This April 2018 Tax Update covers recent selected Decrees and Circulars which provide further clarity for businesses in Vietnam, and we also look at a selection of recent Official Letters released by Tax and related authorities.

CRITERIA FOR DETERMINING MICRO ENTERPRISES, SMALL ENTERPRISES, AND MEDIUM ENTERPRISES

On 11 March 2018, the Government issued Decree 39/2018/ND-CP providing guidance for the Law Supporting Small and Medium Enterprises and replacing Decree 56/2009/ND-CP issued on 30 June 2009. The Decree also clarifies the criteria for determining the size of enterprises in different sectors, which is important for a number of purposes, including Government incentives and support, and statutory obligations.

TAX GUIDANCE AMENDMENTS

On 16 March 2018 the Ministry of Finance issued Circular 25/2018/TTBTC, providing guidance on a number of Decrees and Circulars. Some matters covered include.

• When mergers and acquisitions involving capital transfers occur, and there is a resulting transfer of depreciable assets to a transferee enterprise, the transferred assets are eligible for depreciation at the carrying amount remaining on the books of account at the transferring enterprise.
• The deduction limit for payments made for voluntary retirement, retirement insurance and life insurance for labourers is increased from 1 million VND to 3 million VND.

Circular 25/2018 / TT-BTC is effective from 1 May 2018.

For more information, click Vietnam Tax Update April 2018 – Domicile

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