On 26 November 2014, the National Assemply (NA)
approved laws amending a number of tax laws. The official versions of the laws
are not available until the end of this NA session. However, we would like to provide
a quick update on important changes that have been approved.

The 15% cap on advertising and
promotion expenses for Corporate Income Tax (CIT) calculation purposes is
removed. This is a long-awaited development by the business community in

Tax incentives for supporting
industries and prioritized products (e.g. products supporting IT, mechanical
industries) are introduced.

Personal Income Tax (PIT) for
property transfer and securities trading are now calculated at flat rates of 2%
and 0.1%, respectively, rather than on net profit.

Business income of individuals having
revenue of more than VND100million per annum is now subject to PIT at
relatively low flat rates, rather than progressive tax rates.

SCT rates for certain goods and
services such as cigarettes and beer have been increased.

Tax administrative procedures have
been further streamlined (e.g. removing invoice lists in tax returns, easing
the taxpayers’ burden of providing supporting documents), consistently with the
Government’s target on reducing the administrative burden on taxpayers.

Except for the SCT changes which will come into
effect from 1 January 2016, other tax changes will take effect from 1 January

Details of the changes will be provided in our
coming Tax Update.

For more information, please CLICK HERE