Tan Tao IP
I. PROFIT REMITTANCE TAX
| DESCRIPTION | REFERENCE |
| - From 01 January 2004, Enterprise has not been paid the profit remittance. - Paying personal income tax from capital investment with tax rate 5% of the distributed profit before being remitted out of territory of Vietnam |
- Circular No.26/2014/TT-BTC dated March 31st, 2004 - Article 10, Clause 1 - Law of Profit Remittance Tax 2007, Article 27 |
1.Common Corporate income tax
| DESCRIPTION | REFERENCE |
| - From 01 January 2014, the corporate income tax rate is 22%, except for cases which are applied incentive tax rate. From 01 January 2016, cases subject to the tax rate of 22% shall be applied the tax rate of 20%. - Enterprises being established and operating under Vietnamese laws (including cooperatives, non-business units) for production and business of goods and services with the total annual revenue not exceeding 20 billion Vietnam dongs are entitled to the tax rate of 20%. The total annual revenue specified in this Clause is the enterprise’s total revenue of sale of goods and services supply of the preceding year. |
- Circular No.78/2014/TT-BTC, Article 11, Clause 1; Decree No.218, Article 10, Clause 1. - Circular No.78/2014/TT-BTC, Article 11, Clause 2; Decree No. 218, Article 10, Clause 2. |
2.1Tax incentives
| DESCRIPTION | REFERENCE |
| The preferential tax rate of 10% for fifteen (15) years is applicable to: - Enterprises’ incomes earned from operations of the new investment projects in the fields, including: scientific research and technological development, application of high technology under the list of hi-tech invested and developed with priority as prescribed by the Hi-tech law; hi-tech incubation; hi-tech enterprise incubation; venture capital for hi-tech development in the list of hi-tech developed with priority as prescribed by hi-tech law; construction investment and business of hi-tech incubator, hi-tech enterprise incubator; production of software products; production of composite materials, light weight building materials and rare materials. - Enterprises’ incomes from performing new investment projects in the field of environmental protection including: production of environmental pollution control equipment, monitoring and environmental analysis equipment; |
- Circular No. 78/2014/TT-BTC, Article 19, Clause 1, point b. Decree 218/ND-CP, Article 15, Clause 1, point b. - Circular No. 78/2014/TT-BTC, Article 19, Clause 1, point c. Decree 218/ND-CP, Article 15, Clause 1, point c. |
| The preferential tax rate of 10% during the enterprise’s operation is applicable to: - Incomes from publication activities of Publishers under provisions of Publishing law. Publication activities include the fields of publication, printing and issuance of publications under provisions of Publishing law. |
- Circular 78/2014/TT-BTC, Article 19, Clause 3, point b. Decree 218/ND-CP, Article 15, Clause 3, point |
| The preferential tax rate of 20% for ten (10) years is applicable to: - Enterprise’s income earned from operations of the new investment projects, including: production of high class steel; production of energy saving products; production of machinery and equipment for activities in agriculture, forestry, fishery and salt; production of irrigation and drainage equipment; production and refining of cattle, poultry and aquatic animal feed. |
- Circular 78/2014/TT-BTC, Article 19, Clause 4, point b. Decree 218/ND- CP, Article 15, Clause 4 |
III. EXPORT TAX AND IMPORT TAX:
Circular No. 164/2013 / TT-BTC of November 15, 2013, providing for export tariffs and preferential import tariff schedules according to the list of taxable products taking effect from January 1, 2014 , in addition, Circular 17/2014 / TT-BTC issued on February 8, 2014 and Circular 30/2014 / TT-BTC issued on March 7, 2014 amending and supplementing a number of regulations on tax schedules. export, import tariff.
