Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, the information provided below cannot be considered as comprehensive or deemed to constitute specific legal advice.
Yes we tax in USA
New tax reform: No specific information
New tax treaties:
- Tax treaty between USA and Vietnam is ratified by Vietnam.
Local tax advisors
No specific information on the local tax advisors.
There is no concept of Permanent establishment under the domestic law. However, foreign companies are taxable in USA if they are engaged in a trade or business in USA or if they receive revenues from US sources.
Resident companies are taxed on their worldwide income (« worldwide principle »). However, non-resident companies are only taxed on their revenues derived from USA sources (« source principle »).
Entities are considered to be resident for tax purposes in USA if their place of incorporation in USA or if they are engaged in a trade or business in USA.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is a progressive tax rate up to 35%.
Note: there is an alternative minimum tax
Non-taxable income includes the following:
- Dividends received from qualifying participations
- Certain capital gains deriving from qualifying participations
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
- Interest in excess of the thin-capitalization threshold
Carry forward: Yes 20 years for net operating loss and 5 years for capital loss, but some restrictions may apply.
Carry back: Yes 2 years for net operating loss and 3 years for capital loss, but some restrictions may apply.
Companies should submit the tax return annually before the 15th April of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay advance payments.
Whithholding Taxes (payment to foreign companies)
The local tax rates in USA are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 30% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 30% of the gross amount.
The general rate of WHT on interest is 30%.
The general rate of WHT on Royalties is 30%.
The general rate of WHT on management fees is 30%.
The general rate of WHT on technical services is 30%.
Generally, capital gains are taxed under the regular CIT as general income.
Note: capital gains deriving from qualifying participations are exempt under the participation exemption.
The general statute of limitation is 3 years starting at the end of the year in which the tax return had to be filed.
The statute of limitation could be extended to 6 years for substantial omissions, negligent tax fraud and for wilful tax fraud.
There is no foreign exchange control in USA. Income and capital could be freely repatriated.
There are thin capitalization rules in USA. The interest derived from loans between related parties may not be deductible in certain cases.
Do not hesitate to share your experience in USA with us in the comments below. Any comments are welcome !