VDB LoiUpdates & Analysis


Vietnam
18
May
2015
CLMV Power Update
Welcome to VDB Loi’s CLMV Power Update!
20
May
2013
Draft decree to loosen restrictions on A&P expenses and introduce thin capitalisation rule
Nowadays, advertising and promotion (A&P) activities play a big role in the business strategy of an enterprise. A&P costs make up a large proportion of the budget of a company, especially for multi­national companies in Vietnam. A ques­tion that arises is whether these costs are fully deductible for corporate income tax (CIT) purposes. In this regard, the gov­ernment has issued a draft decree to amend the CIT regulations including issues of A&P deductible cost and interest deduction on loans. Diagram 1 is a sum­mary of the evolution of the regulations regarding the treatment of A&P costs.
21
Mar
2013
Republic of San Marino signs tax treaty with Vietnam
In an effort to avoid the double taxation of international income and thus pro­mote foreign direct investment, Vietnam has concluded double taxation agreements (DTAs) with more than 60 countries to date – the most recent of which was with the Republic of San Marino on February 19 2013, the first of the five smallest juris­dictions […]
21
Jan
2013
New developments on accessing the zero VAT for international transport companies
The normal practice in international transportation is to consider a bill of lading (B/L) as evidence of a contract between the shipper and the transporter. This is not necessarily the case in Vietnam, however. It is a crucial issue, as companies can qualify for a zero VAT rate on the provision of international transportation services […]
20
Dec
2012
Ministry Of Finance issues clarification on VAT refunds
By Thuan Pham The issue of VAT refunds, especially in the case of the export of goods or services, is always a notable area of concern for an export enterprise. Subject to certain conditions, a refund request can be processed on a “refund first and review later” or a “review first and refund later” basis. […]
20
Dec
2012
Vietnam Issues New Tax Regulations for Casinos
By Thuan Pham (Director – Vietnam) Since the last draft Decree issued in 2010 which called for public opinions, the Ministry of Finance (“MOF”) has again issued a new draft and is seeking further opinions after conducting research on the casino business model in the region. The draft is expected to be approved within this […]
14
Sep
2012
Vietnam and Singapore Amend their Tax Treaty
On 12 September 2012, Vietnam and Singapore signed a second protocol to amend their tax treaty, most significantly with respect to services permanent establishments (PE) and gains on shares of companies holding immovable property. We highlight the following notable points: Capital gains on shares of companies that hold property With respect to the capital gains […]
6
Aug
2012
Vietnam GDT deems subsidiary of multinational a dependent agent PE
A recent ruling from the Vietnam GDT has deemed that the Vietnam subsidiary of a multinational company is actually a PE of the foreign parent. As a result, the revenue share that the subsidiary pays to the foreign parent cannot be exempt from Vietnam withholding tax under the DTA Vietnam has with the country of […]
24
Jul
2012
Which is more attractive for structuring investments into Vietnam: The (New) Hong Kong-Vietnam or the Singapore-Vietnam Double Taxation Agreement?
On 16 December 2008, the Government of the Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong”), and the Government of the Socialist Republic of Vietnam (“Vietnam”) have signed their first double taxation agreement (hereafter “HK-VN DTA”)[1]. The HK-VN DTA is bound to generate much interest from practitioners and from the […]
30
May
2012
Online advertising and training now subject to tax in Vietnam
With the issuance of Circular 60/2012/TT-BTC dated 12 April 2012 (Circular 60) on Foreign Contractor Tax (FCT), income received by a foreign contractor with respect to online advertising and online training is now subject to withholding tax in Vietnam. Under the prior Circular 134/2008/TT-BTC dated 31 December 2008 (Circular 134), income from advertising and training […]
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