Official letter 6607/CTHDU-TTHT about FCT policy:
Based on the above regulations and the content of the Company's question:
- In case the foreign contractor has income arising in Vietnam as compensation from the partner who violates the contract, this income is the income subject to CIT of the foreign contractor. Foreign contractors determine revenue subject to corporate income tax according to the provisions of point b.1, clause 1, article 13 of Circular No. 103/2014.TT-BTC of the Ministry of Finance and declare and pay corporate income tax according to the ratio of corporate income tax to revenue. Tax calculation is 2%.
- In case a foreign contractor sends an expert to work in Vietnam, the expert's income from salaries, wages and other items of a salary or wage nature in monetary or non-monetary forms is the sum of the expert's income. Personal income taxable income of experts, except for one-time regional allowances for foreigners coming to reside in Vietnam and travel expenses in accordance with the policy and within the prescribed level of the foreign contractor . In cases where business trip expenses are not fixed expenses but are calculated based on actual expenses incurred, they will be included in the expert's personal income taxable income.
- In case a foreign contractor generates income from technical support services for its Vietnamese partner, this income is included in the foreign contractor's taxable revenue.
