Other Briefings
Vietnam to Allow Delayed Tax Payments for 2010
HANOI, Feb. 23 – The government has announced it would allow delayed corporate income tax payments for the rest of the year as part of its efforts to support the economy. The decision will cover small and medium-sized enterprises (SMEs), companies in production and textile industries as well as footwear outsourcing firms. Qualifying SMEs must […]
Circular Adjusts Regulations on Forex Interest Rates
Feb. 20 – The State Bank of Vietnam has issued a circular setting the maximum interest rate applicable to U.S. dollar deposits of economic entities with credit institutions and adjusting the average inter-bank exchange rate. Circular No. 03/2010/TT-NHNN in particular states: From February 11, 2010, the maximum interest rate applicable to U.S. dollar deposits of […]
Interest Income not Included in Corporate Tax Incentives Period
Feb. 5 – The Ministry of Finance has sent Letter 118/BTC-TCT informing provincial tax authorities on how to treat interest income earned for companies in their pre-operating phase. Interest income earned for a company in construction or pre-operating phase shall not be included under corporate income tax (CIT) incentives. The company must pay CIT on […]
VAT Exemption for Exports Available for Local Companies
Jan. 29 – Vietnam’s Finance Ministry has announced that local companies will be given value added tax exemptions for goods sold overseas. The new circular does not exempt local companies from export and import tariffs, corporate income taxes and double taxation avoidance agreements with other countries. Local companies reported revenue losses or profits abroad although […]
Foreign Firms Allowed to Pick Accounting Currency Unit
Jan. 26 – Vietnam’s Ministry of Finance is now allowing foreign firms in the country to choose the currency unit they want to use for accounting purposes. Previously, accounting records were required to be maintained in Vietnamese dong. Foreign companies wanting to use another currency for their financial records needed to submit an application form […]
Vietnam to Impose New Luxury Tax on Alcohol
Jan. 25 – Vietnam will impose a new special consumption tax of 45 percent on beer and other alcoholic drinks until 2012. The General Department of Taxation announced that beer and spirits higher than 40 proof will slapped a 45 percent tax and 50 percent afterward. Alcohol with less than 40 proof will be meted […]
Vietnam Considers Levy on Houses
Jan. 22 – Vietnam’s Ministry of Finance has proposed three options for levying tax on houses. The first option will base taxes on the area of the house with a threshold of 200 square meters and above including the balcony. The second option will determine the tax based on the value of the house; levying […]
Updates on Personal Income Tax Out
Jan. 18 – The Ministry of Finance has released a circular providing more instructions on the implementation of the new personal income tax (PIT). Following the circular, employers or withholding organizations will be allowed to conduct PIT finalization for its employees through a single PIT return that enumerates all income paid to its employees as […]
Corporate Income Tax Returns Due by March
HANOI, Jan. 18 – Corporate income tax (CIT) and transfer pricing (TP) returns in Vietnam are due for submission by March 31. The new regulations introduced in 2009 has changed the way CIT is followed thus companies need to be extra careful to ensure that they are in compliance and possess documents needed to account […]
Tax Agencies to Adjust Car, Bike Prices
Jan. 11 – Local tax agencies will now be allowed to adjust retail prices of cars and motorbikes should they be deemed lower than actual value following a newly drafted decree. Manufacturers and distributors of vehicles will be fined should they be be caught under-invoicing to evade taxes. Tax agencies will base prices on information […]
