Introduction to Taxes in Vietnam presented by Alberto Vettoretti

Presenter(s):

  • Title: Introduction to Taxes in Vietnam presented by Alberto Vettoretti
  • Date: May 9th, 2013

Mr. Alberto Vettoretti talks about the important taxes that foreign companies and individuals must be aware of when doing business in Vietnam. He discusses these taxes, filing deadlines and methods, as well as the deductions and exemptions that are available to foreign enterprises

Transcript:

  • Key Taxes for Foreign Invested Enterprises in Vietnam:

    Business Licence Tax:
    • Due yearly for foreign and local companies: $50 to $150 USD per year

    Corporate Income Tax:
    • 25% (ongoing discussions to reduce to 20%)
    • Exploring or exploitation of natural resources (50%)
    • The amount can vary depending on sector or geographical location
    • Exemptions and deductions available
    • Must to be declared on a quarterly basis and finalized every year

    Value Added Tax (VAT):
    • Exempt for some goods and services
    • Two methods to calculate VAT: Credit method or Direct method
    • Calculated on monthly basis

    Special Sales Tax:
    • Luxury or non-essential items
    • 10-70% depending on item or service

    Foreign Contractors Withholding Tax:
    • Foreign corporations with a Vietnam based income subject to FCWT
    • Deduction Method
    • Deemed Method

    Personal Income Tax:
    • Worldwide tax resident income principle
    • Non-resident tax rate of 20%
    • Monthly declarations, with finalization required within three months from the beginning of a new calendar year

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