• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/18/2014

Vietnam - Fixed assets; VAT for newly established entities 

April 18:  Vietnam’s General Department of Taxation issued guidance addressing the allocation of residual value of certain depreciable fixed assets to business expenses.

Other guidance concerning fixed assets concerns leased or “borrowed houses,” and provides that improvements to such assets may not be creditable for value added tax (VAT) purposes, and that such improvement-related expenses may not be allowed for corporate income tax purposes.

Read an April 2014 report [PDF 376 KB] prepared by the KPMG member firm in Vietnam.

The KPMG report also includes brief discussions about:

  • Guidance for notice to apply VAT calculation methods for enterprises that are newly established as from 1 January 2014
  • VAT refunds for an investment project in a city or province that is not the location of the headquarters
  • Individual (personal) income tax implications of tax exemptions under an applicable income tax treaty

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