1.DUTY RATES:
| DESCRIPTION | REFERENCE |
| Duly rates applicable to exports are specified for each goods item in the Export Tariff. Duty rates applicable to imports are specified for each goods item, including preferential duty rates, special preferential duty rates and ordinary duty rates: + Preferential duty rates apply to imports originating from countries, groups of countries or territories which offer the most favored nation treatment in their trade relations with Vietnam. Preferential duty rates are specified for each goods item in the Preferential Import Tariff; + Special preferential duty rates apply to imports originating from countries, groups of countries or territories which offer the most favored nation treatment in their trade relations with Vietnam under the free-trade-area or tariff-alliance regime in order to facilitate border trade, and other cases of special preferential treatment; *Conditions for application of special preferential duty rates: - Being specified in agreements signed between Vietnam and countries, groups of countries or territories on the implementation of special duty preferences and meeting all conditions stated in such agreements. - Originating from countries, groups of countries or territories with which Vietnam has reached agreements on special duty preferences. + Ordinary duty rates apply to imports originating from countries, groups of countries or territories which do not offer the most favored nation treatment or special import duty preferences to Vietnam. Ordinary duty rates are equal to 150% of preferential duty rates applicable to the same goods items specified in the Preferential Import Tariff. |
Decree No.87/2010NĐ- CP dated 13/06/2010 |
2. DUTY EXEMPTION.
| DESCRIPTION | REFERENCE |
| - Goods temporarily imported for re-export or temporarily exported for re-import for participation in trade fairs, exhibitions or display; machinery, equipment and professional instruments temporarily imported for re-export or temporarily exported for re-import to perform work within a certain period of time. After the end of trade fairs, exhibitions or displays or after the completion of work according to law. temporarily exported goods must be re-imported into Vietnam and temporarily imported goods must be re-exported.
a/ Equipment and machinery; b/ Special-use means of transport included in technological lines which cannot be domestically manufactured yet; worker-transporting vehicles including cars of 24 seats or more and waterway crafts; c/ Components, details, knocked down parts, spare parts, fittings, molds and accessories accompanying machinery, equipment and special-use means of transport stated at Points a and b of this Clause for assembly into complete units; d/ Raw materials and supplies which cannot be domestically produced yet. to be used for manufacturing equipment and machinery included in technological lines or for manufacturing components, details, knocked down parts, spare parts, fittings, molds and accessories accompanying equipment and machinery stated at Point a of this Clause for assembly into complete units; e/ Building materials which cannot be domestically produced yet. - Raw materials and supplies imported to directly serve the production of software products, which cannot be domestically produced yet, are exempt from import duty. - Goods imported for direct use in scientific research and technological development, including machinery, equipment, spare parts, supplies and means of transport which cannot be domestically produced yet, technologies which cannot be domestically produced yet; scientific documents, books and newspapers and journals and electronic scientific and technological information sources are exempt from import duty. - Raw materials, supplies and accessories which cannot be domestically produced yet and are imported for production activities of investment projects in domains in which investment is specially encouraged in Appendix I to this Decree or in geographical areas with extremely difficult socio-economic conditions (excluding projects to manufacture and assemble automobiles, motorcycles, air conditions, electric heaters, refrigerators, washing machines, electric fans, dish washers, disc players, audio systems, electric irons, water kettles, hair dryers, hand dryers and other articles as decided by the Prime Minister) are exempt from import duty for 5 (five) years after the date of commencement of manufacture. - Machinery, equipment and means of transport (excluding under 24-seat cars and cars designed for passenger-cum-cargo transport equivalent to under 24-seat cars) temporarily imported for re-export by foreign contractors for the execution of ODA-funded projects in Vietnam are exempt from import duty upon their temporary import and exempt from export duty upon their re-export. - Goods imported for sale at duty-free shops under decisions of the Prime Minister. - For duty payers meeting with objective difficulties and other cases, the Ministry of Finance shall submit these cases to the Prime Minister for consideration and decision on import duty or export duly exemption on a case-by-case basis. |
- Decree No.87/2010NĐ- CP, Article 12 |
3. DUTY REDUCTION
| DESCRIPTION | REFERENCE |
