Benefits of using a Tax Advisory Service
We understand that doing business in an emerging market like Vietnam can be frustrating with the constant changes to, and creation of new, regulations, let us take the headache out of market expansion today.
Benefits of a Tax Advisory & Consulting Service in Vietnam
Consulting on Tax Holidays & Exemptions
The Vietnamese government offers attractive tax holidays and exceptions for companies investing in the country for the first time, with minimum tax payments and assisting in advising on how to apply for tax holidays our team will help you save money and be in compliance from day 1. We will analyze your business and based on the location of your operations we will work with the local tax office to explore your tax holiday and exception options.
Prepare for Obligatory Tax Check
Track Invoices for all transactions since starting, to reduce errors & risk when the tax authorities run a check on your business operations. Usually, every foreign firm operating in Vietnam will have to go through this after 4-5 years in the country. We will assist you in preparation for the tax office visit to make sure you are fully in compliance and you avoid any unnecessary fines. One Requirement: For us to assist with this service we have to be your accounting provider from the first year of operations.
Corporate Income Tax & Value Added Tax Services
This is an on-call service for companies with high transaction volumes who cannot afford to be out of compliance. This service focuses particularly on VAT and CIT transactions needs while avoiding loss of profits. Therefore, in order to avoid unnecessary tax risks, our service will immediately address your questions and concerns as soon as they arise.
Personal Income Tax Services
Last but not least, we offer tax auditing services to companies who require professional assistance and support in preparing reports to be submitted to the tax auditing office in Vietnam. Furthermore, we help with the required FDI audit which is due every 31st of March by foreign companies who have invested and are operating in Vietnam
What to know about Corporate Taxes in Vietnam
Personal Income Tax
There are 2 cases for calculating PIT in Vietnam: for residents and non-residents individual.
1.1. Condition: when
meeting one of the following conditions:
- Present in Vietnam for 183 days or more
- Have a regular place of residence in Vietnam
- Have a house to rent in Vietnam
1.2. Tax period:
- An annual basis, or
- Each time income is generated for some special cases, for example, income from the capital transfer, real estate, income from winning prizes, royalties…
1.3. PIT rate:
- 10% for probation labor contract; or from 5% to 35% for signing labor contract.
- 2.1. Condition: are individuals who do not meet the conditions of individual residences.
- 2.2. Tax period: Each time income is generated
- 2.3. PIT rate: 20%
Value Added Tax
There are 4 rates of VAT in Vietnam: non-taxable, 0%, 5%, and 10%, of which the most common is the 10% tax rate. The applicable tax rate will depend on each business field and different types of goods and services.
*In 2022, the government has made a decision to support industries that are using the 10% tax rate to switch to the 8% tax rate to support the damage caused by covid-19.
Corporate Income Tax
The corporate income tax rate for enterprises in Vietnam is 20%, except for some special cases where a separate tax rate is applied as prescribed, for example, activities of searching, exploring, and exploiting oil and gas, rare and precious natural resources.