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: Minimum Wages ď‚ˇ
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
Minimum wages per month
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
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.
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