Vietnam has introduced a restriction on the level of tax-deductible interest in the government’s new Decree No. 20. The introduction of a fixed-ratio rule — which generally follows the recommendations of the OECD in its BEPS initiative — will have the effect of restricting tax-deductible interest to a percentage of EBITDA. The new rules, effective from May 1, 2017, may affect companies that have not engaged in transactions at which the BEPS rules are targeted.
Global Leader, Tax and Legal Services
Tel: +353 1 792 8943
Global Managing Partner, Tax and Legal Services
Tel: +1 (646) 471 0612