Enterprises outside Vietnam, that do not operate under the Law on Investment, the Law on Enterprises of Vietnam, when earning income from transfer of capital contributed in Vietnam must declare and pay EIT according to Clause 7 Article 16 of Circular No. 151/2014/TT-BTC.
Accordingly, the dossier of declaration of EIT on income from capital transfer shall be submitted whenever the EIT is incurred and the EIT shall be declared, paid by the capital transferees in Vietnam on behalf of such overseas enterprises. The tax declaration dossier must be submitted within 10 days from the transfer date agreed by all parties in the transfer contract (if the transfer is not subject to approval).
Relating to cases of capital transfer whether or not subject to approval, tax authorities are not competent to provide guidelines.
However, if the foreign party is entitled to EIT exemption, reduction under an Agreement on double taxation avoidance, it shall prepare the application for tax exemption, reduction according to regulations of the Law on tax administration.
The determination of value of immovable property total assets of the enterprise in which foreign organizations invest capital in order to apply the Agreement on double taxation avoidance shall be based on the audited property summary table.
|Published||Vietlaw's Newsletter No. 475|
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