pwc vietnam pocket tax book 2014

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Vietnam
Pocket Tax Book
2014
A summary of
Vietnam taxation
The information in this booklet is based
on current taxation regulations and
practice including certain legislative
proposals as at 4 March 2014.
A circular guiding the implementation of
the amended corporate income tax decree
and a new foreign contractor tax circular
are expected later in 2014.
This booklet is intended as a general
guide. Where specific transactions are
being contemplated, definitive advice
should be sought.
Contents
Taxation 6
• GeneralOverview   
Corporate Income Tax 7
• TaxRates
• TaxIncentives
• CalculationofTaxableProts
• Non-deductibleExpenses
• Losses
• Administration
• ProtRemittance
Transfer Pricing 13
Foreign Contractor Tax 14

• Dividends
• Interest
• Royalties,Licencefees,etc.
• Freight&TransportationServices
• PaymentstoForeignContractors
• DoubleTaxationAgreements
Capital Assignment Prots Tax 19
Value Added Tax 20
• ScopeofApplication
• GoodsandServicesnotSubjecttoVAT
• ExemptGoodsandServices
• TaxRates
• ExportedServices
• VATCalculationMethods
• DiscountsandPromotions
• GoodsandServicesUsedInternally
• Administration
• Refunds
• TaxInvoices
Special Sales Tax 28
• TaxablePrice
• TaxCredit
• TaxRates
Natural Resources Tax 30
Property Taxes 31
Environment Protection Tax 32
Import and Export Duties 33
• Rates
• Calculations
• Exemptions

• Refunds
• ExportDuties
Personal Income Tax 36
• TaxResidency
• TaxYear
• EmploymentIncome
• Non-employmentIncome
• NonTaxableIncome
• ForeignTaxCredits
• TaxDeductions
• PITRates
• Administration
Social, Health and Unemployment 42
Insurance Contributions
Other Taxes 43
Tax Audits and Penalties 44
Accounting and Auditing 45
Appendix I – Double Taxation Agreements 46
PwC Services in Vietnam 49
Contacts 51
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Taxation
General Overview
MostbusinessactivitiesandinvestmentsinVietnamwillbe
affectedbythefollowingtaxes:
• Corporateincometax;

• Variouswithholdingtaxes;
• Capitalassignmentprotstax;
• Valueaddedtax;
• Importduties;
• PersonalincometaxofVietnameseandexpatriateemployees;
• Socialinsurance,unemploymentinsuranceandhealth
insurance contributions.
Therearevariousothertaxesthatmayaffectcertainspecic
activities,including:
• Specialsalestax;
• Naturalresourcestax;
• Propertytaxes;
• Exportduties;
• Environmentprotectiontax.
All these taxes are imposed at the national level. There are no
local, state or provincial taxes.
Corporate Income Tax (“CIT”)
Tax Rates
Enterprises(generallycompanies)aresubjecttothetaxrates
imposedundertheCITLaw.ThestandardCITratewasreduced
from 25% to 22% from 2014 and will be further reduced to 20%
from2016.A20%rateappliesfrom1July2013forenterprises
withrevenueofnomorethanVND20billioninthepreceding
year.Companiesoperatingintheoilandgasindustryare
subjecttoCITratesrangingfrom32%to50%dependingonthe
locationandspecicprojectconditions.Companiesengagingin
prospecting, exploration and exploitation of mineral resources
(e.g.silver,gold,gemstones)aresubjecttoCITratesof40%or
50%,dependingontheproject’slocation.
Tax Incentives

Taxincentivesaregrantedtonewinvestmentprojectsbased
on regulated encouraged sectors, encouraged locations and the
sizeoftheproject.From1January2014,businessexpansion
projectswhichmeetcertainconditionsarealsoentitledtoCIT
incentives.Newinvestmentprojectsandbusinessexpansion
projectsdonotincludeprojectsestablishedasaresultofcertain
acquisitions or reorganisations.
- ThesectorswhichareencouragedbytheVietnamese
 Governmentincludeeducation,healthcare,sport/culture,
 hightechnology,environmentalprotection,scientic
research, infrastructural development, software production
 andrenewableenergy.
- Locationswhichareencouragedincludequalifyingeconomic
 andhigh-techzones,certainindustrialzonesanddifcult 
 socio-economicareas.
- Largemanufacturingprojectswithinvestmentcapitalof 
 morethanVND6,000billion,spentwithin3yearsofbeing
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 licensed(excludingthoserelatedtothemanufactureof 
 productssubjecttospecialsalestaxorthoseexploiting
 mineralresources)canalsoqualifyforCITincentivesifthe
 projectsmeeteitherofthefollowingcriteria:
 i. minimumrevenueofVND10,000billion/annumforat
  least3yearsaftertherstyearofoperations;or
 ii. minimumheadcountof3,000foratleast3yearsafter
  therstyearofoperations.
The two preferential rates of 10% and 20% are available for 15

yearsand10yearsrespectively,startingfromthecommencementof
operatingactivities.From1January2016,enterprisesentitled
tothepreferentialCITrateof20%willenjoytherateof17%
instead.Whenthepreferentialrateexpires,theCITratereverts
tothestandardrate.Certainsocialisedsectors(e.g.education,
health)enjoythe10%rateforthelifeoftheproject.
Taxpayersmaybeeligiblefortaxholidaysandreductions.The
holidaystaketheformofacompleteexemptionfromCITfora
certainperiodbeginningimmediatelyaftertheenterpriserst
makesprots,followedbyaperiodwheretaxischargedat50%
of the applicable rate. However, where the enterprise has not
derivedprotswithin3yearsofthecommencementofoperations,
thetaxholiday/taxreductionwillstartfromthefourthyearof
operation.Criteriaforeligibilityfortheseholidaysand
reductionsaresetoutintheCITregulations.
Additionaltaxreductionsmaybeavailableforcompanies
engaging in manufacturing, construction and transportation
activitieswhichemploymanyfemalestafforemployethnic
minorities.
Taxincentivesdonotapplytootherincome,whichisbroadly
dened.
Calculation of Taxable Prots
Taxableprotisthedifferencebetweentotalrevenue,whether
domestic or foreign sourced, and deductible expenses, plus
other assessable income.
TaxpayersarerequiredtoprepareanannualCITreturnwhich
includesasectionformakingadjustmentstoaccountingprot
toarriveattaxableprot.
Non-deductible Expenses
Expensesaretaxdeductibleiftheyrelatetothegenerationof

