Tax
Overview
Vietnam’s economy is rapidly developing, and the tax landscape has adapted to both local and international requirements. Locally, the tax authorities have become more comprehensive in their methods of monitoring and enforcement tax laws.
Internationally, Vietnam’s membership in the Organisation for Economic Cooperation and Development (OECD) Inclusive Framework has seen the gradual implementation of the Base Erosion and Profit Shifting Agenda (“BEPS”). The 15 BEPS Action items are designed to equip governments with the domestic and international instruments to combat tax avoidance. Vietnam is committed to implementing the four minimum standards, namely Action 5 – Countering Harmful Tax Practices, Action 6 – Preventing Tax Treaty Abuse, Action 13 – Transfer Pricing Documentation and Country-by-Country Reporting, and Action 14 – Making Tax Dispute Resolution Mechanisms more Effective. Rajah & Tann LCT is focused on providing local and international tax advisory services to investors cooperating in Vietnam and across the region.
Particularly, we assist clients with the following tax advisory services:
- Corporate tax services
- Customs and International trade
- Mergers & Acquisitions tax
- Transfer pricing and International tax advisory services
- Tax and customs appeals and litigation services
Our Tax Practice Group comprises of qualified legal and tax practitioners with significant experience advising clients in tax matters. We have advised clients with respect to:
- Understanding compliance obligations under Vietnamese and international tax regulations;
- Identifying tax risks and implementing tax strategies to minimise impact on operations;
- Resolving disputes with the relevant revenue authorities; and
- Conducting litigation procedures and representing clients in court proceedings.
Corporate Tax Services
Our corporate tax practice group advises companies on their Vietnamese tax compliance obligations and international tax laws affecting their cross-border dealings. We have advised clients in relation to foreign investment rules and industry specific regulatory requirements including domestic tax incentives, deductibility, and management of corporate tax matters.
Our corporate tax services include:
- Local tax planning and advisory
- International cross-border tax planning and advisory
- Advice on access to available tax incentives
- General tax consulting advice on ad hoc tax queries under our monthly retainer services
- Tax compliance review and tax filings
Customs and International Trade Services
Our customs and international trade practice group focuses on advising companies to navigate the complex customs environment in Vietnam. As Vietnam increases its integration into the world’s supply chains, the effective management of customs processes is vital for companies to operate seamlessly across borders.
Our customs and international trade services include:
- Advice on Vietnam’s extensive Free Trade Agreements (FTA’s) and their various applications
- Customs valuation advisory
- Country of origin and tariff classifications advisory
- Disputes and litigation services
To find out more about our customs services for Chinese investors, click here.
Mergers & Acquisitions (M&A) Tax
Our tax practice group works closely with our M&A practitioners to provide companies with assurance that their transactions are considered in light of the tax implications arising out of acquisition and/or divestment. This is particularly important where cross-border deals are completed and where different rules and regulations apply to different jurisdictions.
Our M&A services include:
- Review of tax implications of acquisitions and/or divestments and recommendations on tax-efficient opportunities
- Advice on tax implications of cross-border transactions/arrangements
- Advice on corporate tax, indirect tax, and transfer pricing to provide clients with clear roadmaps to address outstanding risks
- Tax due diligence
Transfer Pricing and International Tax Services
Our transfer pricing team assists companies in managing their transfer pricing risks in relation to their related parties’ dealings. As Vietnam continues to be an attractive destination for multinational companies seeking to diversify global operations, tax and customs authorities have increased compliance monitoring of transfer pricing risks and have become sophisticated in their conduct of transfer pricing investigations. The OECD’s BEPS project has contributed to the significant focus on disclosure requirements and information sharing between competent authorities in relation to transfer pricing risks.
Our transfer pricing and international tax services include:
- Review existing transfer pricing (“TP”) policies to identify risk of challenges by the tax authorities
- Prepare TP documentation to support clients’ transfer pricing policies
- Review intercompany agreements
- Audit support and dispute resolution services
- Advance Pricing Arrangements (“APA”)
Tax and Customs Appeal and Litigation Services
Our tax and customs dispute settlement group assists investors in dealing with local tax authorities in audit investigations and appeals processes. We assist clients in ensuring minimisation of tax exposure to adverse findings and tailor strategies to deal with tax authorities. We also provide companies with litigation support services to ensure that the legimate rights and interests of investors are secured under domestic law and relevant treaties to which Vietnam is a signatory.
Our tax and customs appeal and litigation services include:
1. Pre-audit engagement
- Conduct tax health checks to identify key audit risks
- Preparation of comprehensive defence files on key audit risks
- Assistance in obtaining official letters and rulings
- Advanced pricing agreements
- Advisory opinions
2. Audit engagement
- Discuss and advise on appropriate strategies to engage with tax authorities during the audit process
- Review and advise on the documents to be prepared and submitted to tax authorities
- Represent clients in discussions and dialogues with tax authorities
- Advise clients on technical points of law to protect their position
3. Post audit engagement
- Review tax decisions and advise clients on the appropriate next steps
- Assist with tax audit appeal processes
- Assist with competent authority negotiations and treaty-based arbitrations procedures
- Represent clients in court proceedings