Taxation in Vietnam

Regarding to tax, after setting up the company, FDI company shall have to pay following tax: - Business License Tax: It is from 50USD-150USD/one year. Tax Rate shall very much depend on investment capital amount registered by your Company in Vietnam. - Corporate Income Tax: From 20-22% of profit of your...

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 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...

: Under the WTO’s Commitment and Vietnam Law on Investment, this kind of investment form is called Cross Border Supply. Accordingly, foreign investor has right to supply a service from the territory of their own country into the territory of another country without setting up any commercial presence in that country.

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...

We would like to provide you with some information about VAT in Vietnam as follows: Scope of application Value-added tax (’VAT’) applies to goods and services used for production, trading and consumption in Vietnam (including goods and services purchased from abroad). In each case the business must charge VAT on the...

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...

Question: How to calculate the Personal Income Tax Rate applicable for resident tax payer in Vietnam?   Answer: SBLAW would like to brief the progressive Personal Income Tax Rate applicable for resident tax payer in Vietnam as follows:   Income (A)                        ...

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; -...

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.