VietlawOnline

blue-check Regarding withholding tax upon provision of technology – based utilities

Official letter No. 42786/CTHN-TTHT dated August 30th, 2022 of the Department of Taxation of Ha Noi city regarding tax policy for activity of purchasing technology – based eSIM
Posted: 5/9/2022 10:09:16 AM | Latest updated: 9/9/2022 12:05:30 PM (GMT+7) | LuatVietnam: 5533
VietlawOnline

According to opinions of the Department of Taxation of Ha Noi city in case a Vietnamese enterprise buys the right to use available technology – based utilities of a foreign enterprise, it has to withhold and pay withholding tax in terms of enterprise income tax on behalf of the foreign enterprise at the tax rate of 10% according to the regulations provided for incomes from copyright (clause 3 Article 7, clause 2 Article 13 of Circular No. 103/2014/TT-BTC ).

At the same time, the Vietnamese enterprise also has to withhold VAT at the tax rate of 5% according to the regulations at point a clause 2 Article 12 of Circular No. 103/2014/TT-BTC because the sale of available technology – based utilities is neither software service according to the regulations at Decree No. 71/2007/ND-CPstatus2 nor technology transfer under the Law on information technology.

Ms Phuong Thao (VietlawOnline.com)
Please tag VietlawOnline.com when reposting this article

Related documents

Not found

Penalty document

Unknown

Information

Effective date Unknown
Expired date Unknown

Files attachment

enflag pdficon CV42786-30082022CTHN[VLO].pdf

Timeline

No data

Tax of Contractor

blue-check It is exempt from withholding tax if the foreign party has made taxpayer registration in Vietnam
blue-check Regarding withholding tax upon provision of technology – based utilities
blue-check It is exempt from paying withholding tax on behalf of foreign contractors if they have made taxpayer registration in Vietnam
blue-check Foreign contractors are required to pay 1% withholding tax upon liquidating assets in Vietnam
blue-check Regarding withholding tax upon selling shares in Vietnam
blue-check Cases of service provision exempt from withholding tax
blue-check Regarding responsibility to declare and pay withholding tax
blue-check Issues relating to withholding tax
blue-check Issues relating to declaration of withholding tax
blue-check Cases in which withholding tax must be withheld before making payments to foreign contractors
blue-check Regarding withholding tax upon provision of complimentary attached services
blue-check Regarding withholding tax upon buying foreign brand name
blue-check Regarding withholding tax incurred by parent company outside Vietnam upon proving loans for subsidiary companies in Vietnam
blue-check Regarding tax incentives under Treaties
blue-check Regarding withholding tax upon import of machinery associated with software
blue-check Regarding withholding tax policy
blue-check Alienation of shares in Vietnam shall be subject to withholding tax
blue-check Regarding witholiding tax on income from loan interest
blue-check How to pay withholding upon supplying goods under DAP term
blue-check Regarding withholding tax upon transferring ownership of goods in transit deposited in bonded warehouses