Our September 2018 publication on Tax and Accounting updates looks at business registration changes that simply a number of procedures, along with the regular review of recent Official Letters released by the Tax Authorities. The Official Letters cover foreign dividend payments, Personal Income Tax for foreign experts, deductibility for expenses that are paid through personal bank accounts, Foreign Contractors Tax on Software, and education payment exemptions for children of foreign employees.
CHANGES TO BUSINESS REGISTRATION PROCEDURES
On 23 August 2018, the Vietnamese Government released Decree 108/2018/ND-CP, amending elements to Decree 78/2015/ND-CP on business registrations.
Some significant amendments arising from the Decree include:
• The Authorization Letter for individuals undertaking the registration procedures is no longer required to be notarized (Clause 2 of Article 1).
• The removal of the requirement to legalize the investor Charter where the established company is registered as a single member limited liability company (LLC) and the company’s owner is a corporate (Clause 4 of Article 1).
• Additional guidance for enterprise registration when converting from a household business (Clause 6 of Article 1).
• The removal on the restriction on establishing business locations only in the province/city where the headquarters or the branch is located (Clause 9 of Article 1).
• The ability to notify the seal specimen of the enterprise can be made online without needing to submit directly to the Business Registration Office (Clause 10 of Article 1), and
• The removal of the requirement that Financial Statements be provided when seeking to decrease charter capital (Clause 14 of Article 1).
The Decree is effective from 10 October 2018.
For more information, click Vietnam Tax Update September 2018 – Domicile
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