Category Archives: Tax & Accounting

Taxation and Accounting

taxation

Introduction to Tax and Accounting in Vietnam Tax and accounting compliance in Vietnam are crucial for small business owners. Not only does the country boast a well-structured and clear tax policy, but it also offers a favorable environment for business operations compared to other emerging markets. In this section, we will provide an overview of […]

Vietnam Personal Income Tax

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Vietnam’s Law on Personal Income Tax recognizes ten income categories, each with specific deductions, tax rates, and exceptions. This law applies to both tax residents and non-residents, with different rules for each. Tax residents are individuals who have resided in Vietnam for 183 days or more in a calendar year or a consecutive 12-month period. […]

Tax Incentives for Foreign Enterprises in Vietnam: A Comprehensive Guide for Small Business Owners

tax-incentives

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 […]

A Comprehensive Guide to Corporate Income Tax in Vietnam for Small Business Owners

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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 […]

Foreign Contractor Withholding Tax in Vietnam: An Overview

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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 […]

Vietnam Accounting Standards: A Comprehensive Guide

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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 […]

Value-Added Tax in Vietnam: A Comprehensive Guide for Small Business Owners

value-added-tax

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 […]

Navigating International Taxation in Vietnam

international-taxation

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, […]

Audit and Compliance in Vietnam: A Comprehensive Guide

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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 […]