We have updated our 2017 Vietnam Payroll Quick Guide effective 1 July 2017, helping employers and employees understand general calculations and obligations with payroll and payroll related taxes in Vietnam.
Area codes for telephone numbers across 23 Vietnamese Provinces, including Ho Chi Minh City and Hanoi, are changing from 17 June 2017, and will operate together with the old numbers until 17 July 2017.
• Ho Chi Minh City area codes change from 08 to 028
• Hanoi area codes change from 04 to 024
Domicile Corporate Services' main phone number will change to 028 6291 5779 (or +84 28 6291 5779 if dialled internationally).
Corporate groups setting up their Vietnam operations often (incorrectly) assume that they can centralise all their accounting and finance function for their Vietnamese entity into the headquarters finance function. Whilst there are some opportunities, caution must be taken to understand the local requirements regarding accounting and documentation in Vietnam.
There are significant changes forthcoming in Vietnam to how payrolls are to be calculated and processed, and both employees and employers need to understand the potential impacts of these.
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.
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