A periodic summary of new rulings and other legal documents relating to legal, tax and investment developments in Vietnam.
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Vietnamese employees able to participate in overseas share schemes. The Vietnam entities must register with, and obtain approval, from the State Bank of Vietnam for the implementation of the share schemes. All transactions in relation to the registered share schemes must be performed through a bank account opened by the Vietnam entity.
On 11 October, Vietnam’s Ministry of Finance released the discussion draft of a new transfer pricing decree: “Guidance on transfer pricing administration to combat transfer pricing and loss of tax revenue to the state budget”. This is projected to replace the existing TP regulations (Circular 66/2010/TT-BTC). In line with Vietnam’s tax reform plans, as well as the changing global landscape on transparency and anti-tax avoidance (BEPS), this revision of Circular 66 was placed high on the agenda. The draft decree represents the most important development of the TP regime here for the last 10 years.
On 4 October 2016, the Ministry of Finance issued Official Letter 13959/BTC-TCHQ to provincial Customs Department providing rules for late submission of Certificates of Origin (C/Os) after time of importation.
The Ministry of Construction has issued Circular 14/2016/TT-BXD which came into force on 15 August. Circular 14 deals with licensing procedures for issuance of foreign construction contractor licences for foreign companies and individuals wishing to conduct construction related activities in Vietnam.
PwC has appointed Nasir Dao - PKM Abdul as partner in Vietnam and head of the PwC Legal offices in Hanoi and Ho ChiMinh City. Nasir joins from Gide Loyrette Nouel, where he was heading the Vietnam practice. Prior to Gide Loyrette Nouel, Nasir worked at Hogan Lovells and led their Vietnam offices.
Vietnamese employees are able to participate in overseas employee share ownership plans.
For the practical operation of the accounting services provision, the draft Decree guiding the implementation of a number of articles of Accounting Law 2015 (“the Draft Decree") gives new and detailed regulations on providing cross-border accounting services of overseas accounting services enterprises in Section 4, such as the definition of regulated entities, methods, responsibilities and conditions to provide inbound cross-border accounting services.
The financial services industry has seen some dramatic technology-led changes over the past few years. While FinTechstart-ups are encroaching upon established markets, many executives look to their IT departments to improve efficiency and facilitate innovation, while somehow also lowering costs and continuing to support legacy systems.
Cyber crime is on the rise: According to a recent global survey by PwC, many executives are declaring cyber as the risk that will define our generation. At PwC Vietnam, we've recently launched our Cyber Security Services to help clients adapt to this reality, secure their business in the digital environment and turn risks into advantages.