8 December 2021
Binh Duong Tax Department issued Official Letter No. 18345/CTBDU-TTHT dated 22 November 2021 about tax declaration for foreign contractors with the following contents:
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Incomes earned in Vietnam by foreign contractors and foreign sub-contractors are any incomes they receive under main contracts or subcontracts, regardless of their business locations.
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Deadlines for submitting tax declarations:
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The deadline for submitting a monthly tax declaration is the 20th of the month succeeding the month in which tax is incurred.
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The unscheduled tax declaration (upon incurrence of tax) must be submitted within 10 days from the day on which tax is incurred.
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Declarations of VAT calculated on the added value or CIT calculated on revenue shall be made whenever a payment is made to the foreign contractor. A terminal declaration shall be made when the contract is finished.
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When the Vietnamese party makes multiple payments to a foreign contractor in a month, the taxpayer may request for permission to declare tax monthly instead of whenever a payment is made.
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In case the company in Vietnam is supported by a foreign parent company to borrow money for the company's operations, the company is responsible for declaring and paying contractor tax on behalf of the parent company according to the laws.
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