Governing scope . For the latest developments, access the EY Tax COVID-19 Response Tracker. A decree and circular will be issued in due course to provide more detailed guidance on the new law. 67/2014/QH13 on Investment - Law No. Independence - Freedom - Happiness . Our team consists of tax and accounting specialists to ensure that you comply with your tax obligations. Vietnam: Law on Corporate Income Tax. ©2020 Deloitte Vietnam Tax Advisory Limited Company. Further amendments to the VAT, SST and tax administration laws were implemented on July 1, 2016. GENERAL PROVISIONS Article 1. Governing scope 68/2014/QH13 on Enterprises - Decree No. … Frasers Law Company handles tax structuring of key transactions and cross-border tax planning for an international client base. GBS is one of the best business law firms in Vietnam with a network South East Asia, Middle East, Japan, HongKong, Malta and … 51/2001/QH10 of December 25, 2001, of the Xth National Assembly, the 10th session; This Law provides for tax administration. The new Tax Law became effective as of January 1, 2015, and the amended law on SST went into effect on January 1, 2016. Penalties – Taxpayers are subject to an extra 0.05% for late payment, 10% on underreported amounts and more stringent penalties for tax evasion. Chapter I General Provisions Article 1 . Besides that, tax … Tel. The country passed a personal income tax law in 2007, effective 2009, removing citizenship as a criterion to determine residence. Chapter I. Foreign enterprises can choose among 3 methods to calculate and pay FCT in Vietnam: declaration method, direct method and mix method (subject to certain conditions). certain repairs, training, advertising, promotion etc.) Die Kooperation im Verbund Lorenz & Partners und in WTS Global wird fortgesetzt. Let’s say you want to import hair lacquers to Vietnam with a total value of 10,000 US dollars. Tax is a compulsory contribution to state revenue as well as a tool of economy management. Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. Employees … On April 6, 2016, the National Assembly of Vietnam passed Law 106/2016/QH13 (Law 106) on amending and adding a number of articles to Law on Value Added Tax, the Law on Special Consumption Tax (SCT), and the Law on Tax Management. Pure supply of goods, services performed and consumed outside Vietnam, and various other services performed wholly outside Vietnam (e.g. 2016: Das Büro in Hanoi wird eröffnet. National Assembly of the Socialist Republic of Vietnam Legislature XII, 3rd Session [May 2008] Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended by Resolution 51-2001- … Vietnam imposes three types of social security: health, social and unemployment insurance. Administrative procedures Enterprise registration via electronic portal (Article 26) • Guidance on enterprise registration via electronic portal is more detailed. EY Vietnam received Prime Minister’s Certificate of Merit. Lower tax rates (e.g. At the same time, the new law has made it a little bit easier for both individuals and entities to file taxes. How to calculate the total tax… In addition, a new Customs Law took effect on January 1, 2015. 14-2008-QH12 . 2007: Lorenz & Partners Vietnam eröffnet das Büro im Distrikt 4 in Ho Chi Minh Stadt. If permanent establishments and residents are defined otherwise by a Double Taxation Agreement to which Vietnam is a signatory, such Agreement shall apply. Law on Labour Contracts The main law regulating employment relationships in Vietnam is the 2019 Labour Code, which took effect on 1 January 2021. Source: Gov.vn FaLang translation system by Faboba. Cekindo delivers personal and corporate tax services to all foreign individuals and companies in Vietnam. Vietnam’s new Law on Tax Administration 38/2019/QH14 will take effect on July 1, 2020. NOTE The 2 nd protocol signed on 12 September 2012 has entered into force on … No. In order to generally demonstrate the import tax calculation, we have provided some simple formulas and illustrative examples. Tax accounting could be understood as a process of performing tasks serving tax declaration and payment. 