Vietnam negotiates DTA with Cambodia
Officials from Vietnam and Cambodia have expressed their intentions to negotiate a double tax agreement. On 13 January 2014, a conference was held, which provided both nations with an opportunity to discuss measures to further promote cooperation
See MoreVietnam – Tax forms and VAT methods
According to Decree No. 156/2013/TT-BTC, in effect from 1 January 2014, new tax forms are to be used by organizations and entities in Vietnam. Enterprises are to pay trade union dues at a rate of 2% of total salary amounts used to compute social
See MoreVietnam releases circular on treaty benefit application
Recently, Vietnam issued Circular 205 providing rules on the applicability of tax treaty benefits and general anti-abuse provisions (GAAR) which will become effective 6 February 2014. The main changes in Circular 205 from the previous circular are
See MoreVietnam – detailed guidance on APA process effective 5 February 2014
Following the introduction of Advance Pricing Agreements (APA) in the Revised Law on Tax Administration, Vietnam’s Ministry of Finance (MoF) issued Circular No. 201/2013/TT-BTC (Circular 201) providing detailed guidance on the APA application
See MoreVietnam: Corporate income tax rate reductions and rule changes
The Vietnam corporate income tax rate will be reduced to 20% from 1 January 2016 (now 22%). For taxpayers with total revenue lower than VND 20 billion, the will be 17% effective 1 January 2016 (now 20% as of 1 July 2013). New guidelines published as
See MoreVietnam: Decree on tax penalties
Vietnam has released a new Decree on 16 October 2013 on tax penalties along with the amended law on Tax Administration, which specifies tax administrative procedures. The Decree becomes effective on 15 December 2013 and applies to any violations
See MoreVietnam: APA regime procedures and rules
Vietnam’s Ministry of Finance has issued detailed guidance in Circular 201/2013/TT_BTC dated 20 December 2013, for the advance pricing agreement (APA) regime, which was added to the income tax law in July 2013. The new guidance is effective from 5
See MoreVietnam – Transfer pricing audits based on risk profiles
Vietnam’s General Department of Taxation published transfer pricing audits on 18 December 2013, throughout a number of provinces, and selected some textile, garment, and footwear companies based on transfer pricing risk assessment profiles. The
See MoreVietnam: VAT regime is to be increased
The penalties for infringement of the Vietnamese VAT regime are to be increased. The new charges were published in Decree 129 which is summarized below: The changes include: • The new maximum fine for VAT reporting infringements is VND 200m. •
See MoreVietnam – published an official letters on Investment projects and severance allowances
The Vietnam tax authority’s published an official letters on 15 November 2013 on condition that: Business establishments are not allowed to corporate income tax incentives for an investment project if implementation of the investment project is
See MoreVietnam: Rubber export tariffs possible to be cut
Vietnam’s Ministry of Finance issued a Circular on 13 November 2013 it was reported that, reducing export tax rates on both natural and synthetic rubber exports exports from December 26, 2013. With this Circular, the export tariff on all rubber
See MoreInterest income under the income tax treaty between Vietnam and France
The income tax treaty between Vietnam and France does not provide any provisions for the taxation of interest derived from transactions of loans. Recently Vietnam has provided guidelines on certain tax provisions of the treaty. According to the
See MoreVietnam – Changes to tax administrative penalty rules
Vietnam’s tax authorities have issued a decree that amends the rules that apply with respect to penalties assessed for tax administrative violations. Decree 129/2013/ND-CP (16 October 2013) revises the tax administrative penalty rules. Among the
See MoreTreaty between Serbia and Vietnam enters into force
The Serbia – Vietnam Income Tax Treaty (2013) entered into force on 18 October 2013,. The treaty generally applies from 1 January 2014. Under the treaty the definition of a permanent establishment generally follows the provisions of the UN Model
See MoreVietnam: Issues Decree 92/2013 on implementation of CIT and VAT
Vietnam’s corporate income tax (CIT) and value added tax (VAT) guidance given in the Decree includes the following points: – Decrease of CIT to 20% for enterprises with a total annual revenue not exceeding VND 20 billion, effective since 1
See MoreVietnam and New Zealand sign double tax agreement
New Zealand signed a new double tax agreement (DTA) with Vietnam on August 5, 2013. When will become effective, dividends will be subject to a maximum withholding tax of 5% where the beneficial owner is a company directly holding at least 50% of the
See MoreVietnam: Preferential customs treatment made more accessible
Under business policy in force in Vietnam since 2011 companies have had access to preferential customs treatment only if they have annual revenue of at least USD 350 million. A new Circular issued by the Ministry of Finance has lowered this
See MoreVietnam: Amendments to Corporate Income Tax Law
The general tax rate in Vietnam will be reduced to 22% from 1 January 2014. Also from 1 January 2016 the tax rate will be 20%. This measure was approved by the National Assembly on 19 June 2013. The reduced tax rates are competitive with the
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