New Enterprise Law 2014 and Investment Law 2014

The National Assembly passed this morning (26 November 2014) the amended Enterprise Law 2014 and amended Investment Law 2014. Enterprise Law 2014 and Investment Law 2014 will take effect from 1 July 2015 and replace the current Enterprise Law 2005 and Investment Law 2005 respectively. These two important laws will have major impacts on operation and management of companies including foreign invested companies and foreign investors in years to come. In the next several posts, we will highlight and comment on various key changes under Enterprise Law 2014 and Investment Law 2014. The executed versions of the Enterprise Law 2014 and the Investment Law 2014 are not available to public yet. Our comments are based on unofficial final versions of these laws. Therefore, there may be changes after the executed versions of the laws are available. 

Please click here to visit the special page on Enterprise Law 2014 and Investment Law 2014.

 

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Written by Nguyen Quang Vu On In , ,

Tax on transfer of shares with land use right origin

Under Vietnamese tax regulations, if:

  • a company contributes land use right (LUR) to the charter capital of a company and receives shares or capital contribution in return (LUR-Originated Shares); and
  • such company subsequently transfers the LUR-Originated Shares to a third party then the proceeds from the sale of LUR-Originated Shares may be treated as income from sale of real estate (instead of sale of securities) under the corporate income tax regulations. This may result in different tax implication and payment.
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Written by Nguyen Quang Vu On In ,