The standard corporate income tax (CIT) rate is 20%. The World Bank’s Doing Business rankingshas Vietnam at No 104 in the world for ease of starting a business (69 overall globally for doing business), but it does note that reform is underway - it only takes eight procedures now, where it was over 100 a few years ago. Tax incentives include preferential corporate income tax rate of 10 percent for 15 years, corporate income tax exemption for four years, and a reduction of 50 percent for the following nine years. The main taxes levied by the Vietnamese authorities are the Corporate Income Tax, the Personal Income Tax and the Value Added Tax. On 21 January 2019, HDT issued Official Letter 3228/CT-TTHT … A tax resident is defined as someone residing in Vietnam for 183 days or more in either the calendar year or a period of 12 consecutive months from the date of arrival. This city of Vietnam named the Best Investment... Investors happy about new cut in corporate income... Here’s what you need to know about fireworks shows on Lunar New Year’s Eve across Vietnam, Vietnam confirms 19 more Covid-19 community transmissions as Dien Bien, Ha Giang recorded the first cases, MSB named Vietnam’s Most Volume Traded Bank in FX Trading Awards 2021 by Refinitiv, Samsung’ smartphone export from Vietnam accounts for over 50% global mobile phone supply, Logistics industry in Vietnam forecasted to grow significantly this year, The most welcoming cities in Vietnam you should know, How this company becomes the first global airline in the world to achieve COVID-19 Airline Safety Rating, Travelling to Vietnam During Tet: Celebrations at hotels across the country, Vietnam suspends all flights from and to Covid-19 hit province, 20% is the standard rate (preferential rates of 10%, 15%, and 17% are available where certain criteria are met), The rate of CIT applicable to firms operating in the oil and gas industry, Ranges from 32% to 50%, depending on the location and specific project conditions, CIT for firms engaging in prospecting, exploration and exploitation of mineral resources (e.g. The report noted that it still takes on average five years to conclude a bankruptcy case in Vietnam, and the recovery rate on average is only 21 percent. Nonemployment income is taxed at rates from 0.1% to 25%. KPMG’s corporate tax table provides a view of corporate tax rates around the world. The European Chamber of Commerce in Vietnam (EuroCham) at the Vietnam Business Forum held last December once again called on the Ministry of Finance (MoF) to provide a detailed timeline for amending the circulars guiding the VAT charge on medical device imports, with members shouldering a 10 per cent rate for a long time now. The current tax rate applicable to corporate … General Department Of Taxation - Ministry Of Finance, Vietnam Consumer Prices Fall for 1st Time Since 2001, FDI into Vietnam Rises 4.1%YoY in January, Vietnam Q4 GDP Growth Rate Accelerates to 4.48%, Vietnam Tourist Arrivals Sink 99.1% YoY in October, Vietnam Retail Sales Grow the Most in 9 Months, Vietnam Industrial Output Growth at 4-Month High, Fitch Revises Vietnam Credit Outlook to Positive, Seychelles January Inflation Rate Highest since 2012, South African Stocks End Higher on Friday, Russia Inflation Rate at Near 2-Year High. Vietnam Tax & Accounting Updates - Key Changes for the Month of September 2019 AMENDMENTS TO METHODS FOR DETERMINING CUSTOMS VALUES FOR IMPORT AND EXPORT TAXES On 30 August 2019, the Ministry of Finance issued Circular 60/2019/TT-BTC, amending regulations on determining customs values for imported and exported goods … Here’s what you…, Hoi An temporarily closes the pedestrian zone, Here’s what you need to know about fireworks…, Vietnam ranked 55th among 79 countries in digital…, Vietnam detained 72 people for illegally entering Vietnam. Corporate Tax Rates 2020. According to the General Department of Vietnam Customs, trade between the two nations reached US$121 million in 2019, up 8.2% on-year. You must have a company address and a lease signed before you register your entity. Type of Tax: Tax Rate and Base: CIT: 20% is the standard rate (preferential rates of 10%, 15%, and 17% are available where certain criteria are met) Value Added Tax (VAT) Value Added Tax is the most important indirect tax applied in Vietnam. KPMG’s corporate tax table provides a view of corporate tax rates around the world. Vietnam exported US$21.9 million worth of rice, textiles, and motorcycle accessories and others to this market while importing US$99 million of cashew and cotton, among others. It includes corporate income tax and VAT at effective rates ranging from 0.1% to 15%. Taxable revenue includes income from the sale of goods, provision of services, leasing or sale of assets, joint venture operations and more. PIT rates. To be advised in detail, you should contact a tax consulting firm in Vietnam. Employment income is taxed on a progressive tax rates basis. A withholding tax on foreign contractors is levied on the supply of goods and services by entities located outside Vietnam. However, if the business engages in highly-encouraged sectors or geographical areas, it is subject to corporate income tax incentives in Vietnam. Europe has the lowest regional average rate, at 20.27 percent (25.13 percent when weighted by GDP). Lately, the indirect form of taxation – VAT and GST, have become more established in ASEAN. Download historical data for 20 million indicators using your browser. The proposal would