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blue-check New contractor tax policy, effective from October 1, 2014

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
Posted: 14/8/2014 7:12:27 AM | Latest updated: 10/8/2022 7:07:45 AM (GMT+7) | LuatVietnam: 3543 | Vietlaw: 161
VietlawOnline

According to the new provisions, other than the subjects liable to contractor tax under the current provisions specified in Circular No. 60/2012/TT-BTCstatus1 , 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-BTCstatus1

This Circular takes effects on October 1, 2014 and replaces Circular No. 60/2012/TT-BTCstatus1 dated April 12, 2012

Ms. Phuong Thao (VietlawOnline.com)
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Information

Effective Date 1-Oct-2014
ExpiredDate Unknown
Published Vietlaw's Newsletter No. 161

Files attachment

enflag pdficon TT103_06082014BTC[VLO].pdf

Timeline

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 on goods sale and purchases services provided via term contracts
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