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Avoiding PE Risks in Vietnam: Best Practices for Foreign Representative Offices

2024-11-18
To avoid triggering Permanent Establishment (PE) status, Vietnam investors must thoroughly understand the country’s regulatory framework for representative offices (ROs) and PEs. This ensures compliance, minimizes tax liability, and mitigates legal risks. Investors expanding into new markets like Vietnam often encounter Permanent Establishment (PE) risk, a common issue that can lead to double taxation. This risk typically arises when representative offices (ROs) of foreign firms exceed their permitted operational scope in Vietnam. This article offers a comprehensive overview of PE and RO concepts, equipping investors with strategies to mitigate unnecessary tax liabilities.
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Middle East Briefing

Oman-India Free Trade Agreement Stalls Over Market Access Demands

11/19/2024

The status of the proposed Free Trade Agreement (FTA) between Oman and India has reached a deadlock as Oman has requested revisions to India’s market access offer on certain products. The stalemate arises despite the completion of negotiations in March, with Indian officials expressing reluctance to revisit inter-ministerial consultations that were previously finalized.

India Briefing

Navigating India’s Export-Import Landscape: Customs, Trading, and Industrial Clusters

11/18/2024

India’s trade landscape is evolving rapidly, driven by government initiatives to simplify regulations, enhance customs infrastructure, and foster global trade partnerships. This edition focuses on key regulatory developments and tech-enabled reforms that are crucial for businesses aiming to minimize costs and streamline operations.

China Briefing

China’s New Measures Open A-Share Market to Foreign Investment

11/18/2024

China’s capital markets are undergoing a significant transformation as part of the nation’s ongoing commitment to economic reform and openness. The recent update to the Administrative Measures for Strategic Investment in Listed Companies by Foreign Investors (hereinafter, the “new measures”) reflects this commitment, targeting an increase in foreign investor participation in China’s A-share market.

ASEAN Briefing

Philippines Refines Tax Policies with CREATE MORE Act

11/18/2024

In October, the Philippine government approved the Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act with the aim of making the country an attractive destination for foreign investment.

India Briefing

Apple’s Manufacturing Shift: Emerging Investment Opportunities in India’s Electronics and Supply Chain

11/18/2024

Apple and its suppliers aim to reach 32 percent of global iPhone manufacturing and 26 percent of their production value in India by 2026-27. We examine the implications for future foreign investment opportunities as India advances its electronics supply chain and aims for greater integration into global value chains.

Vietnam Briefing

Vietnam Public Holidays in 2025

11/19/2024

In 2025, workers in Vietnam are set to benefit from extended public holiday periods compared to the 2024 schedule. Employers and businesspersons traveling to Vietnam are advised to plan proactively and align with the country’s holiday schedule.

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ASEAN

Southeast Asia's Balancing Act in a Second Trump Presidency

11/20/2024

Learn how ASEAN can adapt to challenges and opportunities under the new US presidency. Insights into trade, investment, and resilience.

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Publications

China

China’s Economy in October 2024: Retail Gains, Industrial Slowdown, and Exports Surge

11/20/2024

China's economy in October 2024 showed mixed signals, with retail sales surging 4.8 percent and exports rising sharply, while industrial output slowed, and the property sector remained weak.

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India

Choking Growth: Air Pollution's Economic Impact on Delhi

11/21/2024

Delhi, India’s national capital, is grappling with a worsening air pollution crisis that has significantly impacted the city’s trade and commerce, causing a 20 percent dip in business activities and severe financial losses for SMEs and seasonal businesses.

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Vietnam

Temu Enters Vietnam’s E-Commerce Market: Takeaways for Newcomers

11/20/2024

Vietnam's e-commerce landscape witnessed the entry of Chinese e-commerce giant Temu in late 2024, drawing legal scrutiny. We discuss why authorities are paying close attention and offer strategic considerations for global online sellers and platform operators.

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Middle East

Middle East Briefing

Turkey Revised VAT Rates: Impact on Healthcare and Telecom Sectors

11/21/2024

Turkey recently revised VAT rates, reducing the tax on approved medical products and special-purpose foods to 10 percent, while telecom equipment faces a standard 20 percent VAT.

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