Vietnam: Oil exploration, PE status, VAT and customs guidance

Guidance in Vietnam for corporate, individual taxpayers

Guidance issued by the tax authority in Vietnam concerns areas of corporate income tax, individual (personal) income tax, value added tax (VAT), and customs duty on imports and exports.


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  • Corporate income tax guidance (an “official letter”) provides that an indirect transfer of shares and the right to participate in oil exploration contracts are subject to capital assignment tax.
  • Individual income tax guidance (an official letter) provides foreign individuals assigned to perform services in Vietnam constitute a permanent establishment (PE) for a foreign entity in Vietnam and are not entitled to a exemption under an income tax treaty.
  • VAT guidance provide that input VAT for invoices issued to branches but settled by headquarters is “creditable” and that input VAT at importation stage, deemed by customs authorities, is creditable.
  • Customs duty guidance addresses the cap of gift and sample goods subject to customs duty and VAT exemption, and customs procedures and foreign contractor tax obligations when ownership of the goods is transferred in a bonded warehouse.

Read an August 2015 report [PDF 543 KB] prepared by the KPMG member firm in Vietnam: Technical Update (August 2015)

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