According to Article 2 of Circular No. 219/2013/TT-BTC , goods and services traded and consumed in Vietnam shall be subject to VAT
Concurrently, according to point a Clause 1 Article 2 of Circular No. 78/2014/TT-BTC , parities involved in a business cooperation contract must declare and pay EIT.
Accordingly, in case a foreign company signs a service business cooperation contract with a Vietnamese Company, the arisen incomes shall be subject to the declaration and payment of VAT and EIT.
In which, VAT shall apply 10% tax rate and EIT shall apply 20% tax rate.
|Published||Vietlaw's Newsletter No. 517|