Vietnam Technical Update 2016/Issue 2 | KPMG | VN

Vietnam Technical Update 2016/Issue 2

Vietnam Technical Update 2016/Issue 2

The new guidance provides provisions concerning: CIT, VAT, PIT, FCT on March 2016.


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1. Corporate Income Tax (“CIT”)

  • Expenses associated with the repair and maintenance of fixed assets serving employees are deductible for CIT calculation purposes
  • Assets acquired from another company are not allowed to inherit tax incentives

2. Value Added Tax (“VAT”)

  • VAT declaration for manufacturing projects in supporting industries
  • Transferring project which has been partially completed and put into operation will be subject to VAT
  • Import VAT of goods imported for capital contribution are creditable
  • Making payment for imported goods via bank transfer to a third party being an individual appointed by the seller does not satisfy non-cash payment condition

3. Foreign Contractor Tax (“FCT”)

  • Foreign exchange rate for FCT calculation purposes

4. Personal Income Tax (“PIT”)

  • Tax treatment of trade discounts, payment discounts and promotion prizes
  • No PIT code is issued upon the change of identity card number or identification number

Technical Updates

KPMG's Tax Technical Update is most up to date the amended law and tax administration in Vietnam and the implications thereof.

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© 2017 KPMG Tax and Advisory Limited, a Vietnamese limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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