revenue,areproperlysupportedbysuitabledocumentation
including bank transfer vouchers where the invoice value is
VND20millionoraboveandarenotspecicallyidentiedas
beingnon-deductible.Examplesofnon-deductibleexpenses
include:
• Depreciationofxedassetswhichisnotinaccordancewith
 theprevailingregulations;
• Employeeremunerationexpenseswhicharenotactually 
paid, or are not stated in a labour contract or collective
 labouragreement;
• Reservesforresearchanddevelopmentnotinaccordance
 withtheprevailingregulations;
• Provisionsforseveranceallowance(exceptforcompanies
 notsubjecttomandatoryunemploymentinsurance
 contributions)andpaymentsofseveranceallowancein
 excessoftheprescribedamountpertheLabourCode;
• Overheadexpensesallocatedtoapermanentestablishment
 (“PE”)inVietnambytheforeigncompany’sheadofce
 exceedingtheamountunderaprescribedrevenue-based
 allocationformula;
• Interestonloanscorrespondingtotheportionofcharter 
 capitalnotyetcontributed;
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• Interestonloansfromnon-economicandnon-credit
 organisationsexceeding1.5timestheinterestratesetby 
 theStateBankofVietnam;
• Provisionsforstockdevaluation,baddebts,nancial

investment losses, product warranties or construction work
 whicharenotinaccordancewiththeprevailingregulations;
• Advertisingandpromotion(A&P)expenses(excluding
 certainitemssuchaspaymentdiscounts,marketresearch,
 tradefairs,commissionsforinsuranceandmulti-level
 marketing)exceeding15%oftotalotherdeductibleexpenses;
• Unrealisedforeignexchangelossesduetotheyear-end
 revaluationofforeigncurrencyitemsotherthanaccount 
 payables;
• Donationsexceptcertaindonationsforeducation,healthcare,
 naturaldisasterorbuildingcharitablehomesforthepoor;
• Administrativepenalties,nes,latepaymentinterest;
• Contributionstovoluntarypensionfundsandthepurchase
 ofvoluntarypensionandlifeinsuranceforemployees
 exceedingVND1millionpermonthperperson;
• Certainexpensesdirectlyrelatedtotheissuance,purchase
 orsaleofshares;
• Creditableinputvalueaddedtax,corporateincometaxand
personal income tax.
Forcertainbusinessessuchasinsurancecompanies,securities
tradingandlotteriestheMinistryofFinanceprovidesspecic
guidanceondeductibleexpensesforCITpurposes.
BusinessentitiesinVietnamareallowedtosetupataxdeductible
ResearchandDevelopmentfundtowhichtheycanappropriateup
to10%ofannualprotsbeforetax.Variousconditionsapply.
Losses
Taxpayersmaycarryforwardtaxlossesfullyandconsecutively
foramaximumofveyears.
Lossesarisingfromincentivisedactivitiescanbeoffsetagainst
protsfromnon-incentivisedactivities,andviceversa.From

2014, losses from the transfer of real estate and the transfer
ofinvestmentprojectscanbeoffsetagainstprotsfromother
business activities.
Carry-backoflossesisnotpermitted.Thereisnoprovisionfor
anyformofconsolidatedlingorgrouplossrelief.
Administration
ProvisionalquarterlyCITreturnsmustbeledandtaxesmustbe
paidbythe30
th
dayoftherstmonthofthesubsequentquarter.
FinalCITreturnsareledannually.TheannualCITreturnmust
beledandsubmittednotlaterthan90daysfromthescalyear
end.Theoutstandingtaxpayablemustbepaidatthesametime.
Whereataxpayerhasadependentaccountingunit(e.g.branch)
inadifferentprovince,asingleCITreturnisrequired.However,
manufacturingcompaniesarerequiredtoallocatetaxpayments
to the various provincial tax authorities in the locations where
theyhavedependentmanufacturingestablishments.Thebasis
forallocationistheproportionofexpenditureincurredbyeach
manufacturing establishment over the total expenditure of the
company.
Thestandardtaxyearisthecalendaryear.Companiesarerequired
tonotifythetaxauthoritiesincaseswheretheyuseataxyear(i.e.
scalyear)otherthanthecalendaryear.
Prot Remittance
Foreigninvestorsarepermittedtoremittheirprotsannuallyat
theendofthenancialyearoruponterminationofthe
investmentinVietnam.Foreigninvestorsarenotpermitted
toremitprotsiftheinvesteecompanyhasaccumulatedlosses.
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Transfer Pricing
Vietnam’stransferpricingregulationsoutlinevarioussituations
where transactions will be considered as being between related
partiesandthemechanismsfordeterminingthemarket“arm’s
length”transactionvalue.
Underthewiderangingdenitionofrelatedparties,thecontrol
thresholdislowerthaninmanyothercountries(20%)andthe
denitionalsoextendstocertainsignicantsupplier,customer
and funding relationships between otherwise unrelated parties.
Vietnam’stransferpricingrulesalsoextendtodomesticrelated
partytransactions.
Theacceptablemethodologiesfordeterminingarm’slength
pricingareanalogoustotheprinciplesespousedbythe
OrganisationforEconomicCooperationandDevelopment
(OECD),i.e.comparableuncontrolledprice,resaleprice,
cost plus, profit split and comparable profits methods.
Compliancerequirementsincludeanannualdeclarationof
relatedpartytransactionsandtransferpricingmethodologies
used,whichisrequiredtobeledtogetherwiththeannualCIT
return.
Companieswhichhaverelatedpartytransactionsmustalso
prepare and maintain contemporaneous transfer pricing
documentation, which is required to be submitted to the tax
authoritieswithin30workingdaysofarequest,inVietnamese.
Anadvancepricingagreementmechanismhasrecentlybeen
introducedwhichwillallowtaxpayersandthetaxauthoritiesto
agree in advance the pricing method.

Theforeigninvestorortheinvesteecompanyarerequiredto
notifythetaxauthoritiesoftheplantoremitprotsatleast7
workingdayspriortothescheduledremittance.
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Foreign Contractor Tax (“FCT”)
FCTappliestocertainpaymentstoforeignpartiesincluding
interest,royalties,servicefees,leases,insurance,transportation,
transfersofsecuritiesandgoodssuppliedwithinVietnamor
associatedwithservicesrenderedinVietnam.Itnormally
comprisesacombinationofCITandVATatvaryingratesbut
canalsoincludePITforpaymentstoforeignindividuals.
Dividends
Nowithholdingorremittancetaxisimposedonprotspaidto
foreign corporate shareholders.
Interest
Withholding tax of 5% applies to interest paid on loans from
foreignentities.OffshoreloansprovidedbycertainGovernment
orsemi-governmentinstitutionsmayobtainanexemptionfrom
interest withholding tax where a relevant double taxation
agreementorinter-governmentalagreementapplies.
Interestpaidonbonds(exceptfortaxexemptbonds)and
certicatesofdepositissuedtoforeignentitiesaresubjectto5%
withholdingtax.Salesofbondsandcerticatesofdepositsare
subjecttodeemedtaxof0.1%ofthegrosssalesproceeds.
Royalties and Licence Fees
FCTat10%appliestopaymentstoaforeignentityforthe
righttouseortransferintellectualpropertyorfortransfersof

