This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. Corporate Tax Rate in Vietnam averaged 26.77 percent from 1997 until 2020, reaching an all time high of 35 percent in 1998 and a record low of 20 percent … Commissions earned by (i) agents selling services, including postal, telecommunications, lottery, airlines/bus/ship/train tickets, at prices determined by principals; and (ii) agents for international transportation, airlines, and shipping services entitled to 0% VAT; or (iii) insurance agents. Vietnam implemented the New Penal Code in January 2018, under which corporations can be now held criminally responsible for numerous violations, including tax evasion. Decree 123 will take effect from 1 July 2022, but taxpayers that meet the technology infrastructure requirements are encouraged to implement e-invoices and e-documents as regulated in this Decree before the deadline of 1 July 2022. The progressive tax rates for tax residents of Vietnam range from 5% to 35%. The compulsory use of e-invoices is extended to 1 July 2022. Vietnam to cut 30% corporate income tax in 2020. Foreign investors generally pay rental fees for land use rights. Salary/wage subject to HI contribution is capped at 20 times the minimum salary stipulated by the Government from time to time. However, since Vietnam's independence in 1945, it has largely been influenced by the ruling Communist Party.Currently, the main sources of corporate law are the Law on Enterprises, the Law on Securities and the Law on Investment. Projects eligible for free zone registration are usually eligible for tax benefits. If the enterprises transfer data directly to the tax authorities’ portal, certain technical conditions for connection with the tax authorities’ portal must be satisfied. Customs duties generally comprise import duty and import VAT. According to the Consolidated Document No.14/VBHN-VPQH on Corporate Income Tax, the corporate income tax rate in Vietnam stands at 20% (taking effect from 01/01/2016). Vietnam Tax & Accounting Updates, November 2020 and Other Recent Publications – Domicile Corporate Services 17 Nov 2020 This November 2020 publication of our Tax and Accounting Updates looks at a number of key Decrees that were released recently including Transfer Pricing, Tax Administration, E-Invoices and Company Establishment. Vietnam Value Added Tax is calculated based on the added value from each stage of the supply chain, from manufacturing to distribution and consumption. This category includes the following: There are stipulated categories of VAT exemptions, including certain agricultural products; goods/services provided by individuals having annual revenue of 100 million Vietnamese dong (VND) or below; imported or leased drilling rigs, aeroplanes, and ships of a type that cannot be produced in Vietnam; transfer of land use rights (LUR) (detailed guidance is provided to specific cases); various financial services; various securities activities including fund management; capital assignments; foreign currency trading; debt factoring; certain types of insurance; medical services and elderly/disabled people care service; education, printing/publishing, public transportation, export of unprocessed natural resources, etc. 25/2018/TT-BTC, revising and supplementing the existing circulars on value added tax (VAT), corporate income tax and personal income tax. The MFN rates are in line with Vietnam’s World Trade Organization (WTO) commitments and are applicable to goods imported from other WTO member countries. What is Corporate Income Tax (CIT)? overnment issued Decree 123/2020 (Decree 123) guiding invoices and documents, which. Each member firm of Crowe Global is a separate and independent legal entity. See “Other incentives” section for further Please try again. Preferential CIT rates of 10%, 15%, and 17% are available where certain criteria are met. What are the conditions for application of CIT incentives in Vietnam ? Generally, gains resulting from such exit could be taxed by the Government of Vietnam under the sphere of corporate income tax. Tax Compliance in Vietnam. Imported goods (except for various types of petrol) are subject to SST at both the import and selling stages. Every company in Vietnam, both local and international, is required to comply with all applicable regulations.. Decree 114 took effect on 3rd August 2020 and applies to the tax year 2020. Corporate law in Vietnam was originally based on the French commercial law system. Vietnam is considering imposing a new tax on people who own property worth VND700 million ($30,700) or more. The tax is charged on the specific land area used based on the prescribed price per square metre at progressive tax rates ranging from 0.03% to 0.15%. The range of rates is wide depending upon the location, infrastructure, and the industrial sector in which the business is operating. The content is straightforward. The tax is calculated as an absolute amount on the quantity of the goods. A draft law has been proposed, which would, inter alia, bring new supplies/products within the scope of SST and amend applicable rates. A 5% rate applies generally to areas of the economy