9 November 2021
The Tax Department of Hanoi City issued Official Letter No. 37635/CTHN-TTHT dated 1 October 2021 to guide on the tax declaration of a branch located in a different province (“Branch”) from the head office. The main content is as follows:
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Regarding the License Tax: The branch shall submit the branch's license tax declaration dossier to the tax agency directly managing the Branch.
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Regarding Invoice: When providing goods, services, the seller shall issue invoices to the buyer. Thus, to comply with the law on issuing invoices, the head office and Branch must exactly identify the buyer and seller based on the real business situation.
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Regarding VAT: The Branch submits the VAT declaration dossier to the tax agency directly managing the Branch. In case the Branch does not directly sell goods, does not generate revenue, it shall make joint tax declarations with the head office as regulated by law.
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Regarding CIT: The Branch shall make joint CIT declarations at the tax agency directly managing the head office as regulated by law.
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Regarding PIT: If the Branch incurs income payments to individuals, the Branch shall submit PIT declaration dossiers and PIT finalization dossiers at the tax agency directly managing the Branch as regulated by law.
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Regarding foreign contractor tax: In case of the Branch purchases services or services associated with goods or pays income generated in Vietnam based on contractor contracts; purchase goods in the form of import and export on the spot or under the terms of international trade (Incoterms); distribute goods and provide services on behalf of foreign organizations and individuals in Vietnam, they are responsible for withholding contractor tax before paying foreign contractors and foreign sub-contractors as regulated by law.
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