Capital Assignment Tax (“CAT”) – Offshore assignment of capital & interest deriving from Vietnam is subject to Vietnamese CAT
In Vietnam, the taxable income of foreign companies is broadly defined and includes income from capital assignment, regardless of where the transactions take place.
Guidance issued earlier in 2016 by the Ministry of Finance sets forth the tax policies for oil and gas exploration and exploitation activities. The tax authorities, however, have recently issued rulings concerning indirect capital transactions that are based on the tax legislation, and not on the prior guidance.
Read a September 2016 report [PDF 194 KB] prepared by the KPMG