Circular No. 103/2014/TT-BTC dated August 6, 2014 of the Ministry of Finance guiding the performance of tax obligations applicable to foreign organizations and individuals doing business or earning incomes in Vietnam

According to the new provisions, other than the subjects liable to contractor tax under the current provisions specified in Circular No. 60/2012/TT-BTC , the following cases shall be also liable to contractor tax from October 1, 2014

- Imported goods delivered under Incoterms in which seller shall take responsibility for risks relating to goods in the Vietnamese territory instead of applying such terms as DDP, DAT, DAP of Incoterm as previously

- Foreign contractors who distribute themselves or assign to Vietnamese enterprises to distribute goods in Vietnam.

- Foreign contractors, through Vietnamese organization or individuals, negotiate and sign contracts in which foreign organizations or individuals undersign.

The way to calculate VAT is also changed. Accordingly, VAT shall be calculated on the basis of direct rate upon turnover with the tax rate from 2%-5% (Clause 2, Article 11)

Particularly, the EIT rate table is remained as specified in Circular No. 60/2012/TT-BTC

This Circular takes effects on October 1, 2014 and replaces Circular No. 60/2012/TT-BTC dated April 12, 2012