Why need to estimate the set up cost?
SETUP COST ESTIMATE is your estimate about all expenses or penalties that may happen relating to fixed assets, taxes, labor wages, etc. so that you will have a suitable plan to invest in Vietnam.
SETUP COST ESTIMATE shall be known before stepping in Vietnam. Because once it is set up, it is hard to change and also you can anticipate the required budget.
Clearview hereby created to help you foresee this and guide you to optimize the SETUP COST:
- OPTIMIZE TAXES
- OPTIMIZE FIXED ASSETS
- LABOR WAGES
1. TAX OPTIMIZATION
In Vietnam there are a bunch of legal documents relating to Tax .
Here are some major taxes that an enterprise should know:
- Corporate income tax.
- Value added tax (VAT).
- Import tax, export tax.
- Personal income tax.
- Environmental protection tax (if any).
- Resource tax (if any).
- Special consumption tax (if any).
Of which each has its own legal documents: circulars, decrees, consolidated documents, law documents (and each with several tens to a hundred of pages). Some from the government, some from the Vietnam national assembly, some from the ministry of finance.
For example: There are more than ten legal documents only for Corporate income tax : 3 law documents from the Vietnam national assembly, 3 decrees of the government, 10 circulars of the ministry of finance.
Some circulars of the ministry of finance issued later only for the purpose of editing, adding, modifying, guiding some clauses, provisions of the previous legal documents issued earlier by the gorvernment or the Vietnam national assembly.
Those documents are as a roadmap that every company in Vietnam must follow OR get heavy penalties.
But, there is no a unique document for easy compliance, we call it the overlapping of legal procedures.
Thus, to absorb all information from circulars, decrees is impossible. It is not only about the length of words but also the overlapping. We can only do it at best where there is a specific case.
Let’s leave your email to get latest tax policies.
SO HOW TO OPTIMIZE THE TAX ACCOUNTING FOR YOUR COMPANY ?
First, what is tax accounting optimization?
Tax accounting optimization is the method to balance the input-out put, use clauses, provisions of decrees, circulars wisely to save expenses and maximize profit or to avoid penalties.
For example :
+ Income from conducting scientific and technological research is exempt from corporate income tax (while normal standard is 20%).
+ For goods have localization rate more than 70%, or to export more than 30% are highly recommended by the government and will receive many preferences. If a corporate does not know and just put 69% or 29%, it will be a big difference in profit.
Let’s read more at our posts Here.
HOW DO WE OPTIMIZE TAX?
We do not use all information from legal documents as mentioned above, in fact, it is impossible to use all.
We have tools, resources to optimize them in a specific case. This job takes several days to weeks.
Thus, you just send us information : business line, scale of business, etc . The more specific the information is, the better you will get.
Then our team will make a REPORT for you via Email.
2. SET UP FIXED ASSETS
a- Build new one:
- Land : Land should be chosen in a location that fits your product in term of easy transportation and im-export. Land that is close to big cities usually has price higher than 5 to 10 times the remote areas.
- Construction fee : depending on your standard and the location, the construction fee including 50-year-leasing-land ranges from $160 to $220 per square meter.
b- Warehouse or office for lease:
Vietnam is now booming with industrial real estate and office for lease, there are thousands of warehouses and offices available for lease each month, that include built-to-suit warehouse, built-to-suit-office (built according to the design or demand of the client). The leasing cost ranges from $2 to $4 per square meter per month.
The leasing price in 2020 is 6.5% to 10% up corresponding period of preceding year.
Let’s see more : how to build or rent a factory/warehouse in Vietnam?
3. LABOR’S MINIMUM WAGE
Minimum wage is the minimum salary or remuneration that a corporate must pay to a worker in that region. Minimum wage is categorized into 4 regions : region 1, region 2, region 3, region 4.
Minimum wage is usually regulated and renewed by the Government each year, it is the legal basis for the calculation of salary, social insurance, health insurance, personal income tax, etc for workers.
Please see this post : minimum wage and basic wage 2020 .
What can we do?
As described in the headline of this post about ‘our process to estimate SETUP COST, 100% REMOTE, all you do is sending us your requirements, your brief about your business line.
Our members are experts in construction field, real estate, accounting, etc. We know very well how to optimize the SETUP COST from design optimization, tax planning, location choosing, etc
We will make a REPORT based on your requirements then send you via email.
We also have a list of warehouses, land and offices available for lease from the north to the south.
Let’s ask us your questions we are happy to consult you.
See more our service: TAX AND ACCOUNTING .
We guarantee to offer you 100% :