Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Mergers & Acquisitions, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/24/2013

Vietnam - Corporate tax, VAT incentives for investment projects 

January 24:   Guidance from Vietnam’s tax authorities addresses tax incentives concerning certain investment projects.

Corporate income tax incentives

Concerning corporate income tax incentives, if a company had been established in 2006 and its investment project was approved by official letter also in 2006, but the company did not obtain its investment certificate until 2009, the project would be considered to be an investment expansion and as such would not be entitled to the corporate income tax incentives available for certain newly established enterprises.


Also, if an investment project was in the “pre-operating stage” and, before becoming operational, was cancelled due to changes in the investor’s business plan, expenses incurred during the pre-operating stage would not be deductable.

VAT incentives

Similarly, if an investment project was in the “pre-operating stage” and, before becoming operational, was cancelled due to changes in the investor’s business plan and there was no output value added tax (VAT) from the project, input VAT with respect to expenses incurred for the project are not refundable.


Read a January 2013 report [PDF 405 KB] prepared by the KPMG member firm in Vietnam: Technical Update (January 2013)


Other discussions in the report concern:


  • VAT rate for export services
  • Foreign contractor tax declaration / remittance with respect to advance payments
  • Situation when an extension of the foreign contractor payment is allowed
  • Registration fee in instances of a merger or acquisition



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