blue-check Foreign company has to pay VAT and EIT when it engages in business cooperation in Vietnam

Official letter No. 17320/CTHN-TTHT dated May 20th, 2021 of the Department of Taxation of Ha Noi city regarding policies on value added tax (VAT) and enterprise income tax (EIT)
Posted: 1/6/2021 7:29:33 AM | Latest updated: 8/7/2021 9:49:48 AM (GMT+7) | LuatVietnam: 5218 | Vietlaw: 517

According to Article 2 of Circular No. 219/2013/TT-BTCstatus2 , 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-BTCstatus2 , 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.

Ms Phuong Thao (
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Published Vietlaw's Newsletter No. 517
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