Introduction to Taxes in Vietnam presented by Alberto Vettoretti
Presenter(s):
-
Managing Partner
Office: Hong Kong Office
- 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
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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