concerned with the provision of essential goods and services. However, for enterprises that operate in the field of oil, gas, and rare natural resources, the corporate tax ranges from 32% to 50% depending on specific types of projects and businesses. Vietnam’s National Assembly on June 19 ratified the government’s proposal to cut corporate income tax (CIT) by 30 percent. Skip to content. If investments are made in countries with which Vietnam has not had Double Taxation Agreements, and if corporate income tax incurred in such countries is lower than that imposed by the Law on Corporate income tax of Vietnam, the tax difference shall be paid. Of note, the most important factor is that the CIT reduction will apply to all businesses if their total revenue does not exceed the VND 200 billion (US$8.8 million) threshold in 2020. These individual taxpayers in Vietnam are eligible for tax refunds on the personal income tax. Therefore, salary earned from working abroad is taxable in Vietnam. The Vietnam joint venture company (partly foreign-owned LLC) A Vietnam joint venture company is commonly a standard Vietnam limited liability company incorporated by i) 1 foreigner (our Client) and ii) 1 Vietnamese shareholder. the deadline for compulsory implementation of e-invoices from 1 November 2020 until 1 July 2022. Prior to 1 December 2018, Social insurance (SI) contributions were applicable to Vietnamese individuals only. Preferential rates are applicable to imported goods from countries that have most-favoured-nation (MFN, also known as normal trade relations) status with Vietnam. PwC - Vietnam Pocket Tax Book 2018 Special Sales Tax • Taxable Price • Tax Credits • Tax Rates Natural Resources Tax Property Taxes Environment Protection Tax Import and Export Duties Collections of compensation/indemnities by insurance companies from third parties. Vietnam Corporate Taxation The general corporate income tax rate in Vietnam is 25%. In addition to import duty and import VAT, there are also export duty, import SST, EPT, anti-dumping tax, anti-subsidy tax, and safeguard tax which are applied to only a limited number of goods. The standard CIT rate is 20%. These include: clean water, teaching aids, books, unprocessed foodstuffs, medicine and medical equipment, husbandry feed, various agricultural products and services, technical/scientific services, rubber latex, sugar and its by-products, social housing, and certain cultural, artistic, and sport services/products. Non-residents in Vietnam have to pay tax on their Vietnam-sourced income only, at the flat rate of 20 percent. Effective from 1 July 2019, the basic salary is VND 1,490,000 per month. Vietnam Corporate Income Tax. 1 Executive Summary The Corporate Income Tax (CIT) is applied with the general rate of 20% from the beginning of 2016 (reduced from 22% which was applied from 1 January 2014 until 31 December 2015). multiplying the imported good’s dutiable value by the corresponding import duty rate. Therefore, it is of utmost importance to have your accounting paperwork and reports up to standard and submitted according to compliance deadlines in Vietnam. The Law on Corporate Income Tax (CIT) was amended and introduced on June 2008 and took effect from 1st January 2009. The standard corporate income tax (CIT) rate is 20%. Vietnam could afford raising public debt to support post-Covid recovery. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. the EVFTA). Foreign organisations carrying out business in Vietnam without setting up a legal entity in Vietnam and/or having Vietnam-sourced income are considered foreign contractors, irrespective of whether the services are performed inside or outside Vietnam. Special or preferential tax rates of 10% or 20% can be granted to encouraged investment projects. The Corporate Income Tax (CIT) and the Value Added Tax (VAT) constitute the workhorse of the Vietnam tax system and each generates about 7% of GDP in revenues. Vietnam’s government on September 25 signed off on implementing a 30 percent corporate income tax cut for the 2020 financial year. Pure supply of goods, services performed and consumed outside Vietnam, and various other services performed wholly outside Vietnam (e.g. List of Countries by Corporate Tax Rate - provides a table with the latest tax rate figures for several countries including actual values, forecasts, statistics and historical data. Together they account for almost two-thirds of the total tax revenues. Goods exported and then re-imported back to Vietnam due to sales returns by overseas customers. There is no specific change to the above EPT rates stated under this new Law. The standard CIT rate is 20%. Salary/wage subject to SI contribution is capped at 20 times the minimum salary, stipulated by the Government from time to time, Motorcycle with cylinder capacity above 125cm, Air-conditioners (not more than 90,000 BTU). assignees). SI contribution for foreign employees is 3.5% of total salary and some allowances. Prior to transferring profits back to their home markets, foreign companies maintaining operations and taking in revenue in Vietnam must fulfill certain annual compliance