Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/21/2012

Vietnam - Changes to corporate income tax, VAT, other taxes 

December 21: Vietnam’s Ministry of Finance and tax administrations issued guidance concerning corporate income tax, value added tax (VAT), and individual income tax changes.

A summary of the guidance and amendments includes the following:

Corporate income tax

  • No interest deduction on loans used to acquire shares of other enterprises
  • New guidance on the application of 2011 corporate income tax incentives with respect to foreign exchange gains and interest income of small and medium-sized enterprises

VAT

  • Regulations on invoices for certain banking transaction fees
  • No invoices or VAT declarations for items used for a merchandising purpose
  • Businesses acquiring goods on a direct discount basis to account for revenues and the cost of sales in addition to declaring VAT

Foreign contractor tax (FCT)

  • FCT implications concerning sales of machinery and equipment bundled with warranty services
  • Determining late payment penalties based on value of each business activity

Individual (personal) income tax

  • Individual income tax declarations ofenterprises having foreign employees deriving both Vietnam source and overseas employment income

Labour and unemployment insurance

  • Changes to regulations on unemployment insurance entitlement
  • Simplification of the overtime work rules

Read a December 2012 report [PDF 430 KB] prepared by the KPMG member firm in Vietnam: Technical Update (December 2012)




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