Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities? Income earned by foreigners from rendering services in Vietnam is taxed in Vietnam regardless of their residence status. However, the tax implications are different depending on various factors that are specified in this article to help the foreigners to comply with the tax regulations in Vietnam as well as mitigate the risks of additional tax, penalties and interests on late tax payment. Regulation on residence status in Vietnam According to the current tax regulation, an individual is regarded as a Vietnamese tax resident if: Being present in Vietnam for a period of 183 days or more within one western calendar year or 12 consecutive months from the date of first arrival in Vietnam; or Having a registered place of “permanent residence” in Vietnam; or Having a rented house (including hotels, guesthouses, motels, offices) with a lease term of 183 days or more in a tax year. In … [Read more...] about Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities?
Long term vs short term capital gains tax
VietNamNet Bridge - Property developers are seeking money from other sources as bank loans are drying up. After witnessing high credit growth rates in the 2015-2017 period, outstanding loans are expected to increase by 14-15 percent this year. The State Bank of Vietnam (SBV) has controlled lending more tightly by lowering the ceiling of short-term capital that banks can use for long-term lending from 45 percent to 40 percent. However, Nguyen Ngoc Truong Chinh from Thu Duc House warned that the blocking of capital inflow into the real estate market may make it chaotic. RELATED NEWS Experts divided on Vietnam’s real estate market Foreign real estate brokers flock to hot Vietnam market Thanh Lich … [Read more...] about Realtors struggle to find capital as banks tighten credit
A member of staff at a bank change the numbers showing interest rates. Many commercial bank raised deposit interest rates in recent months. (Photo vietnamfinance.vn Hanoi (VNS/VNA) - Many commercial banks raised deposit interest rates in recent months, triggering worries about the increasing pressure on the lending rates. But some insist this was only a short-term measure. From the beginning of December, rates for deposits of less than six month terms were mostly increased to the ceiling of 5.5 percent and 5.7-7.6 percent for deposits of six to 12 month terms. For long-term deposits, rates were raised from 6.5-8 percent per year popular in the first months of this year to currently 8.5-8.7 percent. National Citizen Bank, Viet Capital Bank, Bac A Bank, VPBank, PVComBank, VietA Bank, Sai Gon Commercial Bank and Orient Commercial Bank were among those offering 7 percent interest rate for deposits of six-month term. At VPBank, depositors would be provided rates of up to 7.7 … [Read more...] about Banks raise deposit rates in short-term
In the third quarter of this year Techcombank decided to pay stock dividends for 2017 to its shareholders at a ratio of two shares for each share held. – Photo cafef.vn In the third quarter of this year Techcombank decided to pay stock dividends for 2017 to its shareholders at a ratio of two shares for each share held. The decision was part of the bank’s plan to increase its charter capital to VND34.965 trillion (US$1.2 billion). To increase its capital, Military Bank maintained a dividend payout rate of almost 11 per cent, of which 6 per cent was paid in cash and the rest in shares. In the second quarter VPBank decided to issue 925 million shares to pay dividends to its shareholders, increasing its charter capital by VND9.256 trillion ($402.434 million). Analysts said plans to hike the charter capital have been going rather smoothly at both State-owned and private banks in recent times, especially those with good performances like VIB, HDBank, VPBank, Maritime Bank. … [Read more...] about Stock dividends keep shareholders happy, enable banks to increase capital
HoREA proposes maintaining ratio of short-term capital for long-term loansBy Le Anh If the maximum ratio of short-term capital used for long- and medium-term loans is reduced, the capital for the real estate sector is likely to drop - PHOTO: LE ANH HCMC – The HCMC Real Estate Association (HoREA) on September 27 suggested the State Bank of Vietnam should not reduce the maximum ratio of short-term funds used for medium- and long-term loans to 40% from early next year from the current 45%. According to the association, the amendment is damaging to the real estate market as property enterprises are in dire need of medium- and long-term loans. Real estate firms in developed countries have raised capital from investment funds and stock markets. Bank loans are mainly provided to homebuyers. Meanwhile, in Vietnam, property companies are dependent on bank loans and the capital mobilized in advance from homebuyers, while most homebuyers also take loans from banks. Due to the … [Read more...] about HoREA proposes maintaining ratio of short-term capital for long-term loans