Transfer pricing is the mechanism by which multinational corporations (MNCs) transfer goods, services, or intangible assets within their global group of companies. Transfer pricing refers to the prices at which these transactions occur and is a significant tool for allocating profits among different jurisdictions. The main goal of transfer pricing is to ensure that profits...Read More
Valuing a restaurant is a complex process that requires consideration of many factors. It involves assessing the financial health of the business, its assets, liabilities, revenue, and expenses, as well as evaluating the current market conditions and the restaurant’s growth potential. Here are some concrete examples of how to value a restaurant: Cash Flow Analysis...Read More
Vietnam is one of the most rapidly growing economies in Southeast Asia, and this makes it an attractive investment destination for Indian firms. With a population of around 100 million people, Vietnam offers a large and expanding market for Indian companies seeking to expand their global reach. Vietnam has undergone significant economic and social transformation...Read More
As a business owner, one of your primary concerns is managing expenses and maximizing profits. One way to reduce your tax liability and keep more of your hard-earned money is to take advantage of deductible expenses. As a company, it is important to understand what deductible expenses are and how they can help reduce your...Read More
Transfer pricing is a significant issue in Vietnam as it has become an increasingly popular destination for foreign direct investment (FDI). With more and more multinational corporations (MNCs) setting up operations in Vietnam, the Vietnamese government has been focusing on transfer pricing regulations to prevent tax avoidance and ensure that tax revenues are collected fairly....Read More
The Vietnam dong is the official currency of Vietnam and has been in circulation since 1978. Since then, it has undergone several changes and fluctuations in value against major currencies such as the US dollar. In this article, we will explore the evolution of the Vietnam dong compared to the US dollar, from its introduction...Read More
Financial reports are an essential component of running a successful business. These reports provide insight into a company’s financial health, allowing management to make informed decisions that can improve profitability and growth. Financial reports are typically prepared on a quarterly and annual basis, and they include several key components. One of the most important financial...Read More
Transfer pricing refers to the pricing of goods, services or intangible property transferred between different units or subsidiaries of a multinational company. It involves setting a price for these transfers, which can affect the allocation of profits between different tax jurisdictions. The principles of transfer pricing are designed to ensure that multinational companies are taxed...Read More
Creating a budget for a company is an essential task that allows a business to manage its finances effectively. By creating a budget, a company can identify its income and expenses, plan for future investments, and ensure that it stays on track to achieve its financial goals. Here are the steps involved in creating a...Read More
Creating a company is an exciting journey that requires careful planning and execution. While it can be a daunting task, the process can be broken down into several steps that an entrepreneur can follow to ensure success. Here are the different steps involved in the creation of a company for an entrepreneur. Step 1: Develop...Read More
Vietnam has been making significant strides towards becoming a global economic player in recent years. With a population of almost 100 million and a young, well-educated workforce, Vietnam has the potential to be a major player in the world economy. In this article, we will explore the reasons why Vietnam is ready for the world...Read More
Lowering company income tax in Vietnam is an important aspect of financial management for businesses operating in the country. By reducing tax liabilities, companies can improve their bottom line and allocate resources more effectively to support growth and expansion. Here are several strategies that companies can use to lower their income tax in Vietnam: Utilize...Read More
Investing in any foreign market involves risks and challenges, and Vietnam is no exception. Some of the disadvantages and risks of investing in Vietnam include: Uncertain legal framework: Vietnam’s legal system is still developing, and the laws and regulations can be complex, inconsistent, and difficult to understand. This can make it challenging for investors to...Read More
Personal Income Tax (PIT) is a tax levied on the income of individuals and is one of the most common taxes in Vietnam. It is a tax on the money earned by individuals from wages, salaries, bonuses, and other forms of compensation. As a foreign business owner in Vietnam, it is essential to understand the...Read More
Value-Added Tax (VAT) is a tax on the value added to a product or service during its production or distribution. VAT is one of the most common indirect taxes in the world and is widely used in many countries, including Vietnam. Foreign business owners in Vietnam need to understand VAT in order to comply with...Read More
The Foreign Contractor Tax (FCT) is a tax levied on foreign contractors who provide services in Vietnam. It is similar to a value-added tax (VAT) and is imposed on the revenue earned by foreign contractors from services provided in Vietnam. The FCT is calculated as a percentage of the revenue earned by the foreign contractor,...Read More
Vietnam has several types of taxes, including: Corporate Income Tax (CIT): The CIT rate is 20% for companies with taxable income of up to VND 200 million, and 22% for companies with taxable income exceeding VND 200 million. Value-Added Tax (VAT): The standard VAT rate in Vietnam is 10%, with a reduced rate of 5%...Read More
