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In an effort to provide detailed guidelines for implementation of some articles of the Decree No. 20/2017/ND-CP (“Decree 20”) issued by the Government on 24th February 2017 and promulgated the management of taxation on businesses having related party transaction(s), on 28th April 2017, the Ministry of Finance has issued Circular No. 41/2017/TT-BTC (“Circular 41” or “the Circular”) with effect from 1st May 2017 onwards.

In recent years, Vietnam has experienced favorable growth in the nation’s construction industry and the construction sector shows no sign of stagnation. For foreign contractors, it is a legal prerequisite to obtain a proper license (‘‘construction permit’’), in order to operate in Vietnam. The legal requirements are applicable to an extensive group of foreign contractors, including general contractors, main contractors, joint venture contractors and subcontractors.

Technology Transfer Contract shall be registered, audited and complied with Vietnamese regulations on assigned price from 1st July, 2018 onwards.

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.

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.

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

Challenges in Applying DTAs for Tax Protection

Tax Newsletter

Tax Newsletter January 2017

Personal Income Tax finalization for tax residents in 2016 December

Tax inspections and audit in 2016

Tax Audit 2015 First 6 months of 2016 and transfer pricing inspection

Tax Newsletter - August 2016

Updates on taxation, labour and customs