NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAM

=====000=====

GROUP ASSIGNMENT II
SUBJECT: INTERNATIONAL BUSINESS II
TOPIC
COMPARE TAXES & FEES TO COMPANIES DOING
BUSINESS IN VIETNAM,
THAILAND AND THE USA
GROUP 14 : Nguyễn Thị Hà Vy – 11226997
Nguyễn Chính Minh – 11224228

Nguyễn Minh Đức – 11221378

Phạm Trung Kiên – 11223169

CLASS : International Business Management
Advanced 64D

LECTURER : Mai Thế Cường, PhD

Hanoi, 10/2024
Table of Contents
A. Compare taxes to companies doing business in Vietnam, Thailand and the USA.........3

B. Fees for companies to conduct business within Vietnam, Thailand and USA..............12

1. Vietnam................................................................................................................................12

2. Thailand...............................................................................................................................14

3. USA......................................................................................................................................16

C. Taxes and fees to a company doing business in Vietnam, Thailand and USA.............18

1. Taxes and fees imposed on Samsung Electronics when they entered Vietnam market...18

2. Taxes and fees for Mercedes Benz to enter US market from Germany............................20

3. Ikea’s imposed taxes and fees to conduct business within Thailand................................22

REFERENCES..................................................................................................................................24

PEER EVALUATION........................................................................................................................26

PEER REVIEW FORM.....................................................................................................................27

2
 A. Compare taxes to companies doing business in Vietnam, Thailand and the USA

(Business Taxes: Importance and Their Role in Business, Brad Sugar, Jan2024)
Whether you’re just starting or have been running a business for years, one thing is certain:
business taxes are unavoidable. They may seem like a hassle, but they’re crucial for keeping your
business running smoothly. With the right understanding and approach, business taxes can even be
tools to help your business thrive financially. In this article, we’ll explore the ins and outs of
business taxes, highlighting their importance and impact.
Business or corporate taxes, in simple terms, are the amounts that businesses owe to the
government based on their income, property, and even purchases. The type and amount of taxes can
vary significantly depending on factors such as the nature of your company, its location, the number
of employees, and more.
In the USA, there are 3 levels of Business Tax: Federal Tax, State Tax, Local Tax while in
Vietnam, all taxes are imposed at the national level. Therefore, understanding these taxes play a
crucial role in funding public services and initiatives, from infrastructure projects to social services.
So, even though it may feel like a burden, paying your corporate taxes is your way of contributing
to the community and the economy as a whole.
Different countries have varying corporate income tax rates. Therefore, multinational
companies utilize global financing techniques to reduce their corporate income tax obligations in
countries with high tax rates. Tax policies for companies and their branches differ significantly
between countries. These policies clearly delineate the responsibilities for both the parent company
and the global branches of companies operating in those regions.

3
No Taxes Vietnam Thailand USA

The standard corporate Corporate tax in The United States

income tax (CIT) rate Thailand also extends to imposes a tax on the
applicable to any company profits of US resident
enterprises in Vietnam incorporated abroad or corporations at a rate of
is 20% on assessable involved in business 21% (reduced from 35%
income. outside Thailand but by the 2017 Tax Cuts
earning specific types of and Jobs Act). The
(Corporate income tax income from within the corporate income tax
in Vietnam, Acclime, nation. And the tax law raised $424.7 billion in
Sep2024) in Thailand regulates a fiscal year 2022,
standard rate for accounting for 8.7% of
1. Corporate corporate tax at 20% on total federal receipts and
Income Tax net profit. 1.7% of GDP.
(CIT)
(Thai Tax Law, H&P (How does the corporate
Co.,Ltd) income tax work?,
Briefing Book, Jan2024)

Tax exemptions aimed at encouraging investment allow companies to reduce

their income tax obligations to the host government by the exact amount of tax
they owe to a foreign government. Multinational companies also exploit these
incentives to lower their taxes. The agreement between countries regarding
taxation is a treaty that specifies certain items within the taxable income of the
countries where the branches operate.

