Tax changes in Vietnam

The Vietnamese government has amended some articles of Decree No. 91/2022/ND-CP (Decree 91), made additions to corporate tax or income tax, and changed rules for online trading. Companies must comply with the new rules from when Decree 91 came into force on 20 October 2022. The Ecovis team summarise some notable points.

1. Changes to provisional corporate income tax (CIT) payments

The regulation under which the total amounts of provisional CIT payments for four quarters of the fiscal year must not be lower than 80% of the annual CIT liability has been reinstated. This means that the previous rule, where the first three quarterly CIT payments should not be less than 75% of the total CIT payable is abolished.

Overdue interest will be imposed on any underpaid amounts from the next day following the fourth quarter payment deadline.

This change can be applied retrospectively from the fiscal year 2021 if it means that there is decrease in late-payment interest for an entity whose provisional CIT payment for the first three quarters of 2021 was less than 75% of the total year-end tax payable.

Do you have questions about the impact of the tax changes on your company? We can support you.

Nghia Duong Tran, Partner of Tax, Accounting and Consulting, ECOVIS AFA Vietnam, Danang City, Vietnam

2. Changes to personal income tax (PIT)

If an income payer is subject to quarterly or monthly PIT declarations but no PIT is withheld in the declaration period, PIT filing is not compulsory for that quarter or month.

In addition, if an individual taxpayer received dividends or bonuses in the form of securities through their individual stock account before 31 December 2022 and the PIT has not been declared and paid on their behalf by any securities depository entities, the individual can submit their own PIT declarations without any penalties or late payment interest.

3. Changes for e-commerce platform providers

E-commerce platform providers must disclose to the tax authorities on a quarterly basis the tax information (i.e., name, tax code/identity card number, phone number and revenue gained from transactions on the e-commerce platform) of e-commerce partners and sellers who conduct transactions on their e-commerce platform.

4. Clarification on the tax deadline overlapping statutory holidays

If the due date falls on a staturory holiday, then the deadline for tax declaration and tax payment is the day after the holiday.

For further information please contact:

Nghia Duong Tran, Partner of Tax, Accounting and Consulting, ECOVIS AFA Vietnam, Danang City, Vietnam
Email: nghia.tran@ecovis.com.vn