Pursuant to Circular 84/2008/TT-BTC on Personal Income Tax (“PIT”), foreigners being tax residents are required to conduct PIT finalization on termination of their assignment in Vietnam and before exiting Vietnam. Also in accordance with Circular 60/2007/TT-BTC, foreign taxpayers must clear all their outstanding tax liabilities before exiting Vietnam...

On 8 January 2010, the General Department of Taxation (“GDT”) issued Official Letter 90/TCT-TNCN (“OL 90”) to all provincial tax departments (PTDs) to instruct the PTDs neither to receive nor to process any annual PIT finalization return during January 2010...

On 7 October 2009, the Ministry of Finance (“MOF”) issued Official Letter No.14169/BTC-TCT (“OL 14169”) to the Ho Chi Minh City Tax Department to provide guidelines on Personal Income Tax (“PIT”) treatment with regard to bonuses provided to employees in form of company shares and stock options.

On 12 June 2009, the General Department of Taxation issued an express letter 38/TCT-VP advising provincial tax authorities to continue applying the deferral of PIT payment on income paid in June 2009 to qualifying taxpayers stipulated under Circular 27/2009/IT-BTC dated 6 February 2009 of the Ministry of Finance.

For companies all over the world, Transfer Pricing is now a critical issue more than ever before. KPMG has contributed to development of the International Tax Review – Transfer Pricing edition 11 which provides a summary of the most pressing transfer pricing issues in jurisdictions all over the world.

To provide further stimulus to the economy, on 16 April 2009 the Prime Minister issued Decision No. 58/2009/QD-TTg (Decision 58) providing certain additional tax incentives to business.

For year 2009, the Government introduced major new laws affecting corporate taxation. These include the Law on Corporate Income Tax (Law No.14-2008-QH12), Value Added Tax Law (Law No. 13-2008-QH12) and Special Consumption Tax Law (No. 27-2008-QH12).