Official letter No.1708/TCT-CS on 21st May ,2012 guiding the implementation of tax policy applicable to foreign contractors.
When foreign subcontractor (subcontractor level 1) to assign portion of the value of the work specified in the contract signed with foreign contractors to Vietnam subcontractors (thesubcontractor level 2), revenue subject to CIT of Tier 1 subcontractors includes total value of work, the value of machinery and equipment by the subcontractor level 2 execution. Tier 1 subcontractor honors tax obligations in accordance with in Point 3.2.b2 Section III, Part B of Circular 134/2008/TT-BTC on FCT.
