IT ' S SMART

The guide performs the applicable tax obligation to the organization, the foreign individual.

business in Vietnam or income in Vietnam

________________________

Increased Value Tax Law Base 13 /2008/QH12 June 03, 2008; Decree No. 123 /2008/NĐ-CP December 8, 2008 of the Government rules the details and directions some of the provisions of the Value Added Tax Law; the Digital Protocol. 121 /2011/ND-CP December 27, 2011 of the Government amended, adding some of the provisions of the Digital Protocol. 123 /2008/NĐ-CP December 8, 2008 of the Government rules the details and guidelines that implement some of the provisions of the Value Added Tax Law;

Corporate Income Tax Law Base 14 /2008/QH12 June 03, 2008; Decree No. 124 /2008/NĐ-CP December 11, 2008 of the Government rules the details and guidelines that enforce some of the business income Tax Law; the Digital Decree. 122 /2011/NĐ-CP December 27, 2011 of the Government amended, the addition of Protocol No. 124 /2008/NĐ-CP December 11, 2008 of the Government rules the details and guidelines that implement some of the provisions of the Corporate Income Tax Law;

Tax Management Base 78 /2006/QH11 November 29, 2006;

Base of Protocol 118 /2008/NĐ-CP November 27, 2008 of the Government Regulations on the function, mandate, jurisdiction and organizational structure of the Ministry of Finance;

On the recommendation of the Attorney General of the General Directorate of Taxation;

The Ministry of Finance issued a Guide to the implementation of the applicable tax obligation to the organization, the foreign individual business in Vietnam or having the income in Vietnam as follows:

Chapter I

GENERAL REGULATION

What? 1. Subject applies

The guide at this message applies to the following subjects (except for the subject set at Article 4 This Information I):

1. The foreign foreign organization has a permanent basis in Vietnam or has no permanent basis in Vietnam; foreign-business individuals are subject to residence in Vietnam or not a resident subject in Vietnam (later known as the Water Contender). In addition, the foreign subcontractor) business in Vietnam or has a birth income in Vietnam on a contract basis, agreement, or commitment between a foreign contractor with the organization, the Vietnamese individual or the middle of the foreign contractor with the Foreign Contractor. to do part of the work of the contractor contract.

2. Organization, foreign individuals provide goods in Vietnam in the form of an export-based import and has an income birth in Vietnam on the basis of a contract signed between the organization, foreign individuals with businesses in Vietnam (except for public and private equity). to pay goods to the organization, foreign individuals or to provide goods under the terms of the delivery of DDP, DAT, DAP (International Trade Articles-Incentives).

Example:

-Case 1: Business X in foreign countries sign a contract to purchase the fabric of Vietnam Business A, while only planning a delivery of A delivery for Vietnamese business South B (in the form of export-based import). The X-based business was born in Vietnam on the basis of a contract signed between the X business with business B (the X sales of the fabric to the B business).

In this case, the X business is subject to regulatory application at this Smart, and business B is responsible for opening, deductible and paying taxes in place of X business in accordance with this.

-Case 2: The foreign Y business contracted cloth co-workers with Vietnamese business C, while also designated a C-delivery business for Vietnamese businesses to continue manufacturing (in the form of export-based import) at the time. the law). Business Y has an income in Vietnam on the basis of co-contracting between the Y business with Enterprise D (Business Y sales for Business D).

In this case, the Y business is subject to regulatory application at this Smart and Business D is responsible for opening up, deductible and paying taxes instead of the prescribed Y business at this Smart.

-Case 3: Business Z in foreign countries signs a contract or purchase of cloth with Vietnam Business E (Business Z provides raw materials for E business to be machinable) and designated the E delivery business for Vietnam business to continue. Public (in the form of an export-based export). After the family is finished, the G-Business returns to Business Z and Business Z must pay the public money for the G business under a macho contract.

In this case, the Z business is not subject to the prescribed application at this level.

What? 2. The taxpayer

1. Foreign contractor, Foreign Contractor Guarantee the conditions stipulated at Article 8 Section 2 Chapter II or Article 14 Section 4 Chapter II This Smart, business in Vietnam or have income in Vietnam, including land territory, islands, intraners, and other countries. The territorial waters and the surrounding areas of the sea, including the seabed and the bottom of the sea where Vietnam executed sovereignty, sovereignty and jurisdiction are consistent with the Vietnamese law and international law. The business is conducted on the basis of a contractor contract with the organization, the Vietnamese personally or with the organization, the other foreign individual who is in business in Vietnam on the basis of a subcontractor contract.

