According to recent reports, the Vietnam Ministry of Finance is considering proposed amendments to the country's interest expense deduction restriction. The restriction, which took effect 1 May 2017, includes that the deduction of interest expense for a particular year may not exceed 20% of EBITDA, which applies for all taxpayers, except those subject to the Law on Credit Institutions and the Insurance Business Law. However, the Ministry has received push-back on the implementation of the restriction, especially in relation to local companies and groups that are not foreign invested. As a result, the Ministry is considering amending the restriction so that it only applies for foreign-invested companies. The amendments are expected to be issued in early 2019.
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