2021 Overview of General Tax Obligations and Deadlines in Vietnam

1. 2021 Overview of General Tax Obligations and Deadlines in Vietnam Vietnam 2021 Overview of General Tax Obligations and Deadlines in Connect with us for the latest business updates: Linkedin Twitter Facebook

2. 2021 Overview of General Tax Obligations and Deadlines in Vietnam TABLE OF CONTENTS Despite unprecedented global events, Vietnam stood strong in 2020, managing to achieve GDP — reinforcing its stature as a beacon for business in Southeast Asia. As that sort of progress continues to attract investment, it’s a good time to give an update on your obligations and deadlines to all things related to tax in Vietnam in 2021. 4.48% growth in 1. Vietnam Tax Deadlines 2021 2. Corporate Income Tax 3. Business License Tax Like any other respected economy, tax compliance is crucial in Vietnam, as there are serious legal consequences for those who do not observe the law. Non-compliance can result in weighty penalties or the revocation of your business license — so it’s advisable to catch up on your responsibilities every year. 4. Personal Income Tax 5. Foreign Contractor Withholding Tax 6. Value - Added Tax 7. Special Sales Tax | 2 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

3. 2021 Overview of General Tax Obligations and Deadlines in Vietnam First, we’ll go over the major tax deadlines in Vietnam for 2021, followed by an overview of your obligations for those taxes. Vietnam Tax Deadlines for 2021 Vietnam allows you to choose from four fiscal year periods: January 1 to December 31 April 1 to March 31 1. Limited Liability Company (LLC) July 1 to June 30 October 1 to September 30 However, there are two dates that are the most important in terms of tax compliance in Vietnam — January 30, 2021, and March 30, 2021. First Vietnamese Major Tax Deadline — January 30, 2021 January 30, 2021, is the deadline for the following tax payments and/or declarations for 2020 in Vietnam. 2. Joint Stock Company (JSC) Personal Income Tax (PIT) of Q4, 2020 – declaration and payment. Corporate Income Tax (CIT) of Q4, 2020 – declaration and paid on estimates. Value-Added Tax (VAT) of Q4, 2020 – declaration and payment. Annual business license tax for Vietnamese companies. Second Vietnamese Major Tax Deadline — March 30, 2021 March 30, 2021, is the deadline for the following tax payments and/or declarations for 2020 in Vietnam. Financial statement or report of 2020: profit and loss, cash flow, balance sheet, and financial statement note. Tax settlement declarations of 2020: PIT settlement declaration and CIT settlement declaration. Statistic or compliance report of 2020. Foreign Direct Investment (FDI) reports. Financial statements are only required if your company was registered before October 2020. Otherwise, you can compile the submission with your financial statement of 2021. | 3 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

4. how do you determine which form you need to submit to IRAS? Take a look Corporate Income Tax (CIT) payment Report of labour use CITand PIT settlement reports Value Added Tax (VAT) declaration and payment FDI report Audited financial report 2021 Overview of General Tax Obligations and Deadlines in Vietnam Personal Income Tax (PIT) declaration and payment Business license tax payment Report on foreign labour use Other Corporate Compliance Deadlines in Vietnam for 2021 Quarterly Bi-annually Annually Corporate Income Tax (CIT) payment CIT and PIT settlement reports Report of labour use The full list of sectors that do require capital requirements is as follows: Value-Added Tax (VAT) declaration and payment FDI report Audited financial report Personal Income Tax (PIT) declaration and payment Business license tax payment Vocational schools Language centres Report on foreign labour use Finance and Fin-tech Insurance Vietnam Tax Obligations for 2021 Real estate companies Banking While not an exhaustive list, here is an overview of your major tax obligations in Vietnam for 2021. Vietnam Corporate Income Tax Obligations Foreign Ownership Requirements in Vietnam Tax rate: 20% on assessable income; 32-50% for the oil and gas and other mineral extraction sectors. In fact, Vietnam does allow 100% foreign ownership of a business in the majority of industries. Significant exceptions are logistics, advertising, and tourism, for which you will need a Vietnamese Joint Venture Company. Tax year:January 1 to December 31 2021. Annual Business License Tax Payment Generally speaking, foreign ownership regulations follow the World Trade Organisation (WTO) guidelines. However, there are some cases where some industries are neither covered by WTO guidelines nor by local laws — if this is the case, you will need approval for the ministry in charge of that industry. Tax rate: Depends on the business’s registered capital: Capital is 10 billion VND or less (~US$ 430,000). 2 million VND (~US$ 85). Capital is more than 10 billion VND. 3 million VND (~US$ 130). Branches, representative offices, business location, public service providers, and other business organizations. 1 million VND (~US$ 40). Tax deadline: January 30. | 4 | Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021 Last Updated April 2021

