As a practice for years, fees earned by credit institutions and banks for their Letter of Credit (“LC”) services in Vietnam are not subject to VAT until recent tax rulings confirmed otherwise with retroactive tax implications, resulting in additional tax liabilities, penalties and unprecedent tax risks.
On 17 June 2025, in alignment with FATF’s recommendations, Vietnam has issued the Law No. 76/2025/QH15 amending the Law on Enterprises (2020) introducing the new requirements on “Beneficial Owner” of enterprises with effect from 1 July 2025. Accordingly, enterprises in Vietnam must disclose the beneficial owner(s) and register such information with the Business Registration Authority. Below are the details of the new requirements:
Each individual, regardless of their role in the enterprise, will have their own perspective on a contract to serve their own purposes. If a contract fulfills multiple objectives both within and outside the enterprise, it will help reduce risks, violations, or disputes, thereby enabling the parties to the contract and related stakeholders to perform the contract effectively, ensuring compliance and protecting the rights and interests of all involved parties.