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International Financial Reporting Advisory Services
IFRS reporting advisory serivces of Grant Thornton are carried out by our dedicated team with expertise in IFRS implementation.
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Audit Services
• Statutory audit • Review of financial statements and financial information • Agreed-upon procedures • FRAS services • Compilation of financial information • Reporting accountant • Cross-border audit • US GAAP audit
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Audit Quality
We have various methods of monitoring our system of quality control and engagement quality, including real-time involvement of coaches and national office personnel on select audit engagements, reviews of issuer audit engagements prior to archiving by someone outside of the engagement team, and internal inspections of assurance engagements and the system of quality control.
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Audit Approach
Audit Approach
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Licensing services
Licensing services
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International tax planning
Our extensive international network provides us with significant resources to meet all your expansion goals. We strive to develop commercially focused and tailored tax strategies to minimise tax exposures and maximise business efficiency.
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Expatriate tax planning
We have a broad knowledge base and skills to assist you keep your personal income taxes to a legitimate and reasonable level, while remaining compliant with legislation. We can develop a personalised package for each key employee to take maximum advantage of the exemptions and incentives available.
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Tax advisory
We will review the proposed business model and transactions and advise on tax implications and recommendations to optimize the tax opportunities under the local regulations and treaties which Vietnam entered into. Furthermore, we coordinate with our GT global tax team to provide a comprehensive tax advisory for the countries involved in the business model and transactions.
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Tax compliance services
This service is designed to assist enterprises to cope with the statutory tax declaration requirements in line with the Vietnamese tax laws as well as the frequent changes and updates in tax laws.
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Tax health check
Our Tax Health Check involves a high-level review of specific tax areas to highlight the key issues that need to be rectified in order to reduce tax risks. Through our extensive experience, we have identified key risk areas in which many enterprises are not fully compliant or often overlook potential tax planning opportunities. Our tax health check service represents a cost-effective method to proactively manage risks and reduce potential issues arising as a result of a tax inspection.
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Transfer Pricing
Transfer pricing is a pervasive tax issue among multinational companies. In Vietnam, the tax authorities require special documentation to report related party transactions. Compliance with transfer pricing regulations is an important aspect of doing business effectively in Vietnam as failure to do so may result in significant penalties.
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Tax due diligence
We conduct tax due diligence reviews of target companies to analyse their tax exposure and position in relation to acquisitions, mergers or consolidations. We are able to integrate this service with our Advisory Services department in order to offer a comprehensive, holistic due diligence review.
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Customs and international trade
Our experienced professionals can help you manage customs issues more effectively through valuation planning and making use of available free trade agreements. We also assist Clients in optimising their customs procedures by making use of potential duty exemptions and efficient import-export structures. Risk mitigation activities include customs audit defense and compliance reviews.
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M&A Transaction
We advise numerous foreign investors on efficient tax structures for their investments. Our experience allows you to consider all the options and set up a corporate structure that meets both operational and tax efficiency requirements. In short, the structure that is best for you.
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Industrial Zones – Picking A Location For Your Business
Grant Thornton Vietnam’s one-stop services are designed to provide comprehensive support to both new and current investors who are planning to expand or restructure their business in Vietnam. Our professionals have established strong working relationships with landlords, property developers and authorities at various localities. With extensive experiences in liaison with the relevant agencies, we offer assistance including negotiation on land rental rates and efficient management of licensing process. Our customized and flexible solutions can bring benefits of cost efficient location, accelerate licensing process, and optimize tax opportunities while remaining in compliance with legislation.
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Tax Audit Support
Tax audit support services provide comprehensive assistance to your business in Vietnam. Recent tax practices have shown the general tendency of launching routine tax audit on yearly basis. Tax authorities have been effectively using more sophisticated methods to identify target entities from across different industry sectors.
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Business Risk Services
Business Risk Services
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Transaction Advisory Services
Transaction Advisory Services
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Valuation
Valuation
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Business consulting services
Finance Management Advisory
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Accounting services
Accounting services
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Taxes compliance within outsourcing
Taxes compliance within outsourcing
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Payroll, personal income tax and labor compliance
Payroll, personal income tax and labor compliance
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Secondments/Loan staff services
Secondments/Loan staff services
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Compilation of the financial and non-financial information
Compilation of the financial and non-financial information
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Accounting systems review and improvement
Accounting systems review and improvement
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Initial setting-up for accounting and taxes systems
Initial setting-up for accounting and taxes systems
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Management accounting and analysis
Management accounting and analysis
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Comprehensive ERP system solution
ERP software is a tool for business operations, production management, order processing and inventory in the business process. Today, ERP software for small and medium businesses has been greatly improved to help businesses manage their business better. The article below will answer all relevant information about what ERP software is and offer the most suitable ERP solution for businesses. Let's follow along!
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Analyze Business Administration data
We believe in the value that data can bring to the success and development of every business. Our team helps design data architecture supported by tools, to support business governance and provide useful information to management.
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Financial reporting compliance solution package
Putting financial issues at the heart, this service helps ensure that financial reports for customers comply with both the requirements of Vietnamese accounting regulations and standards (VAS) as well as reporting standards. international finance (IFRS).
