Vietnam Amends Tax, Labour and VAT Regulations
Vietnam has recently issued a slew of amendments to tax, labour and Value Added Tax (VAT) provisions,
reports Nair & Co. which provides international tax consulting for companies expanding overseas. The
key amendments are listed below:
Companies operating in nearby areas with different regional minimum wage bands are now
required to offer the highest minimum wages paid in those areas.
New minimum wages are as follows
Region Minimum wages per month
I VND 2,700,000
II VND 2,400,000
III VND 2,100,000
IV VND 1,900,000
New Standard Tax Declaration Forms
From 1 January 2014, for tax declaration purposes, it is necessary for both individuals and
companies to use new tax forms.
Taxpayers are required to file amendments to final records, if they realize any inaccuracy or
misstatement in the final annual tax records.
VAT Credit System:
Companies are allowed to apply for the VAT credit method in the fiscal year 2014 if
o their revenue in 2013 is less than VND 1 billion and they have informed the local tax
office regarding application of the VAT credit method and are in compliance with
requirements related to accounting, invoices and receipts, OR
o their revenue in 2013 is more than VND 1 billion.
Trade Union Contributions
Companies have to now pay trade union dues on a monthly basis (similar to social insurance
contributions). However, companies functioning in the fields of forestry, agriculture, fisheries
and salt production are permitted to pay on a quarterly basis.
From 10 January 2014, regardless of having a trade union or not, companies are required to pay
trade union dues of up to 2% of the total salary for social insurance contributions.
For more information about doing business overseas or to learn more about our International
Expansion Services team please contact us.
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Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax
and compliance services for the set up and management of your international operations. Our model of
a single-point-of-contact, supported by internal teams of experienced advisors, helps clients expand
business and manage risk so they can focus on their core business and sustain growth with minimal risk,
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