WHAT IS MINIMUM TAX COMPLIANCE FOR A FOREIGN RESTAURANT IN VIETNAM

The minimum tax compliance requirements for a foreign restaurant in Vietnam may vary depending on the specific circumstances and business structure. However, some general tax compliance obligations that foreign restaurants typically need to fulfill in Vietnam include:

1. Business Registration: Foreign restaurants must register their business with the appropriate Vietnamese government agencies and obtain the necessary licenses and permits to operate legally.

2. Value-Added Tax (VAT): The restaurant is required to register for VAT and charge VAT on its goods and services provided to customers, currently at a standard rate of 10%. Regular VAT returns and payments need to be filed with the tax authorities.

3. Personal Income Tax (PIT): If you employ local staff, you are responsible for withholding and remitting their personal income tax on their wages. PIT rates vary depending on the income levels.

4. Corporate Income Tax (CIT): The restaurant is subject to CIT on its profits earned in Vietnam. The current standard CIT rate is 20%, but different rates may apply based on the business activities and location.

5. Tax Reporting and Payment: Compliance with regular tax reporting and payment obligations, which may include monthly or quarterly reporting and quarterly or annual tax payments.

6. Record-Keeping: Maintaining proper accounting records and documentation to substantiate the financial information reported to the tax authorities.

7. Sale VAT invoice issuance: The restaurant is required to issue the sale VAT invoice for every income received from customers.

Please note that tax requirements can be complex and may be subject to change. It is strongly recommended to consult with a qualified local tax advisor to ensure complete and accurate compliance with the applicable tax regulations in Vietnam.