ECOVIS Focus Hong Kong

Personal income tax Vietnam: Automatic refund from 2025

07.04.2025

The General Department of Taxation’s decree of 24 January 2025 on the automatic personal income tax (PIT) refund procedure makes it easier for taxpayers to fulfil their tax obligations. The new procedure came into effect upon signature. The Ecovis experts explain how the process works.

The introduction of the automatic PIT tax refund (Decision No. 108/QD-TCT) is one of the new applications and methods the tax authority is using to accelerate processes on the IT platform and improve conditions for taxpayers to proactively fulfil their tax obligations. The procedure applies to tax authorities at all levels nationwide.

The automatic PIT refund process sets out the sequence and procedures for tax authorities to deal with PIT refund applications for individuals who directly finalise their taxes and request refunds on their PIT declarations.

There are three main steps:

Step 1: Create the suggested PIT finalisation form

The tax IT application system automatically collates data and creates a suggested PIT finalisation return for taxpayers who are individuals directly declaring PIT. The data is collected from multiple sources including income-paying organisations and individuals, tax registration and dependent registration data, as well as data on tax obligations or taxpayer debts nationwide. Individual taxpayers must check the information on the eTax mobile application, where they can confirm or edit it before submitting the PIT finalisation file.

We would be happy to explain the individual steps of the new income tax procedure to you in detail.

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam

Step 2: Automatically resolve the PIT refund

1. The PIT refund subsystem automatically checks and determines whether the files are eligible for automatic processing.
2. If the taxpayer’s PIT refund file meets all the required conditions, the PIT refund subsystem will automatically create a tax refund proposal, prepare a tax refund decision (or a decision to refund and offset PIT) and an order to refund (or an order to refund and offset PIT) to send to the head of the tax authority for electronic signature.
3. If the taxpayer’s PIT refund file does not meet all of the conditions, the tax IT application system will automatically assign and send an email to the department leader and tax officer assigned to handle the PIT refund file instructing them to continue to process the file.

Step 3: Post-refund control

On a quarterly basis, the tax IT application system will automatically analyse data to warn and provide a list to the tax authority about organisations and individuals paying income and deducting PIT, along with additional declarations that may change the tax liability information of individuals who have received PIT refunds. This provides the file processing department with a basis to deal with post-refund control and recover tax refunds (if any).

The automated PIT refund process replaces the previous regulations on processing the PIT refund applications of individuals who directly finalise their tax declarations.

For further information please contact:

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: Nghia.Tran@ecovis.com.vn

China’s 2025 investment framework: What global businesses need to know

04.04.2025

On 19 February 2025, China unveiled a comprehensive action plan to stabilise and promote foreign investment. The plan includes various strategic measures which the government aims to use to attract and retain foreign capital.

China’s 2025 action plan aims to attract foreign investment, enhance economic stability, and modernise key industries. It focuses on refining the Invest in China brand, strengthening cooperation between central and local governments, and ensuring equal treatment for foreign-invested enterprises (FIEs).

The plan encourages reinvestment by directing capital into advanced manufacturing, modern services, and underdeveloped regions. To simplify foreign mergers and acquisitions, China will streamline regulations and lower barriers for cross-border transactions, explain the Ecovis consultants. Additionally, easing loan restrictions and supporting regional headquarters for multinational corporations will foster long-term investment. Transparency initiatives, such as regular policy briefings, further reinforce China’s commitment to an open and competitive business environment.

Key measures of China’s 2025 investment framework

China’s 2025 foreign investment action plan outlines 20 key measures to further open its economy and maintain a stable investment climate. These measures impact businesses across various industries, including manufacturing, services, telecom, healthcare, and education, regardless of their listing status.

We can advise you on market entry in China, on M&A transactions and support you in obtaining regulatory approvals.

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany

For non-listed foreign companies, some important measures include:

• Encouraging foreign investment: Develop operational guidelines for strategic investment and enhance promotional efforts to attract long-term foreign capital in listed firms.
• Supporting reinvestment: Improve the business environment, ensure equal treatment for foreign enterprises, and introduce policies to encourage reinvestment of profits, including pilot programmes for investment reporting.
• Facilitating mergers & acquisitions: Amend regulations under the foreign investment law to simplify M&A procedures, expand management scope, and ease restrictions on cross-border share swaps.

What China wants to achieve with the action plan

China’s new action plan reaffirms its commitment to attracting foreign investment by expanding market access, simplifying processes, and promoting fair competition. Despite challenges, its focus on high-tech growth, green industries, and global integration signals new opportunities. While the effectiveness of these measures remains uncertain, China’s proactive approach aims to sustain investment and economic stability in 2025 and beyond.

For further information please contact:

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
Email: richard.hoffmann@ecovis.com

How to close a company in the Netherlands: ‘Turbo’ liquidation of a Dutch legal entity

02.04.2025

In the Dutch legal system, there are two ways to dissolve a legal entity: formal dissolution proceedings and “turbo liquidation.” A law amending the legal provisions on turbo liquidation came into force on 15 November 2023. International companies in particular are struggling with these new regulations. The Ecovis experts explain the details.

While the formal dissolution procedure is subject to several legal requirements, such as a two-month objection period and publication in a national newspaper, turbo liquidation comes into effect when a legal entity has no assets at the time of the dissolution resolution (by the shareholders). In this case, the legal entity automatically ceases to exist once this resolution takes effect.

What the new law on turbo liquidation means

There have been concerns about the misuse of turbo liquidation, especially when a legal entity with debts applies for the procedure. Since the entity is automatically dissolved when it has no assets, it does not need to account to creditors. If a creditor wishes to claim from the entity, it may no longer exist. The bill aims to increase transparency, improve the position of creditors, and combat misuse of the procedure. This should ultimately enhance trust in the use of turbo liquidation.

The bill introduces a requirement for management boards to disclose certain financial information when opting for turbo liquidation. In the event of non-compliance, management board members can be banned from acting as directors in the future. Additionally, it increases the ability of creditors to access information.

Do you need to dissolve a company in the Netherlands? We can help you ensure the process is legally compliant.

Allard Schuering, civil-law notary and partner KienhuisLegal – Member of ECOVIS International, Utrecht, Netherlands

How it works

In addition to the (shareholders) resolution to dissolve a legal entity without assets, the legal entity will be required to file certain documents with the trade register of the Dutch Chamber of Commerce. These documents include financial statements for the final year in which the entity is dissolved and the previous year if no financial statements have been made public, an explanation of the reason for the lack of assets and the existence of debts and, if applicable, how the assets were liquidated before the dissolution.

The board is also obliged to inform creditors in writing. Failure to comply will be punishable under the Economic Offenses Act. The penalty may include removal from the trade register and a ban for the managing director meaning that he/she cannot act as a managing director of any Dutch legal entity for the next five years. In the case of dissolution without assets, the managing director ban included in the Bankruptcy Act also applies. The Public Prosecution Service can also request a managing director ban.

Conclusion

The new law aims to improve the position of creditors and enhance the image of the turbo liquidation process. In practice, it means that there are more requirements that must be met before a company can be dissolved, even in a simplified manner.

For further information please contact:

Allard Schuering, civil-law notary and partner KienhuisLegal – Member of ECOVIS International, Utrecht, Netherlands
Email: Allard.Schuering@KienhuisLegal.nl