Vietnam has been successfully luring investors from all over the globe; however, understanding the country’s regulatory framework is quite challenging, especially those related to taxes. Moreover, being unaware of the constantly changing laws and regulations can land a business into compliance issues which can lead to the imposition of penalties. Therefore, it becomes vital for foreign investors expanding to Vietnam to hire reliable professionals for tax-related services. Having a tax advisor is the most full-proof way of staying updated & in compliance while you focus on your bottom line.
Doing business in Vietnam? Read about Cekindo’s Tax Advisory Service in Vietnam
Benefits of using a Tax Advisory Service in Vietnam
- Stay on top of compliance: Tax professionals stay mindful of any updates or changes made by the tax authorities. Hence, they can quickly ensure that your company always complies with new or updated regulations.
- Quick Expert Advice: A business operates in a dynamic environment; therefore, to make sure it runs seamlessly, it is imperative for management to have immediate access to tax professionals for their expertise. Cekindo’s tax advisors are always there for all of your tax needs while doing business in Vietnam.
- Focus on your bottom line: Having outsourced professionals handling your taxes allows your team to focus on core business expansion tasks and generate more revenues.
What is included in Tax Advisory & Consulting Service?
- Consultancy regarding tax holidays & exemptions: The government offers various tax incentives to encourage foreign investors to expand to Vietnam. One such incentive includes tax holidays.
After analyzing your business operations, our team of tax consultants will guide you on how to save on your taxes through tax holidays, applicable for your first years of operations, and be in compliance with all tax-related regulations.
- Preparation for obligatory tax checking: A business must eliminate any scope of error and uncertainty when the tax authorities perform an audit, which will happen at least once to every foreign company. Hence, our team of consultants makes sure that all the facets related to tax checking are diligently taken care of.
NOTE: For our consultants to help you prepare for tax checking, you must have been engaged with our accounting service contract with your company from the first year of operations. - Corporate income tax & value-added tax services: We offer an ad-hoc service for companies to help them keep track of their high-volume transactions and avoid any penalties due to non-compliance.
- Tax audit services: We assist in preparing reports to be submitted to the tax auditing authorities in Vietnam. Moreover, our tax professionals will help you file the FDI audit, which is due every 31st of March and is mandatory for all foreign companies to comply with.
RELATED: Tax Incentives in Vietnam: A Comprehensive Guide for Foreign Companies
What to know about Corporate Taxes in Vietnam
Personal Income Tax (PIT)
Personal Tax in Vietnam can be calculated for residents and non-residents individuals as well. The actual rates vary.
For Residents
A resident needs to meet one of the following conditions
- He/she has to be present in Vietnam for 183 days or more
- Have a permanent residence in Vietnam
- Have a rental agreement
Tax filing: Taxes need to be filed annually or each time income is earned in specific cases, for instance, royalties, income from the capital transfer, income from winning prizes, and real estate earnings.
PIT rate: The tax rate varies from 5% to 35%, depending on the income generated during the financial year.
For Non-Residents
A non-resident individual is placed under a distinct tax category for personal income tax filing.
Tax filing: Each time income is generated
PIT rate: 20%
Value Added Tax (VAT)
Depending on the business domain and type of goods and services involved, the VAT rate in Vietnam is 10%.
However, to aid industries that were impacted due to COVID-19, the government decided to switch the standard rate to 8% for the remainder of 2022.
Corporate Income Tax (CIT)
The CIT rate for businesses in Vietnam stands at 20%, barring some specific instances where a separate tax rate is applied. For example, exploring and exploiting oil and gas resources, finding rare and precious natural resources, etc.
