Insights into Vietnam’s Corporate Tax Landscape for 2024
The business community with interests in Vietnam is abuzz as Vietnam Briefing, in collaboration with Dezan Shira & Associates, releases its comprehensive guide on corporate tax planning for the upcoming year. This invaluable resource is now accessible through the Asia Briefing Publication Store at no cost, offering a deep dive into the fiscal changes and strategies pertinent to enterprises operating within the country.
As detailed in the publication, Vietnam’s Corporate Income Tax (CIT) is a pivotal consideration for businesses, with a standard rate of 20 percent applied to company profits. This rate is inclusive of various economic sectors and foreign corporations that have established a production or trade presence in Vietnam. The country’s tax framework is lauded for its clarity and competitiveness compared to other emerging markets.
Notably, Vietnam has carved out a reputation for its attractive investment incentives, including significant tax breaks aimed at spurring growth in specific industries and regions. These incentives are designed to promote technological and educational progress, as well as economic development in targeted zones.
In alignment with international standards set by the OECD, Vietnam is preparing to introduce a top-up corporate tax from 2024. This move is expected to impact an estimated 122 foreign companies and is part of Vietnam’s adherence to the global anti-base erosion (GloBE) Model Rules.
The latest edition of Vietnam Briefing magazine meticulously unpacks the nuances of the country’s corporate tax structure for 2024. It provides insights into the imminent changes, elucidates the incentives available to businesses, and outlines the forthcoming top-up tax mechanism. Given the dynamic nature of Vietnam’s regulatory environment, the publication underscores the importance of obtaining tailored professional tax advice.
For those seeking further expertise on navigating Vietnam’s tax system, including matters related to audit, transfer pricing, VAT, and leveraging key incentives, the team at Dezan Shira & Associates is available at vietnam@dezshira.com. The firm’s extensive network spans across Asia, providing comprehensive support to foreign investors from its various offices, including those in Hanoi, Ho Chi Minh City, and Da Nang.