rocket
Introducing the Orbitax International Tax Platform, a revolutionary suite of integrated tax solutions including research, compliance, calculations, entity management and charting. Find out more.
News Share

The Tax Hub

Daily Tax Newsletter

Vietnam

Responsive image

Amendments to Corporate Income Tax Law

On 19 June 2013, the National Assembly approved the following key amendments to the CIT Law, which take effect from 1 January 2014 (unless otherwise stated):

-   Tax rates will be reduced to 22% (from 25%) with effect from 1 January 2014 and 20% from 1 January 2016.
-   Enterprises having total revenue of less than VND 20 billion must apply a 20% rate from 1 July 2013, excluding certain types of transactions such as the transfer of capital, transfer of real property, transfer of the right to explore, mine and process minerals, etc.
-   Other taxable income now also includes income from: (i) transfer of investment projects; (ii) transfer of right to participate in investment projects; (iii) transfer of right to contribute capital; (iv) transfer of the right to explore, mine and process minerals; and (v) income from transfer, leasing out or liquidation of valuable papers. Amounts recovered from contingency reserves no longer constitute other income.
-   For tax declaration and payment purposes, the following income is to be accounted for separately: (i) real property transfers; (ii) transfer of rights to participate in investment projects; (iii) transfer of rights to explore, mine and process minerals.
-   The scope of investment entitled to CIT incentives has been broadened to include large manufacturing projects in excess of VND 6,000 billion (approximately USD 300 million) and investment projects in selected industrial zones. Incentives are also now available to both new and expanded qualifying projects.
-   The cap for the deduction of advertisement and promotion expenses will increase to 15% (from 10%) and payment discounts will be fully deductible. Payments to voluntary retirement funds/social welfare funds/voluntary retirement insurance programme for employees will be deductible. Expenses incurred for sponsoring scientific research will also be fully deductible.
-   Note that the thin capitalization restrictions (of 4-5 times equity and 12 times equity for banks and credit institutions) that were in the previous drafts have not been adopted.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More