The identification of foreign contractors, foreign contractors with a permanent basis in Vietnam, or the subject of residence in Vietnam by the provisions of the Tax Income Tax Act, the Personal Income Tax Act, and the implementation of the execs.

In the case of the two-time tax avoidance Agreement that the Socialist Republic of Vietnam has other regulation on a permanent basis, the subject of residence is done by the stipulation of that Agreement.

2. The organization is established and operates under the Vietnamese law, which organizes the registration of activities under Vietnamese law, other organizations, and individuals who produce a business, services that are associated with goods, or pay income in Vietnam on a contract basis. co-contractors or subcontractor contracts (later known as Vietnam Side) include:

-Business organizations established under Corporate Law, State Business Law (now Corporate Law), Foreign Investment Law in Vietnam (now Investment Law) and Cooperated Law;

-Economic organizations of political organizations, political-social organizations, social organizations, social organizations-professions, armed units, career organizations and other organizations;

-Oil contractors operating under the Oil and Gas Act;

-Branch of the Foreign Company is allowed to operate in Vietnam;

-The foreign organization or representative of the foreign organization is allowed to operate in Vietnam;

-Ticket sales office, Vietnam ' s rep in Vietnam of the foreign airline has the right to transport, to Vietnam, directly shipping or in contact;

-Organization, personal business business personality of the offshore shipping company; agents in Vietnam of the depot.

-Stock company, equity organization, fund management company, commercial bank where securities investment fund or foreign organization open securities investment accounts;

-Other organizations in Vietnam;

-Business-producing individuals in Vietnam.

The taxpayer in accordance with the guidelines at paragraph 2 Article 2 This is responsible for the deduction of the GTGT tax number, the TNDN tax is instructed at Section 3 Chapter II this Notice before payment to the Foreign contractor, the Foreign Contractor.

What? 3. Tax types apply

1. Foreign contractor, foreign subcontractor is the business organization that performs an increased value tax obligation (GTGT), corporate income tax (TNDN) in the direction of this Information.

2. Foreign contractor, Foreign Contractor is a business foreign individual who performs a GTGT tax obligation in the guidance of this Information, the personal income tax (TNCN) under the TNCN tax law.

3. For taxes, fees and other charges, Foreign contractors, Foreign Contractors to implement legislation on taxes, fees, and other fees available.

What? 4. The Subject does not apply

The instructions at this message do not apply to:

1. Organization, foreign individual business in Vietnam by the provisions of the Investment Law, Petroleum Law, Law of Credit Organizations.

2. Organization, foreign individuals who implement the provision of goods to the organization, Vietnamese individuals are not accompanied by services made in Vietnam under the forms:

-Delivery at a foreign outlet: the seller is responsible for all responsibility, costs, risks associated with the export of goods and delivery at the foreign outlet; the buyer is responsible for all responsibility, costs, risks associated with the receiving, the delivery charge from the store. Foreign to Vietnam.

-Delivery at the Vietnamese store: the seller is responsible for all responsibility, costs, risks associated with goods to the delivery point at the Vietnam store; the buyer is responsible for all responsibility, costs, risks associated with the receiving, the cargo from the store. The Vietnamese.

3. Organization, foreign individuals with income from the service offered and consumer outside of Vietnam.

Example 2:

Hongkong's H Company provides cargo and cargo services at Hong Kong's Hong Kong port for the International Transport Flotilla of Vietnam. Company A must pay the Company to waste its cargo at the Port of Hongkong.

In this case, the inventory of goods at Hongkong Port is that the service offered and consumed at Hongkong should not be subject to a tax subject in Vietnam.

Example 3:

The foreign organization provides specialized services, management, and issuing bonds, legal advice, management agents, roadshow organization (a brand activation array operation) for the Company A in Vietnam in countries where the Company A release certificates for the Vietnam War. The GDR (Global Depositary Receipt) and international bonds do not belong to the applicable foreign organization.

