Further development on Vietnamese tax applicable to offshore capital transfer

In April 2015, the General Department of Tax (GDT) instructs a provincial tax department to consider imposing corporate income tax (CIT) on an offshore capital transfer transaction (Offshore Transfer) between a French seller and a Vietnamese buyer (2015 Instruction). The 2015 Instruction has raised a Vietnamese tax concern over offshore capital transfer activities. In February 2016, the GDT issues additional guidelines (2016 Instruction) for the Offshore Transfer to clarify some unclear issues under the 2015 Instruction. In particular,

Waiver Of Refund Guarantees For House Purchase Contracts

Under the Law on Real Estate 2014, a real estate developer must provide a bank guarantee to any house buyer to secure for the developer’s obligations to refund all advance payment received from the buyer if the developer fails to deliver the house to such buyers on time. The refund guarantee is intended to provide additional protection to house buyers but it also adds additional costs to the transaction. There are several structures for a developer and a house buyer may employ to avoid the requirement for a refund guarantee. But each of the structures carry certain legal risks. In particular,