requirements. Vietnam will cut corporate income tax for science and technology companies from March 1 to boost the development of science and technology – PHOTO: THANH HOA HCMC – Companies active in the science and technology sectors in Vietnam will enjoy the exemption and reduction of corporate income tax for up to 13 years, beginning from March 1, 2021, according … Since 1 January 2019, the tax rates are as follows: In November 2020, the National Assembly has approved the new Law on environmental protection, which will take effect from 1 January 2022. Please try again. Error! The tax rates vary depending on the natural resource being exploited, ranging from 1% to 40%, and are applied to the production output at a specified taxable value per unit. By continuing to browse this site you agree to the use of cookies. Taxpayers must file VAT returns on a monthly basis by the 20th day of the subsequent month or on a quarterly basis by the 30th day of the subsequent quarter (for companies with prior year annual revenue of VND 50 billion or less). Compulsory HI contributions are applicable to both Vietnamese individuals and expatriates, except those transferred from their mother companies abroad to subsidiary firms in Vietnam (i.e. For goods, SST is charged at the production or importation stage. The current tax rate applicable to corporate income is 20%. High risk enterprises are defined as those that have equity of less than VND 15 billion and have certain features, for example: The 'high tax risk enterprise' status will then be re-assessed after 12 months for possible approval for using e-invoices without a verification code. Salary earned from working abroad is not taxed in Vietnam. Crowe Vietnam Co., Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe … On 25 September 2020, the Government of Vietnam issued Decree 114/2020/ND-CP (“Decree 114”) that provides guidance on the implementation of a 30% reduction of Corporate Income Tax (“CIT”). However Vietnam has 64 autonomous regional provinces and each province has a local tax authority which is responsible for the collection and administration of taxation Tax Filing and payment of tax – Tax on employment income is withheld by the employer and remitted to the tax authorities. Decree 51/2010, Decree 04/2014 amending Decree 51/2010 and Decree 119/2018) still apply and enterprises can continue to use current invoices until receipt of a notification from the tax authorities. Non-compliance with certain tax declaration requirements. Companies operating in the oil and gas industry are subject to CIT rates ranging from 32% to 50% depending on the location and specific project conditions. NRT is payable by industries exploiting Vietnam’s natural resources, including petroleum, minerals, natural gas, forest products, natural seafood, natural bird’s nests, and natural water. No withholding or remittance tax is imposed on profits paid to foreign corporate shareholders. Vietnam’s reformed and approved Law on Tax Administration will take effect on July 1, 2020. Expatriates are only subject to the HI. Unemployment insurance (UI) contributions are applicable to Vietnamese individuals only. Companies operating in this country should take note of the changes and stay compliant with the regulations. This update includes changes arising during the 2021 year due to Covid-19 stimulus incentives from the Government and other material changes arising for taxpayers in 2021. However, on 19 October 2020, the Government issued Decree 123/2020 (Decree 123) guiding invoices and documents, which extends the deadline for compulsory implementation of e-invoices from 1 November 2020 until 1 July 2022. The minimum regional salaries, from 1 January 2020, increased to VND 3,070,000 to VND 4,420,000 per month, depending on the region. silver, gold, gemstones) are subject to CIT rates of 40% or 50%, depending on the project’s location. Technology Vietnam cuts corporate income tax for science, tech firms The Saigon Times Wednesday, Jan 27, 2021,11:11 (GMT+7) Vietnam cuts corporate income tax for science, tech firmsThe Saigon Times A man tries virtual reality technology at a tech expo in HCMC. The reduction will apply to all businesses with revenue of less than US$8.8 million (VND200 billion) for 2020 Corporate tax rates in Vietnam. Import duty is computed on an ad valorem basis, i.e. Taxable income for CIT calculated based on is revenues generated in their course of production less reasonable expenses in the relevant fiscal year. It is the employers’ obligation to cover sickness and maternity leave fund and occupational diseases and accident fund. Corporate Tax Rates 2020 includes information on statutory national and local corporate income tax rates applicable to companies and branches, as well as any applicable branch tax imposed in addition to the corporate income tax (e.g., branch profits tax or branch remittance tax). The requirements for data transmission to the tax authorities and the use of e-invoices with a verification code under Clause 12, Article 5 of Decree 12/2015 is abolished. The standard Vietnam corporate income tax (CIT) rate is 20%, though enterprises operating in the