What is tax compliance services?
Tax compliance or taxation is one of the most considered complicated part for the company. Especially in Vietnam, the taxation change constantly. When doing business in Vietnam, every company, firm, organization have to comply to the monthly, quarterly and yearly tax obligation. Understanding how the taxation works will take time and effort.
How to proceed?
The monthly/quarterly/yearly tax compliance will be reviewed to meet the newest regulation before submitting and making tax payment.
By understanding the procedure of the tax department, we can simplify some special cases and save more time.L
Personal Income Tax (“PIT”) is the tax which applies to the residents earning taxable income within and outside Vietnam’s territory and to non-residents who earn taxable income within Vietnam’s territory.
Tax regulations provide for many kinds of tax-exempt income, for example:
Reductions: Taxpayers who face difficulties caused by natural disasters, fire, accidents or severe diseases which affect their tax paying ability may be considered for tax reduction corresponding to the extent of damage they suffer from but not exceeding payable tax amounts.
There are several personal income tax rates which depend on the kinds of personal income such as:
The following investment sectors benefit from tax incentives:
There are process export zones with tax reductions such as:
VAT stands for “Value-Added Tax” and is imposed on the added value of goods or services arising in the process of production, circulation and consumption.
The general VAT rate is 10%. Other rates such as 0% or 5% can be applied depending on each specific product or service.
Foreign companies established and operating in Vietnam will be subject to the following taxes: Value Added Tax, Corporate Income Tax, and Personal Income Tax (applicable to employees, owners, companies members, shareholders in the company), license tax, and other taxes depending on each specific case such as: environmental protection tax, land use tax, special consumption tax, import and export tax, etc.
Yes. Tax law of Vietnam offers many preferential policies for foreign-invested companies operating in Vietnam; depending on the type of industry and location of operation, the level of tax incentives will vary.
Depending on the type of goods and services provided by the company, the corresponding value added tax rate can be: non-taxable, 5% or 10%, or depending on the form of activity (domestic consumption or export) 0%.
Vietnam applies policies of double taxation avoidance (“DTA”) to individuals and companies from countries with which Vietnam has enterered into a DTA agreement. The types of taxes that are subject to the double taxation avoidance rules usually include Corporate Income Tax and Personal Income Tax.
Foreign investors (individuals / organizations) are allowed to remit profits to their country after the Vietnamese company has fulfilled its tax obligations.