If you are a foreign entrepreneur living abroad and considering establishing a business in Vietnam, it’s crucial to understand the tax obligations that come with owning property in the country. In this guide, we will provide you with valuable information about the Tax Obligations for Non-Resident Property. At Warren B, we specialize in fast and efficient business incorporation services, offering English-speaking consultants and transparent pricing with no hidden fees.
Understanding Tax Residency in Vietnam
Before delving into the tax obligations, it’s important to determine your tax residency status in Vietnam. As a non-resident property owner, you are subject to specific tax rules, and it’s crucial to understand the criteria that determine your tax residency status.
Tax Obligations for Non-Resident Property Owners in Vietnam
1. Corporate Income Tax (CIT)
The national government collects all taxes. The usual rate for CIT is 20%. Oil and gas companies pay CIT rates from 32% to 50%, based on the project location and conditions. Companies involved in mining activities (e.g. silver, gold, gemstones) pay CIT rates of 40% or 50%, based on where the project is.
As in previous years, the government has issued Decree 34/2022 to help enterprises affected by COVID-19 by extending the deadlines for tax and land rental payments in 2022. The decree is effective from 28 May 2022 to 31 Dec 2022.
CIT does not have a tax residency concept. Business organisations set up under Vietnam’s laws are subject to CIT and taxed on their global income. Foreign income is taxed at 20% CIT. There are no tax incentives for such income.
Foreign organisations doing business in Vietnam without a legal entity in Vietnam and/or earning income from Vietnam are considered foreign contractors, regardless of whether the services are done inside or outside Vietnam. FCT applies to payments to foreign contractors, which includes VAT and CIT components.
2. Value Added Tax (VAT)
As a non-resident property owner conducting business activities in Vietnam, you may also be required to register for Value Added Tax. VAT applies to the sale of goods and services in Vietnam. Our experienced consultants can assist you in understanding VAT registration and compliance procedures.
3. Personal Income Tax (PIT)
If you are an individual shareholder or employee receiving income from your business in Vietnam, you will need to fulfill Personal Income Tax obligations. The applicable PIT rates vary based on income levels. Our consultants can provide personalized guidance on calculating and fulfilling your PIT obligations.
Benefits of Choosing Warren B
At Warren B, we understand the importance of efficient and hassle-free business incorporation for foreign entrepreneurs. Here’s why you should choose our services:
1. Fast and Efficient Service
We specialize in providing fast and efficient business incorporation services in Vietnam. Our streamlined processes ensure that your company registration is handled promptly, saving you time and effort.
2. English-Speaking Consultants
Our team of English-speaking consultants is well-versed in Vietnamese tax regulations and can effectively communicate with you, ensuring a smooth and seamless experience.
3. Transparent Pricing with No Hidden Fees
We believe in transparency and fairness. Our pricing structure is straightforward, with no hidden fees. You can trust that the costs associated with incorporating your business in Vietnam will be clear and transparent from the start.
Establishing a business in Vietnam as a non-resident property owner comes with specific tax obligations that must be fulfilled. At Warren B, we offer fast and efficient business incorporation services, supported by English-speaking consultants who can guide you through the process. Our transparent pricing ensures that there are no hidden fees. Contact us today to embark on your journey of establishing a successful business in Vietnam.
Remember, understanding and fulfilling your tax obligations is crucial for maintaining compliance and avoiding potential penalties or legal issues.