After receiving the Investment Certificate, the FDI company should consider the following liabilities of company to be complied during operation.
Under the Vietnam Law, following taxes may affect to the Company and foreigner working for the Company in Vietnam:
– Corporate Income Tax which is levied on the taxable income of the Company. Taxable income of the Company to be calculated Corporate Income Tax shall be revenues generated in its course of production less reasonable expenses in the relevant fiscal year. Please carefully work with accounting services companies so that your company can enjoy tax incentive under Vietnam Law.
– Value Added Tax (VAT) applies to the supply of goods and services for use in production, business or consumption in Vietnam. VAT is calculated on the sale/purchase price of relevant goods or service before the addition of VAT.
– Import and Export Duties
– Personal Income Tax (PIT):
PIT shall be applied to resident foreigner who stay in Vietnam for 183 days or more within a consecutive 12 month period at progressive rates on worldwide-sourced regular income (regardless of where the income is paid) and Vietnam-sourced irregular income.
PIT shall be applied to non-resident foreigner who stays in Vietnam for less than 183 days in a consecutive 12 month period on regular and irregular income sourced in Vietnam during their residence in Vietnam.
PIT shall be applied to Vietnamese citizens working in Vietnam or outside Vietnam on worldwide-sourced regular income and irregular income.
2. Submission of Financial Statement:
The company should submit audited annual financial statement to Ho Chi Minh City Tax Agency and Department of Planning and Investment of Ho Chi Minh City.
In case the accumulated loss of the company exceeds the charter capital of the company during its operation, following measures shall be considered to be imposed to the Company:
– The Company is not allowed to expand the business scope in Vietnam;
– Company shall finance the company to resolve the accumulated loss the Company;
– Request for renewal of Investment Certificate of the Company shall be refused.
3. Submission of Project Implementation schedule report:
The Company should submit monthly, quarterly and annually report on investment assessment and supervision to Ho Chi Minh City Tax Agency; Department of Planning and Investment of Ho Chi Minh City and Statistical Office of Ho Chi Minh City. Form of such report is attached herewith for your kind reference.
If you have any further inquiry, please feel free to contact us.