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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The fiscal year is from January 1st to December 31st.
Accounting Standards
Vietnamese Accounting System (VAS).
Accounting Regulation Bodies
The Ministry of Finance
Accounting Reports
The accounting structure comprises balance sheet, cash flow, trial balance and profits and losses.
Publication Requirements
Companies have to hand in Financial Report annually, including Accounting Report to Tax Department of the city.
Professional Accountancy Bodies
VACPA , Vietnam Association of Certified Public Accountants
Certification and Auditing
The annual financial statements of all foreign-invested business entities must be audited by an independent auditing company operating in Viet Nam: Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers.
Accounting News
Institute of Certified Management Accountants
Vietnam Association of Certified Public accountants
Accounting news in Vietnam

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Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT)
Tax Rate
10%
Reduced Tax Rate
There are 2 reduced rates:
- 0% on some exported goods and services, international transport, etc.
- 5% on agricultural products, water, medical goods and teaching aids, etc.

Consult detail guide of Vietnam Customs for more information.

Other Consumption Taxes
Luxury tax; special sales tax on cigarettes, alcohol, spirits and beer, vehicle with less than 24 seats, petrol, playing cards, joss paper and some air conditioners; excise tax on golf, discotheques, casinos.

Learn more about Service Providers in Vietnam on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
The general corporate tax rate is 22%.
Tax Rate For Foreign Companies
Consumption tax is applied the same for resident and non-resident.
Capital Gains Taxation
Capital gains are taxed as ordinary income, to the rate of 25%.
Main Allowable Deductions and Tax Credits
Deductions are possible in the case of preferential investments; factory relocalizations; modernization of technologies or assembly lines; depreciation; net operating losses; payment to foreign affiliates; special sales tax. For more information, consult the General Department of Taxation's website.
Other Corporate Taxes
Real property tax, social security contributions, stamp duty, foreign contractor withholding tax.

The Vietnamese government issued a decree on October 20 2011 raising dramatically fines on quoting prices in foreign currency or gold instead of quoting in the local currency VND, Vietnam dong. The penalty would range between VND 300 million to VND 500 million, about $14,000 to $ 24,000. Businesses paying in foreign currency or gold can also have their business license revoked.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Vietnam East Asia & Pacific United States Germany
Number of Payments of Taxes per Year 32.0 25.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 872.0 209.0 175.0 207.0
Total Share of Taxes (% of Profit) 34.5 34.5 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Individual Income Tax Tax rates from 5% to 35%.
Less than VND 60,000,000 per year 5%
Between VND 60,000,000 and 120,000,000 per year 10%
Between VND 120,000,000 and 216,000,000 per year 15%
Between VND 216,000,000 and 384,000,000 per year 20%
Between VND 384,000,000 and 624,000,000 per year 25%
Between VND 624,000,000  and 960,000,000 per year 30%
From VND 960,000,000 per year 35%
Allowable Deductions and Tax Credits
Tax deduction depending on family status, deduction of charities contributions.
Special Expatriate Tax Regime
No, but non-residents are subject to a flat income tax rate of 20%.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of countries having a tax convention with Vietnam.
Withholding Taxes
Dividends: 0/5%, Interest: 5%, Royalties: 10%.

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Sources of Fiscal Information

Tax Authorities
GDT
Other Domestic Resources
General Department of Vietnam Custom

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Learn more about Taxes and Accounting in Vietnam on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The National Office of Industrial Property and the Copyright Office of Vietnam.
Regional Organizations
Intellectual Property Rights Experts Group (IPEG), Intellectual Property Resource of each member economy of the APEC Community.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Patent Law
20 years Patent Cooperation Treaty (PCT)
Trademark
 
Trademarks law
10 years, renewable every 10 years. Trademark Law Treaty
Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
Design law
5 years  
Copyright
 
Copyright (Guidelines IP law)
50 years or indefinitely depending on the kind of works. Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Industrial Models
 
Models laws
5 years.  

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Legal Framework

Independence of Justice
The independence of justice is in progress in Vietnam.
Equal Treatment of Nationals and Foreigners
Nationals and foreigners living and working in Vietnam are treated equally.
The Language of Justice
Vietnamese.
Recourse to an Interpreter
Yes
Sources of the Law and Legal Similarities
The sources of the Vietnam law are:

 

 

- The Policy of the Party, the Government and the State

- The needs of socio-political management

- The political theories of Hochiminh, Marx and Lenin and

- International Treaties.

For more information.

Checking National Laws Online
Ministry of Justice
Vietnam Law

Learn more about Lawyers and Legal in Vietnam on Globaltrade.net, the Directory for International Trade Service Providers.

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Standards

National Standards Organizations
QUACERT, Vietnam Certification Centre
TCVN, Vietnam Directorate for Standards and Quality
QUATEST 3, Quality Assurance and Testing Center 3
Integration in the International Standards Network
The Directorate for Standards and Quality (STAMEQ) is member of the International Standardization Organization (ISO), the International Electronical Commission (IEC), International Organization of Legal Metrology (OIML), the Asian Pacific Metrology Program (APMP), the Asian Pacific Quality Organization (APQO), Asean Consultative Committee for Standards and Quality (ACCSQ), the Asian Pacific Economy Cooperation - Sub Committee for Standards Conformance (APEC -SCSC), the Asian Pacific Legal Metrology Forum (APLMF), the Asia-Europe Meeting / Trade Facilitation Action Plan / Standards and Conformity Assessment (ASEM/TFAP/SCA (en anglais)).
Classification of Standards
Vietnam national standards are the TCVN.
Online Consultation of Standards
Standards can be consulted on the STAMEQ website.
Certification Organizations
QUACERT Vietnam Certification Centre
QUATEST 3 Quality Assurance and Testing Center 3

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Business Practices

General Information
MPI, Ministry of Planning and Investment
Hochiminh City
Opening Hours and Days
Administrations and public utilities generally open from 7.30 AM to 11.30 AM and from 1.30 PM to 4.30 PM.
 

Public Holidays

Vietnamese new year - Tet 1st January, lunar calendar
New year's 1st January, lunar calendar
Hung King Ceremony 10th March, lunar calendar
Liberation Day 30th April
International Labor Day 1st May
Independence Day 2nd September
 
Holiday Compensation
When a public holiday falls on a Saturday or a Sunday, it is compensated for on the next working day.
 

Periods When Companies Usually Close

Vietnamese New Year 3 days
New Years 1 day
Independence Day 1 day
Victory Days 1 day
Hung King 1 day
International Labor Day 1 day
 

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Last Updates: October 2014