Mazars in Vietnam Newsletter - Tax & Legal Update - Issue December 2021

To assist in navigating these complexities for new year, Mazars’s tax team has developed this publication providing a broad overview of changes in Tax and Labour regulations to help enterprises stand firm through uncertain times.

Notable highlights are noted as below.

I. Changes in tax declaration and allocation

1. Tax allocation for a centralised accounting taxpayer having dependent unit(s) or business location(s) located in province(s) different from its head office
2. Allocation the overpayments to State Budget
3. New forms for 2021 Tax Finalization and 2022 Tax filings

II. Other changes in tax regulations

1. Tax withholding and declaration for foreign contractors
2. Local tax authorities are required to confirm tax exemption/reduction application under Double Taxation Avoidance Agreement and Other International Treaties
3. VAT refund

III. Changes in Labour & Insurance regulations

1. Increase of Social insurance (“SI”) contribution for expats working in Vietnam
2. SI and Unemployment Insurance (“UI”) contribution rates borne by employers after expiration of support policies due to the COVID-19 pandemic impact
3. Increase of retirement age
4. Increase of Trade Union Fee use
5. Increase the cap of overtime (“OT”) hours to 300 hours/year

OUR SUPPORT

For regulation changes and tax matters, we can provide you with assistance on:

• Registration, declaration of Personal Income Tax, Corporate Tax, VAT and Foreign Contractor Tax.
• Tax refunds assistance and representation.
• Consultancy on utilizing opportunities provided by transfer pricing.
• Customs Advisory: Compliance & Reporting; FTA and C/O; Harmonised System code classification and valuation; Inventory control; International trade arrangement; and Others.

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