EY VIETNAM SPOTLIGHT ON TAX - ISSUE NO.10 - MAY 2015

EY Vietnam

Wednesday, 03 Jun 2015

In this issue:
Potential tax issues with reimbursement of employment costs to overseas companies

Reimbursement of employment cost paid on behalf by overseas related companies is a common practice of foreign-invested companies in Vietnam. The reimbursement is often challenged and interpreted as payment for management services by local tax authorities and is therefore subject to Foreign Contractor Tax (FCT). We discuss the following in this issue.

► General Department of Tax’s viewpoint on reimbursement of employment cost of
assignees working in Vietnam
► Our observations: Potential challenges of local tax authorities
► Our recommendations

For more information, please see attached file.