2. Value Added In Vietnam, Value As in other countries Although The U.S. is the
Tax (VAT) Added Tax (VAT) is with VAT systems, VAT only major country that
one of the main in Thailand is an indirect does not have a value-
indirect taxes applied tax imposed on the value added tax, VATs have
on goods and services. added to goods at each been lucrative elsewhere,
It is governed by the stage of production and the levy faces political
Vietnam VAT Law, distribution. The current hurdles in the United
which defines rates are 7% and 0% with States.
applicable rates, some exemptions from
exempt products and VAT on certain services However, it requires
registration procedures including export sales, consumers to pay federal
for businesses. international transport excise taxes when
services, and goods sold purchasing gasoline,
The Value Added Tax within customs-free alcohol, tobacco, and
(VAT), typically set at zones. other products.
10 %, was initially
4
No Taxes Vietnam Thailand USA

reduced to 8 % starting (Thailand VAT Plus, it may also be a

July 1, 2023, as part of compliance, Avalara) tough sell to lawmakers
the government's in states without a sales
economic support tax. In addition, the
measures. Originally logistics of a VAT may
slated for the latter half also elicit pushback from
of 2023, this reduction the business community.
has been extended until
December 2024. (The value-added tax
brings in billions for
(Value-Added Tax in other countries, but the
Vietnam, Vietnam U.S. doesn’t have one,
Briefing) CNBC, Jun2021)

3. Special SCT is a tax levied on Thailand’s Special The United States does
Consumption 11 groups of goods and Consumption Tax not currently have a
Tax (SCT) six groups of services (Excise Tax) is a tax broad consumption-
that production or levied on certain goods based tax at the federal
direct consumption in and services considered level, although it does
Vietnam’s territory luxury items, harmful to impose federal excise
should be limited. health or the taxes on purchases of
environment, or non- several types of goods
Imposed on specific essential. and services, including
goods (e.g., tobacco, gasoline, air travel,
alcohol) and can vary This included alcoholic alcohol, and cigarettes.
significantly. beverages, vehicles, fuel,
cosmetic products like In addition, most states
For example: Cigars jewelry… impose a retail sales tax
and cigarettes’ SCT on many goods and
rates are 75%, Petrol’s For example: the taxes services.
SCT rates can be 7- on alcohol in 2024 is
10%, Massage and around 5% of the total (Impose a Tax on
Karaoke services have sales profit Consumption,
the SCT rates of Congressional Budget
30%,..... (A Comprehensive Office, Dec2022)
Overview of Corporate
Vietnam imposes a Tax in Thailand, H&P
very high special Co.,Ltd)
consumption tax on
automobiles. Currently,
most cars in Vietnam

5
No Taxes Vietnam Thailand USA

are imported from

abroad. This policy
helps protect the
domestic automobile
manufacturing industry
while preventing the
rapid increase in the
number of cars that
could exceed the
capacity of Vietnam's
transportation
infrastructure.

In particular, the
special consumption
tax rate on joss paper is
70%, aimed at
minimizing the
rampant use of joss
paper, which leads to
waste and negatively
impacts the
environment.

(Special consumption
tax in Vietnam,
Acclime, Sep2024)

4. Custom Customs duties, also Duties are levied on a Any imports that are
Duties known as import duties, specific or an ad valorem above USD 800 will have
(Import, are taxes applied on basis, whichever is to go through a
Export) goods imported into higher, and the applied conventional clearance at
Vietnam. ad valorem duties range the customs; whereas
between 0% and 80%. eCommerce purchases
Customs value: the Exemptions from import that value between USD
starting point for duties are available on 800 and USD 2,500
calculating customs items of goods as could enjoy a simplified
duties. It represents the prescribed in the clearance which involve
total value of the Customs Tariff Decree. minimal intervention
imported goods from customs.
Customs controls and
procedures: Customs The import tariffs vary
6
No Taxes Vietnam Thailand USA

