Amended Tax Law No. 70/NA adopted 15 December 2015 was published in the Lao Official Gazette of 9 May 2016 and will come into force on 24 May 2016. The new law was issued while Laos is facing a looming budgetary crisis. The new Government is trying to find ways to meet its financial priorities […]

The Vientiane Capital Tax Division issued Notice No. 0182/TD.VTE on 18 January 2016 regarding the 2015 tax payment certificate application. All domestic and foreign business units under the supervision of the Tax Division are required to submit two sets of documents: The first set of documents must be submitted not later than 1 March 2016: […]

Recently, the President of the Lao PDR issued Presidential Edict No. 001/P dated 15 December 2015 (“the Edict”) regarding the royalty rate for natural resources. The Edict imposes royalty rates for natural resources as follows: For general mineral resources – from 2% to 10% of the sales value, depending on the type of mineral. For […]

Recently, the Ministry of Industry and Commerce (MOIC) issued Notification No. 2121/IC.ERM dated 14 October 2015 (the Notification) regarding the inspection and monitoring of the existence of enterprises after incorporation. The Notification imposes a new reporting requirement on all enterprises. Enterprises are now obliged to submit an annual report to the enterprise registry officials within […]

A new regulation issued in July seeks to clarify and expand the tax base with regard to services subject to withholding tax at 2% under Article 23 of the Income Tax Law. Taxpayers should be aware of how the changes may impact them, particularly in cases where there has been dispute or doubt with regard […]

Highlights of this issue: Ten things to know about power in Myanmar A practical perspective on foreign financing transactions in Myanmar Key economic terms of Myanmar PPAs Kayah state offers opportunities Land acquisition problems facing IPP investors in Myanmar Myanmar IPPs in search of Terra Firma Salient features of Cambodia power regulations New Vietnam regulatory […]

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 […]

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 […]

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. Both ways lead […]

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 year. We note some important highlights […]

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 […]

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 […]

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 […]

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 […]