involve the introduction of a 17 percent corporate income tax rate (down from 20 percent) for those businesses with an annual turnover of between VND3bn (USD129,000) and not more than VND50bn in the preceding year, providing also that they have no … Follow us on Facebook | Twitter. Corporate Tax Rates 2020 includes information on statutory national and local corporate income tax rates applicable to companies and branches, as well as any applicable branch tax imposed in addition to the corporate income tax (e.g., branch profits tax or branch remittance tax). Corporate Tax Rates in 2017 for Comparison. It is paid every quarter (every three months). Enterprises operating in the oil and gas industry are subject to CIT rates ranging from 32% to 50%, depending on the location and specific project conditions. Revenues from the Corporate Tax Rate are an important source of income for the government of Vietnam. If you are deemed a resident in Vietnam, then you will be taxed on your worldwide income, meaning from both within and outside the country. Rates vary depending on the natural resource being exploited, from 1% to 40%, and are applied to the production output at a specified taxable value per unit. – 1% by employer (for Vietnamese citizens only) It’s also worth noting there are conditions and limits placed o… In 2017, the United Arab Emirates was the country with the highest corporate tax rate across the globe. Sorry, your blog cannot share posts by email. All rights reserved. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. Publish your articles and forecasts in our website. The country with the lowest tax rate in 2017 was a tie between… The Bahamas; Bahrain VND 0 - 60,000,000 5%; VND 60,000,000 - 120,000,000 10% The Personal Income Tax (PIT) rate is progressive from 5 to 35 per cent, depending on your revenue. Taxable Income per year (VND) Tax rate. tax rates tool test page. Nonresidents are taxed at a flat tax rate of 20%. close. – 3.0% by employer The standard corporate income tax rate is 20%. PwC - Vietnam Pocket Tax Book 2019 withholding tax where a relevant double taxation agreement or inter-governmental agreement applies. Personal income tax of Vietnamese and expatriate employees. The general corporate income tax rate in Vietnam is 20%. CONTRIBUTOR | Opinions expressed by contributors are their own. The Trading Economics Application Programming Interface (API) provides direct access to our data. For overpayments and underpayments, the balance will be settled every year. : As a percent of an employee’s salary: – 1.5% from the employee, As a percent of an employee’s salary: This tax applies to all forms of income, including dividends (except government bonds), interests (except bank deposits and life insurance), winnings, prizes and transfer of land. Vietnam personal income tax rates are progressive to 35%. The Corporate Tax Rate in Vietnam stands at 20 percent. medianet_versionId = "3121199"; Copyright © 2020 Vietnam Insider. Corporate Taxpayers are reminded that they are required to finalise and lodge their 2018 Corporate Income Tax returns and associated schedules/appendixes with the authorities by no later than 90 days after year end (31 March 2019, for those taxpayers with a standard 31 December 2018 year end). Applies to the production or import of certain goods, including cigarettes, cigars, spirits, beer, autos, assorted types of petrol, air conditioners and the provision of certain services including casinos, golf clubs and lotteries. Insights Industries Services Careers Events About Us Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. – 8% by the employee Every entrepreneur needs a trusted person or service for this sensitive matter. See also: Law Companion Ruling LCR 2019/5 Base rate entities and base rate entity passive income ; Company tax rates; Aggregation – to work out your aggregated turnover; Small business entity company tax rate. Doing business in Vietnam sounds easy to some foreign business, but it’s in contrast dealing with Vietnam law of accounting or tax. Doing business in Vietnam sounds easy to some foreign business, but it’s in contrast dealing with Vietnam law of accounting or tax. Share with your friends. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Corporate Tax: 20% standard rate Vietnam imposes a standard corporate tax rate of 20 per cent on a company’s profits, including the profits of its affiliates and branches. October 1, 2019. Vietnam imposes a standard corporate income tax (CIT) at a 20% flat rate. Other incentives include preferential credit loans, land use tax exemption, and land rental exemption. You need to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years. Most business activities and investments in Vietnam will be affected by the following taxes. close. Corporate Income Tax, or CIT, is levied at a rate of 20 percent on locally sourced profits of companies operating within the country. Official Letters are releases showing the Tax Authorities’ interpretation and application of Vietnam’s Taxation Laws, providing guidance to taxpayers in Vietnam. The list focuses on the main indicative types of taxes: corporate tax, individual income tax, and sales tax, including VAT and GST, but does not list capital gains tax. – 1% by Vietnamese employees. Vietnam’s Law on Personal Income Tax recognizes ten different categories of income, with a host of different deductions, tax rates, and exceptions applying to each of them. 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