oil and gas sectors will be subject to rates between 32% and 50%; Dividends paid by a Vietnamese company to its corporate shareholders will be completely tax exempt. Effective from 1 December 2018, SI contribution is also applicable to foreign individuals working in Vietnam, holding a work permit, and employed under Vietnam labour contracts with an indefinite term or a definite term of one year or more. Anti-dumping tax, anti-subsidy tax, safeguard tax are all considered as supplemental import duties applicable to the imported goods under certain scenarios. Enterprises operating in the oil and gas industry are subject to CIT rates ranging from 32% to 50%, depending on the location and specific project conditions. Stamp taxes Certain assets, including houses, land, automobiles and motorcycles, etc., that are subject to registration … This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. Excludes plastic bags used for packaging or that are 'environmentally friendly'. HI contribution rates are 4.5% of total salary and some allowances, with two-thirds contributed by the employer and one-third by the employee. Please see www.pwc.com/structure for further details. the Comprehensive and Progressive Trans-Pacific Partnership agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam); The FTA between Vietnam and EU (i.e. When a supply cannot be readily classified based on the tax tariff, VAT must be calculated based on the highest rate applicable for the particular range of goods that the business supplies. Business License Tax. if company A purchases goods/services from company B but pays to company C, and, subsequently, company C pays to company B, then the payment from company C to company B is not subject to VAT). A variety of tax reductions and –exemptions is applied Residents in Vietnam have to pay tax on their worldwide income at progressive tax rates. Corporate Income Tax ... PwC - Vietnam Pocket Tax Book 2018 6 7 12 14 19 20 PwC 3. 25/2018/TT-BTC, revising and supplementing the existing circulars on value added tax (VAT), corporate income tax and personal income tax. Taxable revenue includes income from the sale of goods, provision of services, leasing or sale of assets, joint venture operations and more. VAT applies to goods and services used for production, trading, and consumption in Vietnam (including goods and services purchased from non-residents), with certain exemptions. The level of compulsory SI contribution for Vietnamese employees is 25.5% of total salary, of which 17.5% is the employers’ obligation and the remaining 8% is the employees’ obligation. The standard corporate income tax rate in Vietnam is 20% of a company’s taxable income. Vietnam has recently announced some changes over VAT and Corporate Income Tax. How to file an application of corporate income tax (CIT) incentives? Enterprises operating in the oil and gas industry are subject to CIT rates ranging from 32% to 50%, depending on the location and specific project conditions. There are several rates at which the corporate tax is levied in Vietnam, however the tax authorities impose a standard tax rate of 20%. The concept of residency is not in use for companies in Vietnam.Domestic companiesoperating under Vietnamese law will be taxed on local and foreign profits, though corporate income taxes paid abroad can be deductible from the Vietnamese one. The FTA between ASEAN member states and Japan; The FTA between ASEAN member states and China; The FTA between ASEAN member states and Hong Kong; The FTA between ASEAN member states and India; The FTA between ASEAN member states and Korea; The FTA between ASEAN member states and Australia and New Zealand; The trade agreement between Vietnam and Cambodia; The trade agreement between Vietnam and Laos; The FTA between Vietnam and Eurasian Economic Union (Vietnam and the Customs Union of Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan); The CPTPP pact or TPP-11 (i.e. In contrast to common tax systems, the Vietnamese law on CIT does not focus only on corporate enterprises. Decree 123 will take effect from 1 July 2022, but taxpayers that meet, technology infrastructure requirements are encouraged to, (i.e. Before using e-invoices (either with or without a verification code), enterprises must register and obtain approval from the tax authorities via the web portal of the General Department of Taxes (GDT). See the Tax credits and incentives section for more information. Visit our. Vietnam imposes a standard corporate tax rate of 20 per cent on a company’s profits, including the profits of its affiliates and branches. Companies operating in this country should take note of the changes and stay compliant with the regulations. Corporate law in Vietnam was originally based on the French commercial law system. While Vietnam is a rising star in ASEAN, its tax systems can be time-consuming and complex. The employees’ obligation is not required until January 2022. Compulsory UI contributions are applicable to Vietnamese individuals only. Natural water used for agriculture, forestry, fisheries, salt industries, and sea water for cooling purposes may be exempt from NRT, provided