Comparing taxes in Vietnam with those in other Southeast Asian countries and territories can provide valuable insights for foreign business owners. However, it is important to note that tax regulations and rates can vary greatly depending on the country and specific industry, so it is recommended to consult with a local tax expert for the...Read More
Calculating profit for the purpose of Corporate Income Tax (CIT) calculation involves determining a company’s taxable income, which is the amount of profit on which the tax is levied. Here are three concrete examples to demonstrate the calculation of taxable income: Example 1: A retail company The retail company’s revenue for the year is VND...Read More
Vietnam currently has various tax exemptions in place, aimed at promoting investment and supporting certain industries and activities. Some of the main tax exemptions in Vietnam include: Corporate Income Tax (CIT) exemptions: CIT exemptions are available for certain types of business activities such as high-tech companies, software development, renewable energy, and investment in disadvantaged regions....Read More
In Vietnam, failure to comply with tax regulations and requirements can result in various penalties and fines, including but not limited to: Late payment fines: If a company fails to pay taxes on time, it may incur a fine equivalent to 0.03% to 0.05% of the outstanding tax amount per day of delay. Interest on...Read More
A short-term loan is a loan that is typically due within one year or less, whereas a long-term loan is a loan that has a repayment period of more than one year. Short-term loans are often used for immediate or temporary financial needs, such as working capital or to purchase inventory. They typically have higher...Read More
Tax optimization from a legal perspective refers to the process of structuring one’s financial and business activities in a manner that minimizes the amount of tax liability owed to the government. This can be accomplished through a variety of strategies and tactics, such as taking advantage of tax incentives, deductions, credits, and other tax breaks;...Read More
Vietnam is a country that has been attracting increasing attention from foreign investors in recent years. Its combination of a low cost of living, low cost of labor, and favorable business environment make it an attractive destination for businesses looking to expand their operations and take advantage of the growing opportunities in the region. In...Read More
Regarding the expenses for Work Permit, TRC and visa, we would like to remark some points below: 1/ There are 03 important “documents” for a foreigner to come to Vietnam to work as an employee, i.e. visa to enter the country, Work Permit to legally work for a company and TRC to stay legally in...Read More
The decision to liquidate a company or file for bankruptcy can be a difficult one, and it is important to understand the implications of each option in order to make an informed decision. In this article, we will examine the factors that should be considered when choosing between liquidation and bankruptcy, and provide guidance on...Read More
A Free Trade Zone (FTZ) is a designated area within a country where goods and services can be imported, stored, processed, and re-exported without being subject to the country’s usual customs duties and taxes. FTZs are designed to encourage foreign investment and promote international trade by providing a more favorable business environment for companies operating...Read More
In recent years, Vietnam has made significant progress in strengthening its international trade relationships and expanding its global reach. Through a number of key treaties and agreements with countries and regions around the world, the country has created a more favorable environment for international trade and investment, and has established itself as an increasingly important...Read More
Bankruptcy is a legal process that provides relief to individuals and businesses that are unable to repay their debts. It allows them to discharge their debts and start fresh, while protecting their assets from seizure by creditors. In Vietnam, the process of bankruptcy involves several steps, including: Filing for bankruptcy: A person or company that...Read More
Maximizing the exit value of a company is crucial for any business owner looking to sell their company or transfer ownership. In Vietnam, it is important to have a thorough understanding of the legal and financial landscape in order to maximize the value of your company. In order to achieve this, it is essential to...Read More
As of 2023, the International Financial Reporting Standards (IFRS) have been adopted by the Ministry of Finance in Vietnam and are used as the basis for financial reporting by most Vietnamese companies. The IFRS was first introduced in Vietnam in January 1st, 2005 and has been gradually implemented by various companies over the past years....Read More
Ending a company legally involves a process known as “liquidation.” Liquidation is the process of dissolving a company and distributing its assets to creditors and shareholders. This process can be voluntary or involuntary, and is typically initiated by the company’s directors or shareholders. In Vietnam, the steps to legally end a company include: Obtaining approval...Read More
Vietnam is an attractive market for foreign investors due to its growing economy and favorable business environment. However, doing business in Vietnam can also come with its own set of challenges, particularly in the area of accounting and compliance. In this article, we will discuss why it is important to have a good accounting firm...Read More
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