Vietnam Technical Update 2016/Issue 2 | KPMG | VN
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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

© 2018 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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