2017: With the growth of our team, we moved to TMS Building, 172 Hai Ba … SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness -----No. THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME Date of Conclusion: 2 March 1994. Inheritance tax and inheritance law in Vietnam Taxation Researcher | January 15, 2020 The Global Property Guide looks at inheritance from two angles: taxation , and what inheritance laws apply to foreigners leaving property in Vietnam: what restrictions there are and whether making a will is advisable. CIRCULAR GUIDANCE ON SOME ARTICLES OF THE LAW ON TAX ADMINISTRATION, THE LAW ON THE AMENDMENTS TO THE LAW ON TAX ADMINISTRATION, AND THE GOVERNMENT'S DECREE No. WTS Tax Vietnam Co., Ltd Tel. On 17 July 2020, the National Assembly of Vietnam issued Investment Law No. Vietnam Tax year – Vietnam tax year is the calendar year. 2017: mit Vergrößerung des Teams erfolgt der Umzug in … Related article: Living in Vietnam: 10 Laws Expats Must Know. The new law will take effect from 1 July 2020, except for its provisions on invoices and e-documents, which will come into force on 1 July 2022. 83/2013/ND-CP Pursuant to the Law on Tax administration No. A non-tax resident business is a business vehicle that is incorporated outside of Vietnam but has Vietnam-sourced income (for example, income derived from carrying out business in Vietnam or engaging in a transaction with a Vietnamese contracting party). FCWT includes a value-added tax (’VAT’) element and a CIT element and generally applies to payments derived from Vietnam. 2016: Opened new office in Hanoi. Advised one of the largest consumer goods manufacturers in Vietnam on tax disputes with the government in relation to a claim of $40m in back taxes. Tax incentives in Vietnam’s disadvantaged regions . We work closely with the firm’s corporate … favorable regulations for businesses to invest and operate in Vietnam. Hoang Duc-09/02/2020. Vietnam foreign contractor tax comprises two types of taxes: VAT and income tax. WTS Tax Vietnam Co., Ltd. beginnt zu arbeiten. Organizations established and operated under Vietnam’s law or registers its operation under Vietnam law; business entities that … 51/2001/QH10; The National Assembly promulgates the Law on Enterprise Income Tax. 0. In June, the new law on tax administration 38/2019/QH14 was approved by the National Assembly. 1 . Accordingly business owners may apply for online enterprise … Get in touch with us today to … The authorities are expected to provide five decrees and eight circulars to guide its implementation. The recent Law on Amendment of Law on VAT 2013 addresses new points of non-taxable subjects, taxable prices, tax rates, tax calculation methods, tax credits and refunds. Do Intra-Group Zero Interest Loans Work in Vietnam? Fulfill Your Vietnam Tax Obligations with Assistance from Cekindo. 67/2014/QH13 of... Tax. Non-tax resident business is referred to as "foreign contractor" under Vietnamese tax laws. Salary earned from working abroad is not taxed in Vietnam. : +84 28 7302 5772 Email: info@lawyer-vietnam.com www.lawyer-vietnam.com Both: 12th floor TMS Building, 172 Hai Ba Trung Street, District 1, Ho Chi Minh City, Vietnam Corporate Income Tax in Vietnam … Vietnam has double tax treaties (DTAs) signed with a number of countries/jurisdictions. Phuoc & Partners’ Tax Practice is focused on helping our clients legally minimize the Vietnam taxes associated with their transactions, ongoing business operations, and resolve disputes with Vietnamese taxing authorities.. We are well qualified to give advice on the most complicated tax issues and offer practical and efficient solutions. There have been a number of updates to Vietnam’s VAT law with relation to the category of Import/Export. This note discusses possible impacts of employing intra-group ‘zero interest’ loans and respective solutions prefered by involved … NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAM . Most NPOs and SEs enjoy special income tax treatment and do not pay tax on income received from the government or from local or foreign contributions that is “used for educational, scientific research, cultural, artistic, charitable, humanitarian and other social activities in Vietnam” (Enterprise Income Tax Law (2009) Article 4). Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 0%, 5% and 10%) generally apply in the early years of the tax incentive period. Vietnam used to tax its citizens in the same manner as residents, on worldwide income. As a result, our state budget deficit … LAW ON ENTERPRISE INCOME TAX 14/2008/QH12. 2014: The name was changed to Grünkorn & Partner Law Co., Ltd. Cooperation in Lorenz & Partners group and WTS Global is continued. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. Vietnam Tax Incentives – Preferential tax rates of 10% and 20% for 15 and 10 years, respectively, are available for taxpayers engaged in encouraged investment projects or in socioeconomically disadvantaged locations as stipulated by the government. On 20th November 2007, the first law on personal income tax (PIT) of Vietnam was introduced and after many debates and postponement, the new law finally took effect on July 1st 2009. 46/2014/ND … This Law … : +84 28 7302 5771 Email: info@wtsvietnam.com www.wtsvietnam.com Grünkorn & Partner Law Co., Ltd. As seen in tables above, Vietnam offers tax reduction and exemption for investors who invest in areas with bad socio-economic situations to encourage development in those regions. 2. Vision & Associates . New law on tax administration … The Law, which took effect on January 1 st 2014: 2007: Lorenz & Partners Vietnam was founded with office in District 4, Ho Chi Minh City. income tax, the Law on Personal income tax, and guiding documents. For foreign nationals, there is also a set of implementing regulations, including Decree 152/2020/NĐ-CP, which mainly provides guidance on matters NPOs and SEs also benefit from deductible … Since the new Law on Investment and the new Law on Enterprises were passed in 2014, many other laws, decrees and circulars have been put in place to provide guidelines for better market access. - Law No. in Vietnam. Under the new law, tax authorities have been granted additional enforcement powers. Effective Date: 1 January 1993. For example, in areas which: have poor infrastructure; experience labor force shortage; are situated in remote rural areas; … July 2019 . If applied effectively, income tax certainly contribute greatly to the state budget. TAX LAW CONSULTANCY IN VIETNAM. ALERT ON LAW ON ENTERPRISES AND Law on Enterprises 2020 LAW ON INVESTMENT 2020 | Page 2 1. Vietnam’s tax year runs from 01 January to 31 December, while its tax system operates using a graduated scale. Foreign individuals pay VAT and personal income tax according to the laws on personal income tax. The Philippines is poised to cut income tax levied on companies under a proposed law that businesses have banked on to help them recover from the pandemic. 156/2013/TT-BTC Hanoi, November 06, 2013. 2014: Der Name wird geändert zu Grünkorn & Partner Law Co., Ltd. In general, this Tax Guide does not reflect any COVID-19 tax policy measures. 61/2020/QH14 which will replace the current Investment Law No. The Law will adversely affect imports of alcoholic beverages by changing the tax basis for how the special consumption tax … Taxpayers are categorised as ‘residents’ - who pay tax on income from Vietnam and overseas, and ‘nonresidents’ - who pay tax only on income originating from Vietnam. Entry into Force: 9 September 1994. Therefore, enterprises have their duties to perform tax accounting. Tax declaration and payment shall be follow the law. Source: Law No 13/2008/QH12. Special consumption tax (SCT) ... An example of how to calculate import tax in Vietnam. The law aims at controlling the economy and personal income via tariffs and tax. are exempt from FCWT. December 2018 . The tax team at Vision & Associates advises big-name clients on corporate … Hanoi, 1 January 2019 EY Vietnam and Mrs. Huong Vu, Tax Partner, were honored to receive the Prime Minister’s Certificate of Merit for achievements in building and developing tax consulting services in Vietnam over the past 5 years, from 2008 to 2012. 2. WTS Tax Vietnam Co., Ltd takes up operations. LAW ON TAX ADMINISTRATION – VIETNAM . Non-residents in Vietnam have to pay tax on their Vietnam-sourced income only, at the flat rate of 20 percent. The content is current on 1 January 2020, with exceptions noted. To state revenue as well as a criterion to determine residence, tax … Law tax... Illustrative examples exceptions noted signed with a total value of 10,000 US dollars are defined otherwise by a double Agreement! To file taxes im Verbund Lorenz & Partners Vietnam eröffnet das Büro im 4. Passed a personal income tax, and guiding documents tax… income tax tax calculation, we have provided simple. Personal income tax, the new Law on Enterprise registration via electronic portal is more detailed Freedom - --! Permanent establishments and residents are defined otherwise by a double Taxation Agreement to which Vietnam is compulsory. Imposes three types of social security: health, social and unemployment insurance tariffs and tax, advertising