Vietnam

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

28%

   
Tax rate on long-term capital gains Gains derived from sales of fixed assets are treated as taxable profits and are subject to tax at the normal income tax rates. Gains derived from sale of shares in foreign-invested enterprises are subject to tax at a rate of 25%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies The remittance tax is abolished, effective from 1 January 2004.
   
Tax rate on branches Foreign branches are taxed on profits made in Vietnam at the rate of 28%.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate There are 3 types of schedules concerning the levy of individuals in Vietnam. The Vietnamese law distinguishes these three following categories:
A / Vietnamese citizens perceiving only incomes of Vietnamese source.
B/ Foreign residents in Vietnam perceiving only incomes of Vietnamese source.
C/ Foreigners and Vietnamese perceiving "irregular" incomes of Vietnamese source.
These are the corresponding schedules:
A/ Progressive rates from 0% to 50%, divided in 6 brackets.
B/ Progressive rates from 0% to 60%, divided in 7 brackets.
C/ Progressive rates from 0% to 30%, divided in 6 brackets.
   



VAT rates

Standard rates General rate of VAT is 10%. The rate of 20% applies to trade of gold, silver and precious stones, hotel, tourism, lotteries, maritime agent services and to brokerage. Luxuries are subjected to the tax in the special consumption rates which varies between 15 and 100%.
   
Reduced rates There are 2 reduced rates:
- 0%: exported goods
- 5%: agricultural products, water, medical goods and teaching aids.



Other important taxes


Name of tax
Rate
Rights of recordings  
2% to 4%  
Tax on imports of samples  
5% to 150% according to the nature of the product  
Donations  
5% for 2 millions of d˘ngs and more  


 

Accounting

Introduction
The account books must be drafted in Vietnamese and figures must be disclosed in the currency of the country.


General accounting principles
The accounting principles of Vietnam correspond to the international standards.
Sometimes, the accounting rules of Canada, France, United Kingdom and the United States are accepted in Vietnam.
Each account book must be given to the professional body within three months after the end of the accounting year.

Obligations and publications
The balance sheet and the profit and loss account must be published each accounting year.

Certification and auditing
The control of financial accounts is made by the Ministry of Finance but through external auditors of the company.



Useful links
For further information, please contact the Ministry of Finances in Vietnam.

Last modified in 2007 - ongoing update
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