With 2016 almost at an end, and 2017 fast approaching, now is the time for businesses in Vietnam to stop, reflect and ensure that they have 2016 truly under control and are ready to set 2017 off to a successful start.
The use of Credit Cards in Vietnam to pay company expenses has been an area of confusion and frustration until recently. Be it using personal cards for company expenses, or arranging company sponsored credit cards for the right individuals, the interpretations and enforcement of laws have not been easy.
This Tax Update publication for November 2016 looks at a selection of Decrees, Circulars and Official Letters which have been released in recent weeks and which we believe will be of interest to readers.
Under Vietnamese Law, there is no automatic right to work or be employed in Vietnam if you are a foreign national. If a company in Vietnam wishes to recruit a foreign individual, or a foreign individual is seeking to work in Vietnam, there are certain processes that must be followed, and this article outlines what you need to know and do.
Establishing a company in Vietnam is a significant step for many foreign investors, and hopefully the beginning of a successful business undertaking. Anyone that has gone through the process of preparing for and submitting an IRC application (Investment Registration Certificate) for approval will understand the frustrations and substantial paperwork required in Vietnam just to commence the process.
Investors will usually use lawyers or professional service providers to undertake the (complicated and time consuming) company registration process for them, and will rely on these advisors to understand as much about the ongoing requirements that arise for their new company when it is established.
This October 2016 edition of Domicile’s Tax Updates looks at recently issued Official Letters from Vietnam’s tax authorities, providing guidance in the often confusing realm of Vietnamese taxation. As always, please contact us if you would like further information on any of the items discussed in our Tax Updates publications.
The National Salary Council has issued a recommendation that Vietnam’s Minimum Regional Wage should be increased for 2017 by an average 7.3% (see table below for specifics).
In early October 2016, draft Circulars have been issued supporting the National Salary Council’s recommendation. Although it is still awaiting final approval from the National Assembly, history shows that this proposal will likely pass and we suggest that enterprises should take this proposed increase into account for their budget planning for the upcoming 2017 year.
Available for download is our 2017 Vietnam Compliance Calendar for companies in Vietnam.
This calendar is designed to help companies in Vietnam understand the most common compliance dates for tax, payroll and government related matters.
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