Official letter 13267/CTHDU-TTHT about the contractor tax policy as follows:
In case a foreign insurance company is a non-resident in Vietnam and earns income in Vietnam on the basis of a contract or agreement with the company, the foreign insurance company is subject to tax. Foreign Contractor. The company is responsible for declaring and deducting according to regulations.
The parent company in a foreign country makes payments on behalf of the Company in Vietnam and returns the payment amount. If it does not do business in Vietnam and has no income, it is not subject to foreign contractor tax.
