A VPBank office in Hà Nội. The bank's shares fell 1.5 per cent on Wednesday as investors started cashing out from banks' stocks following their rallies. — VNA/VNS Photo Quốc Việt HÀ NỘI — Vietnamese shares struggled on Wednesday as investors began cashing out from large-cap firms following recent rallies. The benchmark VN-Index on the Hồ Chí Minh Stock Exchange inched up 0.05 per cent to close at 982.57 points. The index was up as much as 0.35 per cent during the day. The VN-Index soared nearly 1 per cent on Tuesday. The Vietnamese stock market continued rising on Wednesday but its growth was narrowed towards the end of the day as investors sought profits in groups of stocks which made strong gains recently, MB Securities Co (MBS) said in its daily report. Banking, real estate and retail were the three sectors hit by selling pressure on Wednesday. Their sector indices dropped between 0.1 per cent and 0.5 per cent, data on … [Read more...] about VN-Index struggles as investors cash out for short-term profits
Tax implications cash out refinance rental property
By Le Khanh Lam - Partner, Tax and Consulting RSM Together with the increment of foreign direct investment capital in Vietnam and cross-border transactions of selling goods and providing services by foreign suppliers to Vietnamese buyers, the concerns regarding the Foreign Contractor Tax and the control of transfer pricing that could affect these transactions have accordingly increased. Foreign Contractor Tax implications In Vietnam, the Foreign Contractor Tax (FCT) describes the tax obligations of overseas contractors who do business in or receive income from Vietnam on the basis of a contract or agreement with Vietnamese buyers. The FCT mainly comprises of two components, those being VAT and income tax. In which, VAT and Corporate Income Tax (CIT) applies to a foreign contractor who is an overseas business entity; and VAT and Personal Income Tax (PIT) applies to an individual business foreign contractor. Currently, the direct method is the common method applied by most … [Read more...] about Tax implications of cross border trade
Grant Thornton Vietnam (GTV) will hold its bi-annual Business Tax and Regulation Seminar on April 16, 2019 at Lotte Legend Hotel Saigon, Ho Chi Minh City, following the success of the tax seminar organised in Hanoi on March 15, 2019. Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants Association (VTCA), giving her presentation at Grant Thornton's Hanoi tax seminar on March 15, 2019 In the upcoming seminar on April 16, 2019 in Ho Chi Minh City, GTV professionals and reputable speakers including Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants Association (VTCA), will discuss the following topics: Corporate Tax – Tax implication on Mergers and Acquisitions (M&A) transaction; Transfer Pricing – From practical observations and experience in Transfer Pricing audits to risk management; Key changes proposed for the Law on Enterprises and the Law on Investment – Stay ahead of the game; Implementation of electronic invoice use in accordance with … [Read more...] about Grant Thornton bi annual tax seminar in Ho Chi Minh City
Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities? Income earned by foreigners from rendering services in Vietnam is taxed in Vietnam regardless of their residence status. However, the tax implications are different depending on various factors that are specified in this article to help the foreigners to comply with the tax regulations in Vietnam as well as mitigate the risks of additional tax, penalties and interests on late tax payment. Regulation on residence status in Vietnam According to the current tax regulation, an individual is regarded as a Vietnamese tax resident if: Being present in Vietnam for a period of 183 days or more within one western calendar year or 12 consecutive months from the date of first arrival in Vietnam; or Having a registered place of “permanent residence” in Vietnam; or Having a rented house (including hotels, guesthouses, motels, offices) with a lease term of 183 days or more in a tax year. In … [Read more...] about Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities?
Retaining key personnel has always been a company’s prerequisite policy paving the way to prosperity. Employee Stock Ownership Plan (ESOP) has long been considered a good management tool and compensation benefit for the retention of human capital, as well as a good solution for those companies with limited cash flow. While ESOP is not a new term, its important tax implications have been continuously provoking controversy. This report investigates the Personal Income Tax (PIT)’s exposure under ESOP schemes, which provide beneficiaries a better understanding and thus the ability to minimise tax risks. Grant Thornton Vietnam provides insights into the tax side of ESOP Employee Stock Ownership Plan (ESOP) ESOP can simply be understood as employees’ benefit plan with agreed terms and conditions. An employee stock ownership is defined as an allocation of shares that will be granted to specified employees in the future, prevalently in the form of shares options … [Read more...] about Employee shares ownership plan and tax implications in Vietnam