Ecovis in Taiwan

Updated circular on the income tax treatment of crypto assets in Germany

The Federal Ministry of Finance in Germany has now provided assistance to taxpayers declaring crypto assets such as Bitcoin in their tax return to help them document and declare their income. This guidance is also available to taxpayers and tax offices outside Germany. The Ecovis experts are familiar with the details. 

In response to the ongoing developments in the crypto sector, the German Federal Ministry of Finance (BMF) has clarified the tax treatment of crypto assets. These requirements replace the previous circular dated 10 May 2022, which is published under the title “Individual questions on the income tax treatment of certain crypto assets”.

What now applies to taxpayers?

Taxpayers holding or trading in crypto assets should familiarise themselves with the new cooperation and record-keeping requirements and ensure that their documentation is tax compliant, given the cross-border nature of these assets. Key changes include:

1. Terminology: The term “crypto assets” is now used instead of “virtual currencies and other tokens” to reflect the evolution of regulatory terminology. A detailed description of the various crypto assets can be found here.

2. Transactional gains: These are taxable within one year, while long-term holding periods may offer tax advantages. Please find detailed information here.

3. Stricter documentation and tax reporting requirements:

• Investors who make large profits (more than €500,000) must keep all relevant documents archived for six years.
• Investors must keep detailed records of all transactions – such as purchases, sales, stakes, loans or airdrops. Incomplete records can lead to blanket assessments by the Inland Revenue and unexpectedly high tax bills.
  • Details of purchases and sales: Date, amount, type (purchase, exchange, mining, staking, airdrop), platform used, cost (including transaction fees and account setup) and market price source if not in EUR.
  • Use in transactions: Records of purchases/exchanges of goods & services, including credit card statements where applicable.
  • Valuation and accounting: Method chosen (FIFO, average cost, or specific identification), records of purse transactions and documentation of reallocation.
  • Other revenue sources: Mining, staking, lending, forging, airdrops, and similar activities.
  • Additional data is available upon request: Source of funds, wallet balances at key dates, wallet addresses, transaction hashes (for decentralised trades), and platform account details.

More information on stricter documentation and tax reporting requirements can be found here.

4. Staking, lending – income from capital assets: In the future, activities such as staking and lending will be classified as income from capital assets and will be subject to personal income tax.

For further information please contact:

Steffen Baierlein, Tax consultant, ECOVIS Wirtschaftstreuhand GmbH, Munich, Germany
Email: Steffen.Baierlein@ecovis.com

Payment Extensions for Taxes in Vietnam: Which Deadlines Will Apply in the Future?

Companies and business individuals and households are being given more time: The Vietnamese government has extended the deadlines for paying value added tax, corporate and personal income tax, and land rent for 2025. The Ecovis consultants know which deadlines now apply.

On 2 April 2025, the Vietnamese government issued Decree No. 82/2025/ND-CP. Taxpayers who self-pay their taxes now have more time to meet their payment obligations.

Extensions to tax and land rent payment deadlines in 2025

1. Value added tax (VAT)

• Monthly VAT for February/March and quarter I 2025: 6 month extension
• Monthly VAT for April/May/June and quarter II 2025: 5 month extension

Businesses must still submit VAT declarations on time in accordance with the law on tax administration, but they do not need to pay the tax incurred until the extended deadline.

2. Corporate income tax (CIT)
Provisional corporate income tax payment of quarter I and quarter II 2025: 5 month extension.

3. Extension for value added tax (VAT) and personal income tax (PIT) of business households and business individuals
All VAT and personal income tax arising in 2025 will be extended until 31 December 2025.

4. Land rent
50% of the land rent payable in 2025 (first period) is extended for 6 months, calculated from 31 May 2025.

If you're unsure about your deadline, please feel free to contact us.

Trung Pham, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam

How the tax payment extension works

• Taxpayers who directly declare and pay taxes to the tax authority and are eligible for an extension should submit a request for the extension of payment for all taxes and land rents arising in the extended tax periods at the same time as the submission of monthly (or quarterly) tax declarations, or no later than 30 May 2025.
• Taxpayers must self-assess and are responsible for requesting an extension to ensure that the right subjects are eligible for an extension according to the Decree.
• Tax authorities are not required to notify taxpayers of their acceptance of the extension of tax and land rent payment.
• Late payment interest will not be charged for tax and land rent amounts extended within the extended payment deadline.
• Investors in capital construction works using state budget capital, payments from state budget sources for capital construction works, or projects using ODA capital subject to VAT in payment procedures with the State Treasury must submit the confirmation notice from the tax authority for the application for tax or land rent payment extension.

