Vietnam’s tax authorities on 25 October 2016 circulated certain corporate income tax; value added tax (VAT), labour compliance, and customs duty matters.

Corporate income tax
-An official letter provides the conditions and supporting document to deduct warranty expenses.
-An official letter clarifies that interest expenses are not deductible when a company makes a nonbusiness-related advance payment to an employee and funds loans to other companies at 0% interest.

VAT
-A circular removes a requirement for taxpayers to register bank accounts with the tax authorities (or notify the authorities) for VAT credit purposes.
-An official letter sets forth the exchange rate to apply to invoices issued when a company uses foreign currency as its functional currency for accounting record purposes.
-An official letter provides that input VAT related to the investment stage for trial production must be declared on a VAT declaration form.

Personal Income Tax  and labour compliance
-An official letter addresses individual (personal) income tax exemption or reduction under an income tax treaty for the avoidance of double taxation.
-A Circular also addresses work permits issued for foreigners working in Vietnam.
-An official letter provides that a company paying salaries to employees that have signed labour contracts with a company branch is responsible for individual income tax withholding and for declaring and remitting the withheld tax to the tax authorities.
-A governmental decree provides an increase in the region-based minimum salary, effective 1 January 2017.

Customs duty
-An official letter provides that the container imbalance charge is included in the customs valuation for import duty calculations.
-An official letter provides that a financial leasing company that imports goods and then leases these goods to an export and processing enterprise is liable for the import customs duty, at the importation stage.
-An official letter provides that if goods are traded between an export and processing enterprise and a domestic company, and there is a certificate of origin showing a special zone, then the domestic company is eligible for the benefit of a preferential import rate.
-An official letter clarifies when there is to be enforcement of a post-clearance customs inspection or customs valuation.