Customs rate: the procedures for goods between 0% and 37.5 %,

percentage applied to arriving in Thailand are with 5.63% being the
the customs value to like those existing in average. E-commerce
determine the amount most other countries. An purchases exceeding
of customs duties to be importer is required to USD 2,500 will have a
paid. file an entry form flat tariff rate of 3%.
together with other Textiles are the only
Calculation formula: requisite documents, exception. Duty will be
Customs Duties = including a bill of lading, incurred for goods in this
Customs Value x invoice, and packing list category valued above
Customs Rate via the e-Customs USD 250.
system.
(Vietnam Import Tax (All You Need to Know
and Duties: all you Customs incentives About US Import Tax
need to know, FNM schemes: Various and Duties,
Vietnam, 07/2023) customs incentives LogisticsAdvice,
schemes, each with its Sep2023)
own specific conditions
and duty privileges, are
available, including some
like tax coupons,
imported raw materials
in industrial production,
free economic zones..

(Thailand - Customs
Regulations, 09/2024,
ITA)

The main items that countries impose special consumption taxes on include
three primary groups: alcoholic beverages, fuel (gasoline), and tobacco. In
recent years, many countries have begun taxing soft drinks due to their
negative effects on human health. Vietnam has been considering this issue.

Vietnam, Thailand, and several other ASEAN countries apply relatively high
special consumption taxes on automobiles to protect the domestic automobile
manufacturing industry and prevent excessive increases in the number of cars.
All these countries are developing, with rising demand for cars, but the
infrastructure has not yet been able to keep up.

5. Double The DTA applies to Thailand has established Americans living abroad
7
No Taxes Vietnam Thailand USA

individuals and double taxation are often subject to

organizations that are agreements (DTAs) with double taxation.
residents of Vietnam, other countries to
the country with which mitigate double taxation Most expats are taxed by
Vietnam signed a for individuals and both the US and the
DTA, or both. businesses with cross- country they reside in,
border operations. resulting in double
Vietnam has taxation. The US is one
established The country has a of the only countries in
comprehensive Double growing network of the world that taxes
Taxation
Tax Agreements double tax agreements citizens regardless of
Agreements
(DTAs) with more than with over 60 countries where they live and
(DTAs)
80 countries, aiming to worldwide. work.
facilitate international
trade and investment (Double taxation (What Is Double
while preventing the agreements in Thailand, Taxation—and How Can
double taxation of Acclime) Expats Avoid It?, Dave
income. McKeegan, Apr2024)

(Vietnam double tax

agreements, Acclime,
2024)

6. Business Business license tax In Thailand, the Business The US State business
License Tax (BLT) is an indirect tax License Tax (BLT) is a license ranges from $50-
(BLT) imposed on entities that fee imposed on $550 depending upon the
conduct business businesses based on their type of business permit
activities in Vietnam registered capital: required. This cost
and are paid by the includes processing and
enterprises themselves  Fee Calculation: The filing fees.
on an annual basis. BLT is calculated at a
rate of five baht for For each state where the
All companies, every one thousand business intends to
organizations or baht of registered operate, there may be
individuals (including capital. different costs involved.
branches, shops and
factories) and foreign  Minimum and (Business License Costs
investors that operate Maximum Fees: The by State, ZenBusiness)
businesses in Vietnam minimum fee is 20,000
are subject to BLT baht, and the
charges, and the BLT maximum fee is
rates are different for
8
No Taxes Vietnam Thailand USA

economic entities and 250,000 baht.

for
households/individuals (Comprehensive Guide to
Business Licenses in
(Business License Tax Thailand Types,
in Vietnam, Vietnam Requirements, and
Briefing, Oct2023) Application Process,
Kudun & Partners Ltd)

7. Foreign Vietnam’s foreign The withholding tax rates Under IRS ( Internal
Contractor contractor tax (FCT), can vary depending on Revenue Service) rules,
Tax (FCT) often referred to as the the type of income and the source of the income
withholding tax, is a the status of the resident. is a key component in
tax that is applied to determining how to
transactions conducted Withholding tax can handle reporting for tax
in Vietnam between a apply to a variety of purposes.
foreign company or payments, including
sub-contractor and a salaries(0-35% depends For a contractor living
Vietnamese company. on the income), rents and performing the work
(5%), and royalties (0- internationally, foreign-
It is made up of two 35% depends on the sourced income isn’t
kinds of taxes. These amount of royalty paid), subject to U.S. tax
are VAT and, either among others. withholding, while U.S.
PIT for individuals, or source income, even if
CIT applicable to most (Withholding tax in earned by a non-
foreign contractors that Thailand, Acclime) American, is subject to
are registered as U.S. tax withholding.
organizations.
(Tax Requirements When
The deemed profit rates Hiring a Foreign
vary depending on the Contractor, T.J. Porter,
type of service Collective)
provided:

 Construction
Services: 10%

 Consulting
Services: 10% to
20%

9
No Taxes Vietnam Thailand USA

 Other Services: 5%
to 20%

(Foreign Contractor
Tax in Vietnam: A
Complete Guide,
Vietnam Briefing,
May2024)

8. Environmenta Vietnam’s EPT applies This is part of the The United States has a
l Protection to a number of goods country's effort to four-decade history of
Taxes ( EPT ) that can potentially be address environmental using the tax code to
hazardous to the challenges and promote protect the environment,
environment if used in sustainability. While not from the federal
excess or improperly a single, unified tax, government’s
disposed of. Thailand has experience, highlighting
implemented various the tax on ozone-
Such as: Fossil fuels taxes and fees aimed at depleting chemicals, the
including gasoline, environmental gas guzzler tax, President
aviation fuel, diesel, protection, including Clinton’s attempt to
kerosene, fuel oil,... taxes on pollutants, enact a broad-based
waste, and other energy tax, superfund
activities harmful to the taxes, and the petroleum
Rates vary depending environment. tax that funds the Oil
on the type of product Spill Liability Trust
or activity: Fund.
For example: the taxes
on carbon rate will be
 Petroleum products: levied on emissions at It underscores the federal
The fee can range the source, starting with government’s recent
from 1,000 VND to oil products, and will be reliance on tax
4,000 VND per set at a rate of 200 baht expenditures, not tax
liter. per metric tonne, taking increases, to improve
effect from 2025. energy efficiency and
 Plastic bags: The renewable energy.
fee is typically (Thailand Annouces
around 30 VND per Carbon Tax Set to (ENVIRONMENTAL
bag Become Effective in TAXATION IN THE
2025, PRD, 06/2024) UNITED STATES: THE
(An Overview of LONG VIEW, Janet E.
Vietnam’s Milne, Apr2011)
Environmental
Protection Tax,
10
No Taxes Vietnam Thailand USA

Vietnam Briefing,
Nov2023)

Vietnam tax This include various US citizens and Green

compliance services: types of taxes like PIT, Card holders are in the
Compliance costs are CIT, VAT and specific unenviable position that
costs that businesses business taxes. their worldwide income
must pay to meet legal and gains are subject to
requirements. Tax A penalty of up to THB US taxation, irrespective
compliance service in 200,000 for each level of of whether or not they
Vietnam is the transfer pricing reporting are based in the US.
preparation of tax will be imposed in the
returns, assessment of case where taxpayers fail Invariably, US nationals
tax related payments to comply with the and Green Card holders
and submission to the reporting requirements. living overseas have
competent authority. ongoing US tax issues
Tax The service will act on and filing requirements
9. Compliance behalf of the taxpayer Thailand also introduced
the country-by-country as a result.
and Filing business, work and
explain the results to reporting (CbCR)
the agency when requirements to be (US Tax Compliance,
required. applicable for accounting Tax Advisory
periods starting on or Partnership)
after 1 January 2021. A
(Vietnam tax fine of THB 2,000 will
compliance services be imposed on a taxpayer
for businesses, VBK) that fails to file the CbC
report by the due date.

(Accounting & tax

compliances in Thailand,
IR Global, Apr2024)

10. Other Taxes

10.1. In Vietnam
 Land Use Rights and Real Estate Tax: Foreign entities may need to pay for land use rights,
and there are taxes on property ownership.

 Transfer Pricing: Companies must comply with transfer pricing regulations to ensure that

11
 intercompany transactions are conducted at arm's length.

 Corporate Registration Fee: It is A one-time fee when registering a business entity.

Rates: Generally around 200,000 VND (approximately $8).

10.2. In Thailand

 Property tax: this imposes taxes on landowners and owners of buildings, houses, or other
structures. The tax rate for properties used for agricultural purposes is set at a maximum of
0.15%, private residences have a tax rate not exceeding 0.30% and properties utilized for
commercial purposes or other non-residential uses, the tax rate is capped at 1.20%.

 Stamp tax: Stamp duty is applicable to specific legal documents such as leases, loan
agreements, insurance policies, share transfers, and promissory notes.

For example, the transfer of shares or bonds issued by a company is charged at ฿1 for every
฿1,000 value.

 Inheritance tax: Inheritance tax in Thailand is only payable on estates valued at more than
฿100 million. The rate is 5% for ascendants and descendants or 10% for other heirs. Estates
that pass on to the deceased’s spouse are exempt from tax.

B. Fees for companies to conduct business within Vietnam, Thailand and USA

1. Vietnam
(Fee for establishing a company in Vietnam, Viet An Law, 2024)

1.1. Fee for business registration

A certificate of enterprise registration (ERC) is a paper or electronic document recording
information about business registration issued by the business registration agency to enterprises. An
enterprise is granted an enterprise registration certificate upon fulfilling all the requirements
prescribed by applicable laws.
According to Vietnamese law, the founders must register the business when establishing a
company. Specifically, the business registration fee for issuing, reissuing, and changing the content
of the ERC and the Certificate of Registration of Operation of Branches, Representative Offices,
and Business Locations of an enterprise is VND 50,000/time. If an enterprise registers its business
online, this fee will be waived.
12
 1.2. Fee for publication of business registration contents
According to article 32 of the Law on Enterprise 2020, after an enterprise is granted the
certificate of enterprise registration, it shall announce it on the National Enterprise Registration
Portal and pay the fee as prescribed by law. Within 30 days from the date of publication, businesses
must publish the business registration content on the National Information Portal.
According to Decree 01/2021/ND-CP businesses must pay business registration fees at the
time of submitting documents to establish a company. According to regulations in Circular
47/2019/TT-BTC, the business establishment registration fee is 100,000 VND/time.
1.3. Cost of engraving business seal
An enterprise seal is a special means enterprises use to stamp on their documents and papers.
The seal reflects the legal status and affirms the legal value of the documents and papers on which it
is stamped. The company’s transactions must be stamped to take effect, otherwise, they will be
considered invalid.
According to Article 43 of the Law on Enterprise 2020 and implementation guidance
documents, the enterprise shall decide the type, quantity, design, and content of its seal and the seals
of its branches, representative offices, and other units.
Registering a seal is an important step in establishing a company. The fee for registering a
seal is from 300,000 VND to 500,000 VND depending on the type of seal and the number of seals
that need to be registered.
1.4. Fee for purchasing digital signature

A digital signature is information attached to data, which can be in the form of text, images,
or videos, to identify the owner of the data. Digital signatures are an indispensable part of electronic
invoices and authenticate that the electronic invoice is issued by which unit.

Cost depends on the provider and the number of years of service. Digital signatures with 03
years of use range from 2,000,000 VND to 3,000,000 VND.
1.5. Electronic invoices for enterprises

From October 19th, 2020, the Government issued Decree 123/2020/ND-CP, according to
which, from July 1st, 2023, when establishing a business, it is mandatory to use electronic invoices.

13
 The cost of purchasing electronic invoice software ranges from 2,000,000 VND to 3,000,000
VND depending on the supplier
1.6. Licensing fee
A license fee (or license tax) is an amount of money that must be paid annually or when
starting production or business based on the charter capital stated in the business registration
certificate/investment capital stated in the certificate. Investment registration certificate (for
organizations) or annual revenue (for business households and individuals).

In addition, according to Article 3 of Decree 139/2016/ND-CP on licensing fees, there are

some cases of license fee exemption for newly established enterprises or small and medium-sized
enterprises transitioning from household businesses.

2. Thailand

(The Cost of Doing Business in Thailand: Setting Up Your Company, H&P Co.,Ltd)

2.1. Company Registration Fees

Thailand’s registration fees follow a tiered structure based on the company’s registered
capital. This means a higher registered capital leads to proportionally higher company registration
fees. The minimum registration fee is around 5,000 THB (approximately USD 150).

As for a representative office in Thailand, there is no minimum registered capital. However,

you’ll need to transfer sufficient funds to demonstrate your commitment and cover operational
expenses. This usually falls between 2 to 3 million THB, depending on your estimated costs.

2.2. Work Permits and Visa Costs

If you and your team are foreign nationals, you will need to obtain work permits and visas.
Both work permits and visas incur individual processing fees. The exact amounts can vary
depending on nationality, duration of stay, and type of visa required.

While prices fluctuate, depending on the fee charged by law firms, expect to budget around
10,000 – 30,000 THB per person, encompassing both visa and work permit costs.

14
 2.3. Accounting and Taxation

Accounting and tax compliance are mandatory for businesses in Thailand, and it is wise to
budget for professional services.

Professional accounting firms often offer monthly or annual packages with varying levels of
service, depending on the company’s size and complexity. Typically, smaller businesses may find
more affordable packages, while larger enterprises will likely require more extensive accounting
support leading to higher costs.

2.4. Office Space

Depending on the nature of your business, you may need to factor in the costs of renting or
buying office space. Rent or purchase prices for office space in Thailand vary greatly based on
location, size, and the building’s amenities. Prime locations in Bangkok, such as Sukhumvit,
Sathorn, or CBD zones, naturally have higher costs.

2.5. Licenses and Permits

Specific business sectors require additional licenses and permits. Examples include food and
beverage, manufacturing, and certain service industries. Also, note that each license or permit likely
carries associated government application or processing fees.

3. USA

(The Costs of Starting a Business in the USA, Clevver)

3.1. Choosing the Legal Structure: Corporation vs. LLC

The two most common legal forms for businesses in the USA are the Corporation (C-Corp)
and the Limited Liability Company (LLC).

A C-Corp is a type of corporation that incurs higher founding costs and more complex tax
obligations but offers benefits such as the ability to raise capital on the stock market.

15
 An LLC is a type of partnership that is easier to establish and manage but has the
disadvantage that the members are personally liable for the debts of the company.

3.2. State Registration Fees

State registration fees vary depending on the state and chosen business structure.

In most states, the registration fees for an LLC range from $100 to $800. For a corporation,
the fees can range from $50 to $300.

In Delaware, a popular state for business incorporations, the state fees for forming an LLC
range from $50 to $80, and for forming a C-Corp from $800 to $1,200.

It is important to consider these fees when planning your founding budget.

3.3. Attorney and Consulting Fees

Hiring an attorney is not mandatory for starting a company in the USA, but it can be
advisable to avoid mistakes. The costs for legal advice vary depending on the lawyer and the
complexity of the formation.

Costs for legal and consulting services can vary depending on the scope of services and the
expertise of the professional.

Typically, these costs can range from $1,000 to $5,000, depending on the individual
requirements of the business.

3.4. License and Permit Fees

Obtaining licenses and permits is an essential step in starting a business in the USA. The
costs for licenses and permits can vary depending on the industry and location.

Some industries require special licenses that may involve additional costs. It is important to
research and plan for these costs in advance.

3.5. Insurance Costs

16
 Insurance is an important aspect of starting a business in the USA.

Typical insurances include liability insurance, unemployment insurance, health insurance,

and professional liability insurance. The costs for insurance can vary depending on the industry,
location, and size of the company.

3.6. Additional Costs

In addition to the above-mentioned costs, there are also other expenses that can arise when
starting a business in the USA.

 Name Registration: The business name must be registered with the relevant office. The costs
for this usually range between $20 and $50.
 Opening a Bank Account: A bank account is needed for business operations in the USA. The
costs for opening an account vary depending on the bank.
 Compliance: It is important to comply with legal frameworks and regulations in the chosen
state. The costs for compliance can vary depending on the industry and size of the business.

C. Taxes and fees to a company doing business in Vietnam, Thailand and USA

1. Taxes and fees imposed on Samsung Electronics when they entered Vietnam market

(Vietnam helps Samsung save billions of

dollars in taxes, Sep2016)

 Samsung Electronics has set up at least

five legal entities in Vietnam. Of these,
SEV and SEVT are the two key
companies, which play very important
roles not only in Vietnam but also in
Samsung’s global production chain.
 If a company makes $3.1 billion in
profit, it would have to pay about $600
million in tax, or VND13 trillion. The
normal corporate income tax rate then
17
 is 22 percent. However, this is not applied to Samsung. With tax incentives, Samsung’s
subsidiaries only pay small sums of tax.
 Local newspapers quoted taxation agencies as reporting that in 2015, Samsung’s projects
in Bac Ninh province paid VND1.684 trillion in taxes, while SEVT paid VND950
billion. In the same year, Samsung Electronics and its subsidiaries worldwide paid $5
billion in corporate income tax.

2. Taxes and fees for Mercedes Benz to enter US market from Germany

(Importing A Car From Germany To USA: A 2024 Detailed Guide, Artemus Group USA,
Jul2024)

 Shipping Costs

The cost of shipping a car from Germany to the USA typically ranges from $1,875 to
$3,590. This varies depending on the shipping method you choose, such as Roll-On/Roll-
Off (Ro-Ro) or container shipping. Ro-Ro is usually more affordable, while container
shipping provides better protection but at a higher cost.

 Import Duty

Upon arrival, you’ll need to pay import duties. For cars, the duty rate is 2.5% of the
vehicle’s value. Trucks have a higher rate of 25%, and motorcycles may be duty-free or
subject to a 2.4% duty.

 Additional Fees

o Port Fees: These can range from $200 to $500 depending on the port of entry.
o Customs Bond: If your car does not meet U.S. standards and requires modification,
a customs bond may be required, usually set at 1.5 times the car’s dutiable value.
o Handling Charges: Charges for loading and unloading the vehicle, especially for
non-operational vehicles, which can add another $100 to $500.
o Insurance: Shipping insurance is recommended to cover any damages during
transit. Costs for insurance vary based on the vehicle’s value.

18
→ In total, the cost to import a car from Germany to the USA can range from approximately
$4,000 to $10,000, depending on various factors such as the shipping method, the car’s value, and
any necessary modifications.

3. Ikea’s imposed taxes and fees to conduct business within Thailand

(Inter IKEA Group Tax Report FY21, IKEA Group)

 Corporate Income Tax (CIT)

The standard corporate income tax rate in Thailand is 20% on net profits. This applies to
IKEA’s profits generated from its operations in the country. Foreign companies, like
IKEA, are subject to this tax on profits made within Thailand.

 Value Added Tax (VAT)

Thailand has a 7% VAT on goods and services. As such, IKEA must charge this tax on
sales made within the country and return it to the Thai Revenue Department. VAT also
applies to the import of goods into Thailand, which would be relevant for IKEA as many
of its products are imported from foreign countries into the Thai market.

 Customs Duties

Since IKEA imports a large number of its products from other countries, it is subject to
customs duties on imported goods. The rates vary depending on the type of product, with
furniture, IKEA’s primary products, generally facing rates around 5-30%.

 Withholding Tax

Thailand imposes a withholding tax on certain payments, such as dividends, interest, and
royalties, which may be relevant depending on IKEA’s financial structure and
relationships with its parent company or other entities. The rates for withholding tax range
from 5% to 15%, depending on the type of payment and whether there is a Double
Taxation Agreement (DTA) between Thailand and the other country involved.

