Their February 2018 Tax Update publication proves a summary of recent updates relevant to Vietnamese businesses. We also look at recent Official Letters from the Tax Authorities to help provide guidance in applying various laws in Vietnam.

DECREE AMENDING SELECTED CORPORATE INCOME TAX AND VALUE ADDED TAX ARTICLES

On 15 December 2017, the Government issued Decree 146/2017/ND-CP amending and supplementing some articles of Decree 100/2016/ND-CP and Decree 12/2015/ND-CP on
Corporate Income Tax (“CIT”) and Value Added Tax (“VAT”) as follows:

i) Value Added Tax
Where exported goods have natural resources, mineral resources and energy costs accounting for 51% or more of the total product cost:
• where the exported goods are directly made from the natural resources or minerals, the goods are not subject to VAT; and
• where the natural resources or minerals are processed into different products which are then processed into finished products for export, the final exported goods will be subject to a 0% VAT rate;
The value of natural resource, mineral and energy costs excludes transportation costs from the place of purchase to the place of processing/production.

ii) Corporate Income Tax
CIT deductions for contributions to voluntary retirement funds, voluntary retirement insurances or for life insurances for employees shall be capped at VND 3 million per person/month.

Decree 146 took effect from 1 February 2018.

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


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