Uni 07-08-2013 -Guidance on FCT declaration and payment

According to the official letter No. 2038/TCT-KK:

• If foreign contractors have been granted tax registration certificate (ten-digits tax code) they will be allowed to register, declare and pay VAT under deduction method and pay CIT with the ratio as regulations. Before the date of being granted tax registration certificate, the foreign contractor contracts that Vietnamese party has declared, paid on behalf of foreign contractors must register with tax authority to pay VAT with direct calculation on VAT, CIT payment with ratio to revenue, Vietnamese party continues to declare, pay on behalf of foreign contractors for those contracts.
• Contracts signed with foreign contractors who conduct construction, installation with the accompanied machineries, equipment are subject to VAT, CIT as instructions of  Circular No. 60/2012/TT-BTC.
• The signing contracts and payments by foreign currency to foreign contractors as well as foreign exchange rates are complied with regulations of foreign exchange rate management of Vietnam State and the related regulations to the signing and implementation of the contracts.