Official letter 4248/CTBNI-TTHT about the contractor tax policy:
Basing on the above provisions and the content presented in the Company's documents, the Tax Department of Bac Ninh province guides the Company as follows:
1. According to the company's document, the Company and the parent company in Korea (Samhwa Korea Paint Co., Ltd.) have signed a contract to support human resources, under which the parent company must send experts to Vietnam. working (the expert is still a member of the parent company in Korea and this expert does not sign a labor contract with the subsidiary in Vietnam), for the expenses the Company must pay during the time the experts to work in Vietnam such as airfare, accommodation fee, travel fee... The company must deduct, declare and pay contractor tax according to the provisions of Circular No. 103/2014/TT-BTC dated 06 August 2014 of the Ministry of Finance.
2. If the company incurs a payment for airfare to a service provider that is a foreign company outside the territory of Vietnam, the income generated in Vietnam as prescribed in Article 1 of Circular No. 103/2014/TT-BTC dated 06/08/2014 of the Ministry of Finance.
3. In case the company pays for air tickets and the service provider is a company in Vietnam, the income received by this company in Vietnam is not subject to contractor tax.
In case the parent company in Korea and a foreign company providing air ticket services for the company satisfy the conditions specified in Article 8, Article 14 of Circular No. 103/2014/TT-BTC dated August 6 2014 of the Ministry of Finance, the registration, declaration and payment of VAT and CIT directly with the tax authorities.
In case the parent company in Korea and the foreign company providing air ticket services do not meet the conditions specified in Article 8, Article 14 of Circular No. 103/2014/TT-BTC dated August 6, 2014 of the Ministry of Finance, the Company is responsible for registering, declaring and paying VAT and CIT instead according to the guidance in Articles 12 and 13 of Circular No. 103/2014/TT-BTC dated August 6, 2014 of the Ministry of Finance. Finance.
