo. In 2015, the two countries will celebrate their 20th anniversary of normalized bilateral relations. Two recent important meetings between the two nations have included Pham Binh Minh’s, Vietnam’s Deputy Prime Minister, recent trip to the US and Michael Froman’s, a US Trade Representative, trip to Vietnam.
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IMF Report Shows Economic Improvement in Vietnam, Recommends Not Lowering CIT
As part of its 2014 Article IV consultation with Vietnam, the International Monetary Fund (IMF) has released a Staff Report containing an analysis of the current economic developments and policies taking place within the country. The report also contains a number of recommendations aimed at helping Vietnam improve its economic growth. In a surprising move, and of key concern to foreign investors, the IMF has recommended that Vietnam not move forward with its plans to lower the corporate income tax (CIT) to 20 percent in 2016 (the current rate is 22 percent). Vietnam has already recently lowered its CIT rate from 25 percent.
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Forbes to Honor the 50 Best Listed Vietnamese Companies
In a sign of Vietnam’s maturing market, Forbes Vietnam is preparing to honor Vietnam’s 50 best listed companies in a ceremony to be held on October 17 in Ho Chi Minh City (HCMC). The award seeks to recognize companies listed on the Vietnam Stock exchanges that have outstanding business and financial performance. Some of the recognizable names on the top 50 list include Vingroup, Vinasun, Vinamilk, and Vietcombank.
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Vietnam PM Calls for the Replacement of the Red Seal for Businesses
Vietnamese Prime Minister Nguyen Tan Dung has publicly announced that the mandatory use of corporate stamps should be amended and the government should “move towards replacing the seals with handwritten and digital signatures.” The PM made the comments during a meeting with the country’s Minister of Planning and Investment.
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Vietnam Amends CIT and VAT Through Decree 91
Vietnam has issued amendments to certain provisions related to the country’s corporate income tax (CIT) and value-added tax (VAT). The changes have been laid out in Decree 91/2014/ND-CP and will become effective on October 15, 2014.
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Samsung Increases Investment into Vietnam’s Saigon Hi-Tech Park
Samsung has recently received an investment certificate allowing the company to move forward with the development of a new US$1.4 billion electronics factory in Ho Chi Minh City (HCMC). The new factory, which will be called the Samsung CE Complex, will be built in the Saigon Hi-Tech Park. This is yet another move by the South Korean company to turn Vietnam into a global manufacturing base for its products.