4. The organization, the foreign individual who does provide the following service offering to the organization, the Vietnamese individual that services are made abroad:

-Repair of transport (flying boats, flying boat engines, flying parts, sea ships), machinery, equipment (including sea cable, transmission equipment), which include or does not include supplies, equipment replaced with;

-Advertising, marketing (excluding advertising, internet marketing);

Example:

Vietnam's business contracted with the organization in Singapore to carry out a product advertising service in the Singapore market, and Singapore's advertising service was not subject to the application's application. In Singapore, the company in Singapore has made a product advertisement for consumption in the Vietnamese market, and the income from this advertising service is subject to the applicable subject.

-Promotion of investment and commerce;

-The brokerage: sales of goods, provision of services abroad;

For example, 5:

Vietnam 's business contracted business lease in Thailand to carry out a brokerage service to sell the products of Vietnam' s business in the Thai market or the world market then the Thai business ' s brokerage service is not subject to the subject. the application of the Wise; the case of the Vietnamese business contracted the business lease in Thailand to deliver a brokerage service to the Vietnamese business in Vietnam, which is subject to the application of the applicable information.

-Training (except online training);

For example, 6:

Company A in Vietnam signed with Singapore 's School B to staff Vietnam to Singapore to study at Singapore' s University B the training service of the University B School is not subject to the applicable subject of the Information; the case of Company A in Singapore. Vietnam signed a contract with the University of Singapore to teach Vietnamese staff to Vietnam in the form of online learning, the online training service of the University of B under the applicable subject matter.

-Shares of postal service (payment) postal service, international telecommunication between Vietnam with foreign countries where these services are carried out outside Vietnam; Media Rental Services and satellite bands of foreign satellite under the provisions of the Post Law, Law and Law. Telecommunications.

What? 5. Use concepts in Private Information

In this Information, the words below are understood as follows:

1. "Contract contracts" are contracts, agreements, or commitments between foreign contractors and Vietnam.

2. The "subcontractor contract" is the contract, agreement or commitment between the subcontractor and the foreign contractor.

The subcontractor consists of the Foreign Minister and the Vietnamese subcontractor.

3. Vietnam Territory includes land territory, islands, internal, territorial, and the sky above it, the waters off the territorial waters, including the seabed and the ground at the bottom of the sea where Vietnam performs sovereignty, the sovereignty rights and the right jurisdiction. with Vietnamese law and international law.

Chapter II

BASE AND TAX.

Item 1

GTGT TAXABLE SUBJECT AND TNDN TAXABLE INCOME

What? 6. The GTGT tax object

1. Service or service attached to the goods belonging to the GTGT tax subject to the Foreign contractor, the foreign subcontractor provided on the basis of the contractor contract, the contractor contract which uses for manufacturing, business and consumption in Vietnam (excluding goods, companies and businesses). The services stipulated at Article 4 of this message, including:

-Service or service attached to the goods belonging to the GTGT tax subject issued by Foreign contractor, Foreign Contractor provided in Vietnam and consumption in Vietnam;

-Service or service attached to the goods belonging to the GTGT tax subject due to foreign contractors, foreign contractors supplying Vietnam and consumption in Vietnam.

2. The case of goods is provided under contract in the form: the point of exchange of goods located within the territory of Vietnam; or the provision of goods accompanied by services conducted in Vietnam such as installation, trial, warranty, maintenance, replacement, maintenance, and maintenance. The other service comes with the supply of goods, including the case of providing the above or not within the value of the contract offering goods, the value of goods must be subject to the prescribed value of GTGT taxes, the value of the translation value. the subject of a GTGT tax subject in this message. The contract case does not separate the value of the goods and the associated service value (including the case of a free service), the GTGT tax is generally given to the contract.

Example:

Business A in Vietnam signed a contract to purchase machinery for the cement plant project with Business B overseas. The total contract value was $100 million, including $80 million (including a GTGT taxable equipment with a 10% tax), the installation of installation guidance, installation surveillance, maintenance, and maintenance of $20 million.

When importing the device machinery, Enterprise A is the importer of the execution of the GTGT stitchup tax on the value of the imported device, the GTGT.

The identification of Company B ' s GTGT tax obligation on the value of co-signing with business A as follows:

-The GTGT tax is calculated on the service value ($20 million), not counting on the value of the imported device machinery.

