vietnam tax authority

14/2019/ND-CP providing guidelines for the law on special sales tax VAT Grouping in Vietnam There is currently no provision for VAT Grouping in Vietnam. Nonresidents are taxed at a flat tax rate of 20%. Save my name, email, and website in this browser for the next time I comment. MẪU ĐƠN & HƯỚNG DẪN Mẫu đơn 1040 Hồ sơ khai thuế cá nhân Hướng dẫn mẫu đơn 1040 Hướng dẫn dành cho mẫu đơn 1040 Mẫu đơn W-9 Yêu cầu Mã số Người đóng thuế (TIN) và Chứng nhận Mẫu đơn 4506-T … A tax inspection is longer and focusses on a specific issue. Tax invoices must be issued, but electronic invoices are not yet acceptable. Your email address will not be published. Taxpayers are categorised as ‘residents’ - who pay tax on income from Vietnam and overseas, and ‘nonresidents’ - who pay tax only on income originating from … 38/2019/QH14 (effective from 1 July 2020) - Decree No. certain repairs, training, advertising, … In this instance, the Vietnamese party is responsible for sending the necessary notifications to the relevant tax authority in the city where the foreign contractor’s office is located within 20 working days of signing a contract. Certain products, e.g goods that are necessary but cannot be produced in Vietnam can even enjoy VAT exemption. Feel free to download the copy of our e-book covering other subjects relating to living as an expat in Vietnam. businesses establish, maintain, Investors are advised to follow our updates on any forthcoming circulars to help guide the implementation of the new tax administration law. FCT on payments to foreign contractors applies where a Vietnamese contracting party (including a foreign-invested enterprise incorporated in Vietnam) contracts with a foreign party that does not have a licensed presence in Vietnam, irrespective of whether the services are provided in Vietnam or overseas. Value added tax (goods and services tax) A wide range of goods and services are subject to a consumption tax, or value added tax, of up to 10 per cent. Vietnam’s new Law on Tax Administration 38/2019/QH14 will take effect on July 1, 2020. Companies cite tax regulations and tax rates among the most problematic factors for doing business (GCR 2016-2017). To help ensure compliance, Vietnamese tax authorities will increase cooperation with international jurisdictions through information exchanges. Why foreign companies in Vietnam should use tax code registration services? This will include instances where companies fail to abide by transfer pricing requirements and transactions where entities intentionally attempt to avoid paying tax. Interest earned from bonds (except for tax exempt bonds) and certificates of deposit are subject to 5% withholding tax. The main taxes levied by the Vietnamese authorities are the Corporate Income Tax, the Personal Income Tax and the Value Added Tax. There is a facility for the use of the ‘reverse charge’. Corporate compliance in Vietnam involves the following: Accounting and tax reporting. A tax examination is shorter but covers wider issues or anomalies. The standard tax year is the calendar year. Sorry, your blog cannot share posts by email. Social security contributions. Losses Taxpayers may carry forward tax losses fully and consecutively for a maximum of five years. At present, individuals are required to have a tax code and an identity card number for filing taxes. Further, businesses that engage in transfer pricing will be required to be filed as a separate return, rather than include this information as part of the corporate … E-invoices are expected to save businesses time and money, contributing to greater efficiency for both enterprises and tax authorities. Invoices are controlled by the Ministry of Finance. Nonemployment income is taxed … Vietnam issued Decree 123 delaying the implementation of the use of electronic invoices (e-invoices) to July 1, 2022. and grow their operations. The Ministry of Finance (MOF, Vietnamese: Bộ Tài chính) is the government ministry responsible for the finances of the state of Vietnam, including managing the national budget, tax revenue, state assets, national financial reserves and the finances of state corporations. Under the new law, authorities may prevent legal representatives from leaving the country if their employer has not paid due taxes. This process currently takes 10 days. Further, they will not be penalized if they declare and pay taxes following the official guidance of tax authorities. The draft law has also introduced two types of audit: tax inspection and tax examination. VAT rates are either 0%, 5% or 10%. This page provides - Vietnam Corporate Tax Rate - actual values, historical data, forecast, chart, … Table of Contents 1 Corporate Income Tax 3 1.1 General Information 3 1.2 Determination of taxable income and deductible expenses 6 1.2.1 Income 6 1.2.2 Expenses 6 1.3 Tax Compliance 8 1.4 Financial Statements/Accounting 10 1.5 Incentives 12 1.6 International Taxation 13 2 Transfer Pricing 17 3 Indirect Tax 19 4 Personal Taxation 22 5 Other Taxes … Previous Article « Tax, Accounting, and Audit in Vietnam 2020 – New Publication from Dezan Shira & Associates, Next Article Vietnam Approves Corporate Income Tax Reduction for 2020 ». E-invoices will be mandatory for all enterprises from November 2020. This FCT generally applies to payments derived from Vietnam, except for the pure supply of goods (i.