What are the current regulations on CIT? CIT Law 32, 2013 amended some key regulations in the CIT Law 14, 2008. How is CIT computed and CIT rate? CIT = Taxable Income * Tax rate Taxable income in a period shall be determined as follows: TI = TT – DE + OTI TI – Taxable […]

The property market in Vietnam has been amazingly developed in the past few years.  Individuals (including local and expatriates) buying apartments, and houses and then leasing them out under a standard lease agreement is getting more and more common in Vietnam. This practice raises tax implications for the rental income according to the current tax […]

Establishment cost Establishment cost is the expense incurred prior to the business registration certificate granted by the competent authority. Cost may consist of licensing fees, office rent, and other costs for goods and services rendered. Shall these expenses be considered reasonable expenses for CIT calculation, or deductible for VAT declaration? Establishment cost is considered reasonable […]

Who are PIT payers in Vietnam? How is PIT determined? All individuals who have income raised in Vietnam are regulated as PIT payers in Vietnam. PIT is determined on a residency basis. A resident is a person satisfying either: physical presence in Vietnam in an aggregate of 183 days or more in a solar year […]

Establishment cost Establishment cost is the expense incurred prior to the business registration certificate granted by the competent authority. Cost may consist of licensing fees, office rent, and other costs for goods and services rendered. Shall these expenses be considered reasonable expenses for CIT calculation or deductible for VAT declaration? Establishment costs are considered reasonable […]

The necessity of corporates’ salary range establishment The labor code regulates that corporate needs to establish the salary range and norms. In practice, establishing salary ranges and norms would help corporates monitor salary budgets and costs. With an up-to-date salary range and norms, business owners would be able to track and analyze the salary movement […]

Following Company Law 2020, the capital contribution for establishing a company could be in a form of cash, gold, or other assets. In this article, we address the capital contribution in cash. Having supported a variety of foreign-invested companies and entrepreneurs in Vietnam in establishing the business in terms of legal, accounting, and tax, we […]

Salary and wages Wage is an amount in cash or in kind that is paid to the employee by the employer based on mutually agreement (i.e. labour contract) made by the two parties. Salary calculation principles According to the Labor Code 2019 and Decree 145 in 2020 guiding implementation of the Code, there are three […]