Uni 24-02-2022 - Guiding on contractor tax policy for international payment services

Official letter 290/CTHPH-TTHT Guide on contractor tax policy for international payment services as follows:

In case, the Company (Seller) has activities to sell goods to customers (Buyer) in the United States of America. Accordingly, regarding payment obligations, the two parties have an agreement to use international factoring services of credit institutions located in the United States of America. In case, the Seller requests to be paid before the due date, the Seller must pay a fee to the credit institution, then the credit institution is subject to the application of contractor tax. If this is an international factoring service as prescribed by law, the Seller is responsible for declaring, withholding and paying contractor tax on behalf of the following credit institutions:

VAT: International payment services are not subject to VAT

CIT: Revenue subject to CIT x 5%