I. Value Added Tax
II. Personal Income Tax
2. Decree No. 146/2017/NĐ-CP on revised VAT & CIT regulation
On 15th December 2017, Government issued Decree no. 146/2017/NĐ-CP as revision for Decree no. 100/2016/NĐ-CP dated 01st July 2016 and Decree no. 12/2015/NĐ-CP dated 12th February 2015.
The Decree includes amendments on:
VAT exemption on exported goods which are raw natural resources and minerals.
Regulations on VAT refund:
3. Non-deductible expenses for CIT purpose:
This decree comes into effect on 01st February 2018.
3. Personal Income Tax treatment for employees’ tuition fees
On 15th November 2017, GDT issued Official Letter no. 5249/TCT-TNCN as guidance on Personal Income Tax treatment for employees’ tuition fees for such international accounting/ auditing program as ACCA.
Where Company as planned sponsors its own employees for education courses which directly relate to their current employment, profession. Payments for such tuition fees can be made via personal bank accounts, and the Company later reimburses employees via bank transfer to their bank accounts. Required document includes invoices issued by education providers. The sponsorship shall also be exempted from those employees’ assessable income.
4. FCT declaration for foreigners providing construction supervision & consulting service
On 23rd November 2017, GDT issued Official letter no. 5392/TCT-TNCN as guidance on FCT declaration for foreigners providing construction supervision & consulting services to domestic corporations.
In order to be classified as business entity, foreigners have to register their own business in compliance with foreign regulations, or documents/ proof of business entity acknowledged by foreign regulations. Documents, dossier in foreign languages must be legalized in accordance with Ministry of Foreign Affairs’ guidance on consular legalization.
5. Minimum regional wages increase from 01/01/2018
On 7th December 2017, Government issue Decree no. 141/2017/ND-CP on minimum regional wages applied for those who work under a labour contract. From 01/01/2018, minimum regional wages are as below:
The decree also maintains below principles:
Company applies minimum regional wages corresponding to its operating location. Where company has various branches operating in various locations, each branch applies minimum regional wages corresponding to its operating location.