tax

Cross-border service providers that do not have an office in Vietnam have been required to pay tax under Vietnam’s Foreign Contractor Tax regime since 2021. Of note, most of these firms are actually required to open local offices per the Law on Cyber Security, however, few of them have with foreign firms in local offices set to “bear stricter supervision and satisfy more requirements,” according to the Ministry of Information and Communication…

The outcome of this debate is unlikely to have any direct impact on foreign invested enterprises in Vietnam, it is, however, worth bearing in mind when considering in small business investments in Vietnam.

The VAT is normally 10 percent, however, it was reduced during COVID as an economic stimulus measure to 8 percent. But Vietnam’s economic recovery was in large part thwarted, much like in many other countries, by the Ukraine War and the rising fuel prices that came with it. This has led to extensions of the aforementioned VAT cut for the better part of the last four years…

Of note, the draft amendments to the Law on Corporate Income Tax do not seem to make  a distinction between local and foreign firms. That being the case, foreign-owned small businesses–cafes, bars, gyms, and what not–could also benefit from these changes if passed. That said, there does not seem to be a timeline for a decision as to whether these changes will  be approved and go ahead…

VinaCapital has released an Economist’s Note Looking Ahead at 2024, in which the firm’s Chief Economist, Michael Kokalari, says the introduction of the global minimum tax should have limited impact on Vietnam’s FDI inflows.  His key points are Vietnam will find away to work around it and rebate some of

Vietnam’s Ministry of Planning and Investment has released a draft decree outlining the establishment of a support fund to compensate foreign firms subjected to the Global Minimum Tax initiative, The Investor is reporting. Key points The fund will support businesses making high-tech goods or applying advanced technology in their operations

Vietnam’s recently passed top-up tax, a response to the Global Minimum Tax, should not impact how attractive Vietnam is to foreign firms, according to Raphaël Cecchi, an analyst with European credit insurer, Credendo. It may, however, “slightly hit Vietnam’s reputation”  as a low-tax jurisdiction for foreign firms, he says. He

Last year, Vietnam’s Quang Nam province recorded tax revenue of VND 31,781 billion (US$1.3 billion), however, this year it is expected to record tax revenue of just VND 23,951 (US$986 million), Tuoi Tre is reporting. This has been attributed to a substantially reduced contribution from automaker Truong Hai Group, which

A 2 percent reduction in Vietnam’s value-added tax has been extended to June next year, VTV is reporting. The stimulus measure first introduced during COVID has been extended multiple times as Vietnam’s economy first struggled to recover from the pandemic and is now battling a greater global economic downturn.

A top-up tax has been approved by Vietnam’s National Assembly and will see corporate income taxes raised to a minimum of 15 percent in the country, Reuters is reporting. This will take effect from January 1 next year. Legislation set to provide alternative benefits to corporate firms operating in the

Vietnam’s personal income tax receipts in the first nine months of this year were down VND 7.2 trillion (US$299 million) over the same period last year, Tuoi Tre is reporting. The article goes on to say this is due to a reduction in real estate transfer taxes which are included

If a Global Minimum Tax comes into force in all OECD member states from the start of 2024,  and Vietnam has a top-up tax in place, the country could benefit to the tune of US$600 million in increased tax revenue a government report has found, The Investor is reporting. In