For further information please contact

Trung Pham, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: trung.pham@ecovis.com.vn

Peru: When lack of documentation triggers a dividend recharacterization

In a recent resolution, the Peruvian Tax Court analysed a case in which funds from a company were deposited directly into the personal bank account of its legal representative without supporting documentation. The Peruvian tax authority (SUNAT) treated such deposits as undeclared dividends. The Ecovis experts explain the court’s ruling, which contradicts this view.

Background to the case

In Resolution No. 5340-11-2024 (dated 6 June 2024), the Peruvian Tax Court reviewed the treatment of deposits made by multiple companies into the personal bank account of their shared legal representative. SUNAT had recharacterized these transfers as second category income, specifically as dividends paid in cash, based on Article 24(i) of the Peruvian Income Tax Law.

However, the taxpayer challenged the assessment, arguing that the transfers were not distributions of earnings but rather operational payments or reimbursements, and that the absence of documentation should not automatically qualify them as dividends.

SUNAT’s position and arguments

To support the classification as a cash dividend, SUNAT put forward several arguments:

• The funds were transferred to an individual with no clear legal obligation or service agreement justifying the payments
• There was no evidence of mandates, reimbursement orders, or commercial contracts backing the disbursements
• Therefore, the amounts qualified as undeclared dividend distributions, subject to tax as second category income and the corresponding penalties

We support you in creating accurate reports and documentation, reducing audit risks for you.

Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru

The ruling by the Tax Court

The Tax Court disagreed with SUNAT’s position on several grounds:

• SUNAT failed to demonstrate that the funds were distributed within the framework of a formal profit allocation process governed by Article 24-A of the Income Tax Law
• The authority also did not identify under which specific paragraph of Article 24-A the recharacterization was being applied
• The court concluded that, although the lack of documentation is problematic, it is not sufficient on its own to presume a distribution of profits

This ruling reaffirmed that the burden of proof lies with the tax authority, and that a simple transfer of funds to a legal representative’s account does not automatically constitute a dividend if there is no concrete evidence of profit distribution.

What companies should do now

The Ecovis experts provide recommendations to help companies avoid similar disputes in future audits:

• Formally document any transfers to company officers or legal representatives, including:
  • written mandates
  • reimbursement orders
  • detailed expense reports with supporting invoices
• Properly record all profit distributions through:
  • shareholder meeting minutes
  • profit distribution resolutions
  • withholding and remittance of applicable income taxes
• Maintain detailed accounting and legal records, including service agreements and financial authorisations, to support the legitimacy of each transaction.

The significance of the verdict

The ruling confirms that SUNAT cannot presume a dividend distribution based solely on unexplained bank deposits. Nonetheless, the absence of documentation places the taxpayer in a vulnerable position during tax audits.

For further information please contact

Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru
Email: octavio.salazar@ecovis.pe

China company credit report: No trace left

China will no longer publicly report companies removed from the list of abnormal business relationships. The revised measures already took effect on 1 May 2025. The Ecovis experts explain what this means and who can apply for removal from the “blacklist” under the social credit system.

The State Administration for Market Regulation recently issued a notice regarding the implementation of the Measures for the Administration of the List of Enterprises with Abnormal Operations. According to the notice, once a business entity is removed from the abnormal operations list, the related information will no longer be publicly displayed – thus achieving a “no trace” policy after removal.

To date, China’s National Enterprise Credit Information Publicity System has stopped disclosing about 48.42 million entries concerning abnormal operations, affecting around 25.51 million market entities, including 5.02 million enterprises, 20.13 million individual businesses, and 362,400 farmers’ cooperatives.

China wants to strengthen confidence in the market

Upon approval of a removal application, public disclosure of the related listing will cease. This addresses business concerns, enhances credit restoration, fosters fairer conditions, and strengthens market confidence, supporting China’s economic recovery.

The abnormal operations list, part of China’s business “blacklist” system under the social credit regime, tracks relatively minor violations, mainly concerning incomplete or outdated business disclosures. It differs from more serious lists like the Seriously Illegal and Dishonest Entities List or the National Basic List of Punishment Measures for Dishonest Conduct.

Discuss with an expert what impact the tightened compliance and liability regulations have on your company.

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany

How companies can be removed from the list

Businesses may apply for removal depending on the cause of listing:

1. Failure to submit annual reports: May be removed after submitting the overdue report
2. Failure to disclose enterprise information on time: May be removed after fulfilling disclosure duties
3. Failure to register a name change: May apply for removal after the name change is properly registered
4. Unable to contact via registered address: Can apply after updating the registered address or confirming reachable contact details

In each case, the local market authority will decide on removal within five working days of receiving the application or verifying the correction.

These changes make the system more balanced. While transparency remains a goal, companies that address minor infractions won’t face lasting reputational damage. This encourages timely compliance, while reducing the long-term burden on businesses, helping foster a healthier business environment.

