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.