… Vietnam likely to forgive $571 mil taxes, fines for businesses Vietnam's tax authority has announced a plan to inspect at least 18 percent of businesses around the country this year, a move that is expected to uncover violations and arrears and may bring more than VND10 trillion (US$441.32 … Further details on e-invoices and e-commerce activities can be found in Decree 119/2018/ND-CP. Among the various amendments related to tax administration matters, the law introduces a new taxation regime for foreign service providers including ecommerce business. Under the new law, tax authorities have been granted additional enforcement powers. Post was not sent - check your email addresses! As a smart business owner, you absolutely do not want the Vietnamese tax authority to knock on your door later telling you that you have committed tax infringements.. Required fields are marked *. Pure supply of goods, services performed and consumed outside Vietnam, and various other services performed wholly outside Vietnam (e.g. Vietnam personal income tax rates are progressive to 35%. Therefore, if you are not an expert in taxation, you cannot update the right changes on time and your business will not perform in … Although individual foreigners who are paid from an overseas entity may opt to declare and settle their own tax directly with the tax authority, the local tax authorities can require deemed employers in Vietnam to undertake to collect taxes on employees and ensure timely submission of the employees’ tax declarations. Vietnam Briefing is produced by Dezan Shira & Associates. ng thuế do virút corona, Nhận một Pin bảo vệ danh tánh (IP PIN), ChÆ°Æ¡ng trình trả tiền (Hợp đồng trả góp), Hệ Thống Trả Tiền Thuế Liên Bang Dạng Điện Tá»­ (Electronic Federal Tax Payment System, hay EFTPS), Công Cụ Ước Tính Tiền Khấu LÆ°u Thuế của IRS, Tín thuế thu nhập do lao động (EITC), Liên lạc với văn phòng tại địa phÆ°Æ¡ng quý vị, Thống kê, sá»± kiện & số liệu thuế, Dá»± luật về quyền của người đóng thuế, Dịch vụ biện hộ người đóng thuế, Văn phòng Giải quyết Kháng cáo Độc lập, Bảo vệ khỏi trộm cắp danh tính, Tổng Thanh tra của Bộ Ngân khố về Hành chính Thuế. Whereas the term organization according to Article 2 of the law on CIT comprises: i. However, different accounting year-ends can be used if approval is obtained from the authorities. Various conditions apply. ... Institutional Setup for Tax Administration and Revenue Body Authority, 2015 24 10. The authorities are expected to provide five decrees and eight circulars to guide its implementation. Vietnam personal income tax rates are progressive to 35%. Hà Nội - Điện thoại: (+8424) 39440833 (ext: 8621) - Email: webmaster@customs.gov.vn Số phép số 97/GP-BC do Bộ Văn hóa - Thông tin … Nonresidents are taxed at a flat tax rate of 20%. including the most recent legal, tax and accounting changes that affect your business. Tax, Accounting, and Audit in Vietnam 2020 – New Publication from Dezan Shira & Associates, Vietnam Approves Corporate Income Tax Reduction for 2020, Dezan Shira & Associates' Service Brochure, Tax, Accounting, and Audit in Vietnam 2020, Vietnam’s Tax Administration Law Takes Effect in July 2020, Tax refund dossiers which are eligible for a refund before examination – six working days upon the receipt of the tax refund application; and. In particular, under Articles 27.3 and 42.4, both banks and foreign suppliers (having no permanent establishment in Vietnam) are required to file and pay tax in Vietnam. A Comparative Analysis of Tax Administration in Asia and the Pacific ... ADB recognizes “China” as the People’s Republic of China and "Vietnam" as Viet Nam. Business entities in Vietnam are allowed to set up a tax deductible research and development fund to which they can appropriate up to 10% of annual profits before tax. In addition to import duty, goods brought to Vietnam are also subject to value-added tax (VAT). While implementation procedures remain forthcoming, taxpayers can begin to prepare by reviewing the law with their local advisors now. Vietnam’s tax administration is extremely inefficient and has been known to fail to detect tax evasion (BTI 2016). Vietnam is a socialist country under the leadership of the Communist Party of Vietnam. This article was first published in July 2019 and has been updated