A periodic summary of new rulings and other legal documents relating to legal, tax and investment developments in Vietnam.
Minimum basic salary will increase from 1 July 2017. Minimum regional salary will increase from 1 January 2017. Cap on meal allowance will increase from 1 January 2016.
General Department of Customs’ ruling issued to an export processing enterprise re. tax treatment of discrepancies in material levels in accounting books and customs finalization report.
We would like to remind our readers about the annual PIT compliance deadline.
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.
The Ministry of Finance (the “MoF”) issued Circular No. 133/2016/TT-BTC (“Circular 133”) providing guidance on the Vietnamese Corporate Accounting System for small and medium-sized enterprises (“SMEs”) on 26 August 2016, that replaces Decision No. 48/2006/QD-BTC (“Decision 48”) and Circular No. 138/2011/TT-BTC (“Circular 138”). Circular 133 will be effective from 1 January 2017.
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.