Vietnam: Corporate and individual income tax guidance - KPMG Global
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Vietnam: Corporate and individual income tax guidance, VAT and customs

Vietnam: Corporate and individual income tax guidance

Tax-related developments in Vietnam reflect the following guidance from decisions and official letters.


Related content

  • Guidance from the Ministry of Finance addresses the permitted ratio of commission payable for the insurance to construction investment activities that is capped at 5% of the actual insurance premiums. The allowable ratio of insurance commission for other activities remains unchanged.
  • The list of high technology items that are assigned priority for tax incentives has been expanded to include the “internet of things” technology, virtual reality technology, and “smart television.”
  • An individual that earned income from both employment sources and a business source is not required to file an individual (personal) income tax finalisation for the business income.
  • Income paid to an individual under a contract breach compensation clause is not subject to individual (personal) income tax.
  • A project operation office of a foreign contractor that registered to declare value added tax (VAT) according to a “hybrid method” is allowed to apply VAT at a rate of 0% for its service provision.
  • There is no VAT refund available for goods imported and preliminarily processed by one company before the goods are sold to a second company for export.
  • When a company purchases goods and services under a deferred payment term, and the seller has issued an output VAT invoice and declared VAT for such output VT, but the buyer has not settled the payment as of the due date of the payment term, the buyer is still allowed to claim the input VAT credit for this invoice.
  • An updated list of import goods subject to customs clearance at the import bordergate is effective 1 July 2017.


Read a June 2017 report [PDF 196 KB] prepared by the KPMG member firm in Vietnam

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