Vietnam: Corporate income tax, VAT, customs guidance | KPMG | GLOBAL
Share with your friends

Vietnam: Corporate income tax, VAT, customs guidance

Vietnam: Corporate income tax, VAT, customs guidance

Guidance from Vietnam’s tax authorities addresses certain corporate income tax, value added tax (VAT), labor compliance, and customs duty issues.


Related content

Concerning corporate income tax

  • An official letter provides the conditions and supporting document to deduct warranty expenses.
  • An official letter clarifies that interest expenses are not deductible when a company makes a nonbusiness-related advance payment to an employee and funds loans to other companies at 0% interest.

Concerning VAT

  • A circular removes a requirement for taxpayers to register bank accounts with the tax authorities (or notify the authorities) for VAT credit purposes.
  • An official letter sets forth the exchange rate to apply for invoices issued when a company uses foreign currency as its functional currency for accounting record purposes.
  • An official letter provides that input VAT related to the investment stage for trial production must be declared on a VAT declaration form.

Concerning labor compliance

  • A circular addresses work permits issued for foreigners working in Vietnam.
  • An official letter addresses individual (personal) income tax exemption or reduction under an income tax treaty for the avoidance of double taxation. 
  • An official letter provides that a company paying salaries to employees that have signed labor contracts with a company branch is responsible for individual income tax withholding and for declaring and remitting the withheld tax to the tax authorities.
  • A governmental decree provides an increase in the region-based minimum salary, effective 1 January 2017.

Customs duty

  • An official letter provides that the container imbalance charge is included in the customs valuation for import duty calculations.
  • An official letter provides that a financial leasing company that imports goods and then leases these goods to an export and processing enterprise is liable for the import customs duty, at the importation stage.
  • An official letter provides that if goods are traded between an export and processing enterprise and a domestic company, and there is a certificate of origin showing a special zone, then the domestic company is eligible for the benefit of a preferential import rate.
  • An official letter clarifies when there is to be enforcement of a post-clearance customs inspection or customs valuation.


Read a November 2016 report [PDF 184 KB] prepared by the KPMG member firm in Vietnam

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal