Vietnam exempts tax for trust fund of ASEAN+3

Vietnam's Ministry of Finance on Tuesday issued a dispatch on procedures to exempt tax for Credit Guarantee and Investment Facility (CGIF), a trust fund with contribution of 10 members of the Association of Southeast Asian Nations (ASEAN) together with China, Japan, Republic of Korea ( ASEAN+3) and the Asian Development Bank.

Accordingly, asset, real estate, income, activities and transactions of CGIF are exempted from all kinds of taxes as well as import, export taxes in Vietnam.

The ministry required local taxation and customs agencies not to ask CGIF for tax declaration and payment in Vietnam.

At the same time, Vietnamese organizations and individuals who have transactions with CGIF will not be asked to deduct withholding tax on payments for CGIF, said the ministry on its website on Tuesday.

Salaries and wages that CGIF pays for its staff, including specialists who are not Vietnamese nationals, are exempted from income tax in Vietnam.

CGIF is a key component of the Asian Bond Markets Initiative ( ABMI) of the ASEAN+3 cooperation which aims to promote economic development, stability and resilience of financial markets in the region.

The main function of CGIF is to provide credit guarantees for local currency denominated bonds issued by investment grade companies in ASEAN+3 countries, according to CGIF's website.