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A project management office (PMO) in Vietnam commonly refers to an office established by a foreign contractor that is registered to operate in the locality where its construction work is carried out. A PMO would operate within the terms of a contract and be dissolved when the contract expires.

The Vietnam government has introduced policies to encourage the growth as well as maintain the competitiveness of “supporting industry” investment in Vietnam. Valerie Teo and Nguyen Tan Tai, of Grant Thornton Vietnam, discuss the available tax incentives for supporting industries.

Being a dependent unit of a foreign company to conduct a number of limited commercial promotion supporting activities permitted by Vietnam laws, a Vietnam-based representative office without carrying out any profit-making activities seems to be quite simple to manage, save cost and simplify the compliance procedures during operation, i.e. no Value Added Tax (VAT), no Corporate Income Tax (CIT), no requirement to maintain the stipulated accounting books, no independent audit required by laws, etc.

In this newsletter, Grant Thornton Vietnam would like to update our valued customers on important legal policies that have just been issued recently.

Vietnam: Expenses for Intra-Group Services

In this November tax newsletter, Grant Thornton Vietnam would like to update out valued customers on important legal policies that have just been issued recently.

After more than three years of implementing Decree No. 20/2017/ND-CP ("Decree 20") and other amending and guiding documents such as Decree No. 68/2020/ND-CP ("Decree 68") and Circular No. 41/2017/TT-BTC ("Circular 41"), on 5 November 2020, the Government has officially issued Decree No.132/2020/ND-CP ("Decree 132") to replace Decree 20 and Decree 68 prescribing tax administration for enterprises engaged in Transfer Pricing.

Issued in May 2017, Decree 20/2017/ND-CP ("Decree 20") was an important milestone for Vietnamese tax system in its roadmap to adopt the recommendations from Organization for Economic Co-operation and Development ("OECD") in relation to the initiative of Base Erosion and Profit Shifting ("BEPS") for the purpose of better controlling the concept of Transfer Pricing in Vietnam.

The Vietnam government has introduced many tax policies for the agriculture sector in the last few decades. Compared to other industries in Vietnam, the number of tax incentives are at the highest level.

Issuance of Decree 68/2020 to replace Decree 20/2017 regarding loan interest expenses

In this newsletter, Grant Thornton Vietnam would like to update recent important regulations and important tax policies including:

In these challenging times of Covid-19, Nguyen Thu Phuong and Nguyen Hung Du, of Grant Thornton Vietnam, discuss the difficulties in receiving value-added tax refunds for investment projects located in Vietnam.

Measures to promote technology transfer in Vietnam

Business of socialization activities have been developed as an alternative way of supplying public goods and services. The socialization incentives have been applied to attract growing capital, which directly linked the social performance of an enterprise with its profitability.

We launch a series of Brief discussion on Tax Finalization and Profit Remittance Abroad, Corporate Income Tax Incentive for Social Impact Projects, and Tax Breaks for High-tech Transfers.

Tax Newsletter, Update on new regulations and important tax policies