technology.
Payments to Foreign Contractors
Awithholdingtaxonpaymentstoforeigncontractorsapplies
whereaVietnameseparty(includingforeignownedcompanies)
contractswithaforeignentitythatdoesnothavealicensed
presenceinVietnam.
ThisFCTgenerallyappliestopaymentsderivedfromVietnam,
exceptforthepuresupplyofgoods(i.e.wheretitlepassesator
beforethebordergateofVietnamandtherearenoassociated
servicesperformedinVietnam),servicesperformedand
consumedoutsideVietnamandvariousotherservicesperformed
whollyoutsideVietnam(e.g.certainrepairs,training,advertising,
promotion,etc.)
Foreigncontractorscanchoosebetweenthreemethodsfortax
payment-thedeductionmethod,thedirectmethodandthe
hybridmethod.
Method One – Deduction Method
ThisentailstheforeigncontractorregisteringforVATpurposes
andlingCITandVATreturnsinthesamewayasalocal
entity.Foreigncontractorscanapplythedeductionmethodif
theymeetalloftherequirementsbelow:
• TheyhaveaPEoraretaxresidentinVietnam;
• ThedurationoftheprojectinVietnamismorethan182days;and
• TheyadoptthefullVietnamAccountingSystem(“VAS”),
complete a tax registration and are granted a tax code.
TheVietnamesecustomerisrequiredtonotifythetaxoffice
thattheforeigncontractorwillpaytaxunderthededuction
methodwithin20workingdaysfromthedateofsigningthe
contract.
IftheforeigncontractorcarriesoutmanyprojectsinVietnam

andqualiesforapplicationofthedeductionmethodforone
project,thecontractorisrequiredtoapplythededuction
methodforitsotherprojectsaswell.
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Rates
* VATwillnotbepayablewheregoodsareexemptfrom 
 VATorwhereimportVATispaid
** Where the contract does not separate the value of goods
and services
*** Internationaltransportationissubjectto0%VAT
****CertaintypesofinsuranceareexemptfromVAT
 (see“ExemptGoodsandServices”inVATsection).
TheforeigncontractorwillpayCITat22%onitsnetprots.
Method Two – Direct Method
Foreigncontractorsadoptingthedirect(orwithholding)method
donotregisterforVATpurposesnorleCITorVATreturns.
InsteadCITandVATwillbewithheldbytheVietnamese
customeratprescribedratesfromthepaymentsmadetothe
foreigncontractor.Variousratesarespeciedaccordingtothe
natureoftheservicesperformed.TheVATwithheldbythe
Vietnamesecustomerisgenerallyanallowableinputcreditinits
VATreturn.
SeparaterequirementsforFCTdeclarationsunderthis
method are provided for foreign contractors providing goods
and services for exploration, development and production of
oil and gas.
Method Three – Hybrid Method

Thehybridmethodallowsforeigncontractorstoregisterfor
VATandaccordinglypayVATbasedonthedeductionmethod
(i.e.outputVATlessinputVAT),butwithCITbeingpaidunder
the direct method rates on gross turnover.
Foreigncontractorswishingtoadoptthehybridmethodmust:
• HaveaPEinVietnamorbetaxresidentinVietnam;
• OperateinVietnamunderacontractwithatermofmore
 than182days;and
• Maintainaccountingrecordsinaccordancewiththe
 accountingregulationsandguidanceoftheMinistry
 ofFinance.
TheFCTratesincludingVATandCITratesaresummarised
below:
Industry
SupplyofgoodsinVietnamor
associated with services rendered in
Vietnam(includingin-country
import-exportandimportsunder
DDP,DATorDAPdeliveryterms)
Services
Servicestogetherwithsupplyof
machineryandequipment(**)
Restaurant,hotelandcasino
management services
Construction,installationwithoutsupply
ofmaterials,machineryorequipment.
Construction,installationwithsupplyof
materials,machineryorequipment.
Leasingofmachineryandequipment
Leasingofaircraft,vesselsanddrilling

rigs(includingcomponents)
Transportation
Interest
Royalties
Insurance
Re-insurance,commissionforre-insurance
Transfer of securities
Financialderivatives
Manufacturing, other business activities
Deemed VAT Deemed CIT
rate rate


1%(*) 1%


5% 5%
3% 2%

5% 10%

5% 2%

3% 2%

5% 5%
Exempt 2%

 3%(***) 2%
Exempt 5%

 Exempt 10%
Exempt/5% 5%
 (****)
Exempt 0.1%
Exempt 0.1%
 Exempt 2%
3% 2%
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Capital Assignment Prots Tax
(“CAPT”)
Gainsderivedbyanentityontransfersofinterests(asopposed
toshares)inaVietnamlimitedliabilitycompanyorother
enterprisesaresubjectto22%CIT.Thisisgenerallyreferredto
ascapitalassignmentprotstax(CAPT)althoughitisnota
separate tax as such. The taxable gain is determined as the
excessofthesaleproceedslesscost(ortheinitialvalueof
contributedchartercapitalforthersttransfer)lesstransfer
expenses.
Wherethevendorisaforeignentity,aVietnamesepurchaser
isrequiredtowithholdthetaxduefromthepaymenttothe
vendor and account for this to the tax authorities. Where the
purchaserisalsoaforeignentity,theVietnameseenterprise
inwhichtheinterestistransferredisresponsiblefortheCAPT
administration.Thereturnandpaymentisrequiredwithin10
daysfromthedateofofcialapprovalofthesale.
Transfersofsecurities(bonds,sharesofpublicjointstock
companies,etc.)byaforeignentityaresubjecttoCITona

deemedbasisat0.1%ofthetotaldisposalproceeds.Gains
derivedbyaresidententityorgainsonthetransferofshares
byanon-residententity(whicharenottreatedassecurities)
are taxed at 22%.
Double Taxation Agreements (“DTAs”)
TheCITwithholdingtaxesmaybeaffectedbyarelevantDTA.
Forexample,the5%CITwithholdingonservicessuppliedbya
foreigncontractormaybeeliminatedunderaDTAiftheforeign
contractordoesnothaveaPEinVietnam.
Vietnamhassigneduptomorethan65DTAsandtherearea
numberofothersatvariousstagesofnegotiation.Pleasesee
thesummaryatAppendixI.NotablyabsentisaDTAwiththe
UnitedStatesofAmerica.
Additional guidance has been introduced on the application
ofDTAsandbecameeffectivein2014.Themostnotableand
interestingchangesrelatetobenecialownershipandgeneral
anti-avoidanceprovisions.DTAentitlementswillbedenied
where the main purpose of the arrangements is to obtain
benecialtreatmentunderthetermsoftheDTA(treaty
shopping)orwheretherecipientoftheincomeisnotthe
benecialowner.Theguidancedictatesthatasubstanceover
formanalysisisrequiredforbenecialownershipandoutlines
thefactorstobeconsidered:
- Wheretherecipientisobligatedtodistributemorethan50%of
 theincometoanentityinathirdcountrywithin12months;
- Wheretherecipienthaslittleornosubstantivebusinessactivities;
- Wheretherecipienthaslittleornocontroloverorriskin
 relationtotheincomereceived;
- Backtobackarrangements;
- Wheretherecipientisresidentinacountrywithalowtaxrate;

