Deal Update

• The Blue Circle’s 40MW Dam Nai wind farm located in Ninh Thuan saw the installation of its first G114-2.625 MW Gamesa turbine in August 2017;
• The Deutsches Haus, a two-tower office building in the heart of Ho Chi Minh City, built on a unique partnership between the German and the Vietnamese Government, will open its doors in September 2017.

Tax

Draft Law amending VAT, CIT, PIT

The Ministry of Finance published a draft law on 23 August 2017 proposing a number changes to the tax law.  Some of the key proposals for CIT and VAT are below.

VAT: (i) increase of the standard rate from 10% to 12% from 1 Jan 2019; (ii) the 5% rate to increase to 6% for certain goods and services; (iii) move a number of goods/services into the standard rate; (iv) transfer of land use rights to be taxable at standard rate (currently exempt from VAT).

CIT: (i) gains from real estate transfers to be set off against operational losses; (ii)capital/share transfers by non-residents proposed to be 0.1% on proceeds of sale rather than 20% on net gain.  The draft law is
expected to be debated by the National Assembly later this year.

For more information, click ATT00234


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