OFFICIAL LETTER 1550/TCT-CS DATED 24 APR 2018 OF GDT GUIDING ON TAX POLICY FOR PROMOTION OF GOOGLE, FACEBOOK
Official letter 1550/TCT-CS dated 24 Apr 2018 of GDT guiding tax policy for promotion of Facebook and Google as follows:
1. For VAT:
In case, enterprises in Vietnam hire other entities in Vietnam to conduct promotion of Facebook, Google; input VAT of promotion for business is wholly deducted if meeting conditions of VAT deductible as instruction of article 15 Circular 219/2013/TT-BTC.
2. For CIT:
In case, enterprises incurred promotion of Facebook, Google, if the costs meet full conditions relating to business, having full invoices, documents with enterprise tax code, name, address and non-cash payment voucher included to tax expense.
For payments by bank transfer, the company conducts as regulations of clause 3 article 15 Circular 219/2013/TT-BTC.
3. For FCT:
In principle, Google, Facebook (foreign contractor) sign contracts with Vietnam company to supply promotions of Google, Facebook and incurred income in Vietnam, Google, Facebook are entities paying FCT (VAT, CIT) in Vietnam. The company in Vietnam is responsible for declaring, deducting and paying FCT under regulations.
