We look at recent Circulars, Decrees, Government releases and Official Letter in this May 2017 monthly publication of Domicile’s Tax Updates.
As globalisation advances, Vietnam is increasingly recognised as an attractive and feasible destination for foreign investors to expand or establish operations.
Although relatively open and welcoming for foreign investment, investors still often underestimate the restrictions and licensing requirements that exist today within Vietnam’s legal framework.
This April 2017 monthly publication of Domicile’s Tax Updates looks at recently issued tax and other similar updates from Vietnam’s authorities which have an impact on businesses in Vietnam. As always, please contact us if you would like further information on any of the items discussed in our publication.
Under Vietnamese Labour Laws, companies in Vietnam seeking to employ foreign individuals are generally required to obtain a Work Permit for the individual before the individual can sign a Labour Contract and commence work. However, there are exemptions to this requirement.
On 24 February 2017, the Vietnamese Government issued Decree 20/2017/ND-CP (“Decree 20”) concerning tax administration for enterprises with related-party transactions. This is a significant release for Transfer Pricing (“TP”) and related-party transactions, and also introduces a number of other non-TP related changes to taxation.
The March 2017 monthly publication of Domicile’s Tax Updates looks at recently issued Decrees and Official Letters from Vietnam’s authorities which have an impact on businesses in Vietnam. As always, please contact us if you would like further information on any of the items discussed in our publication.
The 31 March 2017 deadline is fast approaching for 2016 Personal Income Tax finalisations in Vietnam. Businesses and individuals in Vietnam that have been subject to the Personal Income Tax (“PIT”) system should plan for preparing for 2016 annual finalisations of PIT for themselves or their staff (including foreign staff) before the deadline.
Opportunities abound for entrepreneurial foreign business people seeking to start their own business in Vietnam – either as an extension of their current foreign operations, or as a new venture based out of Vietnam. However, caution (as ever) needs to be cast on these opportunities, as there are as many failures as success stories.
31 March 2017 is the deadline for lodgement of 2016 Financial Statements and tax finalisations for most entities in Vietnam. Further to this, foreign invested enterprises and specified other enterprises are required to have their Financial Statements audited prior to lodgement to the relevant authorities.
This Tax Update publication for February 2017 looks at a selection of Decrees and Official Letters which have been released recently, providing guidance in the often confusing realm of Vietnamese taxation. As always, please contact us if you would like further information on any of the items discussed in our publication.
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