Taxation in Vietnam

SBLAW would like to provide some legal regulation about tax Losses in Vietnam as follows:

Foreign Contractor Withholding Tax ('FCWT') applies to payments of interest, royalties, licence fees, foreign contractors’ fees, cross-border leases, insurance/reinsurance, airline and express delivery charges to a foreign entity.

The withholding taxes in the table be affected by relevant DTAs. For example, the deemed CIT on foreign contractors may be eliminated or reduced through a relevant DTA.

Q: What does the term "Withholding tax" mean in practice?  I.e. which are the consequences of this? A: Withholding tax in practice shall mean Corporate Income Tax and Value Added Tax applicable to foreign company not having representation in Vietnam. For real estate management service, the VAT applicable to foreign company not having...

Natural resources tax is payable by industries exploiting Vietnam’s natural resources such as petroleum, minerals, forest products, seafood and natural water.

The rental of land use rights by foreign contactor (FC) is in effect a form of property tax rather than land tax. It is usually known as land rental and the range of rates is wide depending upon the location, infrastructure and the industrial sector in which the business is...

Land in Vietnam is owned by the State, meaning that users of land are required to acquire or rent land use rights from the government.

Under Vietnam Law, tax incentives are granted based on regulated encouraged sectors and difficult socio-economic locations.

Import duty exemptions are provided for projects which are classified as encouraged sectors and goods imported in certain circumstances. In line with the Law on investment (Article 33.3), machinery and equipment, specialized means of transportation and construction materials (which cannot be produced in Vietnam) for use as the fixed assets...

According to the Agreement between the government of the Government of Socialist Republic of Vietnam and the foreign countries (for example Government of Republic of France), a Tax Payer shall be considered as having permanent establishment in a Country if it has one of followings: - A registered head office; -...