to include the latest developments. Individuals are responsible for self-declaration and payment of tax. Chinese and Kazakh heads of tax authorities reach important consensuses at video meeting. From 2020 onwards, the use of electronic invoices tax verification codes will be extended as a requirement for self-employed individuals and companies with annual turnover of more than VND 3 billion (US$103,400), and more than 10 employees. Personal income tax (PIT) return deadlines have been extended to 120 days from the current 90 days of the calendar year end. This extension is applied for individuals who finalize their annual tax returns directly with the tax authorities. Both employers and employees are required to contribute to social insurance, health insurance, and unemployment … Nonresidents are taxed at a flat tax rate of 20%. Nonemployment income is taxed at rates from 0.1% to 25%. Further details on e-tax transactions can be found in. Sectors that are included in … Tax issues in Vietnam may be difficult to handle alone especially if you are living in Vietnam for a few months only. Payment of the annual business license tax. All residents and non-residents … Regulations on e-commerce activities still require clarification in the present state; however, some notable highlights include: The new law will also affect non-resident businesses that sell goods and services into Vietnam via online platforms. Enterprises established pursuant to the … Stay Ahead of the curve in Emerging Asia. The details of taxation law in Vietnam can change from year to year. Companies must pay this starting on their second year of business. Tax refund dossiers which are subject to examination before refund – 40 days upon the receipt of the tax refund application. Taxpayers have the right to know the timeline for processing tax refunds, non-refundable amounts, and the legal basis for such non-refundable tax amounts. The first reason for this choice is the frequent renovation of accounting regulations in Vietnam. The new law stipulated that tax rules related to e-commerce activities will be implemented in July 2022. Your email address will not be published. Specifically: Taxpayers that want to appeal a decision are required to pay the full tax amount as well as any penalties and late payment interest. Business organizations will be allowed to submit additional tax declaration documents after the tax authorities have announced an audit or inspection decision. Employees must finalise and file (or authorise the employer to file) their tax finalisation return to the Vietnam tax authority within 90 days from the end of the tax year. Our subscription service offers regular regulatory updates, A 10% royalty withholding tax applies in the case of payments made to a foreign party … Nonemployment income is taxed at rates from 0.1% to 25%. Year of Assessment 2016/2017: Year of Assessment 2010/2011. This includes tax authorities as well. Therefore, you need to clarify anything you don’t completely understand with regard to the tax law in Vietnam. Readers may write to vietnam@dezshira.com for more support on doing business in Vietnam. VGP – Passengers onboard flight VN7245 from Ha Noi to Ho Chi Minh City and flight QH242 from Ho Chi Minh City to Ha Noi on January 29 need to immediately contact the nearest medical facilities for advise and support. Under the new law, tax authorities will have additional power to collect tax, particularly in instances where individuals or companies attempt to evade tax. Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window). However, if the taxpayer wins the appeal, they can request the tax authorities to pay an interest of 0.03 percent per day on the refunded amount. The Corporate Tax Rate in Vietnam stands at 20 percent. The reason is that the RO is not allowed to perform business activities in Vietnam, and in the event it carries out supporting services, which are not included in its function as stipulated by the law, the tax authority may assess the RO’s supporting roles and deem it as its parent company’s PE in Vietnam. Vietnam Personal Income Tax Vietnam personal income tax rates are progressive to 35%. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. The firm assists foreign investors throughout Asia from offices across the world, including in Hanoi and Ho Chi Minh City. The tax examination period has also been increased from five to 10 days. This includes corporate income tax, value-added tax, and personal income tax. Today, supply chain shif... Dezan Shira & Associates helps IRO Sub-legislation Reference Sales of bonds and certificates of deposits are subject to deemed tax of 0.1% of the gross sales proceeds. To help ensure compliance, Vietnamese tax authorities will increase cooperation with international jurisdictions through information exchanges. PwC - Vietnam Pocket Tax Book 2019 10 PwC Commercial banks will be required to withhold and pay taxes on behalf of e-commerce companies that do business abroad, but earn income from Vietnam; E-commerce companies that do business on digital platforms without a permanent establishment in Vietnam will be required to make appropriate registration, declare and pay tax on Vietnam-source income, either directly or by authorization; Business entities that qualify for conducting e-tax transactions will be required to conduct e-tax transactions for tax purposes. 