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Why Vietnam is an attractive destination for foreign investors ?
Advise:
International integration
Vietnam has demonstrated its commitment to international integration and affirming a new role, image, prestige, and position in the international arena. In more than three decades of renovation and integration, Vietnam has signed 15 FTAs. In the past five years, Vietnam has signed several new-generation FTAs including CPTPP, EVFTA, UKVFTA, RCEP.
Strategic geographic locations
Vietnam is located in the center of South East Asia, sharing boundaries with the Pacific Ocean, Gulf of Thailand, Laos, Cambodia and China Vietnam has over 3,000 km long coastline, near main international shipping and trading routes.
Competitive labor force
Workforce is an advantage of Vietnam with a working-age population of over 54 million, a steadily increasing proportion of trained workers, and competitive costs compared to neighboring countries.
Political stability
Vietnam is one of the more politically stable countries in South East Asia. Alongside maintaining the one-party state system, its main aim is economic growth.
Improving investment climate
Vietnam continues to welcome FDI and foreign companies play an important role in the economy. Business environment continues improving by new laws streamlining the business registration processes. The country therefore attains high ranking in business registration procedures and ease of doing business. Vietnamese Government prioritizes the infrastructure improvement to attract more FDI.
Dynamic economy
Vietnam is one of the fastest growing economies in the Asia region. GDP growth rate: 6.78% (avg. 2016 – 2019) Population: 97.58 million (avg. 2020)
Law on Tax Administration in Vietnam ?
Advise:
In recent years, the Ministry of Finance (MOF) and the General Department of Taxation have made efforts to reform and simplify tax administration policies and procedures. From 1 July 2020, most elements of the new Law on Tax Administration No. 38/2019/QH14 came into force (except for regulations on electronic documents and invoices of this law which will come into force from 1 July 2022). The new law brings some additional changes that are considered business friendly. Conflict can be avoided, according to the new law, since no administrative penalty and late tax payment is imposed if taxpayers complied with local tax authorities’ guidance which led to a deficit of tax liability or a surplus tax refund. There will be more time for individual taxpayers to comply with their obligations since the deadline of Personal Income Tax Finalization is extended by one month to the last day of the fourth month after the calendar year end. The old law regulated but did not have specific guidance on the use of electronic invoices and electronic documents. The new law provides detailed guidance on the usage of electronic invoices. Under the new law electronic invoices will be mandatory for most enterprises and the use of electronic documents will be promoted. Using electronic invoices and electronic documents should be less time-consuming and more accurate.
Forms of enterprise in Vietnam ?
Advise:
Forms of enterprise in Vietnam bellow
Tax regime in Vietnam ?
Advise:
Taxation In the majority of cases, tax liability is self-assessed meaning that the taxpayer is responsible for determining the amount of tax it must pay. Following self-assessment and payment, the taxpayer will be subject to an audit or inspection by the tax authorities. Audits usually take place every one to five years. Any reassessments under the audit process will either be settled by the taxpayer or the taxpayer may go through one of the appeal mechanisms. Standard process for taxpayers in determining tax obligations Source: Decree No. 125/2020/ND-CP, dated 19 October 2020, issued by the Government; Article 8, Decree No. 126/2020/ND-CP, dated 19 October 2020, issued by the Government; Law on Tax Administration No. 38/2019/QH14, dated 13 June 2019, issued by the National Assembly of Vietnam (1) Calculation (4) Resolve impacts (2) Declaration and Payment (3) Audit/Inspection Tax liability calculation Additional tax & penalty payment; or Initiate lawsuit Tax returns submission Tax liability payment On regular basis (one to five years at a time)
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