VAT Exemption for Exports Available for Local Companies

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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.

Local companies have been more aggressive in pursuing overseas investments. Last year, local enterprises committed US$7.2 billion for 457 projects located in 50 countries, a 43 percent increase from 2008.