TAX UPDATES - VIETNAM

May 2017

Indonesia Malaysia Philippine Singapore Thailand Vietnam

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Lazada Vietnam entities

Jade 1362. GmbH &

Co. Neunte
Verwaltungs KG
100
%
VRB Vietnam Co.,
Ltd.
95%

RECESS CO., LTD.

100 100
% %
HelloPay Recess Recess LVN
Co., Ltd. Center Co., Market Co., Express
(VN) Ltd. Ltd. Co., Ltd.
100
%
HelloPay
Center Co.,
Ltd. (VN)
Tax updates

Tax audit defense.

HelloPay Center Co., Ltd. Jun 2016
Period of inspection: 2015;
Successful protect/defend probable losses;
Minimize tax exposure down to 4.5% of total profit before tax.

Recess Center Co., Ltd. (TechHub) Nov 2016

Period of inspection: 2012 2015;
Tax exposure to be defended: $1.3 mil.++ (total profit before
tax: $0.89 mil);
Successful protect/defend probable losses;
Minimize tax exposure down to 12% of total profit before tax;

Recess Co., Ltd. (Lazada Vietnam) May 2017

Period of inspection: 2009 2014;
On-going.
Tax updates

Electronization of accounting process.

Successful employ the new e-invoice system for Lazada.

Minimizing lost invoices to zero.

No more human error.

Free up space for invoice retaining.

Speed up the invoicing process to 200%; speed up the

order processing accordingly.

Cut off 100% labour force for invoicing tasks.

Tax updates

Electronization of accounting process.

Further electronization shall spread out across the
functions of Lazada, includings e-documents, e-minute, e-
contract in 2017 and early 2018.

E-invoice and e-document for LEX-LEL in the mid of 2017.

Tax updates

Financial year changing.

In 1st quarter of 2017, tax team was in charge of
changing the financial year of all entities.

New accounting period shall begin at 1 st Apr and

end at 31st Mar following year.
Tax updates

Recess Market Co., Ltd. (Lamido) termination.

The termination of Lamido is required about tax and
accounting finalization.

We shall contact the authorities to have guidance on

closing accounts and finalizing the tax liabilities.
Tax updates

Foreign-loan registration.
Prevailing tax regulations require long-term foreign
loans to be registered with State Bank of Vietnam.

We have to deal with SBV to finalize a solution

regarding loan registration since the deadline of
registration was all over.

At the end, all loan agreements shall be registered

and enable other application to be passed.
Tax updates

Internal tax health check.

Since Vietnam tax regulations are quite complicated
and instantly changing, we should actively find out
any shortcomings which could cost us a higher price if
have no proper actions.

Our periodic internal tax health check will find out any
possible risks or gaps or non-compliances to ensure
the highest level of compliance with local tax
regulations.

Such courses also update new regulations as well as

propose adjustments where required to make the
current process meet new rules.

The scope of work shall consist of various taxes as

well as labour management.
Tax updates

Cross border e-commerce analysis.

Being the pioneer in the field, we have very little base
to protect our business.

Our work shall further input

regulations/approval/guidance from the tax authorities
about the case. Such input must be able to facilitate
the in/out decision.
Tax updates

Tax training (for accountants).

Accountants need to have the tax basic knowledge and
practices since they directly obtain accounting
documents and book entries daily into the system.

The main purpose of this course is to enable accountants

to detect the deductibility of expenses at the beginning
(in accordance with tax regulations). As such, we can
reduce the resources to calculate CIT at year end.

Well-trained accountants shall be able to determine up to

80% of expenses items based on tax regulations. Tax
team shall obtain their notes, comments and questions to
finalize the deduction at the year end rather than going
through from the beginning to the end.
 THANK YOU!

Indonesia Malaysia Philippine Singapore Thailand Vietnam

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