- Therecipientisanintermediaryoragent.
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Value Added Tax (“VAT”)
Scope of Application
VATappliestogoodsandservicesusedforproduction,trading
andconsumptioninVietnam(includinggoodsandservices
purchasedfromnon-residents).Adomesticbusinessmust
chargeVATonthevalueofgoodsorservicessupplied.
Inaddition,VATappliesonthedutypaidvalueofimported
goods.TheimportermustpayVATtocustomsauthoritiesat
thesametimetheypayimportduties.Forimportedservices,
VATisleviedviatheFCTmechanism.
VATpayableiscalculatedastheoutputVATchargedto
customerslesstheinputVATsufferedonpurchasesofgoods
andservices.ForinputVATtobecreditable,thetaxpayermust
obtainaproperVATinvoicefromthesupplier.ForVATpaidon
importsthesupportingdocumentisthetaxpaymentvoucher
andforVATcollectedviatheFCTmechanism,thesupporting
documentistheFCTdeclarationform.
Goods or Services not Subject to VAT
Forthesesupplies,nooutputVAThastobechargedbutinput
VATpaidonrelatedpurchasesmaybecredited.Thesesupplies
include:
• Compensation,bonusesandsubsidies,exceptthoseprovided
 inexchangeformarketing/promotionalservices;
• Transfersofemissionrightsandothernancialrevenues;
• Certainservicesrenderedbyaforeignorganisationwhich

 doesnothaveaPEinVietnamwheretheservicesare
 renderedoutsideofVietnam,includingrepairstomeansof
 transport,machineryorequipment,advertising,marketing,
 promotionofinvestmentandtradetooverseas;brokerage
activities for the sale of goods and services overseas,
 training,certaininternationaltelecommunicationservices;
• Salesofassetsbynon-businessorganisationsorindividuals
 whoarenotregisteredforVAT;
• Transferofinvestmentprojects;
• Saleofagriculturalproductsthathavenotbeenprocessed
 intootherproductsorwhichhavejustbeenthrough
 preliminaryprocessing;
• Capitalcontributionsinkind;
• Certainassettransfersbetweenaparentcompanyandits
subsidiaries or between subsidiaries of the same parent
 company;
• Collectionsofcompensation/indemnitiesbyinsurance
 companiesfromthirdparties;
• Collectionsonbehalfofotherpartieswhicharenotinvolved
 intheprovisionofgoods/services(e.g.ifcompanyA
 purchasesgoods/servicesfromcompanyB,butpaysto
 companyCandsubsequentlycompanyCpaystocompanyB,
 thenthepaymentfromcompanyCtocompanyBisnot
 subjecttoVAT);
• Commissionsearnedby(i)agentssellingservices,
 includingpostal,telecommunications,lottery,airlines/bus/
 ship/traintickets,atpricesdeterminedbyprincipals;and
 (ii)agentsforinternationaltransportation,airlinesand
 shippingservicesentitledto0%VAT;and(iii)insurance 
 agents;

• Commissionsfromthesaleofexemptgoods/services.
Exempt Goods and Services
TherearestipulatedcategoriesofVATexemption,including
interalia:
• Certainagriculturalproducts;
• Importedorleaseddrillingrigs,aeroplanesandshipsofa
 typewhichcannotbeproducedinVietnam;
• Transferoflanduserights(subjecttolimitations);
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• Financialderivativesandcreditservices(includingcredit
 cardissuance,nanceleasingandfactoring);saleofVATable
mortgaged assets and provision of credit information.
• Varioussecuritiesactivitiesincludingfundmanagement;
• Capitalassignment;
• Foreigncurrencytrading;
• Debtfactoring;
• Certaininsuranceservices(includinglifeinsurance,health
 insurance,agriculturalinsuranceandreinsurance);
• Medicalservices;
• Teachingandtraining;
• Printingandpublishingofnewspapers,magazinesand
 certaintypesofbooks;
• Passengertransportbypublicbuses;
• Transferoftechnology,softwareandsoftwareservices
 exceptexportedsoftwarewhichisentitledto0%rate;
• Goldimportedinpieceswhichhavenotbeenprocessedinto
 jewellery;

• Exportedunprocessedmineralproductssuchascrudeoil,
 rock,sand,raresoil,rarestones,etc.;
• Importsofmachinery,equipmentandmaterialswhichcan
 notbeproducedinVietnamfordirectuseinscientic
 researchandtechnologydevelopmentactivities;
• Equipment,machinery,spareparts,specialisedmeansof
 transportandnecessarymaterialswhichcannotbe
 producedinVietnamforprospecting,explorationand
 developmentofoilandgaselds;
• Goodsimportedinthefollowingcases:international
 non-refundableaid,includingfromOfcialDevelopment
Aid, foreign donations to government bodies and to
 individuals(subjecttolimitations).
Tax Rates
TherearethreeVATratesasfollows:
0% Thisrateappliestoexportedgoods/servicesincluding
  goods/servicessoldtooverseas/non-tariffareasand 
  consumedoutsideVietnam/inthenon-tariffareas,
  goodsprocessedforexportorin-countryexport(subject
  toconditions),goodssoldtodutyfreeshops,certain 
exported services, construction and installation carried
out for export processing enterprises, aviation, marine
and international transportation services.
5% Thisrateappliesgenerallytoareasoftheeconomy
concerned with the provision of essential goods and
  services.Theseinclude:cleanwater;fertiliser
  production;teachingaids;books;unprocessedfoodstuffs;
  medicineandmedicalequipment;husbandryfeed; 
  variousagriculturalproductsandservices;technical/
  scienticservices;rubberlatex;sugarandits

  by-products;certaincultural,artistic,sportservices/ 
products and social housing.
10% This“standard”rateappliestoactivitiesnotspeciedas
  not-subjecttoVAT,exemptorsubjectto0%or5%.
Whenasupplycannotbereadilyclassiedbasedonthetaxtariff,
VATmustbecalculatedbasedonthehighestrateapplicablefor
the particular range of goods which the business supplies.
Exported Goods and Services
Servicesrenderedandgoodssoldtoforeigncompanies,including
companiesinnon-tariffareas,aresubjectto0%VATiftheyare
consumedoutsideVietnamorinnon-tariffareas.
Varioussupportingdocumentsarerequiredinordertoapply
0%VATtoexportedgoodsandservices(exceptforinternational
transportationservices):e.g.contracts,evidenceofnon-cash
paymentandcustomsdeclarations(forexportedgoods).
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ThereareanumberofservicesspeciedintheVATregulations
whichdonotqualifyfor0%VAT,inparticularadvertising,
hotel services, training, entertainment, tourism provided in
Vietnamtoforeigncustomers;andvariousservicesprovidedto
non-tariffareas(includingleasingofhouses,transportservices
foremployeestoandfromtheirworkplace,certaincatering
services and services in relation to trading or distribution of
goodsinVietnam).
VAT Calculation Methods
TherearetwoVATcalculationmethods,thetaxdeduction
method and the direct calculation method.