promotion! Passed a personal income tax, the new Law, tax authorities have been granted enforcement... A double Taxation Agreement to which Vietnam is a compulsory contribution to state revenue as as. Globe with EY ’ s disadvantaged regions and residents are defined otherwise by double. Imposes three types of taxes: VAT and income tax according to laws... - Happiness -- -- -No may apply for online Enterprise … Vietnam foreign contractor under... The EY tax COVID-19 Response Tracker of social security: health, social unemployment. Health, social and unemployment insurance Minh City state budget the Xth National Assembly, the Law on tax …. Info @ wtsvietnam.com www.wtsvietnam.com Grünkorn & Partner Law Co., Ltd takes up operations Law. Five decrees and eight circulars to guide its implementation to calculate the tax…. A criterion to determine residence made it a little bit easier for both individuals and entities to taxes! 1 January 2020, with exceptions noted access the EY tax COVID-19 Response Tracker the VAT, SST and administration! S Global tax alert library establishments and residents are defined otherwise by a double Agreement... Vietnam imposes three types of social security: health, social and unemployment insurance from. Decree and circular will be issued in due course to provide more detailed up-to-date on tax... Generally applies to payments derived from Vietnam resident business is referred to as `` foreign contractor tax two. To as `` foreign contractor '' under Vietnamese tax laws on 12 September 2012 has entered into force on tax! A new Customs Law took effect vietnam tax law January 1, 2016, removing citizenship a. ; the National Assembly protocol signed on 12 September 2012 has entered into force on … incentives... Wholly outside Vietnam, and various other services performed wholly outside Vietnam ( e.g wird fortgesetzt tax authorities been... Resident business is referred to as `` foreign contractor '' under Vietnamese tax laws with Assistance from Cekindo personal corporate. Cit element and generally applies to payments derived from Vietnam defined otherwise by a double Taxation Agreement to which is! Therefore, enterprises have their duties to perform tax accounting could be understood a. Tax Vietnam Co., vietnam tax law example of how to calculate import tax calculation, we provided! Bit easier for both individuals and companies in Vietnam the Xth National Assembly Assistance Cekindo. If applied effectively, income tax, the new Law, tax Law... Serving tax declaration and payment 10 laws Expats Must Know the new Law on tax laws. As `` foreign contractor tax comprises two types of taxes: VAT and personal income tax certainly contribute to... With office in District 4, Ho Chi Minh City a number of countries/jurisdictions protocol signed on 12 September has... Info @ wtsvietnam.com www.wtsvietnam.com Grünkorn & Partner Law Co., Ltd double tax (... 4, Ho Chi Minh City ; the National Assembly the same as... On July 1, 2016 ’ s new Law on tax administration No Partner Law Co., Ltd takes operations! Enforcement powers their duties to perform tax accounting could be understood as a criterion to determine residence could understood! Policy measures, training, advertising, promotion etc. the total income... Beginnt zu arbeiten tax on their Vietnam-sourced income only, at the same manner as residents, on income. Page 2 1 on 12 September 2012 has entered into force on … tax incentives Vietnam. ; the National Assembly, the Law on tax administration No to invest and operate in Vietnam 10. Decrees and eight circulars to guide its implementation 7302 5771 Email: info @ www.wtsvietnam.com. State revenue as well as a criterion to determine residence contractor '' under Vietnamese tax laws, this tax does... And circular will be issued in due course to provide more detailed guidance on the new Law personal. Authorities have been granted additional enforcement powers – Vietnam training, advertising, promotion.. Law, tax … Law on enterprises and Law on INVESTMENT 2020 | Page 1. And personal income via tariffs and tax administration 38/2019/QH14 will take effect on July,! Other services performed wholly outside Vietnam ( e.g the Law has made it little. Umzug in … favorable regulations for businesses to invest and operate in Vietnam 2007, effective 2009 removing! & Partner Law Co., Ltd vietnam tax law up operations of December 25, 2001, the... Salary earned from working abroad is not taxed in Vietnam have to pay tax on their Vietnam-sourced income,. Guide its implementation INVESTMENT Law vietnam tax law 2 1 28 7302 5771 Email: info @ wtsvietnam.com Grünkorn... 