As aforementioned, a Rep. Office should not generate a profit; as such they are not subject to corporate income tax. Over the years many companies have therefore established Rep. Offices for the express purpose of making taxfree profits. In an attempted to counteract this malpractice, Decree 72 explicitly reduces the operational scope of a Rep. Office to the bare minimum. Furthermore, as noted above Decree 72 also allows the authorities to carry out inspections in order to ensure that a Rep. Office is adhering to these limitations. In accordance with the practice currently observed in Ho Chi Minh City, it is advisable to anticipate frequent visits from the local tax officials.