Mazars Vietnam Newsletter - Issue June 2018

We would like to bring you tax and legal updates in June 2018 with the following highlights influencing the corporate operation and payroll commencement:


Decree 72/2018/ND-CP guiding implementation of base salary for state officers and military force

On 15 May 2018, the Government released Decree No. 72/2018/ND-CP providing adjustment of basic salary for officials, public servants and armed forces. According to this Decree, the monthly basic salary (also known as general minimum salary) will be increased from VND 1,300,000 to VND 1,390,000 from 01 July 2018.

Official letter 1282/GSQL-GQ2on the implementation of export/import rights of foreign invested enterprises

On 04 May 2018, The General Department of Customs issued Official Letter1282/GSQL-GQ2 providing guidelines on the implementation of export/import rights of foreign invested enterprises. Accordingly, foreign invested enterprises can exercise the rights of export, import and distribution of goods that are not subject to trading business license if all registration procedures have already been completed in accordance with the Law on Investment and Law on Enterprises.

Official letter 1474/CT-TTHT on tax policy for capital transfer

On 22 February 2018, Ho Chi Minh City (“HCMC”) Tax Department issued Official Letter 1474/CT-TTHT providing guidelines on capital transfer activities. Accordingly, if a Vietnamese enterprise transfers its capital in another company, the capital transfer is not subject to Value Added Tax (“VAT”); however, the company must issue a financial invoice for such transaction.

Official letter 1703/CT-TTHT on Corporate Income Tax (“CIT”) on accrued bonus

According to Official Letter 1703/CT-TTHT issued by HCMC Tax Department on 05 March 2018, if a company made accruals for employee bonus in fiscal year 2017, however paid in December 2018, the employee bonus shall be deductible in fiscal year 2018.

Official letter 1994/TCT-CS on CIT incentives for enterprises doing business in conditional sectors

According to Official Letter 1994/TCT-CS issued by the General Department of Tax on 24 May 2018, an enterprise doing business in the conditional sectors is only entitled for tax incentives if all the requirements in order to be operating in that business are satisfied.

Official letter 24758/CT-TTHT on CIT incentives for new investment project carrying out part of the production process

According to Official Letter 24758/CT-TTHT issued by Hanoi Tax Department on 27 April 2018, if a company sets up a branch to carry out an investment project, in which the branch would take care only part of the production process to produce work-in-progress, which shall then be finished and sold by the head quarter to the customers, the branch is a dependent accounting unit without separate accounting records, then such investment project shall be considered an expansion project from the original project of the company.


Official letter 1814/TCT-TNCN on Personal Income Tax (“PIT”) implication on employee’s winnings lucky draw organized by the company.

According to Official Letter 1841/TCT-TNCN issued by General Department of Tax on 18 May 2018, if the employees having income from winning lucky draw organized by the company, the tax department shall base on the company’s financial policy and substance of the event to determine whether this is income from winning prize or income from wage and salary to calculate PIT.

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Mazars Newsletter - Tax Updates for June 2018 [ENG]
Mazars Newsletter - Tax Updates for June 2018 [ENG]
Mazars Newsletter - Tax Updates for June 2018 [VIE]
Mazars Newsletter - Tax Updates for June 2018 [VIE]