-The contract case does not separate the value of the device's machinery and service value, the GTGT tax is calculated on the entire contract value ($100 million).

What? 7. TNDN tax income

1. Income of the Foreign contractor, Foreign Contractor Developed from Operations Supply Activity, Services tied to goods in Vietnam on the basis of a contractor contract, subcontractor contract (excluding goods, regulatory services at Article 4 of Chapter I) Hey!

2. The case of goods is provided in the form: the cargo point in the territory of Vietnam; or the provision of goods accompanied by services conducted in Vietnam such as installation, trial, warranty, maintenance, replacement, other services, and more. accompanied by the provision of goods (including the case of a free service), including the case of providing the above-based services or not within the value of the contract supply contract, the TNDN taxable income of the Foreign contractor, the State House. Foreign subcontractors are all worth of goods, services.

Example 8:

Company A in Vietnam signed a contract to purchase machinery for the cement plant project with Company B overseas. The total contract value was $100 million (not including the GTGT tax), including $80 million in equipment, installation, installation, maintenance, maintenance, $20 million.

The Company B ' s TNDN tax obligation for the contract value is determined as follows:

-The TNDN tax is calculated separately for the value of the imported equipment chain ($80 million) and is calculated for the value of the service ($20 million) according to each of the prescribed TNDN tax rates.

-The contract case does not separate the value of the device's machinery and service value, the TNDN tax on the total contract value ($100 million) with a prescribed TNDN tax rate.

3. Income in Vietnam of the Foreign contractor, Foreign Contractors Contractors are received under any form on the basis of a contractor contract, subcontractor contract (except for the provision of a supply of goods, regulatory services at Article 5). 4 Chapter I This Smart, does not depend on the location of the business activities of the foreign contractor, the foreign subcontractor. The taxable income of the Foreign contractor, the Foreign Contractor in some particular cases is as follows:

-Income from ownership transfer, property rights.

-Income from royalties is the income under any form paid for the right to use, transfer of intellectual property rights and transfer of technology (including: the funds paid to the right to use, the transfer of the author ' s rights and the right of ownership). It ' s the transfer of industrial ownership; technology transfer.

"Copyright rights, rights to the owner of the work", "Industrial Property Rights", "technology transfer" stipulated at the Civil Code of the Socialist Republic of Vietnam, the Law Transfer Law, and the written instruction text.

-Income from transfer, asset liquation.

-Income from the loan interest: is the lender 's income from loans under any form that the loan has or is not guaranteed by the mortgage, that the lender does or does not enjoy the borrower' s return; income from deposit rate (minus interest). The deposit of foreign individuals and interest deposits was issued from the deposit account to maintain operations in Vietnam by the diplomatic representative body, the representative body of the international organization, the NGO in Vietnam, including the awards. go with the deposit rate (if available); income from the return rate by the regulation of the contracts; earnings from bond interest, bond price discount (minus fruit). Tax-free, free-to-deposit income.

The loan interest includes both the fees that the Vietnamese side must pay under the contract of the contract.

-Income from the stock exchange.

-The fine, the compensation proceeds from the breach of the contract.

-Other income according to the law.

Item 2

THE GTGT TAX IS IN ACCORDANCE WITH THE DEDUCTION, FILE TAX TDN ON THE BASIS

PRESCRIP REVENUE, EXPENSE TO DETERMINE TAXABLE INCOME

(the following is called a deductible, prescribation method)

What? 8. Subject and conditions applicable

Foreign contractor, Foreign Contractor pays tax in accordance with instructions in Section 2 Chapter II This information if it meets all conditions:

(i) There is a permanent basis in Vietnam, or the subject of residence in Vietnam;

(ii) The business deadline in Vietnam under the contract of the contractor, the subcontractor contract from 183 days or more since the day of the contractor contract, the contractor contract is in effect;

(iii) Apply Vietnam.

What? 9. Value Added Tax

Follow the rules of the GTGT Tax Law and the execs of the execs.

What? 10. Corporate Income Tax

Follow the regulation of the TNDN Tax Law and the execs of the execs.

