Vietnam: Proposals to amend direct and indirect taxes | KPMG | GLOBAL

Vietnam: Proposals to amend direct and indirect taxes

Vietnam: Proposals to amend direct and indirect taxes

The Ministry of Finance submitted a proposal for draft legislation that would amend the laws concerning direct and indirect taxes.

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The draft legislation includes proposals to amend the corporate income tax, the individual (personal) income tax, the value added tax (VAT), the special consumption tax, the foreign contractor tax, and the natural resources tax. The government is expected to consider and then send draft legislation to the National Assembly, and if passed, the legislation would be effective 1 January 2019.

Among the proposals in the draft legislation are the following items:

  • Concerning the indirect taxes of VAT and the special consumption tax—the list of taxable subjects would be expanded, and the tax rates would be increased.
  • Concerning the direct taxes of corporate and individual income tax—the tax rates would be reduced.

There are also proposals for tax incentives to be provided to the domestic automotive industry, with certain automotive product projects being subject to corporate income tax incentive rates of 10% or 15% (assuming certain conditions are satisfied).  

 

Read a September 2017 report [PDF 590 KB] prepared by the KPMG member firm in Vietnam

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