WTS in Vietnam

The regular VAT rate of 10% is reduced to 8% from 1 February 2022 until the end of 2022.

Goods with labels complying with the old regulations that have been manufactured, imported, or circulated in Vietnam before 15 February 2022 can be distributed until the expiry date indicated on the label.

According to Article 2 (1) (b) Law on Corporate Income Tax (CIT) a foreign enterprise (FE) is subject to CIT in Vietnam “with or without a permanent establishment in Vietnam.”

Conditions and criteria under which production and processing for export under duty exemption are possible.

The Vietnamese tax authorities are paying special attention to TP compliance, especially to identifying deficiencies in ascertaining related party transactions.

The EU and Vietnam Free Trade Agreement (“EVFTA”) has been in force since 1 August 2020. The EVFTA is broadly recognised as a “new generation” FTA, as it covers a very wide scope of commitments and high level of commitment of Vietnam.

In Vietnam, the fiscal authorities have changed the process of APA conclusion in order to implement this instrument practically. The article outlines the key aspects of this development. 

Tax executives lead the way to resilience and recovery.

The Vietnamese Government recently issued 2 decrees on TP: Decree 132/2020/ND-CP (Decree 132) dated 5 November 2020 which replaces Decree 20 and is valid for the fiscal year 2020 and Decree No. 126/2020/ND-CP (Decree 126) dated 19 October 2020.

Vietnam is implementing enforced tax collection measures by making payment service providers liable for tax debts of overseas businesses.

The case: German company A employs person B with residence in Vietnam for working on projects of A in Germany and other countries. A is not registered in Vietnam. A and B intended that B will be working for A in Germany, but this plan cannot be implemented due to COVID-19 restrictions. After these restrictions are lifted, B remains in Vietnam. B does not have an independent business in Vietnam, he is employee.

The new Law on Tax Administration (“LTA”), effective from 1 July 2020, strengthens the tax enforcement in Vietnam.

An overview on the importance of advance pricing agreements.

The Vietnamese Tax Authorities (TA) are being instructed to increase tax revenue by enforcing
greater compliance on the part of taxpayers.

Vietnam establishes the Foreign Contractor Withholding Tax, which is a system for calculating and paying VAT and CIT

Brochure with overview on legal, administrative and taxation framework for foreign construction work in Vietnam