The September 2016 Tax Updates cover recent tax and accounting releases in Vietnam that may have an impact on Vietnamese business operations. As always, please contact
Domicile if you would like further information on any of the items discussed in our Tax Updates publications.

CIRCULAR 130 – PROVIDING DETAILED GUIDANCE ON THE IMPLEMENTATION OF A NUMBER OF EXISTING TAX LAWS

Subsequent to the issuance of Decree 100/2016 on 1 July 2016, the Ministry of Finance released Circular 130 on 12 August 2016 providing further guidance on a number of changes to existing tax laws including Value Added Tax (“VAT”) and Special Sales Tax (“STT”), as well as amending certain Tax Administrative Procedures. Key elements include:

VAT Refunds

Enterprises with revenues derived from exporting goods or services will be able to claim VAT refunds provided that they meet the VND300 million refund threshold. Notwithstanding, total VAT refund payments are capped at 10% of total revenue earned from exporting.

This may have a cash flow impact on business that are expanding or increasing their stock levels for export and have large credits at one time, or for highly seasonal businesses where large purchases are acquired out of sync with the exporting of products.

For more information, click Tax Update September 2016.


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