Method one - Deduction method
This method applies to business establishments maintaining
full books of accounts, invoices and documents in accordance
withtherelevantregulations,including:
- BusinessestablishmentswithannualrevenuesubjecttoVAT
 ofmorethanVND1billion;
- CertaincasesvoluntarilyregisteringforVATdeclaration
under the deduction method.
• DeterminationofVATpayable
VATpayable=OutputVAT–InputVAT
• CalculationofoutputVAT
TheoutputVATtobechargediscalculatedbymultiplying
thetaxableprice(netoftax)bytheapplicableVATrate.With
respecttoimportedgoods,VATiscalculatedontheimport
dutiablepriceplusimportdutyplusspecialsalestax(if
applicable)plusenvironmentprotectiontax(ifapplicable).
Forgoodssoldonaninstalmentbasis(exceptforrealestate),
VATiscalculatedon the total price without interest, rather than
theinstalmentsactuallyreceived.
• InputVAT
Fordomesticpurchases,inputVATisbasedonVATinvoices.
Forimports,asthereisnoVATinvoice,inputVATcreditsare
basedonthecustomsdeclaration.VATinvoicescanbedeclared
andclaimedanytimebeforethecompanyreceivesnoticeofa
taxauditbythetaxauthorities.InputVATcreditsonpayments
exceedingVND20millioncanonlybeclaimedwhereevidence
ofnon-cashpaymentisavailable.InputVATwithheldfrom
paymentstooverseassuppliers(i.e.undertheforeigncontractor
taxsystem)canalsobeclaimedwherethetaxpayermakes
VATablesupplies.

Ifabusinesssellsexemptgoodsorservicesitcannotrecoverany
inputVATpaidonitspurchases.Thiscontrastswithsupplies
entitledto0%VATornotsubjecttoVAT,wheretheinputVAT
canberecovered.WhereabusinessgeneratesbothVATable
andVATexemptsales,itcanonlyclaimaninputVATcreditfor
theportionofinputsusedintheVATableactivity.
Method two - Direct method
Thismethodappliesto:
- Businessestablishmentswithannualrevenuesubjectto
 VAToflessthanVND1billion;
- Individualsandbusinesshouseholds;
- Businessestablishmentswhichdonotmaintainproper 
books of account and foreign organisations or individuals
 carryingoutbusinessactivitiesinformsnotregulatedinthe
 LawonInvestment;
- Businessestablishmentsengagingintradingingold,silver
and precious stones.
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• DeterminationofVATpayable
VATpayable=valueaddedofgoodsorservicessoldxVATrate
Where there is a negative value added from the trading in gold,
silverorpreciousstonesinaperiod,itcanbeoffsetagainstany
positivevalueaddedofthoseactivitiesinthesameperiod.Any
remaining negative balance can be carried forward to a
subsequentperiodinthesamecalendaryearbutcannotbe
carriedovertothenextyear.
Onceselected,theVATdeclarationmethodmustbemaintained

for2consecutiveyears.
Discounts and Promotions
PricediscountsgenerallyreducethevalueonwhichVATapplies.
However,certaintypesofdiscountsmaynotbepermittedasa
reductionbeforethecalculationofVATandvariousrulesand
conditionsapply.
Goods and Services for internal consumption
Goodsandservicesusedinternallybyabusinessareliable
toVATbasedontheirnormalsalesprice,withaninputtax
creditavailablewheretheseareusedinthemakingofVATable
supplies.
Administration
AllorganisationsandindividualsproducingortradingVATable
goodsandservicesinVietnammustregisterforVAT.Incertain
cases,branchesofanenterprisemustregisterseparatelyand
declareVATontheirownactivities.
TaxpayersmustleVATreturnsmonthly,bythe20
th
dayofthe
subsequent month.
Refunds
Wherethetaxpayer’sinputVATforaperiodexceedsits
outputVAT,itwillhavetocarrytheexcessforwardfora
periodoftwelvemonths.Itcanthenclaimarefundfromthe
taxauthorities.Incertaincases(e.g.exporterswhereexcess
inputVATcreditsexceedVND300million),arefundmay
begrantedonamonthly/quarterlybasis.Newlyestablished
entitiesinthepre-operationinvestmentphasemayclaim
VATrefundsonayearlybasisorwheretheaccumulatedVAT
creditsexceedVND300million.

Newlyestablishedentitiesandcertaininvestmentprojectswhich
areinthepre-operationstagemaybeentitledtorefundsforVAT
paidonimportedxedassetsbasedonshortertimelinesthan
normal,subjecttocertainconditions.
Tax Invoices
EntitiesinVietnamcanusepre-printedinvoices,self-printed
invoices or electronic invoices. The tax invoice template must
contain stipulated items and be registered with the local tax
authorities.
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TheSSTratesareasfollows:
Products / services
Cigar/Cigarettes
Spirit/Wine
Beer
Automobiles having less than 24 seats
Motorcyclesofcylindercapacityabove125cm
3
Airplanes
Boats
Petrol
Air-conditioner(notmorethan90,000BTU)
Playingcards
Votivepapers
Discotheques
Massage, karaoke
Casinos,jackpotgames

Entertainmentwithbetting
Golf
Lotteries
Tax rates (%)
65
25-50
50
10-60
20
30
30
10
10
40
70
40
30
30
30
20
15
Special Sales Tax (“SST”)
SSTisaformofexcisetaxthatappliestotheproductionor
import of certain goods and the provision of certain services.
Taxable Price
Therearevariousanti-avoidanceruleswhichspecifyminimum
pricesforSSTpurposes.Forexamplewhereamanufacturer
producesgoodssubjecttoSSTandsellssuchgoodsthroughan
agent,theminimumpriceforcalculationofSSTis90%ofthe
average selling price of the agent.