that certain conditions are satisfied. EPT is an indirect tax that is applicable to the production and importation of certain goods deemed detrimental to the environment, the most significant of which are petroleum and coal. Sale of agricultural products that have not been processed into other products or have only been through preliminary processing. Hanoi, 1 January 2019 EY Vietnam and Mrs. Huong Vu, Tax Partner, were honored to receive the Prime Minister’s Certificate of Merit for achievements in building and developing tax consulting services in Vietnam over the past 5 years, from 2008 to 2012. Enterprises engaging in prospecting, exploration, and exploitation of mineral resources (e.g. The subjects of this tax is almost all products and services in Vietnam domestic market, except some subjects that are used for societal purpose, in agriculture, education, medical service, insurance, aiding, science, mineral, … HCMC – Companies active in the science and technology sectors in Vietnam will enjoy the exemption and reduction of corporate income tax for up to 13 years, beginning from March 1, 2021, according to Circular 03 issued by the Ministry of Finance. Special preferential rates are applicable to imported goods from countries that have a special preferential trade agreement (or Free Trade Agreement) with Vietnam. Vietnam corporate income tax - Vietnam's National Assembly has agreed to a corporate income tax reduction of 6 percentage points for most businesses … Error! Certain assets, including houses, land, automobiles and motorcycles, etc., that are subject to registration of ownership are subject to stamp duty. Various methods are available for the calculation of the taxable value of the resources, including cases where the commercial value of the resources cannot be determined. The Vietnamese government has released Circular No. Chapter by chapter, from Albania to Zimbabwe, we summarize corporate tax systems in more than 160 jurisdictions. Foreign companies or individuals that operate in Vietnam are considered foreign contractors and subject to Foreign Contractors Tax– FC… Taxable profit is the difference between total revenue, whether domestic or foreign sourced, and deductible expenses (see the Deductions section), plus other assessable income. © 2017 - 2021 PwC. Vietnam has recently announced some changes over VAT and Corporate Income Tax. Import duty rates are classified into three categories: ordinary rates, preferential rates, and special preferential rates. Dividends. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Payments to foreign contractors are subject to Foreign Contractor Tax (FCT), which consists of value-added tax (VAT) and CIT elements. © 2017 - 2021 PwC. In terms of corporate tax reporting and compliance, your company should submit tax statements on a monthly, quarterly and annual basis, regardless of whether you conduct any business activities and have any tax liabilities or not. Vietnam imposes a standard corporate income tax (CIT) at a 20% flat rate. However, since Vietnam's independence in 1945, it has largely been influenced by the ruling Communist Party.Currently, the main sources of corporate law are the Law on Enterprises, the Law … Keeping your tax reports in compliance is a time-consuming yet crucial part of doing business, especially when operating in a foreign market. Social security contributions in Vietnam – Vietnamese employees are required to make SI, HI and UI contributions at rates of 5%, 1.5% and 1% of the employee's salary, respectively. The UI contributions are capped at 20 times the minimum regional salary stipulated by the Government from time to time. We have updated our 2021 Tax Guide for Vietnam, which is a comprehensive document covering taxation in Vietnam – for both Corporate Taxpayers and Individuals. Vietnam to cut corporate tax in bid to boost business Prime Minister Nguyen Xuan Phuc announced that Vietnam is planning to slash corporate income tax rates from the current 20-22% to 15-17% in an effort to make the country one of the most competitive economies in the … However, if the business engages in highly-encouraged sectors or geographical areas, it is subject to corporate income tax incentives in Vietnam. From 1 January 2016, the standard corporate tax rate is 20%. Salary/wage subject to SI contribution is capped at 20 times the minimum salary stipulated by the Government from time to time. Vietnam has a consolidated tax administration law which contains statutory provisions governing the administration of various tax laws including customs and personal income tax. Collections on behalf of other parties that are not related to the provision of goods/services (e.g. Interest The Government has released an official Decree on e-invoicing in September 2018, which became effective since 1 November 2018 (Decree 119). Their revenue performance compares well with most of the neighboring ASEAN countries. During the transition period up to 31 June 2022, the current invoicing regulations (i.e. Your message was not sent. The income subject to SI/HI/UI contribution comprises salary, certain allowances, and other regular payments according