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To assist businesses in comprehension and application of the new regulations, in the Tax Newsletter this month, Grant Thornton would like to summarize some key changes in the Law on Tax Administration 2019, which has been effective from 1 July 2020

The private equity (PE) industry is feeling the pressure of the coronavirus outbreak, both in terms of deal-making and managing existing portfolios.

COVID-19 has caused PE firms to evaluate and adjust their valuation practices – postponing valuations to avoid reset triggers, exploring new approaches to valuations or diversifying existing ones.

With the rising impact of COVID-19 being seen worldwide, all industries will face significant disruption to their supply chain, workforce and cashflow. The right response will depend on the specific circumstances you and your business face. However, when experiencing significant stress or distress, we recommend you focus everything you do around the management of cash.

Rules on Economic Substance (“the Rules”) have recently been updated on the 10th February 2020. In addition, the British Virgin Islands (“BVI”) has now officially been removed from the European Council’s “grey list” as of 18th February.

Planning for coronavirus impact

Merger and acquisition remains a root but increasingly complex path to growth for many businesses, essential preparation can overcome the challenges.

The start of a new decade is a good time to reflect on my 30 years’ association with Vietnam, which began in November 1989. In 1990 Vietnam’s total foreign trade was less than US$ 5 billion and imports were limited to the value of foreign currency generated from exports, the exchange rate was VND 4,300 to US$1, Per capita income was less than US$ 200 per annum, and foreign exchange reserves were non- existent and there few or no overseas remittances back to Vietnam. There was very small foreign direct investment as the first Foreign Investment law was not promulgated until late 1988.

As we have seen in recent months Vietnam is proving to be a major beneficiary of the trade tensions between the USA and China. 2019 will be another year of 7% plus GDP growth more than 0.2% over the annual forecast and bilateral foreign trade will exceed US$ 500 billion for the first time and FDI has achieved a 10 year record high with commitments of US$ 38 billion and remitted capital exceeding US$ 20 billion.

The sector seems to be attracting a lot of attention from both private airlines and the regulators, whilst Vietnam Airlines the state owned carrier records record number of passengers and a growing fleet of aircraft.

Insights, Labour Productivity- is a breakthrough imminent?

Doing Business in Vietnam 2019

With the increasing trends in economic integration, it is normal that overseas organizations and foreign individuals generate income from doing business in another country rather than their home countries. In Vietnam, if a foreign organization earns income in Vietnam through providing services, or selling goods together with services, or trading, its income will be subject to Vietnamese Withholding Foreign Contractor Tax (FCT).

With the increasing trends in economic integration, it is normal that overseas organizations and foreign individuals generate income from doing business in another country rather than their home countries. In Vietnam, if a foreign organization earns income in Vietnam through providing services, or selling goods together with services, or trading, its income will be subject to Vietnamese Withholding Foreign Contractor Tax (FCT).

Update on new regulations and important tax policies

Tariff War and Relocation of Global Supply Chain