- June 7, 2021
- Posted by: GBS
- Categories: GBS, Legal
According to current regulations, the Representative office (the “RO”) of foreign traders in Vietnam is required to submit the Annual Operation Report for the year of latest year to the Licensing Authority.
Failure to comply with such regulations will result in administrative penalty ranging from 20 million to 40 million Vietnam Dong. Furthermore, failure to comply with such regulations in 02 consecutive years will result in the withdrawal of the RO’s Establishment License and closure of the RO.
Moreover, although the RO of foreign traders is not subject to corporate income tax and other corporate taxes liabilities, it is required to deduct, declare and pay personal income tax on income from wages and salaries of its employees. The RO also needs to fulfill the liabilities on social insurance, health insurance and unemployment insurance for such employees.
Failure to comply with such regulations will result in administration penalties, re-collection of the unpaid taxes and insurance amount plus interest on late payment. Especially, starting from 1st January 2018, if the RO is deemed to evade social insurance contribution for its employees, criminal/ administrative charges will be strictly applicable to relevant involved parties.
In this regard, we are glad to inform that GBS can assist you with the above procedures to comply with relevant laws and regulations.
Whenever you need the support services for the RO in Vietnam. Please feel free to contact us directly through the contact details as below: