South Korea Prioritizes FTA Talks with China and Vietnam
South Korea is continuing to discuss free trade agreements (FTAs) with China and Vietnam. In relation to the negotiations with China safety measures are being drafted in respect of fisheries and agriculture which are very sensitive sectors in South
See MoreVietnam: Expanding Tourist VAT Refund Incentive
Vietnam is widening its special value-added tax (VAT) scheme for exports by temporary visitors to the country. This scheme will enable more temporary visitors to Vietnam to claim refunds in respect of value added tax paid on goods bought during
See MoreDTA between New Zealand and Vietnam enters into force
A new double tax agreement (DTA) has been signed by New Zealand and Vietnam. The agreement which came into force on May 7, 2014 is part of a plan to increase the trade between the two countries. The agreement is designed to encourage cross-border
See MoreVietnam – Tax Revenue Receipts Increase
In Vietnam the tax collections in the first three months of 2014 reached VND134 trillion (USD6.37bn). This amount is 16.5 percent more than in the same period in 2013, and represents the highest level of first-quarter revenue in the past three
See MoreVietnam – VAT export and invoice changes
Some changes have been made to Vietnam’s VAT regime in respect of VAT invoices and the VAT on exports. The aim of the changes is to require adequate documentation to be maintained in respect of the transaction, including proof of export. There
See MoreVietnam: Changes to VAT rules
Some changes have been made to the VAT regime in Vietnam, effective from January 2014. An important change relates to branches of export processing enterprises, which are being brought within the VAT regime. These enterprises will now be required to
See MoreVietnam: Individual Income Tax Guidance for 2013
General Department of Taxation in Vietnam has confirmed the guidance in January 2014 on personal income tax for 2013 providing methodologies on how to calculate taxable income and tax liabilities for net and gross employment contracts. Tax
See MoreVietnam 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
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