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In this newsletter, Grant Thornton Vietnam would like to update the latest regulations and notable tax policies as follows:

November 2018 - No.2

Tax Newsletter

In this newsletter, Grant Thornton Vietnam would like to update the latest important regulations and tax policies

Failure to manage permanent establishment risks when doing cross-border business activities may result in an unexpected negative impact on a multinational corporation’s tax position.

In this newsletter, Grant Thornton Vietnam would like to update the latest important regulations and tax policies

In this newsletter, Grant Thornton Vietnam would like to update significant points as follows:

Update on the latest regulations and important tax policies

Update on new Decrees, Circulars and guidance relating to tax policies June 2018 In this newsletter, Grant Thornton Vietnam would like to update significant points as follows: 1. Decree 59/2018/ND-CP and Circular 39/2018/TT-BTC providing guidelines on customs procedures 2. Decree 39/2018/ND-CP providing guidance for Law on support for small and medium size enterprises 3. Circular 25/2018/TT-BTC supplementing certain new guidelines on Value Added Tax, Corporate Income Tax and Personal Income Tax

1. New decree promulgating the penalties of administrative violations in the domain of accounting and independent audit. 2. Tax obligations on transferring leased land and factories on land from export processing enterprises to domestic enterprises . 3. Credit of overseas tax paid against Personal Income Tax (“PIT”) payable in Vietnam. 4. Deemed import duty can be subject to assessment for tax refund. 5. List of enterprises with a high probability of being subject to tax inspection and tax audit in 2018

Updates on Tax, Compulsory Insurance and Customs Policies

With the increasing number of mergers and acquisitions (“M&A”), transfer of contributed capital and securities is becoming more common and is widely used by both domestic and foreign investors. How to comply with the regulations and have efficiency tax efficient approach is one of the key concerns of most shareholders, who would like to invest or divest their ownership in a Vietnamese company. In general, share transfer in Vietnam includes the sale of capital contributed in a limited liability company (“LLC”) and securities of a joint stock company (“JSC”), and in certain circumstances, the taxes imposed on each transaction are different.

Update on new decree and guidance relating to tax policies, customs and labour issues

The majority of Vietnamese taxpayers end their financial years on December 31 and thus will be subject to the deadline for 2017 corporate income tax (“CIT”) returns on March 31, 2018.