Vietnam clarifies the tax implications of interest income
On 24 October 2019, the Tax Authority issued an official letter (No. 80503 / CT-TTHT) explaining the tax implications of interest income on term loans. The letter clarifies that loan interest earned in Vietnam is subject to withholding tax. The
See MoreVietnam clarifies the limitation of the deductibility of loan interest expense for TP purposes
On 11 September 2019, the Department of Taxation of Ha Noi City issued Official Letter No. 71443/CT-TTHT providing clarification on the determination of loan interest costs. Under article 8 (3) of Decree No 20/2017 / ND-CP, the total loan
See MoreVietnam: NA approves a new taxation regime for Foreign Service providers
On 13 June 2019, the National Assembly (NA) approved the Law on Tax Administration (amended changes). The law introduced a new taxation regime for Foreign Service providers including e-commerce business. This law will take effect from 1 July
See MoreVietnam Proposes to reduce corporate income tax rates for SMEs
On 26 March 2019, Vietnam's Ministry of Finance has released a consultation on a draft resolution for the introduction of reduced corporate tax rates for small- and medium-sized enterprises (SMEs). The draft proposed following reduced rates: 15%
See MoreVietnam: NFSC proposes to cut the corporate income tax on SMEs
The National Financial Supervisory Committee (NFSC) has proposed cuts to corporate income tax for small-and-medium sized enterprises to promote their development. This was a highlighted in the January-September fiscal and budget report by the
See MoreVietnam considering amendments to rules that limit related-party interest deductions
According to recent reports, the Vietnam Ministry of Finance is considering proposed amendments to the country's interest expense deduction restriction. The Decree No. 20/2017/ND-CP, enacted 24 February 2017 (Decree 20), limits deductions
See MoreVietnam: National Assembly ratifies the Trans-Pacific Partnership
On 12 November 2018 the National Assembly of Vietnam formally ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is an open agreement that allows other countries to join after the deal takes effect
See MoreEU: Investment protection agreement with Vietnam
On 17 October 2018 the European Commission adopted an investment protection agreement with Vietnam, at the same time as a free trade agreement. This paves the way for the final signature and conclusion of the investment protection agreement. Under
See MoreEU: Free trade agreement with Vietnam
On 17 October 2018 the European Commission adopted the free trade agreement (FTA) between the EU and Vietnam. The FTA has been presented for signature to the European Council. A factsheet on the FTA with Vietnam has also been issued and sets out the
See MoreVietnam considers special tax for sweet drinks
The Ministry of Finance is proposing to levy a special consumption tax of 10% on sweet drinks to combat child and adult obesity rates. It is part of a ministry proposal to revise five tax laws, including a value-added tax (VAT), special consumption
See MoreLatvia and Vietnam sign an agreement for the avoidance of double taxation
On October 19, 2017, an intergovernmental agreement on the elimination of double taxation and the prevention of fiscal evasion with respect to income tax was concluded between the Republic of Latvia and the Socialist Republic of Vietnam. The
See MoreVietnam: Finance Ministry proposes new tax plans
On 8 August 2017, the Ministry of Finance of Vietnam has announced the proposal to launch the tax reform program through two drafts on amending and supplementing the Laws on Corporate Income Tax, Personal Income Tax, Special Sales Tax, VAT and
See MoreVietnam: Ministry of Finance proposes to cut taxes for small and medium-sized firms
Recently, the Ministry of Finance (MoF) has proposed a number of changes to the country's tax regime, including a reduced corporate income tax rate. Small and medium-sized firms currently pay 20% in corporate income tax. If the proposal is approved,
See MoreVietnam: National Assembly passes the new technology transfer law
The National Assembly of Vietnam on 19 June 2017 approved the Law on Technology Transfer No. 07/2017 / QH14 ("LTT 2017"). The new law (LTT 2017) comes into force on 1 July 2018 and replaces the Law on Technology Transfer No. 80/2006 / QH11 of 29
See MoreIMF issues report on economic position of Vietnam
On 5 June 2017 the IMF issued a report following the completion of discussions with Vietnam under Article IV of the IMF’s articles of agreement. The report notes that Vietnam’s economy has been performing well with growth of 6.2% in 2016 and
See MoreVietnam publishes guidance on new transfer pricing requirements
The Ministry of Finance on 22 June 2017 published Circular 41/2017 / TT-BTC (28 April 2017), which provides some guidelines for the application of Decree No 20/2017 and this Circular will take effect on 1 May 2017. Circular 41/2017 introduced some
See MoreVietnam Joins the Inclusive Framework on BEPS
On 21 June 2017, the OECD published a new list of countries and jurisdictions participating in the Inclusive Framework on Base Erosion and Profit Shifting (BEPS). Based on this list, Vietnam has become the 100th jurisdiction to join the Inclusive
See MoreVietnam: National Assembly passes law on supporting SMEs
On 12 June, the National Assembly passed the Law on the support of small and medium-sized enterprises (SMEs). The measure will help to improve the quality of growth and change the nation's economic growth model. Under the new law, SMEs include
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