Vietnam: Corporate tax incentives | KPMG Global
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Vietnam: Corporate tax incentives; foreign contractor tax on bank charges

Vietnam: Corporate tax incentives

Guidance from Vietnam’s tax authorities includes “official letters” providing:


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  • The corporate income tax incentive tax rate is not applicable for investment projects located in industrial parks.
  • A company generating income from agricultural and fishery processing is not entitled to multi-corporate income tax incentive schemes simultaneously.
  • A bonus granted to a group but then distributed to individuals is subject to individual (personal) income tax.
  • A “gross-up” of the assessable income in case an expatriate employee is remunerated on a net basis of individual income tax and health insurance.
  • The difference between capital assignment and securities transfer in a joint stock company for foreign contractor tax purposes.
  • Transfer charges that a foreign bank earns for money transfers leaving Vietnam to be received overseas are not subject to foreign contractor tax.
  • Income earned from the distribution of television channels and content of television channels in Vietnam is subject to value added tax (VAT).
  • Material imported for trading purposes but then used in the production of export goods is not subject to a material finalisation report.
  • A representative office not having business functions is not subject to a business license fee.

Concerning special consumption tax

A circular amending two previous circulars provides that when a taxpayer incurs special consumption tax at the import stage and cannot fully claim special consumption tax credit, the taxpayer is allowed to record the remaining special consumption tax as a deductible expense for corporate income tax calculation.


Read a March 2017 report prepared by the KPMG member firm in Vietnam

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