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blue-check Conditions for foreign contractors to themselves declare in Vietnam

Official letter No. 4249/CT-TTHT dated May 4th, 2020 of the Department of Taxation of Ho Chi Minh city regarding declaration and payment of withholding tax
Posted: 29/6/2020 10:52:28 AM | Latest updated: 2/7/2020 3:47:26 PM (GMT+7) | LuatVietnam: 4993 | Vietlaw: 465
VietlawOnline

Foreign contractors (regardless of main contractors of sub-contractors) that meet the conditions regulated at Clause 1 and Clause 2 Article 8 of Circular No. 103/2014/TT-BTC may register for their own tax identification numbers in order to themselves declare value added tax (VAT) according to the credit method (it means input VAT on bought materials shall be deducted) and calculate enterprise income tax (EIT) according to a percentage upon revenue.

The aforesaid conditions include:

1. Having a permanent establishment in Vietnam;

2. Having a contractor contract of which term is at least 183 days;

3. Applying the Vietnamese accounting principles.

The method of tax declaration of the foreign contractors in this case is the combined method. In which , VAT shall be declared according to Article 9 of Circular No. 103/2014/TT-BTC and enterprise income tax (EIT) shall be declared according to a percentage upon revenue according to Article 13 of Circular No.103/2014/TT-BTC.

Ms. Phuong Thao (VietlawOnline.com)
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PublishedVietlaw's Newsletter No. 465
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