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 Vietnam
New tax reform: No specific information
New tax treaties: No specific information
Local tax advisors
No specific information on the local tax advisors.
Website Tax administration: Click here
The definition of Resident Establishment follows the general definition of Permanent Establishment (in the meaning of article 5 of the OECD Model):
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity, without minimum time period.
Resident and non-resident companies are taxed on their worldwide income (« worldwide principle »).
There is no definition of residence under the domestic law.
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 20%.
Non-taxable income includes the following:
- Dividends received from qualifying participations;
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption ;
- Interest in excess of certain interest-capitalization thresholds;
Carry forward: Yes 5 years, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually before the 30 March of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay quarterly advance payments.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Vietnam are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 20% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 0% of the gross amount.
The general rate of WHT on interest is 5%.
The general rate of WHT on Royalties is 10%.
The general rate of WHT on management fees is 5%.
The general rate of WHT on technical services is 10%.
Note: technical services fall within the domestic definition of royalties
Generally, capital gains are taxed under the regular CIT as general income.
Standard VAT tax rate is 10%
Zero-rated supplies include, subject to certain conditions:
- exports of goods and services;
- International passenger transportation.
Exempt supplies include, subject to certain conditions:
- Certain financial services ;
- Certain insurance services ;
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
In case where for a tax period, Input VAT exceeds Output VAT, non-resident companies could not obtain a refund.
No other specific information of VAT in Vietnam.
The general statute of limitation is 2 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 5 years for negligent tax fraud and for wilful tax fraud.
There is foreign exchange control in Vietnam. Income and capital could be repatriated under regulations of the State Bank of Vietnam.
There are no thin capitalization rules in Vietnam. However, the interest derived from loans with foreign related party may not be deductible in case where interest exceeds some ratios.
Do not hesitate to share your experience in Vietnam with us in the comments below. Any comments are welcome !
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