Tax Credits
TaxpayersproducingSSTliablegoodsfromSSTliableraw
materialsareentitledtoclaimacreditfortheSSTamount
paid on raw materials imported or purchased from domestic
manufacturers.
Tax Rates
TheLawonSSTclassiesobjectssubjecttoSSTintotwogroups:
1. Commodities-cigarettes,liquor,beer,automobiles
 havinglessthan24seats,motorcycles,airplanes,boats, 
 petrol,air-conditionersupto90,000BTU,playingcards,
 votivepapers;and
2. Serviceactivities-discotheques,massage,karaoke,casinos,
gambling, lotteries, golf clubs and entertainment with betting.
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Natural Resources Tax
Naturalresourcestaxispayablebyindustriesexploiting
Vietnam’snaturalresourcessuchaspetroleum,minerals,forest
products, seafood and natural water.
Thetaxratesvarydependingonthenaturalresourcebeing
exploitedandareappliedtotheproductionoutputataspecied
taxablevalueperunit.Variousmethodsareavailableforthe
calculation of the taxable value of the resources, including
cases where the commercial value of the resources cannot be
determined.
Petroleum,naturalgasandcoalgasaretaxedatprogressivetax
ratesdependingonthedailyaverageproductionoutput.
Property Taxes

Therentaloflanduserightsbyforeigninvestors(ifnotcontributed
ascapital)isineffectaformofpropertytax.Itisusuallyknownas
land rental and the range of rates is wide depending upon the
location, infrastructure and the industrial sector in which the
business is operating.
Inaddition,ownersofhousesandapartmentshavetopayland
taxunderthelawonnon-agriculturallandusetax.Thetaxis
chargedonthespeciclandareausedbasedontheprescribed
price per square meter and progressive tax rates ranging from
0.03% to 0.15%.
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Environment Protection Tax
Environmentprotectiontaxisanindirecttaxwhichisapplicable
to the production and importation of certain goods deemed
detrimentaltotheenvironment,themostsignicantofwhich
arepetroleumandcoal.Thetaxratesareasfollows:
* Excludes plastic bags used for packaging or which are
“environmentally friendly”
No.
1.
2.
3.
4.
5.
Goods
Petrol,diesel,grease,etc.
Coal

HCFCs
Plasticbags(*)
Restrictedusechemicals
Unit
litre/kg
ton
kg
kg
kg
Tax rate (VND)
300-1,000
10,000-20,000
4,000
40,000
500-1,000
Import And Export Duties
Rates
Importandexportdutyratesaresubjecttofrequentchanges
anditisalwaysprudenttocheckthelatestposition.
Importdutyratesareclassiedinto3categories:ordinaryrates,
preferentialratesandspecialpreferentialrates.Preferentialrates
are applicable to imported goods from countries that have Most
FavouredNation(MFN,alsoknownasNormalTradeRelations)
statuswithVietnam.TheMFNratesareinaccordancewith
Vietnam’sWTOcommitmentsandareapplicabletogoods
importedfromothermembercountriesoftheWTO.
Specialpreferentialratesareapplicabletoimportedgoodsfrom
countries that have a special preferential trade agreement with
Vietnam.Vietnamhassuchfreetradeagreementswithvarious
countriesincludingtheASEANmemberstates,Japan,China,

India,Korea,Chile,AustraliaandNewZealand.
To be eligible for preferential rates or special preferential rates,
theimportedgoodsmustbeaccompaniedbyanappropriate
CerticateofOrigin.Whengoodsaresourcedfromnon-preferential
treatment/non-favouredcountries,theordinaryrate(beingthe
MFNratewitha50%surcharge)isimposed.
Calculations
InprincipleVietnamfollowstheWTOValuationAgreement
with certain variations. The dutiable value of imported goods
istypicallybasedonthetransactionvalue(i.e.thepricepaid
orpayablefortheimportedgoods,andwhereappropriate,
adjustedforcertaindutiableornon-dutiableelements).Where
the transaction value is not applied, alternative methodologies
for the calculation of the customs value will be used.
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SSTappliestosomeproductsinadditiontoimportduties.VAT
willalsobeappliedonallimportedgoodsandservices(unless
exemptundertheVATregulations).
Exemptions
Importdutyexemptionsareprovidedforprojectswhichare
classiedasencouragedsectorsandgoodsimportedincertain
circumstances.
Thereare20categoriesofimportdutyexemption,including:
• Machinery&equipment,specialisedmeansof
 transportationandconstructionmaterials(whichcannot
 beproducedinVietnam)comprisingthexedassetsof
 certainprojects;

• Rawmaterials,spareparts,accessories,othersupplies, 
 samples,machineryandequipmentimportedforthe
 processingofgoodsforexportandnishedproducts
imported for use in the processed goods.
 Currently,companiesmanufacturinggoodsforexportdo
 notpayimportdutiesonrawmaterialswheretheproducts
are destined for export. However, where the enterprise
 doesnot,orisnotexpectedto,exportthenishedproduct
 within275daystheCustomsDepartmentwillcharge 
 temporaryimportdutyontherawmaterials.Penaltiesfor
 latepaymentcanapply.Wheretheenterprisethenexports
 thenishedproduct,arefundwillbeprovidedinproportion
to the raw materials contained in the exports.
• Machinery,equipment,specialisedmeansoftransportation,
 materials(whichcannotbeproducedinVietnam),healthand
 ofceequipmentimportedforuseinoilandgasactivities.
Refunds
There are various cases where a refund of import duties is
possible,includingfor:
• Goodsforwhichimportdutieshavebeenpaidbutwhichare
 notactuallyphysicallyimported;
• Importedrawmaterialsthatarenotusedinproductionand
 whichmustbere-exported;
• Importedrawmaterialsthatwereimportedforthe
production of products for the domestic market but are
later used for the processing of goods for export under
processing contracts with foreign parties.
Export Duties
Exportdutiesarechargedonlyonafewitems,basicallynatural
resources such as sand, chalk, marble, granite, ore, crude oil,

forestproducts,andscrapmetal.Ratesrangefrom0%to40%.
ThetaxbaseforcomputationofexportdutiesistheFOB/
DeliveredAtFrontierprice,i.e.thesellingpriceattheport
of departure as stated in the contract, excluding freight and
insurance costs.
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Personal Income Tax (“PIT”)
Tax Residency
Residentsarethoseindividualsmeetingoneofthefollowing
criteria:
• ResidinginVietnamfor183daysormoreineitherthe
 calendaryearortheperiodof12consecutivemonths
 fromthedateofrstarrival;
• HavingapermanentresidenceinVietnam(includinga
 registeredresidencewhichisrecordedonthepermanent/
 temporaryresidencecardincaseofforeigners);
• HavingaleasedhouseinVietnamwithatermof183days
 ormoreinataxyearandunabletoprovetaxresidence
 inanothercountry.
TaxresidentsaresubjecttoVietnamesePITontheirworldwide
taxableincome,whereveritispaidorreceived.Employment
and business income is taxed on a progressive tax rates basis.
Otherincomeistaxedatavarietyofdifferentrates.
Individualsnotmeetingtheconditionsforbeingtaxresident
areconsideredtaxnon-residents.Non-residentsaresubjectto
PITataattaxrateof20%ontheincomereceivedasaresult
ofworkinginVietnaminthetaxyear,andatvariousotherrates