However, it is important to consider, that compliance and liability regulations for companies have tightened and underwent (partially) significant changes under the new company law.

For further information please contact

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
Email: richard.hoffmann@ecovis.com

Labour law Czech Republic: Flexibilisation of Czech labour law from 1 June 2025

The “flexi-amendment” of the Czech Labour Code, also known as the “flexinovela”, came into force on 1 June 2025. The aim is to make the Czech Republic more competitive through a modern and flexible labour market. The Ecovis experts know which changes companies need to be aware of now.

The flexi-amendment introduced some changes that companies must now implement. However, termination of employment without cause was rejected as too fundamental.

Notice periods

The notice period will be reduced to one month if the employee violates work discipline or does not meet the legal requirements for performing the job. The duration of the notice period will also be revised. For further details visit the Ecovis Czech web page.

Get expert advice to ensure that the requirements and changes in Czech labour law are correctly implemented.

JUDr. Mojmír Ježek, Ph.D., Partner, ECOVIS ježek, advokátní kancelář s.r.o.

Probationary period

The maximum probationary period will be extended from 3 to 4 months, and from 6 to 8 months for managers. The probationary period will also be extended in certain cases. For more information see the Ecovis Czech website.

Wage transparency

Employers may not prevent employees from sharing information about their wages.

Youth work

Minors aged 14 and over can perform light work during the main summer vacation, even if they have not yet completed compulsory schooling.

For further information please contact:

JUDr. Mojmír Ježek, Ph.D., Partner, ECOVIS ježek, advokátní kancelář s.r.o., Prague, Czech Republic
Email: mojmir.jezek@ecovislegal.cz

Expanded Scope of Sales and Service Tax in Malaysia

Effective 1 July 2025, the Malaysian government revised the list of items subject to sales tax and expand the scope of service tax. These measures aim to strengthen the country’s fiscal position by increasing revenue and broadening the tax base. The Ecovis Experts from ECOVIS Malaysia Tax provide an overview of the changes.

Malaysia Stamp Duty: Revised Rules and Self-Assessment System Explained

Vietnam Private Sector: Special Policies Planned for Development

Vietnam has unveiled a series of resolutions aimed at fostering the growth of its private sector, focusing on tax incentives and streamlined administrative processes. The Ecovis Experts from ECOVIS AFA VIETNAM provide an outline, explaining what these changes mean for start-ups and SMEs.

Recently, Vietnam introduced three resolutions outlining special mechanisms and policies to promote the development of the private sector. These resolutions were accompanied by an implementation plan aimed at the relevant authorities. These measures reflect the government’s strong focus on tax incentives and administrative support to enhance innovation and business growth.

In early May 2025, the Politburo of the Communist Party of Vietnam issued the Resolution 68-NG/TW (“Resolution 68”), which primarily aims to address significant obstacles to the growth of Vietnam’s private sector. This includes institutional and policy reform, safeguarding ownership and property rights, ensuring business freedom, promoting fair competition within the private economy, and guaranteeing the enforcement of private contracts. This directive also serves as a framework for subsequent implementation plans. Subsequently, the Vietnamese government introduced two follow-up directives to guide the implementation of incentives for private economic development, including:

• Resolution No. 198/2025/QH15 (“Resolution 198”), approved by the National Assembly on May 17, 2025, on special mechanisms and policies for private economic development; and
• Resolution No. 139/NQ-CP (“Resolution 139”), dated May 17, 2025, detailing the Government’s plan to implement Resolution 198.

Notably, these dual resolutions include a number of tax and fee incentive policies aimed at fostering growth in the private sector, particularly for start-ups and small to medium-sized enterprises (SMEs). These incentives include:

• Corporate Income Tax (CIT) exemptions for a maximum of 2 years, followed by a 50 percent reduction in CIT for the next four years, targeting innovative start-ups and funds supporting innovation.
• Personal Income Tax (PIT) exemptions on capital gains and income for experts working in innovative start-ups and R&D centres for up to two years, with an additional 50 percent reduction for the next four years.
• A three-year CIT exemption for newly registered SMEs starting from the date of registration.
• Allowing larger enterprises to deduct training expenses incurred in support of SMEs within their supply chains.
• The removal of business licence tax starting January 2026, aimed at reducing administrative burdens.
• Fee waivers for reissuing certificates and permits during times of administrative restructuring.

The recent adoption of Resolutions 68, 198 and 139 by Vietnam marks a significant step toward empowering the private sector as the primary driver of the national economy. Businesses are encouraged to closely monitor the official implementation of these incentives through the expected policy updates this year.

The above content was researched and summarised by ECOVIS AFA VIETNAM from widely published legal documents and articles. If you need to discuss any issues in more depth, please contact us using the details below.

