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Besides the Chairman of the Board of Directors/Chairman of the Board of Members, the Chief Executive Officer (CEO) plays a very important role in the development of an enterprise, is directly responsible for leading and operating all activities of a business. Therefore, this senior position requires extensive knowledge of corporate governance including work management and people management, leadership qualities, high soft skills and long-term experience in the field of expertise, have knowledge and skills about the market, about customers, know how to assess and be sensitive about the level of competition to be able to identify and come up with the right business strategies. In particular, the CEO must understand issues related to law, personnel, tax, organizational behavior, finance, accounting, etc. to limit business risks and decide on strategic issues of the business.

What are the basic legal knowledge for CEOs?

• Important legal documents/documents of the business: Charter of the company, internal management regulations, list of members/list of shareholders, certificate of business registration, certificate of quality of goods and services, documents related to intellectual property, documents related to asset ownership of the enterprise (real estate, machinery, equipment), minutes and decisions of the owners' council/board of directors/board of members, annual financial statements, annual audit reports.
• Rights and obligations of an enterprise (according to Article 8, Article 9 of the Enterprise Law).
• Manage cash outflow and cash inflow of the enterprise in accordance with the law.
• Having basic legal knowledge about commercial contracts related to the industry and field in which the enterprise is doing business.
• Determine the authority of the business manager and choose the right business organization structure for your enterprise.

What are the taxes that businesses need to pay attention to?

License fee: License fee or license tax is a type of direct tax that organizations producing and trading goods and services must pay annually. The deadline for paying license tax is January 30 every year. Specifically: enterprises with charter capital exceeding 10 billion dong pay 3 million dong/year; enterprises with charter capital of 10 billion dong or less pay 2 million dong/year; branches, representative offices, business locations, non-business units and other economic organizations pay 1 million VND/year.

VAT tax: Value-added tax is a tax applied only on the added value, but not on the entire value of goods and services. VAT is an indirect tax, added to the selling price of goods and services and paid by consumers when using that product. There are three VAT tax rates: 0%, 5% and 10%.

Corporate income tax: CIT payable = (Taxable income – S&T fund deduction, if any) x CIT rate. The CIT rate of 20% is universally applied. For enterprises engaged in the search, exploration and extraction of oil and gas and other rare and precious resources in Vietnam, the CIT rate ranges from 32% to 50% depending on the location of the project and the conditions of extraction.

Personal income tax: Personal income tax is defined as a tax levied directly on an individual's income, if that person's income is subject to tax. In business, the enterprise will be the unit that pays tax and must deduct personal income tax from employees before paying that part of their actual salary.