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Vietnam’s Foreign Contractor Tax – 3 Ways to Calculate FCT

Foreign contractors are subject to taxes on payments for work done in Vietnam based on the contracts signed with a Vietnamese partner in the form of the foreign contractor tax (FCT). FCT is not a separate tax, but typically comprises a combination of value added tax (VAT) and corporate income tax (CIT), or personal income tax (PIT) for the income of foreign individuals. […]

Personal Income Tax in Vietnam: Exemptions and Reductions

For foreigners working in Vietnam, determining the applicability of personal income tax (PIT) involves decoding a number of rules. Following this, foreign workers need to calculate their precise liability and any applicable deductions. Consulting with an in-country tax specialist can help individuals’ optimize their tax exposure, while employers’ may be able to identify more competitive salary packages with an advisor. Below […]

Vietnam’s Tax Administration Law Reform to Take Effect in July 2020

In June, Vietnam’s National Assembly approved a new Law on Tax Administration 38/2019/QH14. Under the new law, tax authorities have been granted additional enforcement powers. At the same time, the new law has made it a little bit easier for both individuals and entities to file taxes. The new law will take effect from July 2020. […]

Vietnam’s E-invoices: Guidelines for Decree 119

Circular 68 issued guidelines for Decree 119 and the use of electronic invoices (e-invoices). E-invoices are expected to save businesses time and money, contributing to greater efficiency for both enterprises and tax authorities. While Circular 68 takes effect on November 14, businesses have until October 31, 2020 to transition and comply with the new regulations. […]

Accounting and Bookkeeping in Vietnam: An Overview

Vietnam employs a unified set of accounting and bookkeeping standards known as Vietnamese Accounting Standards (VAS). Understanding regulations related to accounting and bookkeeping are important cost considerations for investors. Investors should prepare for the future as Vietnam looks to implement IFRS – the most common accounting language globally – by 2025. For companies choosing to […]

tax-alert-july-2019

Tax Alert Jul 2019 has been updated many new regulations, details are as follows: ·         Official Letter No.2355/TCT-DNNCN dated 10 June 2019 of the General Department of Taxation on the obligation to deduct PIT of the Company when paying in case hiring business individuals as employees; ·         Official Letter No.47391/CT-TTHT dated 19 June 2019 of Hanoi City Tax […]

tax-alert-june-2019

Tax Alert Jun 2019 has been updated many new regulations Details are as follows: ·         Increasing based salary to VND 1,490,000/month from 01 July, 2019; ·         Official Letter No.2425/TCT-CS dated 14 June, 2019 of the General Department of Taxation guiding the sale of security assets for loan; ·         Official Letter No.21839/CT-TTHT dated 18 April, 2019 of Hanoi City Tax Department […]

tax-alert-may-2019

Tax Alert May 2019 has been updated many new regulations. Details are as follows: ·         Official Letter No.1763/TCT-KK (“OL 1763”) dated 4th May, 2019 of the General Department of Taxation about dossiers of invalidation of tax code ·         Official Letter No.1385/TCT-CS (“OL 1385”) dated 16th April, 2019 of the General Department of Taxation guiding VAT policy ·         Official Letter No.1381/TCT-DNL (“OL 1381”) […]

Tax-alert-April-2019

CUSTOMS Decision No.18/2019/QĐ-TTg (“Decision 18”) dated 19thApril, 2019 of The Prime Minister regulating the import of used machinery, equipment and technological lines Official Letter No. 2190/TCHQ-TXNK (“OL 2190”) dated 16th April, 2019 of the General Department of Customs resolving problems in the management of customs valuation VALUE ADDED TAX Circular No. 18/2019/TT-BTC (“Circular 18”) dated […]