• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/4/2013

Vietnam - Corporate income tax, VAT rates 

September 4: Decree No. 92/2013/ND-CP (28 June 2013) implements legislation amending and supplementing Vietnam’s corporate income tax and value added tax (VAT) laws.

The decree is effective 1 July 2013, and includes the following provisions:

  • Corporate income tax rate of 20% for enterprises with total revenue for the preceding year not exceeding VND 20 million
  • Corporate income tax rate of 10% on income from selling, leasing, and financial leasing of “social housing”
  • VAT rate of 5% on contracts for selling, leasing, and financial leasing of social housing
  • Clarification of VAT rate’s 50% deduction with respect to transactions involving commercial housing

Other developments

Guidance items from the tax authorities (official letters, etc.) address:

  • Corporate income tax incentives for businesses established in industrial zones when the business changes ownership, company name, and business line
  • Provisional payment of corporate income tax for construction and installation activities
  • Individual (personal) income tax guidance with respect to securities transfers
  • Declaration method for foreign contractors that are subject to Vietnam’s foreign contractor tax

Read an August 2013 report [PDF 565 KB] prepared by the KPMG member firm in Vietnam: Technical Update (August 2013)

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