In this month’s Issue:
Reinsurance activities are being conducted more nowadays by Vietnamese insurance companies as a mechanism to manage and share risks. Reinsurance is a type of insurance whereby risks are managed by transferring such risks from an insurer to a reinsurer. The reinsurer and the insurer will enter into a reinsurance agreement and agree on conditions which the reinsurer would pay the insurer’s losses. A reinsurance premium would be paid by the insurer to the reinsurer.
With the rise of reinsurance activities in Vietnam, understanding the tax implications and benefits under a double taxation agreement (“DTA”) can help foreign reinsurers minimize their tax burdens. In this Tax Pointer, we highlight the general tax implications, including value added tax (“VAT”) and corporate income tax (“CIT”), of reinsurance activities, as well as tax impact under a DTA to which Vietnam is a signatory.
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The Decree No. 46/2011/NĐ-CP (“Decree 46”) issued by Government on 17 June 2011 amending several provisions of the Decree 34/2008/NĐ-CP (“Decree 34”) regarding recruitment and administration of foreigners working in Vietnam modify conditions applicable to foreign workers and provide further details on the specific responsibilities of the relevant authorities. While attention has been captured by certain new requirements/limitations, it should be pointed out that Decree 46, to a certain extent, also creates favorable conditions. ...Read more »
The opening of the Cambodia and Lao stock exchanges poses some questions with respect to the tax policy issues in relation to listing on these new stock exchanges. Devising a tax policy in relation to tax incentives for companies that newly list on the CSX and LSX is a complicated matter....Read more »