5. Vietnam Tax Obligations for 2021 Vietnam Personal Income Tax Obligations Tax rate: 5 – 35% depending on the individual’s income. Tax resident: Individual resides in Vietnam for at least 183 days in 12 consecutive months; individual who holds a permanent or temporary residency in Vietnam; an individual who rents a property in Vietnam for 183 consecutive days. Investment capital requirements for domestic investors; or 1. 2. Tax year: A calendar year which is the same as the individual’s tax year. Based on Resolution 954/2020/UBTVQH14 on June 2, 2020, there were increases in family circumstance-based deductions for Personal Income Tax: Increase Individual Deduction from VND 9 million (US$390) per month to VND 11 million (US$476) per month. Increase Family Deduction from VND 3.6 million (US$156) per month to VND 4.4 million (US$191) per month. Investments that require special licenses. 3. These deduction increases will reduce the accessible income for PIT. Vietnam Foreign Contractor Withholding Tax Obligations Deemed CIT rate: 0.1 – 10% depending on the business. Deemed VAT rate: 0 – 5% depending on the business. Applicable to: Foreign organisations with income derived from business in Vietnam. Vietnam Value -Added Tax Obligations Tax rate: 0 – 10% depending on the type of services and goods. Applicable to: Purchases of goods and services (including goods and services purchased from non-residents), with certain exemptions. Interested to Set Up a Company in Vietnam? Speak To Us Today Vietnam Special Sales Tax Obligations Our company incorporation team can assist you with a seamless company set up process. Tax rate: 7 – 150% depending on the type of product or service. Applicable to:The importers, producers, and providers of goods and services. Related Read: The 101 on expanding your business in Vietnam | 5 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

6. Should You Complete Your Vietnam Taxes Yourself, or Should You Outsource? 1. While you could file your own taxes in Vietnam, in general, it’s advisable to get the help of qualified tax professionals. This ensures that you are able to optimise your obligations to take advantage of the many tax incentives, tax reliefs, tax rebates, and tax treaties Vietnam offers. Without that professional guidance, you are likely to miss out on retaining profits, or worse, risk an incorrect filing, which could result in harsh penalties. By hiring a trusted Vietnamese tax advisor, you will save time, money, and even get advice on how to save money in the future. 2. Where to Next for Your Vietnam Tax Responsibilities in 2021? 3. As Vietnam continues its journey to being a mature economic power in 2021, tax policies and business incentives are becoming more and more investor-friendly. To keep ahead of the curve, we recommend you explore your options in regards to optimising your tax obligations with the goal of saving both time and money, not to mention potential headaches. When shopping around for tax advice in Vietnam for 2021, we encourage you to be discerning — you should be receiving nothing less than a hassle-free corporate tax filing process that optimises your tax obligations for maximum profit. 4. If you’d like help in your corporate tax filing in 2021, InCorp has a team of export accountants, bankers, and lawyers to help you ensure your company takes absolute advantage of Vietnam’s tax system. 5. If you have any questions about how you can optimise your Vietnamese corporate tax filings in 2021, please contact us. Talk to our Experts Let Us Help You Take Advantage of Vietnam’s Tax System for Maximum Profit | 6 Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved. Last Updated April 2021

7. IN.CORP GLOBAL PTE LTD 30 Cecil Street, #19-08 Prudential Tower, Singapore 049712 Phone: +65 6320 1888 Fax: +65 6438 2436 Email: info@incorp.asia Website: incorp.asia OUR REGIONAL PRESENCE The information contained herein is intended for general information purposes only and shall not be regarded asprofessional advice. Readers are therefore advised that before acting on any matter arising from these notes, they should discuss their particular situation with the Firm. No liability can be accepted for any action taken as result of reading the notes without prior consultation with regard to all relevant factors. FOLLOW US ON: Copyright © 2021 In.Corp Global Pte Ltd. All rights reserved.