26 October 2021
On 12 October 2021, the Tax Department of Bac Giang province issued Official Letter No. 4782/CTBGI-TTHT to guide the foreign contractor tax policy. The content is as follows:
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In case the enterprise imports machinery from abroad (foreign contractor) in the form of DDU, and the delivery point is located within the territory of Vietnam, the income from the foreign contractor's machinery supply activities is subject to foreign contractor tax.
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When the supply of machinery not associated with any service is carried out in Vietnam, the value of imported machinery is only subject to import VAT by the law.
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The rate of CIT calculated on taxable revenue from the provision of machinery and equipment is 1%.
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