Read a January 2016 report prepared by KPMG in Vietnam: Technical Update: Tax and Legal Services
Other items included in the report include:
Corporate income tax
- The tax authorities will only acknowledge corporate income tax finalization submissions of dossiers that include financial statements or audited financial statements.
Value added tax (VAT)
- Adjusted invoices must be issued when a company issues an invoice with an incorrect foreign exchange rate.
- There are changes to certain provisions on VAT refund management.
- Services performed in Vietnam with respect to the production of products that will be exported entirely will be considered “export services” with a VAT rate of 0%.
Individual (personal) income tax
- To be eligible to work in Vietnam, foreign “experts” must have a bachelor’s degree (or equivalent) relevant to the intended job in Vietnam, and have at least three years of work experience in the profession.
Foreign contractor tax (FCT)
- Management fees allocated to permanent establishments in Vietnam are exempted from the FCT.
- If a company rents from a foreign company machineries and equipment satisfying all conditions of a financial lease asset, and the foreign company is a financial lease company, then the income from this activity will be subject to FCT at the corporate income tax rate of 5%; VAT is not applicable.
Export duty, import duty, customs procedures
- Guidance is provided on implementing certain provisions of import duties, export duties, and customs procedures.
- Guidance is also provided on the export tariff schedule and preferential import tariff schedule for taxable items.
- There is a circular concerning the rules of origin in Vietnam—effective 1 January 2016.