Tax Litigation
Tax Evasion in Vietnam
Published: December-2023
In this insight, we talk about all things relating to Tax Evasion in Vietnam to help you stay on top of your tax obligations.
DownloadWith over a decade of experience in tax-related advice and litigation in Vietnam, Le & Tran is a trusted authority in understanding the implications of tax matters for our diverse range of clients, from large multinational companies to individuals. Our firm is well-versed in navigating the complexities of the Tax Code and providing effective defense against regulatory actions.
Resolving a tax dispute with the Vietnamese tax authorities is no simple task. It requires consideration of various agencies such as the General Department of Taxation, the Ministry of Finance, and local tax authorities. Additionally, complex areas like business valuation and accounting often require thorough research and careful analysis.
At Le & Tran, we prioritize listening closely to our clients’ in-house accounting departments or managers to ensure their business objectives are understood and achievable. In the event of a tax dispute, our firm collaborates closely with clients to prepare their case and gather necessary evidence. Our ultimate goal is to achieve a fair resolution with the tax authorities in the shortest possible timeframe.
What is a Tax Litigation Law Firm?
A tax litigation law firm specializes in representing clients involved in disputes with federal or state tax authorities. Tax litigation attorneys possess a profound understanding of tax law and procedures, utilizing this knowledge to advocate for their clients. Whether it involves negotiating settlements or going to trial, these attorneys strive to secure the best possible outcome. When facing a tax dispute or seeking legal advice on tax matters, it is crucial to have an experienced attorney by your side. A tax litigation law firm can provide the representation and consultation necessary to safeguard your rights and interests.
Managing and keeping up with the diverse tax laws can be challenging for businesses, particularly those expanding beyond their initial geographical borders. Engaging an experienced tax litigation law firm can prove highly beneficial in navigating the complexities of the tax code. By seeking tax legal consulting and advice from a reputable firm in Vietnam, businesses can minimize their tax liability and protect their financial interests. This proactive approach not only saves time and money but also alleviates stress in the long run.
What do Tax Litigation Attorneys Do?
Tax litigation attorneys specialize in representing taxpayers who are in disputes with the federal government. They handle a wide range of cases, including audits, collections, and appeals. In situations where taxpayers are unable to reach an agreement with state tax authorities, tax litigation attorneys advocate on their behalf in court. Additionally, some tax litigation attorneys assist clients with criminal tax cases, which require expertise in both tax law and criminal law. Given the complexity of such cases, it is crucial to have an attorney who possesses a deep understanding of these specialized areas to effectively navigate the legal landscape and protect the interests of their clients.
At Le & tran, our tax advisory services aim to help clients with a full range of taxation strategies, covering both direct and indirect taxes. Our team consists of top attorneys in tax litigation and licensed tax advisors with many years of experience in various industries. These services include, but are not limited to:
- Providing legal advice on the application and effect of tax laws (decrees, circulars, decision, etc.) on the day-to-day operations of the client’s business;
- Representing and defending the company’s interests during a tax audit;
- Performing tax due diligence and identifying and resolving faults and potential tax risks before an M&A or tax audit;
- Communicating with the relevant authorities on behalf of the client in all tax matters;
- Providing guidance concerning contractual tax clauses;
- Finding solutions to avoid double taxation;
- Recommendation of actions in connection with restructuring measures;
- Assisting in tax administrative procedures such as tax returns;
- Optimizing holding structures and tax groups;
- Evaluating opportunities to limit the client’s tax liability.
What is Vietnam’s Tax Law Like?
How Are Taxes Collected in Vietnam?
In Vietnam, taxes are collected by the General Department of Taxation (GDT). The GDT is responsible for administering all aspects of taxation in the country, including collecting taxes and enforcing tax laws. The GDT also provides guidance and assistance to taxpayers, helps businesses comply with tax regulations, and represents Vietnam in international taxation matters, however, the advice may be more generic in nature as compared to that which can be provided by professional tax litigation law firms.
What Is the Corporate Income Tax Rate in Vietnam?
The corporate income tax rate in Vietnam is 20 percent. This rate applies to both resident and non-resident companies. There are a number of deductions and exemptions that can lower your effective tax rate. For example, businesses can deduct research and development expenses, as well as certain other costs associated with doing business in Vietnam. Additionally, there are a number of tax incentives for businesses that invest in certain sectors or regions of the country.
What Is the Personal Income Tax Rate in Vietnam?
The personal income tax rate in Vietnam is variable depending on the salary of the individual. There are a number of deductions and exemptions that can lower your effective tax rate, however. For example, taxpayers can deduct certain expenses, such as education costs, from their taxable income. Additionally, there are a number of tax incentives for individuals who invest in certain sectors or regions of the country.
What Are the Most Common Taxes in Vietnam?
The most common taxes in Vietnam include the corporate income tax, the personal income tax, the value added tax (VAT), and the import duty. These taxes all apply to businesses and individuals alike.
How Does Vietnam’s Tax System Compare to Other Countries?
Vietnam has signed a number of double taxation avoidance agreements (DTAs) with other countries, which can further reduce tax liability. With all these factors considered, Vietnam is an attractive destination for businesses looking to minimize their taxes, albeit firms unfamiliar with Vietnam’s tax system should look to professional tax consulting advice to fully leverage available benefits while adhering to legal compliance such that litigation is avoided.
Why Engage Le & Tran for Legal Tax Advice?
Le & Tran is dedicated to providing comprehensive and effective legal services to businesses, individuals, expatriates, locals, multinationals, and startup industries in Vietnam. Our commitment extends beyond tax legal advice and consulting to include actionable business advice that ensures compliance with all legal requirements.
Tax disputes are known for their complexity, and each case presents unique and intricate challenges. At Le & Tran, our attorneys excel at tailoring customized approaches to litigation and consulting. Drawing on our extensive experience and expertise, we employ innovative thinking to design the most optimal strategies that lead to favorable outcomes for companies and individuals. Our practice upholds professionalism, efficiency, and excellence, regardless of the industry in which your firm operates. Get in touch with us for your tax solutions and more.
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