19
 Environmental and Sustainability Regulations

Depending on the nature of IKEA's business operations in Thailand, there may be

additional environmental fees or contributions required, especially if the company engages
in large-scale commercial development.

20
REFERENCES
1. Corporate income tax in Vietnam, Acclime, Sep2024.
2. Business Taxes: Importance and Their Role in Business, Brad Sugar, Jan2024)

3. Value-Added Tax in Vietnam, Vietnam Briefing

4. Special consumption tax in Vietnam, Acclime, Sep2024
5. Vietnam Import Tax and Duties: all you need to know, FNM Vietnam, 07/2023
6. Vietnam double tax agreements, Acclime, 2024
7. Business License Tax in Vietnam, Vietnam Briefing, Oct2023
8. Foreign Contractor Tax in Vietnam: A Complete Guide, Vietnam Briefing, May2024
9. An Overview of Vietnam’s Environmental Protection Tax, Vietnam Briefing, Nov2023
10. Vietnam tax compliance services for businesses, VBK

11. Thai Tax Law, H&P Co.,Ltd

12. Thailand VAT compliance, Avalara

13. A Comprehensive Overview of Corporate Tax in Thailand, H&P Co.,Ltd

14. Thailand - Customs Regulations, 09/2024, ITA

15. Double taxation agreements in Thailand, Acclime

16. Comprehensive Guide to Business Licenses in Thailand Types, Requirements, and

Application Process, Kudun & Partners Ltd

17. Withholding tax in Thailand, Acclime

18. Thailand Annouces Carbon Tax Set to Become Effective in 2025, PRD, 06/2024

19. Accounting & tax compliances in Thailand, IR Global, Apr2024

20. Fee for establishing a company in Vietnam, Viet An Law, 2024

21. The Cost of Doing Business in Thailand: Setting Up Your Company, H&P Co.,Ltd
22. Samsung Requests Tax Exemption for its Samsung CE Complex in Vietnam, Charles Small,
Vietnam Briefing, 2015
23. Inter IKEA Group Tax Report FY21, IKEA Group
21
24. Importing A Car From Germany To USA: A 2024 Detailed Guide, Artemus Group USA,
Jul2024
25. How does the corporate income tax work?, Briefing Book, Jan2024
26. The value-added tax brings in billions for other countries, but the U.S. doesn’t have one,
CNBC, Jun2021
27. Impose a Tax on Consumption, Congressional Budget Office, Dec2022
28. All You Need to Know About US Import Tax and Duties, LogisticsAdvice, Sep2023
29. What Is Double Taxation—and How Can Expats Avoid It?, Dave McKeegan, Apr2024
30. Tax Requirements When Hiring a Foreign Contractor, T.J. Porter, Collective
31. ENVIRONMENTAL TAXATION IN THE UNITED STATES: THE LONG VIEW, Janet E.
Milne, Apr2011
32. US Tax Compliance, Tax Advisory Partnership

33.

22
 PEER EVALUATION
TT COMPLETE
NAME ID TASKS NOTE
RATE

- Introduction, Conclusion
composer
Nguyễn Thị - Slide Designer
Hà Vy
1 11226997 100%
(leader) - Presentative

- Merging and Finalize

Contents

- Vietnam Content composer

Nguyễn
2 11224228 100%
Chính Minh - Presentative

Nguyễn Minh - Thailand Content composer

3 Đức 11221378 100%
- Presentative

Phạm Trung - USA Content composer

4 Kiên 11223169 100%
- Presentative

23
 PEER REVIEW FORM
Group Members
Evaluator
Nguyễn Thị Hà Vy Nguyễn Chính Minh Nguyễn Minh Đức Phạm Trung Kiên

Nguyễn Thị Hà Vy 4 4 4

Nguyễn Chính Minh 4 4 4

Nguyễn Minh Đức 4 4 4

Phạm Trung Kiên 4 4 4

24