Uni 13-07-2017 - Guidance on FCT calculation exchange rate

Official letter 2935/TCT-CS dated 03 Jul 2017 guiding to determine FCT calculation exchange rate as follows:

Before 01 Jan 2015: Foreign contractors receive revenue in foreign currency must convert into VND under inter-bank foreign market average exchange rate announced by Bank State of Vietnam at the transaction time to determine VAT-liable and CIT-liable revenue

From 01 Jan 2015 till now:

-          In case, Foreign contractors have accounts open at Commercial bank in Vietnam Foreign contractors receive foreign revenue must convert into VND under buying exchange rate of Commercial bank where foreign contractors open accounts at the transaction time.

-          In case, foreign contractors do not have accounts at Commercial bank in Vietnam:

+        From 01 Jan 2015 to 04 Jan 2016: convert foreign revenue into VND under inter-bank foreign market average exchange rate announced by Bank State of Vietnam at the transaction time.

+        From 04 Jan 2016 to now: Convert foreign revenue into VND under center exchange rate of VND to USD announced by Bank State of Vietnam under Decision 2730/QĐ-NHNN dated 31 December 2015 at the transaction time.