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.
|Published||Vietlaw's Newsletter No. 465|
Regarding PIT declaration made by foreigners (15/2/2019)