Tax

Given the regularly changing tax requirements in Vietnam, effective tax planning and tax optimization can be a big challenge. With a thorough understanding of Vietnamese tax systems and regulations and other relevant tax jurisdictions, plus established relationships with related tax authorities, our tax services Vietnam will assist you greatly in managing all of the intricate details in local jurisdictions while understanding and strategically planning the global flow of your transactions. We will also keep you aware of tax-related developments that may affect your business, and help you interpret their significance.

We will help you overcome the above challenge by offering diverse tax services Vietnam:

International Tax Planning

DCPA helps both international businesses and individuals (those who are living and working in countries other than where defines their nationality) identify how best to minimize Vietnam and overseas tax liabilities. Our significant international network provides us with ample resources to meet all your expansion goals. We strive to develop commercially focused and tailored tax strategies to minimize tax exposures and maximize business efficiencies. We utilize our extensive local knowledge and proven tax-efficient strategies to maximize potential benefits and reduce risks. We use these techniques to assist you in planning your legal structure, repatriation planning and exit strategy.

Briefly speaking, we focus on designing appropriate tax effective structures, to help achieve an integrated tax minimization plan. Whether to an individual or an organization, we understand that businesses regularly need to remit funds offshore. As a significant part of our international tax planning, we make withholding obligations and opportunities clear to you.

Corporate Tax Planning

Tax management is a complex and risky undertaking at the best of times, but these days businesses also have to contend with economic uncertainty and ever-growing regulatory oversight and increasing changes. Making sure that your firm has the right people, processes and methods in place to effectively manage your tax obligations is not easy, especially when tax management is not your firm’s core competency. At DCPA, we can help you tackle these challenges.

For companies operating internationally in particular, our tax advice helps you take advantage of the lowest effective tax rates across multiple jurisdictions (e.g. among South East Asia) and benefit from forward planning in their organization.

Our approach to developing effective solutions is to:

  • Analyze your business operations, prioritizing issues based on the risk they present
  • Review your current tax position to determine whether tax obligations are being met and if the Company has potential tax liabilities or assets.
  • Research relevant regulations and guidance to offer practical solutions based on our experience and deep knowledge base.
  • Guide you through the process and ensure effective implementation, laying the foundations for future efficiency benefits and risk reduction.
  • Defend the structure against challenges by the tax authorities.
  • Alert you to the latest tax developments.

Expatriate Tax Planning

DCPA has a strong knowledge base and skills to advise expatriate clients on tax issues for executives and employees working internationally, helping you keep your personal income taxes to a minimum, while remaining compliant with legislation. We can develop a personalized package for each key employee to take maximum advantage of the exemptions and incentives available, minimizing the tax burdens to the benefit of both employees and employers.

Market Entry Tax Structuring

Understanding the tax implications for your market entry in Vietnam or any other territory is essential for any business. Getting the right advice in the first place can translate into significant savings. DCPA advises numerous foreign investors on efficient tax structures for their investments, ventures or operations in Vietnam. Our experience allows you to consider all the options and set up a corporate structure that meets both operational and tax efficiency requirements, taking into account both your short-term and long-term objectives. In short, we help you devise the structure that is best for you.

Tax Due Diligence

Tax Due Diligence procedure is regularly a key feature in the context of an intended M&A transaction in Vietnam. Its goal is for a purchaser to determine the past, present and future tax liabilities of the target entity, including disclosed, undisclosed, realised and unrealized tax liabilities. This will help establish the purchase price and the type of tax warranties and indemnities included in a Share Purchase Agreement (SPA), determine the tax profile of the target entity and assist in the development of an appropriate acquisition and funding structure.

DCPA Tax Team performs tax due diligence from both a financial and compliance perspective, and undertakes legal tax due diligence as well. Our work typically includes reviewing potential risks and opportunities, structuring and financing issues from a legal and tax perspective, reviewing legal agreements and advising on appropriate tax warranties and indemnities. We undertake legal tax due diligence in conjunction with any financial tax due diligence to ensure that key issues and risks are appropriately identified and assessed.

Typical examples of taxes that may be covered in a tax due diligence include corporate income tax (CIT), value added tax (VAT), personal income tax (PIT), foreign contractor tax (FCT or simply Withholding Tax), social security and other statutory obligations, customs duties, stamp duty, landholder duty, etc. Some issues that are often the subject of tax due diligence include: compliance in preparing and filing different types of tax returns (as listed above); investigations or reviews by tax authorities; depreciation and other capital allowances; capital gains tax transactions; research and development; deductibility of expenditures for CIT purposes; debt forgiveness; international transactions and transfer pricing; foreign income and deductions; deemed dividend rules; and so on.

Tax Compliance Review (Tax Health Check)

DCPA Tax Compliance Review (also called Tax Heath Check), usually prior to a tax audit or inspection by the local tax authorities, involves a high-level review of specific tax areas (typically including corporate tax, personal income tax, value added tax, specific business tax, stamp duty, land tax, customs and excise tax, etc.) to highlight the key issues that need to be rectified in order to reduce tax risks. Through our extensive experience, we have identified key risk areas in which many enterprises are not fully compliant or often overlook potential tax planning opportunities. Our tax compliance review service represents a cost-effective method to proactively manage risks and reduce potential issues, making sure “no surprises” during the tax finalization with or tax audit by the tax authorities.

VAT Refund Claim (VAT Recovery)

Our dedicated VAT experts are knowledgeable in Vietnamese VAT regulations and procedures and liaise with the relevant tax authorities to deliver maximum refunds. Our custom-built system ensures full transparency for the client through to issuance of VAT refunds. On behalf of clients, we process their VAT refund claims and identify their recoverable VAT to make their filing of their local VAT returns a seamless process. We only charge fees on a success basis (upon actual receipt of refunds).

Tax Authority Representation (Tax Dispute Resolution)

Tax authorities worldwide are under increasing pressure to generate revenue, causing a rise in tax audit activity across many taxing jurisdictions including Vietnam and all types of tax. Particular uncertainty can arise as global businesses seek to access new and developing markets where the local tax environment may be unfamiliar and could be extremely unpredictable.

Liaising and negotiating with tax authorities in Vietnam can be a daunting task. Our tax professionals have developed strong working relationships over many years with tax authorities and officials at various levels (national, provincial and district) to assist you in resolving tax disputes should the need arise. We have extensive experience in negotiating with relevant tax authorities on procedural formalities and technical interpretations to resolve disputes in the most effective manner possible.

Tax Compliance

We will function as your tax agent to conduct tax compliance tasks on your behalf: periodical computation, filing tax returns, and making payment (upon request) for value added tax (VAT), corporate income tax (CIT), foreign contractor tax (FCT) and employees’ personal income tax (PIT), and other taxes (depending on your business nature).

                                                                                   

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