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Vietnam: Summaries of corporate, individual income tax, VAT, foreign contractor tax

Vietnam: Summaries of official guidance

“Official letters” from the tax administration provide guidance with regard to issues concerning corporate income tax, value added tax (VAT), foreign contractor tax, customs duties, and individual income tax.


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  • An official letter (No. 1315/TCT-DNL) considered the term “net profit from business operations” in a situation when a company invests into a subsidiary and generates dividend income, for purposes of determining the capped amount of a deductible interest expense.

  • An official letter (No. 1485/TCT-DNL) addressed the VAT treatment of software, office machinery and equipment, and assets not directly related to credit activities when two banks enter into an agreement to transfer the assets and liabilities of one bank to the other.

  • An official letter (No. 1638/TCT-PC) concluded a foreign contractor was liable for an administrative penalty when the project management office in Vietnam had been dissolved.

  • An official letter (No. 1909/TCHQ-TXNK) from the customs department concerned the rules for applying preferential import duty rate for on-the-spot export transactions.

  • An official letter (No. 1285/TCT-DNNCN) concerned the individual (personal) income taxation of individuals working in economic zones and provided that the income received by individuals for the period 1 January 2018 through 9 July 2018 was subject to a 50% reduction.

  • An official letter (No. 14/TCT-DNNCN) concluded salary paid by a foreign entity to a worker in Vietnam (including salary paid for overtime work) was allowed to benefit from an exemption from individual income tax—similar to the treatment if the worker had received the income from within Vietnam.

Read a June 2019 report [PDF 150 KB] prepared by the KPMG member firm in Vietnam

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