| Imported goods or exported goods which are damaged or lost in the course of customs supervision, which is certified by competent assessment agencies or organizations, may be considered for duty reduction in proportion to their actual loss or damage. Customs offices shall consider duty reduction on the basis of the assessed and certified quantity of lost goods and the actual damage rate of goods. | - Decree No.87/2010NĐ- CP, Article 14. |
4. DUTY REFUND
| NỘI DUNG | CĂN CỨ |
| - Imported goods currently stored in border-gate warehouses or storing yards and under customs supervision, for which import duty has been paid, are re-exported. - Goods for which import duty or export duty-has been paid arc actually imported or exported in a smaller quantity;
Goods imported and then sold to vehicles of foreign carriers operating on international routes via Vietnam's ports, and Vietnam's vehicles operating on international routes according to the Government's regulations. - Goods temporarily imported for re-export or temporarily exported for re-import, goods imported under consignment for foreign parties then re-exported, for which import duty or export duty has been paid, including imported goods re-exported into non-tariff zones (except for cases specified in Clause 1, Article 12 of this Decree). - Exported goods which must be re-imported into Vietnam may be considered for the refund of paid export duty amounts and exemption from import duty. - Imported goods which must be re-exported back to their foreign owners or to a third country may be considered for the refund of import duty amounts already paid for the actually re-exported quantity of goods and exemption from export duty. - For machinery, equipment, tools and means of transport of organizations or individuals which are permitted to be temporarily imported for re-export (excluding leased ones) for the execution of investment projects, and construction and installation of works to serve production activities, for which import duty has been paid, import duty shall be refunded upon re-export from Vietnam or export to non-tariff zones. To-be-refunded import duty amounts shall be determined on the basis of the residual use value of the goods upon re-export calculated according to the duration in which such goods are used and kept in Vietnam. In case such goods arc no longer usable, the paid duty amounts shall not be refunded. - For goods imported or exported through international postal services or express delivery services, for which duty has been paid by service providers on behalf of goods owners but which cannot be delivered to recipients and must be re-imported or re-exported, or which are confiscated or destroyed according to law, the paid duty amounts shall be refunded. - Imported goods and exported goods for which import duty or export duty has been paid, but are later exempt from duty under decisions of competent state agencies. |
- Decree No.87/2010NĐ- CP, Article 15. |
IV. VALUE ADDED TAX (VAT)
| Tax rate | Taxable Objects (goods, services…) | Reference |
| Non-taxable objects | - Transfer of land use right. - Public post and telecommunications and universal internet services under the Government’s programs. - Publication, import and distribution of newspapers, journals, specialized bulletins, political books, textbooks, teaching materials, law books, scientific technical books and books printed in ethnic minority languages as well as propaganda postcards, pictures and posters including those in the form of audio or visual tapes, disc or electronic data and money printing. - Machinery, equipment, spare parts and supplies which cannot be domestically manufactured yet and need to be imported for direct use in scientific research and technological development; Machinery, equipment, spare parts, special-use means of transport and supplies which cannot be domestically manufactured yet and need to be imported for prospecting, exploring and developing oil and gas fields. -Raw materials imported for production and processing of goods for export under contracts signed with foreign parties; - Exported products which are unprocessed mined resources or minerals as stipulated by the Government. - Artificial products used for substitution of diseased people’s organs; crutches, wheelchairs and other tools used exclusively for the disabled |
Law on amendment and supplement of some articles of the Law on VAT Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter I, Article 5 |
| Tax rate 0% | Exported goods and services, international transportation and goods and services not liable to value-added tax specified in Article 5 of this Law upon export, excluding the following cases: Transfer of technologies and intellectual property rights to abroad; offshore reinsurance services; credit provision services; capital transfer and derivative financial services; Post and telecommunications services; and exported products which are unprocessed mined resources and minerals. | - Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 - Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter II, Article 8, Item 1 Tax |
