Official letter 462/CT-TTHT dated 03 april 2013 by long an tax department guiding on the foreign contractor tax
According to the official letter 462/CT-TTHT:
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The purchaser paid the value of the imported machinery in CIF price; users bear the cost of installation experts, the declaration and payment of the withholding tax as follows:
The purchaser must declare and pay tax on value instead of imported machinery
The user must declare and pay tax on the actual costs that the Company incurred payable in Vietnam.
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In contracts of foreign machines with free warranty service, the company still must declare and pay tax in accordance with the contractor.
