- With effect from 1 April 2016, the categories of foreign workers which can be exempt from work permit has been expanded. Among those is a category for foreign nationals entering Vietnam for employment as an expert, manager, executive director or technician for a period less than 30 days per entrance and the cumulative period does not exceed 90 days in any one year. Furthermore, the need to obtain work permit exemption certificate from the Department of Labour is waived for this category of foreign workers. This new measure certainly provides greater flexibility for international employers who wish to bring in senior personnel from overseas to provide technical expertise and training for the benefit of the local employees and projects. Although work permits may be exempt provided set conditions are met, foreign workers who derive employment income for services rendered in Vietnam may still have a Vietnamese income tax paying obligation.
- Pursuant to Resolution No. 01/NQ-CP dated 7 January 2016, the Government will proactively develop plans to ensure balance of State budget collection in 2016 amid fluctuations in oil prices. To achieve this goal, one of the plans the Government has is to strengthen tax control and inspection to minimize revenue losses and maximize revenue collection. Transfer pricing is an area specifically mentioned; therefore, taxpayers can expect to see more frequent and comprehensive audits will be conducted during 2016 in the transfer pricing arena. As such, having contemporaneous transfer pricing documentation is something taxpayer should be prepared for in the event of being selected for an audit. Taxpayers may also want to revisit their transfer pricing disclosures to ensure consistency and proactively rectifying errors to minimize questioning from the authorities.
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