Vietnam Technical Update 2016/Issue 6 | KPMG | VN

Vietnam Technical Update 2016/Issue 6

Vietnam Technical Update 2016/Issue 6

New update on CIT, PIT, Permanent Establishment for tax purposes, Export Duty and Import Duty on October 2016


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1) Corporate Income Tax (“CIT”)

  • A branch established in the 2007-2008 period is treated as an expansion investment project and eligible to enjoy tax reduction and tax exemption, and does not qualify for the incentive tax rate
  • Interest income arising from a short-term savings account in which charter capital is deposited shall be taxable for CIT calculation purposes
  • Circular 86/2016/TT-BTC provides guidance on the provision, utilisation and accounting record for the reserve fund to compensate for damage to the environment
  • Joint Circular No. 12/2016/TTLT-BKHCN-BTC providesguidance on the allocation and management of theScience and Technology Development Fund (“STDF”) inenterprises
  • Circular 147/2016/TT-BTC supplementing and amendingCircular 45/2013/TT-BTC on fixed asset depreciation

2) Personal Income Tax (“PIT”)

  • Increase the monthly mid-shift meal allowance to VND730,000 per person

3) Permanent Establishment for taxpurposes

  • A representative office of foreign organisations performing trade promotion activities is regarded as constituting a permanent establishment for a foreign organisation in Vietnam

4) Export Duty and Import Duty

  • The deadline to supplement the Certificate of Origin ("C/O")
  • Guidance on the implementation of the Law on Export Duty and Import Duty No. 107/2016/QH13 (“Law 107”) regarding cases of export and import duty exemption
  • Decrees guiding on export tariffs, preferential import tariffs and special preferential import tariffs

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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