Guiding Businesses Through China’s Legal Landscape: Duke Yu

Duke Yu is a senior partner at K-Insight law firm – Member of ECOVIS International with over 18 years of legal experience. After seven years of legal study, he has developed strong expertise in commercial law, with a focus on contract law, company law, and bankruptcy.

Duke advises clients across a wide spectrum of industries—including real estate, trade, manufacturing, e-commerce, and solar energy—bringing a practical, cross-sector perspective to complex legal issues. His work reflects a strong understanding of how law intersects with business realities.

Duke’s services span strategic legal consulting, in-depth due diligence, and the drafting of detailed legal advice. He also represents clients in litigation and arbitration, safeguarding their interests throughout every stage of the legal process.

“A lot of legal problems can be avoided with the right advice early on,” says Duke. “I always encourage clients to see legal counsel not as a last resort, but as a strategic advantage.”

One of the common pitfalls that Duke helps clients avoid is entering into high-stakes transactions without first seeking legal advice. His clear, forward-looking guidance helps businesses navigate risk and make confident decisions from the outset.

What sets Duke apart is not just his technical expertise, but his commitment to building long-term relationships. For him, the most rewarding part of his work is seeing his clients succeed – and knowing he’s played a part in that journey.

Supreme Court Ruling Affects the Unterstanding of Equity Incentive Plans in Denmark

In February 2025, the Danish Supreme Court issued a landmark ruling on how unvested options awarded as part of an equity incentive plan for employees shall be handled upon termination following significant legislative changes in 2019. The Supreme Court followed the arguments presented by ECOVIS Legal Denmark on behalf of a multinational company enabling companies to potentially avoid payments of unvested options (may cover various different kind of shares) to employees, who leave the company.

Introduction to the Case and Legal Framework

During their employment, two employees had been offered participation in an equity incentive plan under which they would either be awarded Restricted Stock Units or offered to purchase a share once the option had vested. Vesting was subject to the employees still being employed on specific vesting dates stated in the offer of participation, and any unvested options
would lapse upon termination.

The two employees were offered participation both before and after 1 January 2019. This is significant as a revised version of the Danish Stock Option Act (SOA) came into effect on that date. However, the transition rules from the SOA applicable prior to January 1, 2019 (2004 SOA) and the revised version (2019 SOA) were unclear, resulting in a lack of clarity as to which set of rules applied to their equity incentive plans.

The significance of whether the 2004 SOA or the 2019 SOA apply is the fact that the 2004 SOA granted employees a statutory protected right to receive unvested options after termination if they were good leavers. After the implementation of the 2019 SOA such legal protection no longer applied.

When the two employees ended their employment, they claimed that the 2004 SOA applied, entitling them to receive the unvested portion of their options, as they were good leavers. The company argued that the 2019 SOA applied, and the core of the dispute was consequently a legal interpretation of the transition rules from the 2004 SOA to the 2019 SOA.

Supreme Court Ruling

In the ruling, the Danish Supreme Court established that the decisive factor for whether the 2004 or the 2019 SOA applies, is at what point in time the actual and legally binding promise of participation in the option-based incentive plan has been made to the employee. If the promise was given before 1 January 2019, the 2004 SOA applies. If the promise was given after
1 January 2019, the 2019 SOA applies.

The Supreme Court further explained that the equity incentive plan did not constitute such an actual and legally binding promise in itself as it was merely the overall framework for grants and did not set out any promise of participation. Whether the 2004 SOA or the 2019 SOA applied therefore depended on when they received their individual offer of participation.

As the unvested options upon termination were all relating to offers granted after 1 January 2019, the 2019 SOA applied. Consequently, no statutory protected right to receive unvested options after termination applied, and the handling of the unvested options would therefore depend on what was agreed upon between the parties.

In this scenario, it meant that the employees did not have any entitlement to the unvested part of their options, as the 2019 SOA prescribes freedom of contract, and the company’s equity incentive plan and individual offers of participation prescribed that unvested options would lapse upon termination.

Key Legal Considerations

The Supreme Court ruling has now clarified what applies when an employee leave his or her position before all awarded options have vested, and it will consequently be easier for employers to handle unvested options upon termination correctly in the future.

Based on the ruling, companies can now limit economic exposure by limiting non-intended payments of unvested options to employees, who left the company, while still complying with the 2019 SOA. It is, however, important for companies to ensure that the transition to the 2019 SOA is handled correctly. Therefore, it is recommended for employers to consider whether
any amendments of their incentive schemes are desirable.

Navigating the complexities of equity incentive plans and the legislative changes can be challenging for both employers and employees. ECOVIS Legal Denmark’s Employment and Labour department is ready to assist, offering expert advice and pragmatic solutions in matters related to handling of equity incentive schemes in employment relationships.