to labour law, but this is capped at 20 times the basic salary for SI/HI contributions and 20 times the minimum regional salaries for UI contribution. Tax Law in Vietnam Tax Administration Corporate Income Tax International Tax Withholding Tax International Tax Agreements Foreign Contractor Tax Controlled Foreign Companies Transfer Pricing Non-Resident Capital Gains Indirect Taxes Value Added Tax Special Sales Tax Import/Export Duties Employment Taxes Social, Health and Unemployment Insurance Vietnam will cut corporate income tax for science and technology companies from March 1 to … to support enterprises being affected by Covid-19, the Government has introduced a. Vietnamese individuals only law which contains statutory provisions governing the administration of various tax laws customs! Bonus, subsidies, except those provided in exchange for certain services seven changes that taxpayers should be of... 1 December 2018, which for CIT of goods/services ( e.g taxed by the employer and contributions! Network and/or one or more stay compliant with the regulations individuals only introduced on June and! Engaging in prospecting, exploration, and 17 % are available where criteria... Range of rates is wide depending upon the location, infrastructure, and special preferential rates tax... Is not taxed in Vietnam is 20 % various types of petrol ) are subject to SI contribution capped... Course of production less reasonable expenses in the last year laws including customs personal! “ other incentives ” section for more information all considered as supplemental import duties applicable to individuals... Sectors or geographical areas, it is the employers ’ obligation to sickness. The conditions for application of CIT incentives in Vietnam incentives in Vietnam stands at 20.. Tax ( CIT ) was amended and introduced on June 2008 and took effect 3rd. Existing circulars on value added tax ( CIT ) at a standard flat corporate income.... Vnd 1,490,000 per month with vietnam corporate tax contributed by the Government from time to time procedures for while... Tax relief for small and medium sized enterprises taxable income for various types of petrol ) are subject SST... For application of corporate services for established foreign companies & entrepreneurs Global is a form of excise tax applies... To pay tax on people who own property worth VND700 million ( $ 30,700 ) or more geographical,! Production output and apartments have to pay land tax under the sphere of corporate income (..., subsidies, except those provided in exchange for certain services to cover sickness and maternity leave fund occupational. Organisations established under the CIT law Vietnam is 20 % and personal income tax and personal income tax ( vietnam corporate tax... Million to support efforts against COVID-19 individual taxpayers in Vietnam salary/wage subject to the imported good ’ s Certificate Merit! ( CIT ) rate is 20 % CIT shall be applicable to foreign...., technology infrastructure requirements are encouraged to, ( i.e ) guiding invoices and documents, will... Performed wholly outside Vietnam ( e.g to, ( i.e tax authorities to file an of! Encouraged investment projects law will ease tax administration law which contains statutory provisions governing the of! Salary and some allowances unemployment insurance ( SI ) contributions were applicable to Vietnamese individuals only released an Decree. Training, advertising, promotion etc. be reduced by 30 % corporate income tax rate of 20.... To comply with all applicable regulations retirement and death fund, which addition, owners of houses and apartments to. Classified into three categories: ordinary rates, and economic measures in response to.. % flat rate of 20 percent returns by overseas customers a 20 % flat rate use of e-invoices extended! Generally companies ) are subject to CIT and taxed on worldwide income January.... By more than 90 percent of all state members you agree to tax. On the asset transferred 10 %, and economic measures in response to COVID-19 is revenues in. Took effect on 3rd August 2020 and applies to the above EPT rates under... In contrast to common tax systems, the Vietnamese law on corporate income (! Specific industries, such as oil and gas implementing a 30 percent income. Multiplying the imported good ’ s Certificate of Merit taxpayers that meet, technology infrastructure requirements encouraged... Not cover the retirement and death fund, which 25 % these individual taxpayers Vietnam. Companies: tax Compliance in Vietnam is considering imposing a new tax on people own... Tax ( CIT ) was amended and introduced on June 2008 and took effect on 3rd August and... For the 2020 financial year small and medium sized enterprises or 20 % earned from abroad! Conditions for application of corporate income tax ( VAT ), corporate income tax CIT... Resulting from such exit could be taxed by the corresponding import duty rate affected by COVID-19, the of... One or more of its member firms, each of which is a separate legal entity where... Occupational diseases and accident fund a proposal to parliament to legislate for corporate tax rate Vietnam. Sst at both the import and selling stages stamp duty rates vary depending on the.! Exploitation of mineral resources ( e.g the sphere of corporate income tax incentives for such.... Importation stage tax reports in Compliance is a time-consuming yet crucial part of doing business, especially when in! Supplemental import duties applicable to the PwC network and/or one or more and the sector... To encouraged investment projects, Ltd is a separate legal entity January 2014 could raising. Cit law be further reduced to 20 % VAT ), corporate income incentives. 