Other Briefings
Memo Further Explains 2009 Corporate Income Tax Finalization
Jun. 24 – An official letter released by the Ministry of Finance on June 7 provided additional guidelines on the 2009 Corporate Income Tax finalization process. Letter 7250/BTC-TCT states that tuition fees for children of expatriates up to the high school level will be considered tax deductible as long as it meets administrative requirements. It […]
Authorities Clarify Treatment of Interest Income and Expense
Jun. 23 – Authorities have released a letter clarifying the tax treatment of interest income and expense. Letter 1713/TCT-CS provides that net interest income and net foreign exchange gains should be considered as other income. Under corporate income tax regulations, other income is meted a 25 percent tax applicable for the 2009 tax finalization.
Deadline for 2009 Personal Income Tax Extended
Jun. 18 – Authorities have extended the deadline for 2009 personal income tax (PIT) finalization from May 31 to July 31, 2010. Official Letter 7209/BTC-TCT is the second deadline extension announced for the year. Personal income tax in Vietnam is computed on the average monthly taxable income (divided by 6) and monthly tax rates.
Vietnam Cuts Bureaucracy, Reduces 256 Administrative Procedures
Jun. 9 – In an effort to increase transparency and modernize the economy, the Vietnamese government announced plans to reduce 256 administrative procedures on Monday. The reform is the keystone of Project 30, a sweeping four-year overhaul of government administration that aims to simplify Vietnam’s 24 ministries and 63 provinces. Included in the reform are […]
New Environmental Tax Law Submitted to Vietnam’s National Assembly
Jun. 2 – Deputies of Vietnam’s National Assembly debated and discussed the new Law on Environmental Protection Tax on Monday as the government tries to find a way to mitigate the negative environmental externalities the country is experiencing as a result of its rapid economic development and modernization. The new environmental legislation is an attempt […]
Vietnam’s Central Bank to Keep Interest Rate at 8%
HANOI, Jun. 1 – Vietnam’s central bank announced on Monday that it will leave its benchmark interest rate unchanged next month, keeping the measure at the same level held since early December. The base rate will stay at 8 percent in June, the State Bank of Vietnam said in a statement on its web site […]
Vietnam Increases Tax on Bonds and Certificates of Deposits Held by Foreign Investors
May 17 – Starting June 7, authorities are increasing the tax applicable for foreign investors doing business or earning income in Vietnam on interest earned from bonds – not including government bonds and certificates of deposit to 10 percent. Currently, interest from bonds held by foreign investors are charged a lower effective tax rate of […]
Withholding Tax Payments for Foreign Contractors
HANOI, May 12 – Foreign contractors are subject to withholding tax on payments for work done in the country based on contracts signed between them and Vietnamese partners. The foreign contractor withholding tax (FCWT) will be applicable for payments received from Vietnam for services in the country not including the pure supply of goods, services […]
Gas Import Tax Rate Reduced
May 7 – Government authorities have reduced import tax rates for certain commodity items, including gas, according to Circular No. 59/2010/TT-BTC issued last month. The import tax for gas has been reduced from 20 percent to 17 percent. The move is part of government efforts to contain rising gasoline prices and help affected gas companies. […]
Companies Allowed to Offset 2009 PIT Overpayments
May 4 – The Ministry of Finance clarified in an official letter released last month that employers or withholding organizations will be allowed to balance PIT overpayments against underpayments among its employees. According to Official Letter 4238/BTC-TCT, in cases where the employees have made an overpayment, the employer will need to refund the overpayment back […]
