I. Taxation

Most business activities or investment in Viet Nam will be subject to taxes in Viet Nam. All taxes are levied at the national level. There are no local taxes. The main taxes are as follows:

Company

• Corporate Income Tax ("CIT")

• Value Added Tax ("VAT")

• Foreign contractor withholding tax ("FCWT")

• Other taxes (Special sales tax, natural resource tax, property tax, customs duties, etc.)

Individual

• Personal Income Tax ("PIT")

• Social insurance, unemployment insurance and health insurance contributions

• Value added tax ("VAT") (for individuals carry out business activities)

(*) PIT is required to be declared on a monthly basis. If a Company is eligible for quarterly VAT declaration, it may choose to declare PIT quarterly.

(**) A newly established company shall file VAT quarterly, until having a full 12-month operation within a calendar year. Subsequently, it shall reassess the condition for quarterly and monthly VAT filing, i.e. quarterly VAT filing shall apply for companies with previous year’s annual revenue of VND 50 billion or less, otherwise the monthly VAT filing shall apply. A company qualified for quarterly VAT filing could choose to file VAT on either a monthly basis or quarterly basis.