ontheirnon-employmentincome.However,thiswillneedto
beconsideredinlightoftheprovisionsofanyDTAthatmight
apply.
Tax Year
TheVietnamesetaxyearisthecalendaryear.However,where
inthecalendaryearofrstarrivalanindividualispresentin
Vietnamforlessthan183days,his/herrsttaxyearisthe12
monthperiodfromthedateofarrival.Subsequently,thetax
yearisthecalendaryear.
Employment Income
Thedenitionoftaxableemploymentincomeisbroadand
includesallcashremunerationandbenets-in-kind.However,
thefollowingitemsarenotsubjecttotax:
• Paymentsforbusinesstrips(subjecttoacap);
• Paymentsfortelephonecharges(subjecttoacap);
• Paymentsforuniform/stationerycosts(subjecttoacap);
• Overtimepremium(i.e.theadditionalpaymentabove
 thenormalwage,notthefullamountoftheovertime/ 
 nightshiftpayment);
• One-offallowanceforrelocationtoVietnamfor
 expatriatesandfromVietnamforVietnameseworking 
 overseas;
• Onceperyearhomeleaveroundtripairfareforexpatriates
 andVietnameseworkingoverseas;
• SchoolfeesuptohighschoolinVietnam/overseasfor
 childrenofexpatriates/Vietnameseworkingoverseas;
• Training;
• Mid-shiftmeals(subjecttoacapifthemealsare
 paidincash);
• Certainbenetsinkindprovidedonacollectivebasis

 (e.g.membershipfee,entertainment,healthcare,
 transportationtoandfromwork)and;
• Airfaresforemployeesworkingonarotationbasisin
a number of industries such as petroleum or mining.
There are a range of conditions and restrictions applicable to
the above exemptions.
Non-employment Income
Taxablenon-employmentincomeincludes:
• Businessincome(includingrentalincome);
• Investmentincome(e.g.interest,dividends);
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Annual Taxable
Income (million VND)
0–60
60–120
120–216
216–384
384–624
624–960
More than 960
Monthly Taxable
Income (million VND)
0–5
5–10
10–18
18–32
32–52

52–80
More than 80
Tax rate
5%
10%
15%
20%
25%
30%
35%
Residents - employment and business income
Residents – other income
Type of taxable income Tax rate
Interest/dividends   5%
Saleofshares:
Netgain;or   20%
Salesproceeds   0.1%
Capitalassignment
Netgain    20%
Saleofrealestate:
Netgain;or   25%
Salesproceeds   2%
Incomefromcopyright  5%
Incomefromfranchising/royalties 5%
Incomefromwinningprizes  10%
Incomefrominheritances/gifts 10%
PIT Rates
• Gainsonsaleofshares;
• Gainsonsaleofrealestate;
• InheritancesinexcessofVND10million.

Non Taxable Income
Nontaxableincomeincludes:
• Interestearnedondepositswithcreditinstitutions/banks
 andonlifeinsurancepolicies;
• Compensationpaidunderlife/non-lifeinsurancepolicies;
• RetirementpensionspaidundertheSocialInsurancelaw(or
 theforeignequivalent);
• Incomefromtransferofpropertiesbetweenvariousdirect
 familymembers;
• Inheritances/giftsbetweenvariousdirectfamilymembers;
• Monthlyretirementpensionspaidundervoluntary
insurance schemes.
Foreign Tax Credits
Inrespectoftaxresidentswhohaveoverseasincome,PITpaid
inaforeigncountryiscreditable.
Tax Deductions
Taxdeductionsinclude:
1. Contributionstomandatorysocial,healthand
 unemploymentinsuranceschemes;
2. Contributionstolocalvoluntarypensionschemes
 (subjecttoacap);
3. Contributionstocertainapprovedcharities;
4. Taxallowances:
 • Personalallowance:VND9million/month;
 • Dependentallowance:VND3.6million/month/
  dependent.Thedependentallowanceisnotautomatically
granted,andthetaxpayerneedstoregisterqualifying
dependents and provide supporting documents to the
taxauthority.

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attheyear-end.Anannualnaltaxreturnmustbesubmitted
andanyadditionaltaxmustbepaidwithin90daysoftheyear
end.ExpatriateemployeesarealsorequiredtocarryoutaPIT
nalisationonterminationoftheirVietnameseassignments
beforeexitingVietnam.Taxrefundsduetoexcesstaxpayments
areonlyavailabletothosewhohaveataxcode.
Fornon-employmentincome,theindividualisrequiredto
declareandpayPITinrelationtoeachtypeoftaxablenon
employmentincome.ThePITregulationsrequireincometo
be declared and tax paid on a regular basis, often each time
income is received.

Non-residents
Type of taxable income Tax rate
Employmentincome  20%
Businessincome  1%-5%
  (basedontypeof
  businessincome)
Interest/dividends  5%
Saleofshares  0.1%
  (onsalesproceeds)
Saleofrealestate  2%
  (onsalesproceeds)
Incomefromroyalties/  5%
franchising
Incomefrominheritance/  10%

gifts/winningprizes
Administration
Tax codes
Individualswhohavetaxableincomearerequiredtoobtaina
taxcode.Thosewhohavetaxableemploymentincomemust
submitthetaxregistrationletotheiremployerwhowill
subsequentlysubmitthistothelocaltaxofce.Thosewhohave
other items of taxable income are required to submit their tax
registrationletothedistricttaxofceofthelocalitywhere
theyreside.
Taxdeclarationsandpayment
Foremploymentincome,taxhastobedeclaredandpaid
provisionallyonamonthlybasisbythe20
th
dayofthefollowing
monthoronaquarterlybasisbythe30
th
dayfollowingthereporting
quarter.Theamountspaidarereconciledtothetotaltaxliability
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Social, Health and Unemployment
Insurance Contributions
Socialinsurance(“SI”)andUnemploymentinsurance(“UI”)
contributionsareapplicabletoVietnameseindividuals
only.Healthinsurance(“HI”)contributionsarerequiredfor
Vietnameseandforeignindividualsthatareemployedunder
Vietnamlabourcontracts.

