Vietnam Technical Update 2016/Issue 4 | KPMG | VN

Vietnam Technical Update 2016/Issue 4

Vietnam Technical Update 2016/Issue 4

New update on Corporate Income Tax, VAT, PIT, FCT on June 2016.


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1. Corporate Income Tax ("CIT")

  • CIT incentives also apply to income from deposit interest and lending interest of a company entitled to CIT incentives based on the location condition.
  • Lending contract without interest will be subject to tax imposition

2. Value Added Tax ("VAT") and invoicing requirements

  • Customer services and debt monitoring services provided to a foreign company that are performed and consumed within Vietnam, are subject to VAT.
  • Decree No. 49/2016/ND-CP amending and supplementing certain articles of Decree No. 109/2013/ND-CP on handling of administrative violations in price management, charges, fees, and invoices.

3. Personal Income Tax ("PIT"), Compulsory Insurances and Labor Management

  • The compulsory nursing insurance contributed overseas is allowed to be deducted from assessable income for PIT calculations purposes.
  • Procedures and documents for compulsory insurance declaration

4. Foreign Contractor Tax ("FCT")

  • FCT for loan guarantee service payments.
  • FCT for surcharges of foreign sea carriers.
  • FCT for sale transactions in bonded warehouses

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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