Official letter No 1739/CT-TTHT on foreign contractor tax policy as follows:
In case the foreign company signs contract with Vietnam company to provide goods in accordance with DDU (Incoterms 2000) and DAP (Incoterms 2010) condition:
- If the place of delivery is pointed at the Vietnamese border gate, the seller is responsible for the cost, risks relating to goods and place of delivery at the Vietnamese border gate; the buyer is responsible for the cost, risks relating to receive, transit goods from the Vietnamese border gate. The foreign company shall not be applicable to Circular 103/2014/TT-BTC.
- If the place of delivery is prescribed that the seller is exposed to risks related to the goods entering the territory of Vietnam, the foreign company is subject to foreign contractor tax as prescribed.