| Tax rate 5% | - Clean water for production and daily life. - Fertilizers; ores for fertilizers production; insecticides, pesticides and plant and animal growth stimulators. - Feeds for cattle, poultry and other domestic animals. - Services of digging, embanking and dredging canals, ditches, ponds and lakes for agricultural production; growing, tending, and preventing pests and insects for plants; preliminary processing and preservation of agricultural products. - Unprocessed cultivation, husbandry and fishery products, excluding products specified in item 1 Article 5 of the Law on VAT 2008; - Preliminarily processed rubber latex; Preliminarily processed turpentine; nets, main ropes and fibers for making fishing nets. - Fresh and live food; unprocessed forestry products, excluding timber, bamboo shoots and products specified in item 1 Article 5 of the Law on VAT 2008; - Sugar; by-products in sugar production; - Products made of jute, rush, bamboo, leaf, straw, coconut husks and shells and Eichhornia crassipes and other handicrafts made of agricultural raw materials; preliminarily processed cotton; paper for newspaper printing; - Special use machinery and equipment for agricultural production, including ploughing machines, harrowing machines, rice-planting machines, seeding machines, rice plucking machines, reaping machines, combine harvesters, agricultural product harvesters, insecticide or pesticide pumps or sprayers. - Medical equipment and instruments; medical cotton and bandage; preventive and curative medicines; pharmacy-chemistry products and pharmaceuticals used as raw materials for the production of curative and preventive medicines. - Teaching and learning aids, including models, figures, boards, chalks, rulers, compasses and equipment/ tools exclusively used for teaching, research and scientific experiments. - Children toys; books of all kinds, excluding books specified in item 15, Article 5 of the Law on VAT 2008. - Scientific and technological services under the Law on Science and Technology. |
- Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 - Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter II, Article 8, Item |
| Tax rate 10% | The remaining goods and services. | Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 Law in VAT 2008: 13/2008/QH12 dated |
V. PERSONAL INCOME TAX
1. Tax rate:
The rate of PIT for incomes from business activities, salaries, remunerations shall be imposed according to the Partially progressive tariff specified in Article 22 of Law on Personal income tax, in particular:
| Tax grade | Assessable income per year (million VND) | Assessable income per month (million VND) | Tax rate (%) |
| 1 | Up to 60 | Up to 5 | 5 |
| 2 | Between over 60 and 120 | Between over 5 and 10 | 10 |
| 3 | Between over 120 and 216 | Between over 10 and 18 | 15 |
| 4 | Between over 216 and 384 | Between over 18 and 32 | 20 |
| 5 | Between over 384 and 624 | Between over 32 and 52 | 25 |
| 6 | Between over 624 and 960 | Between over 52 and 80 | 30 |
| 7 | Over 960 | Over 80 | 35 |
| DESCRIPTION | REFERENCE |
| a) Incomes from interests on deposits at credit institutions, branches of foreign banks or interests from life insurance policies; incomes from interests on Government bonds. b) Tax free incomes from international remittances are the amounts of money which individuals receive from their relatives being Vietnamese people residing abroad, Vietnamese people working or studying abroad. The basis for identifying tax free incomes from international remittances is some document which may prove that those amounts are sent from abroad and payment notes issued by the money transferring organization (if any). c) Incomes from the additional payments for working at night or working overtime in excess of wages according to the Labor Code. In particular: c.1) The tax free additional payments for working at night or working overtime is identified based on the actual total payment for working at night or overtime minus (-) the payment for an ordinary working day. E.g. The wages of Mr. A on an ordinary working day is 40,000 VND/hour according to the Labor Code. - In case of working overtime on an ordinary working day, he/she is paid 60,000 VND/hour, the tax free income is: 60,000 VND/hour – 40,000 VND/ hour = 20,000 VND/ hour - In case of working overtime on an holiday, he/she is paid 80,000 VND/hour, the tax free income is: 80,000 VND/hour – 40,000 VND/ hour = 40,000 VND/ hour c.2) Organizations or individuals who are income payers shall make a table specifying night/overtime working time and additional payments for working at nights and overtime. This table shall be kept at the income payer’s and presented by income payers on request of tax authorities. d) Retirement pensions paid by the Social Insurance Fund according to the Law on Social insurance; monthly pensions from the Voluntary pension fund. Retirement pensions paid from abroad to individuals living and working in Vietnam are tax-free. |
- Law on Personal Income tax, Article 5. - Decree 65/2013/ND-CP, Article 5. - Circular 111/2013/TT-BTC, Article 3. |
VII. REGISTRATION FEE
| DESCRIPTION | REFERENCE |
| - Registration fee rate: The payable registration fee amount is determined as follows: Payable registration fee amount (VND) = Registration fee calculation price (VND) X Registration fee rate (%) The land imposed by registration fee is total area of lot under the legitimate use right of organizations and individuals identified and provided by the Registration Office for land use right to tax authorities under “Transmittal note of cadastral information to identify financial obligations”. Registration fee calculation prices are prices issued by provincial People's Committee. - Registration fee rate for land and house is 0.5% |
- Decree 45/2011/ND-CP, Articles 5, 6, 7; Circular 124/2011/TT-BTC, Articles 5, 6, 7. |
Other industrial zones
