The oficial letter No. 2483/CT-TTHT dated 08 may 2013 of HCM taxation department in guidance of double taxation avoidance agreement
The official letter No. 2483/CT-TTHT states that:
An enterprise in Vietnam signed an agent contract with a transport enterprise in Taiwan, the incomes other than the main transport charge that the Taiwan enterprise obtained in Vietnam are not entitled to tax exemption and reduction under the double taxation avoidance agreement between Vietnam and Taiwan due to the following reasons:
1. The incomes are not entitled to tax exemption and reduction under article 8 of the agreement
2. And the Vietnamese enterprise is an agent of the Taiwan enterprise, which leads to a permanent business establishment of the Taiwan enterprise in Vietnam.
When the Vietnamese enterprise collected the incomes other than the main transport charge and then returned them to Taiwan enterprise, the Vietnamese enterprise is responsible for declaring, withholding the Taiwan enterprise’s foreign contractor tax (FCT) under regulations of Circular No. 134/2007/TT-BTC to pay to State budget
