OFICIAL LETTER NO.3828/TCT-CS DATED 13 NOVEMBER 2013 OF GDT IN GUIDANCE OF FCT FOR FOREIGN EXPERTS WHO INSTALL FIXED ASSETS
According to official letter No.3828/TCT-CS:
In 2011, company A (Viet Nam) signed a machinery purchase contract with company B (foreign company) with CIF price. In 2008, Company A signed a contract with Company C (foreign company) about assigning foreign experts into Vietnam to instruct, run and install fixed assets purchased from company B.
For the contract between Company A and company C about assigning foreign experts into Vietnam to cover the works, the travel fees paid to foreign experts and other fees that company A must pay to company C will be imposed on FCT.
Normally, for machinery purchase contracts that their complicated installation, operations need foreign experts’ instruction and the supplier is responsible for installation, operation… In addition, the contract service ( conducted by company C) signed in 2008, while the purchase contract ( conducted by company B) signed in 2011; and the purchase contract without warranty conditions (in normal conditions, the machinery must need warranty), tax authority will check the relationship between company B and company C about performance of the contract to determine FCT of foreign contractor.
