This service number is original, by zhangxiaoming, partner of ZhuoZhi (Vietnam) accounting firm, three years of management experience of multinational enterprises, six years of listing audit experience, five years of entrepreneurial experience, China Certified Public Accountant (CPA), and international certified public accountant (ACCA). Wechat: hy945568

Recently, some customers often ask me: "what taxes will Vietnam pay", "how much is it paid", "can I refund the import tax" and so on. Many customers even ask: "if I register the company in the name of Vietnamese, will the tax be collected less?" I will give a complete answer to these questions today.

What is the general tax paid in Vietnam?

Vietnam tax laws will not be enforced until they are approved by Congress. The State Administration of Taxation and the customs are two direct subordinate organizations under the leadership of the Ministry of finance to collect taxes. The customs are responsible for the collection of customs duties, and the State Administration of taxation is responsible for the collection of domestic taxes. Vietnam has no central tax and local tax.

Both foreign investment enterprises and Vietnamese domestic enterprises adopt unified tax standards, and different tax rates and tax reduction periods are implemented for different projects in different fields.

The current tax laws and regulations in Vietnam include value-added tax, special consumption tax, enterprise income tax, personal income tax of high-income people, non-agricultural land use tax, land use right transfer tax, agricultural land use tax, housing land tax, resource tax, stamp tax, import and export tax, land use surcharge, among which enterprise income tax, personal income tax, etc The four types of tax, namely, door tax and value-added tax, are applicable to all enterprises. We will give a detailed explanation of these four types of taxes

Corporate income tax

From January 1, 2016, the basic tax rate of enterprise income tax (EIT) in Vietnam is 20%.

Individual income tax

Table of excess progressive tax rate of personal income tax

Door tax

The door tax is a kind of tax that must be levied for various kinds of enterprises every year. The door tax is based on the registered capital of the enterprise. At the beginning of each year, the tax of the year is paid according to a certain proportion of the registered amount of the company, and the maximum amount is 3 million Vietnamese Duns. The registered capital is more than 10 billion Vietnamese Dong (about US $500000) and the registered capital is 2-5 billion (about US $100000-250000) and 1.5 million (about 75 US dollars); A million Vietnamese Duns (about $50) are levied under the 2 billion Dong (about $100000). If the newly established enterprise completes tax registration in the first half year and obtains the tax identification number, stamp tax will be levied throughout the year, and 50% in the second half. For individuals, the tax rate of 0.5% to 2% shall be applied when the assets are transferred.

The general registration company of door tax must pay within 15-30 working days after the business license is issued, otherwise there will be a fine, and the next year will be paid before the end of January.

Value added tax

The VAT rate is divided into zero tax rate, 5%, 10% (basic tax rate) and 20%, zero tax rate is applicable to export goods, 5% tax rate is applicable to agriculture, medicine, health education, science and technology service, 10% tax rate is applicable to petrochemical, electronic, chemical machinery manufacturing, construction, transportation, etc., and 20% tax rate is applicable to jewelry, hotel restaurant tourism, lottery, intermediary service, etc.

Drawback

VAT refund is permitted only if:

The export's excess input VAT to be deducted exceeds Vietnam $300million. Tax refund shall be given monthly or quarterly according to the period of VAT declaration of the enterprise. The amount of VAT (which meets the VAT rebate conditions) corresponding to export sales shall not exceed 10% of the export revenue. VAT refund is not applicable to enterprises that export goods without processing after import.

The new investment plan enterprises adopting the deduction method and the accumulated VAT to be deducted in the pre operation stage exceed Vietnam $300million. But it does not include investment plans that fail to meet the specified conditions, or the capital of the investment scheme is not allocated in place according to the regulations. Liquidation, bankruptcy, change of enterprise equity, change of enterprise form, merger, merger, split and division. Some ODA programmes, diplomatic immunity, foreigners purchase goods in Vietnam for consumption abroad. In other cases, if the input VAT of an enterprise exceeds the output VAT in the period, the excess part will be delayed to offset with the future output VAT.

Entities in Vietnam may use pre printed, self printed or electronic invoices. The tax invoice template must contain the specified items and need to be notified or registered with the local tax authority. For export goods, commercial invoices can be used instead of domestic tax invoices.