Payable taxes for 100%-foreign-capital company in Vietnam

A.: Thank you for placing your trust in consulting department of Ha Thi. We have scrutinized your question and this is our response:

I. Legal grounds:

- Law on Value added tax (VAT) no. 31/2013/QH13 issued on 19/6/2013

- Law on Company income tax (CIT) issued on 26/12/2013

- Law on Personal income tax (PIT) no. 04/2007/QH12 issued on 21/11/2007

- Law on Tax Management no. 38/2019/QH14 issued on 13/06/2019

- Circular no. 104/2014/TT-BTC on tax applied for foreign organization, individual working in Vietnam or having income in Vietnam.

II. Kinds of payable-taxes for foreign enterprises

1. License tax

License tax is paid annually, depending on levels and registered capital or income in a year of that enterprise

License fee is provided as follow:

2. CIT

Depeding on particular area:

- Exploration and exploitation gas oil in Vietnam: from 32%-50%

-  Exploration and exploitaion rare resources (including: plantinum, gold, silver, tin, wonfram, antimoan, gems, rare lands, except gas oil): 50%

- Rare resources which contains more than 70% area in deprived area and this area is enjoyed tax incentives, then the CIT is 40%

- The rest fields are all 20%

Note: Enterprise which is investment incentive or location which has investment incentive enjoys less CIT.

3. VAT

Enterprise pays VAT in accordance with measure that enterprise selects when being established.

Measure which is selected the most is VAT deduction: Depending on particular product, service, tax rate will be varied: 0%, 5% and 10%.

4. PIT

In accordance with Circular no. 111/2013/TT-BTC and no. 156/2013/TT-BTC, the organization empoying laborers shall declare, deduct and pay PIT for employees.

In case of under-three-month labor contract or no contract, there shall be a deduction of 10% for PIT.

In case of over-three-month labor contract, PIT shall be deducted in accordance with multi-level progressive taxation.

In case that laborer is an individual who doesn not reside in Vietnam, the PIT shall be deducted by 20%.

Because You do not mention your business area, we are unable to consult in detail. However, there could be some other types of taxes, such as: excise tax, natural resources tax, import/export tax, environment tax and so on.

The abovesaid consultation is the answer for your request. Should you have any question, please do not hesitate to contact us via online consultation hotline: 0943891828 or via email, wechat and zalo.

We are willing to cooperate with You!

Sincerely!