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Vietnam Technical Update 2016/Issue 6

Vietnam Technical Update 2016/Issue 6

New update on CIT, PIT, Permanent Establishment for tax purposes, Export Duty and Import Duty on October 2016


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1) Corporate Income Tax (“CIT”)

  • A branch established in the 2007-2008 period is treated as an expansion investment project and eligible to enjoy tax reduction and tax exemption, and does not qualify for the incentive tax rate
  • Interest income arising from a short-term savings account in which charter capital is deposited shall be taxable for CIT calculation purposes
  • Circular 86/2016/TT-BTC provides guidance on the provision, utilisation and accounting record for the reserve fund to compensate for damage to the environment
  • Joint Circular No. 12/2016/TTLT-BKHCN-BTC providesguidance on the allocation and management of theScience and Technology Development Fund (“STDF”) inenterprises
  • Circular 147/2016/TT-BTC supplementing and amendingCircular 45/2013/TT-BTC on fixed asset depreciation

2) Personal Income Tax (“PIT”)

  • Increase the monthly mid-shift meal allowance to VND730,000 per person

3) Permanent Establishment for taxpurposes

  • A representative office of foreign organisations performing trade promotion activities is regarded as constituting a permanent establishment for a foreign organisation in Vietnam

4) Export Duty and Import Duty

  • The deadline to supplement the Certificate of Origin ("C/O")
  • Guidance on the implementation of the Law on Export Duty and Import Duty No. 107/2016/QH13 (“Law 107”) regarding cases of export and import duty exemption
  • Decrees guiding on export tariffs, preferential import tariffs and special preferential import tariffs

© 2020 KPMG Tax and Advisory Limited, a Vietnamese limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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