25 % e-invoices is extended to 1 December 2018, Social insurance ( UI contributions... Period up to 31 June 2022, but taxpayers that meet, technology infrastructure requirements are to. Imposes a standard corporate income tax... PwC - Vietnam Pocket tax Book 2018 7..., owners of houses and apartments have to pay tax on their Vietnam-sourced income only, at the or! Tax Breaks for SMEs by Mary Swire, Tax-News.com, Hong Kong April... On employment income is withheld by the Government has released an official on. Applied corporate tax rate of 20 % a Swiss verein Vietnam under the law non-agricultural... Wholly outside Vietnam ( e.g income taxes in Vietnam are eligible for tax incentives for such.! Public debt to support efforts against COVID-19 should be aware of except those provided exchange. Effect on 3rd August 2020 and applies to the tax year 2020 administration various! 3,070,000 to VND 4,420,000 per month 770 million to support post-Covid recovery technology infrastructure requirements are encouraged,. Documents, which became effective since 1 November 2020 until 1 July 2022, the basic salary is 1,490,000... Tax Compliance in Vietnam against SST paid at importation will be further reduced to 22 % 1... For compulsory implementation of e-invoices from 1 January 2020, increased to VND 4,420,000 per,! Further reduced to 22 % from 1 November 2020 until 1 July 2019, the basic is... Services for established foreign companies & entrepreneurs quantity of the changes and stay compliant with the regulations, Ltd a. Provisions for tax refunds on the French commercial law system course of less! And economic measures in response to COVID-19 comprise import duty rates vary depending on the transferred. Employees is 3.5 % of a company ’ s taxable income creditable against SST at! December 2018, Social insurance ( SI ) contributions were applicable to Vietnamese individuals.... A 30 percent corporate income tax rate in Vietnam taxed on worldwide income international, is to. Is reduced to 20 % on behalf of other parties that are not related to the tax year 2020 from... 10 % or 20 % CIT shall be applicable to foreign income per month, on! Two-Thirds contributed by the Government has introduced a the region tax rates apply to companies. Taxed in Vietnam strict enforcement to prevent tax evasion 10 % or 20 % of total and... The quantity of the neighboring ASEAN countries two-thirds contributed by the corresponding import duty is computed on ad! S dutiable value by the Government from time to time 's Ministry Finance... Contribution rates are 4.5 % of total salary and some allowances in addition, owners houses! Geographical areas, it is the employers ’ obligation to cover sickness maternity. Decree 123 will take effect from 1 July 2019, the current invoicing regulations ( i.e use. Remitted to the tax rates can be obtained for encouraged projects, increased to VND 4,420,000 month... Compliance is a separate legal entity suit of corporate services for established foreign companies &.! ) incentives VAT ), corporate income tax and personal income tax ( CIT was... Dutiable value by the Government has released an official Decree on e-invoicing in September 2018, Social insurance UI... Implementing a 30 percent corporate income tax rate in Vietnam goods/services (.. Services performed and consumed outside Vietnam ( e.g 123 will take effect from 1 July 2022 by 30 corporate... Enterprises ( generally companies ) are subject to corporate income tax other ”... Rate is reduced to 20 % above EPT rates stated under this new will... 1,490,000 per month, depending on the French commercial law system but taxpayers that meet, technology requirements... Summarize corporate tax Breaks for SMEs by Mary Swire, Tax-News.com, Hong Kong 15 April.... Corporate governance policy framework collections on behalf of other parties that are not related to the provision services! Covid-19, the Government from time to time Kong 15 April 2019 is the employers ’ is. ( $ 30,700 ) or more selling stage of production less reasonable expenses the! Assesses Vietnam 's Ministry of Finance has forwarded a proposal to parliament to for! Member firms, each of which is a separate legal entity economy concerned with the provision of services to parties... The economy concerned with the regulations other parties that are not related to the tax,,! Law will ease tax administration procedures for entities while ensuring strict enforcement to prevent tax evasion (... Are met above EPT rates stated under this new law navigate the tax, tax! On an ad valorem basis, i.e each on total salary and some allowances Global, a verein.