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Tax Newsletter - 1st Edition (Quarter 1/2019)

This is a periodic summary of new rulings and other legal documents, including some in draft form relating to tax, customs and legal developments in Vietnam. Please read on for an overview of some trending issues in Vietnam and how they may impact your business. Key contents: 1) Some notable proposed regulations, 2) New regulations in Quarter 1, 2019, 3) Interesting official letters issued by the tax authorities, 4) PwC NewsBriefs issued in Quarter 1, 2019.

EY Vietnam Tax Update - April 2019

April 2019 Tax Update highlights the following key points: 1) Alert by the Ho Chi Minh City Tax Department about common tax violation, 2) Determination of the Personal Income Tax to be reduced in Economic Zone in 2018.

New Decree on Labour Outsourcing Services

aking effect from 5 May 2019, Decree 29/2019/ND-CP on labour outsourcing services has been introduced, replacing Decree 55/2013/ND-CP. Key changes include a relaxation of licence application conditions, but also the imposition of further restrictions in relation to the deposit aimed at providing greater protection for contract employees. Partner Melissa Keane and Associate Hoa Nguyen discuss the new requirements.

China's National Carbon Market – One Step Forward

Draft legislation revealing the intended coverage and mechanics of China's national emissions trading scheme, which is due to commence operation within a year, has been released for public consultation until 2 May. Partner Jillian Button and Associate Shona Shang report on its key aspects.

Update on the Latest Regulations and Important Tax Policies - April 2019

In this newsletter, Grant Thornton Vietnam would like to update the latest regulations and important tax policies as follows: 1. Transition of incentives for projects manufacturing products in supporting industries, 2. Enterprise valuation, 3. Deductible expenses for foreign workers without work permit, 4. Response on securities companies' suggestion on application of Clause 3, Article 8 of Decree No. 20/2017/ND-CP.

The Process of Title Conveyance in the Sale of Real Property

Investing in the education sector in Vietnam

Private schools have become an increasingly attractive business in Vietnam, as the large number of students from the growing middle class fuels demand for quality education, while existing public schools struggle to keep up. The Vietnamese Government has recently amended the legal regime for foreign investment in the education sector, which, coupled with the rise in market demand, is expected to result in an increase in such investment in the coming years. In this report, we set out the general legal framework for foreign investment in the education sector; and give an overview of the required regulatory approvals and procedures for investing in an education institution in Vietnam.

EY Vietnam Tax Update - March 2019

In this newsletter: 1. Decree 13/2019/ND-CP on incentives to science and technology enterprises, 2. Decree 14/2019/ND-CP on amending some regulations on special consumption tax, 3. Decree 20/2019/ND-CP regarding amendments to stamp duty, 4. Draft Circular guiding some articles of Decree 119/2018/ND-CP on e-invoices, 5. Official Letter 310/TCT-DNL of the General Department of Taxation on enquiries of security companies re the cap of deductible interest expenses.

KPMG Legal Update Newsletter - April 2019

In this newsletter: 1. Relaxing conditions for companies entering the labour outsourcing market, 2. New regulation on internal audit applicable to the State bodies and enterprises, 3. Prohibition on incoming funds transferred from local entities to representative offices of foreign entities, 4. Lifting the restriction on current bank accounts for non-legal entities.

New Circular to Permit Foreign Investor Deposits in Foreign Currency for Investments in State-owned Enterprises in Vietnam

A new Circular issued by the State Bank of Vietnam will allow non-resident foreign investors to use foreign currency for deposits, or escrow deposits, when participating in an auction for the purchase of shares or capital contribution in connection with the equitisation or divestment of state owned enterprises (SOEs). Partner Melissa Keane (view CV) and Senior Associate Hieu Nguyen report.

IFRS 15 - Revenue from Contracts with Customers

IFRS 15 applies to financial periods beginning on or after 1 January 2018. All IFRS reporters are impacted by this new revenue. Some industries will experience greater changes than others. However, the impacts to your business, systems, data needs and financial reporting are expected to be far reaching. This alert serves as a reminder of how IFRS 15 would impact to your business.

New Developments in Vietnam's Renewable Energy Market

The Ministry of Industry and Trade of Vietnam (the MOIT) recently introduced amended regulations on wind power projects, and issued new model power purchase agreements for wind projects and rooftop solar power projects. New policies and feed-in tariffs for solar power projects are also on the horizon. Partner Melissa Keane (view CV) and Associates Hien Nguyen and Trang Dang discuss the key developments.

Capital Gains in Vietnam: What Singapore Investors Should Know

A Singaporean investor looking to divest its ownership in a Vietnamese company has options to minimize taxes. Capital gains are tax exempt in Singapore but not in Vietnam, and in certain circumstances, a Singapore investor may take advantage of the Double Tax Agreement (DTA) [1] between Vietnam and Singapore. This Article by Russin & Vecchi discusses major tax policies that affect Singaporean holders of capital or shares in Vietnamese companies.

Transfer Pricing Updates – Certain Notable Issues On Implementing Transfer Pricing Regulations In Vietnam

Grant Thornton review changes in transfer pricing in Vietnam after more than one year of the implementation of transfer Pricing regulations stipulated in Decree 20/2017/ND-CP and Circular 41/2017/TT-BTC.

Update New Legal Documents And Some Important Tax Policies - March 2019

In this newsletter: 1) Decree No. 13/2019/ND-CP on science and technology enterprises, 2) Accounting regimes of extra-small enterprises, 3) Tax implication on technology transfer, 4) Electronic invoices with or without attachment of list of goods, and 5) Corporate Income Tax (“CIT”) incentives on deposit interest during the investment stage.

A New Decree On Internal Audit – Towards International Best Practices

On 22 January 2019, the Government issued Decree 05/2019/ND-CP on Internal Audit (IA). This decree shall come into effect on 1 April 2019 and requires many state regulatory authorities, state-owned public service units and enterprises to implement IA. PwC experts update you regarding the main provisions of the decree and to share their points of view regarding the key challenges imposed by this new regulation.

Why issue preference shares?

In Vietnam, external corporate financing normally involves a third party loan or corporate bonds or issuance of ordinary shares; preference shares are rarely used. Nguyen Huu Hoai of Russin & Vecchi looks at the advantages and disadvantages of preference shares, financing possibilities and the types of preference shares available under Vietnamese law.

Real Estate Law and Practice in Vietnam

Is It Better To Arbitrate in Vietnam or Abroad?

While foreign companies often opt for international arbitration, domestic arbitration forums provide significant benefits including: (i) higher probability of enforcement in Vietnam, (ii) decreased legal and administrative costs, and (iii) a wide range of options in the selection of a forum, skills and arbitrators, and governing law. Lauren Sun of Russin & Vecchi discusses.

Electronic Signatures In Vietnam: An Online Banking Opportunity

The convenience of electronic signatures (“e-signatures”) is clear, but are they enforceable in Vietnam? Can banks develop new financial service channels, including online and mobile banking, under existing e-signatures regulations? This article provides an overview, addresses the need to apply e-signatures in the banking sector, and discusses the law governing e-signatures and conditions under which banks may rely on the enforceability of e-signatures.