New Updates of Law on Enterprises 2020


On 17 June 2020, the National Assembly had issued Law on Enterprises No. 59/2020/QH14 (“EL 20”) replacing Law on Enterprises No. 68/2014/QH13 (“EL 14”). EL 20 is effective from 1 January 2021 with the main points as below:

1. Changing the “state enterprise” definition
2. Adding more entities prohibited from establishing and managing enterprises
Concerns Over ERP System and Real Solutions For ERP


ERP system is a management software system which not only has a numerous effect in business, human resources, warehouse, finance ... but also helps the enterprise manage general operations, thereby saving a lot of time and increasing working efficiency.

Roadmap to apply the Vietnamese Financial Reporting Standards (VFRS) in alignment with IFRS



On 16 March 2020, the Ministry of Finance issued Decision No. 345/QĐ-BTC approving a scheme to apply financial reporting standards in Vietnam. For detailed objectives and roadmaps, please click here.


Revision to threshold on deductible interest expense


On 24 June 2020, the Government had issued Decree 68/2020/NĐ-CP (“Decree 68”) revising, amending Clause 3, Article 8 of Decree 20/2017/NĐ-CP (“Decree 20”) on tax administration applicable for enterprise having related party transactions. Decree 68 is effective from the signing date and applied from the tax year 2019. Below is a summary of the significant changes compared with Decree 20:

Increase tax reduction threshold to VND 11 million

In accordance with Resolution No. 954/2020/UBTVQH14 dated 2 June 2020, individual taxpayer shall be enjoyed a reduction from her monthly taxable income: