Vietnam: Corporate income taxation of profits of permanent establishment

Vietnam: Corporate income taxation of profits

The tax authorities in Vietnam issued guidance (in the form of an “official letter”) clarifying the corporate income tax treatment of profits or income arising in Vietnam if: (1) a foreign contractor does not follow Vietnamese accounting standards; and (2) there is an income tax treaty between Vietnam and the country of the foreign contractor’s residence and that treaty addresses the treatment of profits attributable to a permanent establishment.

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Read an October 2015 report [PDF 411 KB] prepared by the KPMG member firm in Vietnam: Technical Update (October 2015)

 

Other topics briefly discussed in this KPMG report include:

  • Guidance (an “official letter”) providing that the input value added tax (VAT) of business activities that do not satisfy the criteria for conditional business sectors pursuant to certain laws is not refundable.
  • An official letter concerning the individual (personal) income tax treatment of housing provided to an expatriate assigned to work in Vietnam as well as guidance on overtime pay and social contributions
  • Guidance under the natural resources tax for certain items such as water resources for agricultural and production activities  

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