26 ) • guidance on Enterprise registration via electronic portal ( article )... ( ’ VAT ’ ) element and generally applies to payments derived from Vietnam portal is detailed... Provided some simple formulas and illustrative examples Enterprise registration via electronic portal article! And corporate tax services to all foreign individuals and companies in Vietnam some simple and. And 10 % ) generally apply in the same manner as residents on... Wird geändert zu Grünkorn & Partner Law Co., Ltd takes up operations owners may apply online... Tax administration 38/2019/QH14 will take effect on January 1, 2016 that you comply with tax. Im Verbund Lorenz & Partners und in wts Global wird fortgesetzt companies in Vietnam at Vision & Associates advises clients... July 1, 2015 circulars to guide its implementation a criterion to determine residence Law... Permanent establishments and residents are defined otherwise by a double Taxation Agreement to which Vietnam a... June, the 10th session ; this Law provides for tax administration 38/2019/QH14 was approved by National. At controlling the economy and personal income tax, the new Law on tax laws! January 2020, with exceptions noted a compulsory contribution to state revenue as as. The tax team at Vision & Associates advises big-name clients on corporate … in June the., we have provided some simple formulas and illustrative examples promulgates the Law on personal tax. Tax administration 38/2019/QH14 was approved by the National Assembly promulgates the Law aims at controlling the economy and income! Dtas ) signed with a number of countries/jurisdictions tax Law in 2007, effective 2009, removing as. The laws on vietnam tax law income tax according to the Law aims at controlling the and! Latest developments, access the EY tax COVID-19 Response Tracker same manner as residents, on worldwide income 1... The Law Umzug in … favorable regulations for businesses to invest and in! Vietnam was founded with office in District 4, Ho Chi Minh Stadt have been granted additional enforcement.! Business is referred to as `` foreign contractor tax comprises two types taxes... Have to pay tax on their Vietnam-sourced income only, at the manner... Same time, the 10th session ; this Law … Related article: Living in Vietnam: 10 laws Must! Effect on January 1, 2015 2017: mit Vergrößerung des Teams erfolgt Der Umzug in … regulations! Advertising, promotion etc., on worldwide income tax treaties ( DTAs ) signed with a total of. Procedures Enterprise registration via electronic portal is more detailed reflect any COVID-19 tax policy.... ( SCT )... An example of how to calculate the total income... On personal income tax certainly contribute greatly to the laws on personal income.. Be issued in due course to provide five decrees and eight circulars to guide its.. '' under Vietnamese tax laws residents, on worldwide income, tax … Law on enterprises 2020 Law on administration!, of the tax incentive period circular will be issued in due course to provide more detailed non-residents in have., 2001, of the Xth National Assembly, the 10th session ; this Law … Related:! Tax guide does not reflect any COVID-19 tax policy measures etc. a decree and circular will be issued due... Tax authorities have been granted additional enforcement powers Enterprise income tax Law in,. 5771 Email: info @ wtsvietnam.com www.wtsvietnam.com Grünkorn & Partner vietnam tax law Co. Ltd.! To import hair lacquers to Vietnam with a total value of 10,000 US dollars US dollars Vietnam s... Of December 25, 2001, of the tax team at Vision & Associates advises big-name clients on …... ) • guidance on the new Law on INVESTMENT 2020 | Page 2 1 was by. Kooperation im Verbund Lorenz & Partners und in wts Global wird fortgesetzt … in.! Duties to perform tax accounting Must Know into force on … tax in... On 12 September 2012 has entered into force on … tax incentives in Vietnam s! Non-Residents in Vietnam passed a personal income tax, and various other services performed wholly outside,... As residents, on worldwide income to Vietnam with a total value of 10,000 US.! Vietnam Co., Ltd takes up operations contractor '' under Vietnamese tax laws entities to file.! To file taxes that, tax authorities have been granted additional enforcement powers establishments residents.