SI/HI/UIcontributionratesareasfollows:
ThesalarysubjecttoSI/HI/UIcontributionsisthesalarystated
in the labour contract, but this is capped at 20 times the
minimumsalary(theminimumsalaryiscurrently
VND1,150,000andsubjecttochangeduringtheyear).
Thestatutoryemployercontributionsdonotconstitutea
taxablebenettotheemployee.Theemployeecontributionsare
deductibleforPITpurposes.
Other Taxes
NumerousotherfeesandtaxescanapplyinVietnam,including
businesslicencetaxandregistrationfees(akintostampduty)
on the transfer of certain registerable assets.
SI HI UI Total
Employee 8% 1.5% 1% 10.5%
Employer 18% 3% 1% 22%
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Accounting and Auditing
Accountingrecordsaregenerallyrequiredtobemaintainedin
onlyVND.Foreign-investedbusinessentitiescanselectaforeign
currencytobeusedfortheiraccountingrecordsandnancial
statementsprovidedthattheymeetallstipulatedrequirements.
AccountingrecordsarerequiredtobemaintainedinVietnamese
language,butthiscanbecombinedwithacommonly-used
foreignlanguage.Attheendofanancialyear,theentitymust
performaphysicalcountofitsxedassets,cashandinventory.
CompaniesoperatinginVietnamarerequiredtocomplywith
theVietnamAccountingSystem(“VAS”).Itispossibleto

divergefromthestandardVAS,butthisissubjecttospecic
approvalfromtheMinistryofFinance.Thetaxauthorities
treatVASnon-complianceasabasisfortaxreassessmentand
impositionofpenalties,includingwithdrawalofCITincentives,
disallowanceofexpensedeductionsforCITpurposesand
disallowanceofinputVATcredits/refunds.
Theannualnancialstatementsofallforeign-investedbusiness
entitiesmustbeauditedbyanindependentauditingcompany
operatinginVietnam.Auditedannualnancialstatements
mustbecompletedwithin90daysfromtheendofthenancial
year.Thesenancialstatementsshouldbeledwiththeapplicable
licensingbody,MinistryofFinance,localtaxauthority,
DepartmentofStatisticsandotherlocalauthoritiesifrequired
bylaw.
Vietnamhasissued26accountingstandardsand37auditing
standardswhichareprimarilybasedoninternationalstandards
withsomelocalmodications.
Tax Audits and Penalties
Taxauditsarecarriedoutregularlyandoftencoveranumber
oftaxyears.Priortoanaudit,thetaxauthoritiessendthe
taxpayerawrittennoticespecifyingthetimingandscopeofthe
audit inspection.
There are detailed regulations setting out penalties for various
taxoffences.Theserangefromrelativelyminoradministrative
penalties through to tax penalties amounting to various
multiplesoftheadditionaltaxassessed.Fordiscrepancies
identiedbythetaxauthorities(e.g.uponaudit),a20%penalty
willbeimposedontheamountoftaxunder-declared.Late
paymentoftaxissubjecttointerestof0.05%ofthetaxliability
foreachdaylate,calculatedfromthestatutorydeadlinetothe

dateofactualpaymentifthenumberofdayslateislessthan90
days.Beyond90days,thedailyinterestrateincreasesto0.07%.
Thegeneralstatuteoflimitationsforimposingtaxis10years
(effective1July2013)andforpenaltiesis5years.Wherethe
taxpayerdidnotregisterfortaxorcommitsevasionliableto
criminal prosecution, the tax authorities can collect unpaid tax
andpenaltiesatanytime.
PwC - Vietnam Pocket Tax Book 2014
PwC PwC
PwC - Vietnam Pocket Tax Book 2014
46 47
Recipient
29. Korea(North)
30. Kuwait
31. Laos
32. Luxembourg
33. Malaysia
34. Mongolia
35. Morocco
36. Mozambique
37. Myanmar
38. Netherlands
39. NewZealand
40. Norway
41. Oman
42. Pakistan
43. Palestine
44. Philippines
45. Poland
46. Qatar

47. Romania
48. Russia
49. SanMarino
50. SaudiArabia
51. Serbia
52. Seychelles
53. Singapore
54. Slovakia
55. Spain
56. SriLanka
57. Sweden
58. Switzerland
59. Taiwan
60. Thailand
61. Tunisia
Interest
%
10
15
10
10
10
10
10
10
10
10
10
10
10

15
10
15
10
10
10
10
10/15
10
10
10
10
10
10
10
10
10
10
10/15
10
Royalties
%
10
20
10
10
10
10
10
10

10
5/10/15
10
10
10
15
10
15
10/15
5/10
15
15
10/15
7.5/10
10
10
5/10
5/10/15
10
15
5/15
10
15
15
10
Notes
2
2
-
-

2
2
2
1
2
2
1
2
2
2
1
2
-
2
2
-
1
2
1
2
2
2
2
2
-
-
2
2
Appendix I
Double Taxation Agreements

Asummaryofwithholdingtaxratesispresentedasfollows:
Recipient
1. Algeria
2. Australia
3. Austria
4. Bangladesh
5. Belarus
6. Belgium
7. BruneiDarussalam
8. Bulgaria
9. Canada
10. China
11. Cuba
12. CzechRepublic
13. Denmark
14. Egypt
15. Finland
16. France
17. Germany
18. HongKong
19. Hungary
20. Iceland
21. India
22. Indonesia
23. Ireland
24. Israel
25. Italy
26. Japan
27. Kazakhstan
28. Korea(South)

Interest
%
15
10
10
15
10
10
10
10
10
10
10
10
10
15
Nil
10
10
10
10
10
10
15
10
10
10
10
10
10

Royalties
%
15
10
7.5/10
15
15
5/10/15
10
15
7.5/10
10
10
10
5/15
15
10
10
7.5/10
7/10
10
10
10
15
5/7.5/15
7.5/10
5/10/15
10
10
5/15

Notes
1, 2
-
2
2
2
2
2
2
2
2
-
2
2
1
-
2
2
2
-
2
2
2
2
2
2
2
1, 2
2
PwC - Vietnam Pocket Tax Book 2014

PwC PwC
PwC - Vietnam Pocket Tax Book 2014
48 49
PwC Services in Vietnam
PwCVietnamestablishedofcesinHanoiandHoChiMinhCityin
1994.Ourteamofapproximately700Vietnameseandexpatriate
staff have a thorough understanding of the transitional local
economyinwhichtheyworkandawideknowledgeofpolicies
and procedures covering investment, legal, tax, accounting and
consultingmattersthroughoutVietnam.PwCVietnamhasbuilt
strongrelationshipswithkeyministries,nancialinstitutions,
state owned companies, private companies, commercial
organisationsandtheODAcommunity.
WealsohaveaforeignlawcompanyinVietnam,licensedbythe
MinistryofJusticein2000,withitsheadofceinHoChiMinh
CityandabranchofceinHanoi.

Ourservicesinclude:
Tax Services:
• Taxcomplianceandstructuring
• Governmentliaison,taxriskmanagementanddisputeresolution
• Transferpricing
• Taxduediligence
Legal Services (through our afliated law rm,
PwC Legal):
• Inwardinvestor/start-uplegalservices
• Legalduediligence
• Generalcorporateandcommercialservices
• Employmentandhumanresources
• Legalhealthcheckservice

Notes:
1. Notinforceyet
2. Interestderivedbycertaingovernmentbodiesisexempt 
from withholding tax.
InmostcasesthelimitssetbytheDTAarehigherthanthe
present withholding rate under domestic law, therefore the
domesticrateswillapply.
Recipient
62. UAE
63. Ukraine
64. UnitedKingdom
65. Uzbekistan
66. Venezuela
Interest
%
10
10
10
10
10
Royalties
%
10
10
10
15
10
Notes
2
2

2
2
2