More recently, Vietnam has introduced additional tax incentives to attract foreign investment. In 2020, the Vietnamese government issued Resolution No. 68/NQ-CP, which provides a reduction of corporate income tax for certain eligible enterprises. Under this resolution, small and medium-sized enterprises (SMEs) that satisfy the criteria of having total revenue not exceeding VND 200 billion (approximately […]
Introduction The standard CIT rate for enterprises in Vietnam, whether local or foreign, is 20 percent. However, various incentives and policies exist that can lower this rate for foreign investors and some local businesses. This guide provides a comprehensive overview of the framework and mechanisms for applying CIT in Vietnam, with a focus on small […]
Introduction Foreign Contractor Withholding Tax (FCWT) is an important consideration for small business owners operating in Vietnam. This summary provides an overview of FCWT regulations, relevant tax rates, payment options, and common FAQs. Overview of FCWT Foreign entities conducting business in Vietnam and making payments to Vietnamese individuals or organizations under a contract are subject […]
The Vietnamese Accounting Standards (VAS) serve as the guiding principles for recording expenses and revenues of companies operating in Vietnam. This comprehensive guide provides small business owners with essential information on VAS, its applicability, and industry-specific guidelines. Introduction to Vietnamese Accounting Standards (VAS) Understand the importance of VAS in maintaining accurate financial records and complying […]
Introduction to VAT in Vietnam Value-Added Tax (VAT) is a consumption tax applicable to goods and services in Vietnam. All individuals and organizations engaged in business activities involving VAT-eligible goods and services must pay VAT, regardless of their location in Vietnam. Calculation Methods for VAT VAT can be calculated using two methods: the credit method […]
Introduction: Navigating international taxation in Vietnam can be a complex task, particularly for small business owners. With ever-changing regulations and limited local information, ensuring seamless profit repatriation requires careful planning and up-to-date knowledge. In this comprehensive guide, we will explore the relevant regulatory bodies, restrictions on profit repatriation, foreign contractor withholding tax, transfer pricing regulations, […]
As a small business owner in Vietnam, understanding audit and compliance is crucial for maintaining financial health and meeting legal requirements. This comprehensive guide provides insights into the financial audit process and compliance obligations, helping you navigate the complexities of the Vietnamese business landscape. Understanding Financial Audit A financial audit is an objective examination and […]
Introduction: Setting up a business in Vietnam requires careful planning and understanding of the local business landscape. This comprehensive guide provides small business owners with valuable insights into the entity types, requirements, and processes involved in establishing a business in Vietnam. It also covers key considerations to ensure success and provides tips for those seeking […]
Types of Business in Vietnam: A Comprehensive Guide for Small Business Owners Introduction: When entering the Vietnamese market, small business owners have a range of options for choosing the type of business entity. This comprehensive guide explores the six main types of business entities available in Vietnam: Representative Office, Limited Liability Company, Joint-Stock Company, Branch […]
Setting up a company typically requires months and significant investment capital, often leading to costly mistakes due to a lack of understanding of the business, financial, consumer, or local culture landscapes. To avoid such risks, small business owners can consider a lesser-known market entry model called Global Staffing Solutions (GSS). GSS enables foreign investors to […]