Uni 10-10-2012 – Reply on the official letter about the declaration and payment of foreign contractor tax (FCT)

Official letter No. 4308 / CT-THHT on 24 August 2012 of the Tax Department of Kon Tum province on the declaration of FCT, GDT comments as follows:

• In case, foreign contractor (FC) pay VAT by direct method, pay corporate income tax (CIT) with ratio (%) to revenue under the contract with Vietnamese contractors and the contract states that Vietnamese contractors must pay  an advance (%) to FC, Vietnamese contractors shall be responsible for declaring, paying  VAT, CIT on behalf of FC. This advance must be finalized with tax authorities at the end of the contract.
• In case, the Vietnamese contractors pay an advance to FC several times in a month, they can register to monthly pay tax instead of each time of an advance to FC