GMS Alert - Business travel is back: how should companies address compliance risks associated with business travel?

Business travel is showing notable signs of recovery post pandemic and so it is likely to be an area of focus for the Vietnamese competent authorities

Business travellers fall into two categories:

• those coming on ordinary business travel e.g. shareholder/project oversight, training, conferences; and
• those being employees of foreign entities which have no commercial presence in Vietnam coming to Vietnam to perform services either under a service contract for Vietnam client/Company or for their employing Company.

Issues that have arisen:

• Misperception that there is a threshold for minimum stay period in VN to avoid tax reporting: domestic law mandates tax reporting from day one.
• Assuming that tax exemption under a Tax Treaty is automatically applied: not declaring tax or filing a tax exemption application.
• Obtaining incorrect visa when entering Vietnam.
• Not obtaining a suitable work permit as mandated under the labour regulations
• Lack of awareness of the obligation by a Vietnam Company to report their foreign contractors' information to the Tax authorities as well as labour reporting requirements in relation to business travellers.

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