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During business operations enterprises can take loans granted locally and/or from offshore to finance their current or long-term investments. For cross-border loans, they are classified into two types, i.e. government debts and non-government debts. This article focusses on non-government debts administration compliance, domestic tax and tax treaty protection.

In this newsletter, Grant Thornton Vietnam would like to highlight the following updates in relation to invoices, taxation, custom, and investment procedures: 1. Amendment on the deadline for submission of the application on using self-printed invoices, as well as the notification on invoice publication, effective from 12 June 2017 2. Whether 0% interest rate loans will be subject to deemed tax? 3. Regulations on Value Added Tax (“VAT”) applicable for imported fixed assets as capital contribution for the establishment of an enterprise 4. Circular 02/2017/ TT-BKHDT provides guidance on the mechanism for the coordination in processing the application for investment registration and enterprise registration of foreign investors effective from 15 June 2017

In this month's newsletter, Grant Thornton Vietnam would like to update you on the tax audit and tax examination schedules of the year 2017 of General Department of Taxation (“GDT”) for your reference. GDT focuses on audit and examination of Value Added Tax (“VAT”) refund, comprehensive tax audit at offices of Enterprises and Foreign Invested Enterprises (“FIEs”) in retail sector.

In this newsletter, Grant Thornton Vietnam would like to provide an update in relation to taxes, insurances and customs regulations for your reference

Updates in PIT conditions for applying family relief, rewards to encourage efficient performance and PIT reduction when working in economic zones

Through the long process of formation and development, the bond market in Vietnam has been growing in both depth and scale, proving its role as a medium for long-term capital mobilization, in the economy, as well as addressing the shortfall of the State budget.

In this month’s newsletter, Grant Thornton Vietnam will provide updates, with regard to tax, customs and contracts with construction contractors for your reference as follows: 1.Corporate income tax incentives on interest from deposits, proceeds from defective materials, fines and compensation. 2.Setting production norms for all raw materials used for processing or manufacturing for export. 3.Customs procedures for handing over construction to Export-processing enterprises. 4.Handling breaches of contracts by members in the construction contractor partnership.

1. Value Added Tax (“VAT”) and Personal Income Tax (“PIT”) declaration for individuals doing business under Business Cooperation Contracts (“BCC”) with Uber. 2. Tax and tax administration regulations on the operation of Foreign-Based Companies which are running businesses in the field of e-commerce or bookings/reservations, in Vietnam.

On February 24, 2017, the Vietnam Government issued a new transfer pricing decree—Decree No.20/2017/ND-CP (the ‘‘decree’’)—which is effective from May 1, 2017. The decree replaces the existing transfer pricing regulations and provides new compliance requirements aligned with the concepts and principles from the Organization for Economic Cooperation and Development (‘‘OECD’’) guidelines and Base Erosion and Profit Shifting (‘‘BEPS’’) framework.

Guidance on 2016 Personal Income Tax (PIT) Finalization

With the trend of global integration and international cultural exchange in recent years, Vietnam frequently welcomes foreign artists, singers, athletes, football players and supermodels to participate in short-term performances and special events in Vietnam. During their stay in Vietnam, these foreigners may receive income under different forms, such as receiving directly from the performance organizer in Vietnam, or receiving from their foreign management companies/ foreign football teams. In addition, the Vietnamese organizers may also have to pay for their other benefits-in-kind, such as five-star hotels, luxury cars, 24/24 security service, etc.

Challenges in Applying DTAs for Tax Protection

Tax Newsletter updates tax policies on Funds for real estate investment (“the Funds”), Personal Income Tax (“PIT”) imposed on brokerage activities, business cooperation with individuals and Business Licenses for commercial trading activities and other activities directly related to purchase and sale of goods by Foreign Invested Enterprises (“FIE”) in Vietnam.

Tax Newsletter

Tax Newsletter January 2017