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.
Changes were released earlier this year, affecting the recording and processing of foreign sourced loans by Vietnamese companies. This Client Update looks at what these changes mean to Vietnamese entities, and what business managers/owners need to be aware of when undertaking loans from abroad.
The use of Representative Offices in Vietnam has traditionally been a common preference for many international groups seeking a physical presence in Vietnam.
However, in recent years there has been a noted push by Vietnamese authorities to decrease the use of Representative Offices, partly to negate the perceived tax avoidance opportunities that Representative Offices provide to their parent companies.
In 2016 we have seen two significant releases by Vietnamese Authorities that change the case for using Representative Offices in Vietnam for many, and we suggest international groups reconsider or review their current Representative Office operations in Vietnam. Further, we suggest that those seeking to open a Representative Office in Vietnam also reconsider this choice to ensure it remains appropriate given recent changes.
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