FCT is regulated under Circular 103/2014/TT-BTC issued by the Ministry of Finance dated 6 August 2014. Who are considered foreign contractors? Foreign contractors are: those practice or do business in Vietnam or generate income in Vietnam on the basis of a contract, agreement, or commitment with a Vietnamese party, or with another foreign party doing […]

Together with the rapid development of the economy, Vietnam enterprises have become one important connection in the global supply chains of products and services. As the result, tax compliance in Vietnamese enterprises relating to transferring pricing (TP) has been broadly discussed at tax conferences in recent years. This article addresses the ways to identify the […]

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 […]