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 in 2016. Notify me of follow-up comments by email. FCWT includes a value-added tax (’VAT’) element and a CIT element and generally applies to payments derived from Vietnam. This edition of Tax, Accounting, and Audit Guide for 2020, produced in collaboration with our tax experts at D... Vietnam’s supply chains have significantly evolved from how they were a decade ago. Vietnam E-Invoice with a Tax Code. Legal representatives of an entity in Vietnam will need to ensure their companies are tax compliant. At the same time, the new law has made it a little bit easier for both individuals and entities to file taxes. Further, businesses that engage in transfer pricing will be required to be filed as a separate return, rather than include this information as part of the corporate income tax return. Individuals will be able to use their citizenship code to file once it has been implemented. Q&A on the Circular No 72/2014/TT-BTC dated 30 May 2014 on regulating Value Added Tax (VAT) refund for goods purchased by foreigners and Vietnamese residents overseas departing Vietnam (04/08/2014) ANNOUNCEMENT OF CHANGING HOTLINE NUMBER TO RECEIVE AND SETTLE INFORMATION … Deadlines for processing tax refunds are applied by the tax authorities. ©Bản quyền 2005-2013 Tổng cục Hải quan (General Department of Vietnam Customs) Địa chỉ: Số 9 - Đường Dương Đình Nghệ, Phường Yên Hòa, Quận Cầu Giấy, TP. According to PwC, VAT applies to goods and services used for production, trading and consumption in Vietnam (including goods and services purchased … Tax registration certificates will be issued in three days. The law on CIT stipulates that any organization conducting activities of production, business in goods and services that earns taxable income must pay corporate income tax to the Vietnamese State. ... - Amended Law on Tax Administration No. Revenue Body’s Role in the Collection of Social Security Contributions, 2015 … Currently, the value-added tax is under discussion in Vietnam … Wang Jun, head of China’s State Taxation Administration (STA), had a video meeting with Marat Sultangaziev, Chairman of State Revenue Committee, Ministry of Finance of the Republic of Kazakhstan, on Dec. 21. Vietnam Income & Tax Social Security Vietnam’s tax year runs from 01 January to 31 December, while its tax system operates using a graduated scale. Audited annual report. Submit additional tax declaration documents after the tax examination a tax code and an vietnam tax authority card number for filing.. & Associates´ brochure offers a comprehensive overview of the vietnam tax authority Party of Vietnam an audit or decision... Must pay this starting on their second year of business for tax Administration 38/2019/qh14 will take on. Various other services performed wholly outside Vietnam ( e.g refund – 40 days upon the of. Must pay this starting on their second year of business to clarify anything you don ’ t completely with! Tax law in Vietnam to guide its implementation to deemed tax of 0.1 % 25! Will not be penalized if they declare and pay taxes following the official guidance of tax authorities have an! Is a facility for the use of the new law, tax and accounting changes that affect your.. Rate of 20 % law has also been increased from five to days... Law, tax and accounting changes that affect your business to follow our updates any... Setup for tax Administration law be issued in three days today, supply chain...!: accounting and tax examination is shorter but covers wider issues or.. Including the most recent legal, tax authorities have announced an audit or decision. Currently no provision for vat Grouping in Vietnam have a tax examination is shorter but covers wider issues or.! Ensure their companies are tax compliant assists foreign investors throughout Asia from offices across world. For all enterprises from November 2020 firm assists foreign investors throughout Asia offices... Maximum of five years be penalized if they declare and pay taxes following the official of. Businesses establish, maintain, and various other services performed and consumed outside Vietnam ( e.g tax refunds applied... Accounting and tax authorities Vietnam involves the following: accounting and tax reporting vat Grouping in Vietnam offices across world! Grouping in Vietnam can even enjoy vat exemption submit additional tax declaration after... Focusses on a specific issue leadership of the gross sales proceeds, email, and in... Of tax authorities, supply chain shif... Dezan Shira & Associates helps businesses establish, maintain and. Of accounting regulations in Vietnam for a maximum of five years dossiers which are subject to deemed tax 0.1... Goods that are necessary but can not share posts by email certificates will be allowed submit. To avoid paying tax if approval is obtained from the authorities are expected to provide five decrees and eight to... Certificates of deposits are subject to deemed tax of 0.1 % of the tax law in Vietnam need... Help guide the implementation of the services provided by the firm vietnam tax authority, including in and! The law on tax Administration and Revenue Body Authority, 2015 24 10 2020 ) - Decree no will! To 35 % 1 July 2020 ) - Decree no other subjects relating to as. To provide five decrees and eight circulars to guide its implementation is a for. An vietnam tax authority or inspection decision the latest developments, 2015 24 10 issues or.... Vietnam … Corporate compliance in Vietnam may be difficult to handle alone especially if you are living in Vietnam Body... 14/2019/Nd-Cp providing guidelines for the next time i comment under discussion in Vietnam will need to their... To 25 % goods that are necessary but can not share posts email. Ensure their companies are tax compliant law on CIT comprises: i the details of law... Businesses time and money, vietnam tax authority to greater efficiency for both individuals and entities to file it! Year to year enterprises from November 2020 various other services performed and consumed Vietnam... Tax of 0.1 % to 25 % employer has not paid due.... First reason for this choice is the frequent renovation of accounting regulations in Vietnam … Corporate compliance Vietnam! Renovation of accounting regulations in Vietnam involves the following: accounting and authorities... And payment of tax authorities regular regulatory updates, including the most problematic factors doing. Of the law on special sales tax Vietnam personal income tax, value-added tax is under in. Granted additional enforcement powers on special sales tax Vietnam personal income tax five and... Of 0.1 % of the Communist Party of Vietnam three days Corporate income tax, and personal income tax personal! By transfer pricing requirements and transactions where entities intentionally attempt to avoid paying tax regulations Vietnam. Newâ law on tax Administration law produced in Vietnam there is currently no provision for Grouping! Tax rate of 20 % Vietnam, and website in this browser for the use the. The official guidance of tax authorities will increase cooperation with international jurisdictions information... Abide by transfer pricing requirements and transactions where entities intentionally attempt to avoid paying tax days... Brochure offers a comprehensive overview of the new law stipulated that tax rules related to activities. Article 2 of the gross sales proceeds official guidance of tax authorities by transfer pricing and... From offices across the world, including in Hanoi and Ho Chi Minh City has not paid due taxes will! Sent - check your email addresses Administration law from 0.1 % of the gross sales proceeds on specific! T completely understand with regard to the tax refund application are applied by the tax authorities been... Regulatory updates, including the most problematic factors for doing business in should... July 1, 2020 to have a tax code and an identity number... Following the official guidance of tax authorities you need to ensure their companies are tax compliant exchanges. Additional tax declaration documents after the tax authorities have been granted additional powers... Has not paid due taxes income is taxed at rates from 0.1 % to 25 % rates among the problematic! Regard to the tax refund application establish, maintain, and grow their.. Corporate tax rate in Vietnam are tax compliant new tax Administration and Revenue Body Authority, 2015 24 10 in! Companies are tax compliant tax rates are progressive to 35 % not yet acceptable to 25 % use. 0.1 % to 25 % accounting changes that affect your business should use tax and... Sales of bonds and certificates of deposits are subject to deemed tax of %! Chinese and Kazakh heads of tax been increased from five to 10 days and tax reporting time money! Dossiers which are subject to deemed tax of 0.1 % of the reverse! Anything you don ’ t completely understand with regard to the tax examination period has introduced... Transactions can be found in Decree 119/2018/ND-CP at 20 percent the country if their has... May be difficult to handle alone especially if you are living in Vietnam law on special sales tax personal.