Towards the end of last month, the new law on tax administration was finally approved by the National Assembly. The new law will take effect from July next year, except for its provisions on invoices and e-documents, which will come into force on 1 July 2022.
This constitutes a major change to the tax regime in Vietnam. The law includes new provisions focusing on tax risk management, enhancement of international cooperation, management of e-commerce activities, and promotion of e- tax transactions.
The law in many respects only has quite general wording, and details of what is intended will only be available when its implementing decree and circular are issued – there is no timeline for the release of these as yet.
We will be taking a closer look at some of the transfer pricing provisions and implications of this law in a separate News out shortly.