Official Letter No. 2655/CTBDU-TTHT dated 26/02/2025 of the Tax Department of Binh Duong province on contractor tax is as follows:

by KMC Consulting Company Limited

In case the company imports machinery and equipment lines from France, the partner is a foreign contractor who generates income in Vietnam. Therefore, the income of foreign contractors is subject to contractor tax according to the provisions of Circular 103/2014/TT-BTC.

In case the income from the transfer of the partner's assets is subject to the Double Taxation Avoidance Agreement between Vietnam and France, the procedures for notifying tax exemption and reduction shall comply with Circular 80/2021/TT-BTC.

  • A dossier of request for tax exemption or reduction includes:
    1. A written request made according to form No. 01/HTQT
    2. A certificate of residence issued by a tax authority of the country of residence
    3. Contracts signed with organizations and individuals in Vietnam and abroad
    4. Power of attorney (if any)
    5. Consular legalized residence certificates of the tax year
    6. Certification of contract performance by the contracting parties
    7. New economic contracts signed with organizations and individuals in Vietnam and abroad (if any)
    8. Undertake to send consular legalized residence certificates in the quarter immediately following the end of the tax year (if there is no residence certificate at the time of submission of the dossier).
  • Application deadline:
    1. For the method of deduction and declaration:
    • When temporarily calculating CIT: at the same time of temporary payment of quarterly CIT
    • When declaring CIT finalization: together with the CIT finalization declaration
    1. For the direct method:
    • Business activities and other types of income: within 15 days before the tax declaration deadline
    • Within 15 days before the end of the working contract in Vietnam or before the end of the tax year (whichever comes first), the foreign contractor shall send the original consularly legalized residence certificate (or a certified copy) to the Vietnamese party signing the contract or paying income. Within 03 working days from the date of receipt of the residence certificate, the Vietnamese party must submit this certificate to the tax authority.
    1. For the mixed method:
    • Within 15 days before the tax declaration deadline
    • Within 15 days before the end of the working contract in Vietnam or before the end of the tax year (whichever comes first), the foreign contractor shall send the original consularly legalized residence certificate (or a certified copy) to the tax office.

For more detailed information about this or related tax services , please don't hesitate to contact us.
Website: https://kmc.vn/
Hotline: +84 81 489 4789 or +84 91 988 9331
Email: info@kmc.vn