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Third-party ERP extensions
ERP is a long-term solution that requires long-term travel, not short-term. We understand that many businesses cannot deploy the entire ERP system at once due to many different reasons, instead businesses can deploy each part. Over time, these solutions can be expanded to accommodate improved business processes or can even link completely new processes across different departments.
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Localize, deploy and rebuild the project
Quite a few ERP projects need to be implemented according to current Vietnamese requirements and regulations, but still comply with common international business requirements. These projects need some improvements and adjustments in the right direction.
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Consulting on technology solutions
We support the selection and implementation of the most suitable solutions, ensuring business efficiency and performance. We will work closely with customers to plan, evaluate and implement the right technology investment strategies and solutions to meet the development needs of businesses.
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Offshore company establishment service
Using the offshore company model will facilitate the owner in the process of transaction and expand overseas markets, take advantage of the tax policy with many incentives and protect the value of the family enterprise's assets.
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Private Trust Advisory
The development of the economy with many modern financial instruments has brought many advantages and opportunities for the enterprises, but there are still certain potential risks in any type of business. So how to protect your asset value with an appropriate company structure while stay compliance with relevant regulations?
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Our values
We have six CLEARR values that underpin our culture and are embedded in everything we do.
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Learning & development
At Grant Thornton we believe learning and development opportunities help to unlock your potential for growth, allowing you to be at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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Contact us
Contact us
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Available positions
Experienced hires
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Available positions
Available positions
Joining the Trans Pacific Partnership (‘‘TPP’’) will open up potential opportunities for both Vietnamese and foreign investors. Vietnam seems to be a more attractive market, relatively high dividend yields and a country that should benefit the most from TPP. However, foreign investors need to consider other regulatory factors, in Vietnam, that affect their net income. One important factor that foreign investors should consider carefully, when investing in Vietnam, is tax on dividends, which ultimately impacts their net return on investment.
Principle of Paying Dividends
Under current Vietnamese regulations, dividends are defined as the enterprise’s net profit paid on each share, after the enterprise has completed all its financial obligations with related parties on an annual basis, comprising:
- fulfillment of all taxes and other compulsory finance obligations to state owned agencies;
- making appropriate reserve funds for previous losses or possible losses; and
- after paying all dividends, the enterprise is still able to guarantees its financial capacity for payment of all current payables.
How are Dividends Taxed in Vietnam?
In Vietnam, dividends can be paid in cash, shares or other properties in accordance with the provisions of the company’s charter:
It is worth noting that dividends paid to corporate investors are exempted from tax in Vietnam regardless of whether they are foreign or domestic corporate entities. However, individual investors are taxed differently depending upon the time and form of dividend payment governed by the Vietnamese Personal Income Tax (‘‘PIT’’) regime.
Dividends are taxed separately from the individual investors’ other income and on a transaction basis. Specifically, dividends paid to foreign individual investors are taxed at a flat rate without any consideration of their tax-resident status in Vietnam.
Dividends paid in cash to foreign individual investors (‘‘FII’’) are taxed at 5% at the time the dividend is paid.
Nevertheless, if the dividends are paid by shares, the FII are not required to pay PIT at the time the dividend is paid by the issue of shares. When selling shares previously issued by way of dividend, investors will have to declare and pay PIT on two types of income, i.e. income from capital assignment and income from capital investment with the PIT rates of 0.1% and 5% on the assigned price, respectively. It is noted that in case the assigned price is lower than either the par value or the market price, the taxable
income shall be calculated by reference to the market price at the transaction time determined by the tax authority.
Dividends paid by way of other properties, has rarely happened in Vietnam. If paid by way of goods and inventories, they are required to be converted into cash equivalent for PIT purposes.
Finally, for dividends paid by bonds, there is still a lack of guidance in the case of bonds. Logically and similarly to dividends paid by shares, PIT should not be imposed upon receipt of bonds. Instead, the FII are subject to PIT when earning interest and transferring bonds at a later date.
Which are the Vehicles for the Vietnamese Tax Authorities to Collect PIT on Dividends?
As mentioned above, depending on the dividend payment status, there are various forms to be filed at different times resulting in different withholding parties and filing times.
In principle, the dividend-payer is responsible for withholding the associated PIT on dividends prior to payment, then, filing the PIT returns and issuing the PIT withholding certificates to the FII as the proof of the fulfillment of the PIT obligations.
However, if the FII receives the dividend by way of shares and subsequently earns income from selling them, one of the following parties will be responsible for those obligations: the security company; the commercial bank holding the investment account; the authorized fund manager of the investor; or the share assignee.
How to Comply with Vietnamese PIT Laws
Vietnam has had a PIT regime for a long time, however, it was still an ordinance. It was upgraded and passed into law with effect from 2009, thus, it is still in the process of improvement and development. As a result, there have been several amendments and supplements to the PIT law up to now, including the PIT rate on dividends, PIT filing time/forms, etc. Any late or wrong PIT filing always leads to the imposition of associated penalties. Therefore, besides studying an investee’s financial status, the FII should study their legal status to ensure that they fully comply with local tax laws. In addition, the FII should require them to issue the legitimate PIT withholding certificate for evidence of the completion of Vietnamese PIT obligations.