Publications

The 2014 amendment on Value added tax law: is the taxman serious about businesses’ cash flow?

The 2014 Amendment on VAT Law, effective 01/01/2014, looks like the taxman cares about your cash flow: now monthly or quarterly, businesses can take out the VAT paid in purchases from the VAT in turnover and pay the tax man the difference only.
While this credit subtraction system is commonplace in tax laws around, in Vietnam the tax office collected VAT liability on sales up front monthly or quarterly. Businesses can claim repayment of VAT credits on purchases by the end of the year, and only if the VAT credit amount is large enough.
Given the time for the tax office to process claims, it can takes several years before you can receive payment of VAT credits the tax office owes you. To businesses, this is like a coronary artery disease: part of the cash flow is sucked into the government’s coffer, no interest!
During economic downturn, it seems cash flow as blood of businesses is as importance as the cash stream into the budget. The National Assembly passed an Amendment to VAT Law 2008 in June 2013, and the government published Decree 209/2013/NĐ-CP to implement the change from the 1st of January 2014.
It is interesting to note that the Tax Office issued Guidance to implement the Amendment on the 1st of January 2014 while awaiting the Government to draft the Decree to implement the Amendment. Does it mean the tax man is quite serious about business cash flow? I wait to see how smooth and quick the process is for my clients to claim their VAT credits in their first quarterly submissions in April 2014.

IPO of Vietnam Steel Corporation

In Decision 552/QĐ-TTg, dated 18/04/2011, the Prime Minister of Vietnam has decided to IPO an old time monopoly, Vietnam Steel Corporation (abbreviation: VNSTEEL), and instructed asset evaluation to begin.
In his announcement in April 2011, the Prime Minister intended to raise 680 billion Vietnamese dongs (about 34 million dollars) through IPO of 10% stake of the monopoly, in which 9.7% stake will be sold by auction and 0.3% will be offered to employees at discounted rate. Read more…

The Norms and Incentive Structures of Relational Contracting in Vietnam – Two Surveys

An empirical survey of relational contract practice in the Vietnamese market conducted by Dr. Quan Nguyen during 2003-2005. Published in the Australian Journal of Asian Law. Read more…

The Network of Banks and the Private Regulation of E-Commerce

Can the network of banks replace state law to give order to the online market? My answer is YES. The network of banks is involved in most online transactions and they can regulate the cyperspace market more effective than the police, the courts and parliaments. Published in the International Journal of E-Business Management. Read more…

Vietnamese Law: A Guide to Sources and Commentary

Navigating the bibliography on Vietnamese law: A joint work with Associate Professor Pip Nicholson of Melbourne Law School. Published in the Journal of Comparative Law. Read more…

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