Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/4/2012

Vietnam - Corporate income tax, VAT, and individual tax changes 

December 4:   Vietnam’s Ministry of Finance and tax administrations issued guidance concerning corporate income tax, value added tax (VAT), and individual income tax changes.

A list of the guidance and amendments includes the following:

Corporate income tax

  • New guidance on tax treatment of job-loss allowance expenses
  • Rules for crediting income tax paid overseas against the taxpayer’s Vietnamese income tax liability
  • No deduction for “doubtful debts” of amounts voluntarily allowed / granted to customers (i.e., at the taxpayer’s own initiative)

VAT

  • Non-refundable of input VAT for newly established enterprises that are dissolved before beginning operations
  • Regulations on “lost and found” invoices, including rules to report any missing invoices to the tax authorities within five business days from the day of loss
  • Regulations on the issuance of invoices to non-tariff areas

Foreign contractor tax (FCT)

  • Implications of FCT on amounts of interest paid with respect to foreign loans
  • Implications of FCT on reinsurance activities
  • Tightening the tax administration of the FCT

Individual (personal) income tax

  • Application of Vietnam’s individual income tax to individuals not present in Vietnam
  • Deductibility of brokerage fees in capital assignment activities

Read a November 2012 report [PDF 394 KB] prepared by the KPMG member firm in Vietnam: Technical Update (November 2012)




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