Vietnam: Corporate tax incentives, VAT on trade discounts, bonded warehouses

Vietnam: Corporate tax incentives, VAT

Guidance (“official letters”) issued in April 2016 by the tax authority in Vietnam concerns the following topics:

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  • For purposes of corporate income tax incentives, the requirements for determining “regular investment activities” 
  • A deduction allowed to companies for trade union fees paid in prior years 
  • “In kind” trade discounts require value added tax (VAT) invoices to be issued (as would be required for regular trading activities)
  • No credit or refund of input VAT if the relevant contract and invoice are signed after the actual date of the export and customs declaration
  • For foreign contractor tax purposes, a bonded warehouse is a physical location within the Vietnamese territory; thus, if a foreign party contracts to sell goods at a bonded warehouse, that foreign party is subject to Vietnamese foreign contractor tax

 

Read an April 2016 report [PDF 369 KB] prepared by the KPMG member firm in Vietnam

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