Section 3

PAY TAX BY DIRECT METHOD ON GTGT,

PAY TNDN TAX IN PROPORTION TO REVENUE

(the following is called a method of proportional definition)

What? 11. Subject and conditions applicable

Vietnam pays tribute to foreign contractor, Foreign Contractor In The Case Of Foreign Contractors, Foreign Contractor Tax in accordance with guidelines at Article 12, Article 13 Section 3 Chapter II This Smart If Foreign contractor, State Contender It does not meet one of the conditions listed at Article 8 Section 2 Chapter II This message.

What? 12. Value Added Tax

The tax base is the increased value of the service, the service attached to the GTGT taxable goods and the GTGT tax rate.

The number of GTGT taxes must be filed

=

Value added

x

GTGT Tax Tax

1. Value added

The valuing value of the service, the service attached to the GTGT taxable goods is determined by the GTGT tax rate multiplied by (%) GTGT properties on the revenue.

a) GTGT tax revenues:

The GTGT tax revenue is the full revenue provided by the service, services tied to the GTGT tax subject goods that the foreign contractor, the foreign contractor received, excluding the taxes required to submit, including expenses issued by the Vietnamese side. to replace the foreign contractor, the foreign subcontractor (if any).

b) Define the GTGT tax collection for certain specific cases:

-In case of agreement at the contractor contract, subcontractor contract, foreign contractor revenue, foreign contractor received not including a GTGT tax must submit, the GTGT tax revenue must be converted to a GTGT tax and tax revenue. is determined by the following formula:

GTGT Tax Revenue	=	The revenue has not included the GTGT tax
		1-Rate of% GTGT on the GTGT tax rate tax

Example:

The foreign contractor A provides the Viet Cong to oversee mass surveillance of the Z cement plant, the contract price that has not included the GTGT tax (but has included the TNDN tax) of $300,000. In addition, the Vietnamese side arranged the accommodation and worked for the management staff of the Foreign contractor A with the value that had not included the GTGT tax of $40,000. According to the contract, the Vietnamese side is responsible for paying the GTGT tax in place of the foreign contractor. The identification of the GTGT tax revenues of the foreign contractor A as follows:

Specifies tax revenue:

GTGT Tax Revenue	=	300,000 + 40,000	=	$357,894.73.
		(1-50% x10%)

-The case of foreign contractor contracting with the Vietnam subcontractor or foreign subcontractor implementing a tax filing under the deduction, prescribation or foreign subcontractor paying tax in accordance with a mixed method of dealing with a portion of the work value. or whether the category is specified at the Contract of Contender with Vietnam and the list of Vietnamese subcontractors, Foreign Contractors performing part of the work or the respective categories listed included under the Contract Contract, their GTGT tax revenues. Foreign contractors do not include work value issued by the Vietnamese subcontractor or foreign subcontractor.

The case of foreign contractors contracted to provide suppliers in Vietnam to purchase raw materials, machinery to implement contractor and cargo contracts, services to serve internally, consumer non-item, The work that the foreign contractor does on a contractor contract is worth a commodity, and this service is not unless it is determined to determine the tax revenues of the GGTGT.

Example 10:

Foreign contractor A signed a contract to build Z cement plant with Vietnam for a total contract value of $10 million (the price that included the GTGT tax). According to the contractor Contract, the Foreign contractor A will hand over the portion of the construction value (stipulated at the contractor contract with Vietnam) to the Vietnamese subcontractor B with a value of $01 million (the price has not included the GTGT tax); in addition, during construction. set up the Z cement plant to implement the contractor contract, the foreign contractor A purchase of raw materials (bricks, cement, sand etc.) to implement construction and purchase of goods, services such as car rentals, hotels for professionals, purchasing stationery ... catering to the Make a deal.

The GTGT tax revenue of the foreign contractor A in this case is determined as follows:

GTGT tax revenue = $10 million-$1 million = $9 million

The GGTGT tax revenues of the A foreign contractor A are not excluded from the raw materials, goods, services such as car rental, hotel rental for professionals, purchasing stationery offices ...

-The case in which the contractor is a foreign contractor does the tax filing under a method of proportional valuation, the tax revenue of the foreign contractor's GTGT tax is all foreign contractor revenues received by contract with the Vietnamese side. The foreign subcontractor does not have to pay the GTGT tax on the portion of the employment of the Foreign Contractor in accordance with the provisions at the Contract of the Contracting Contractors with Foreign Contractors.

-For the delivery service, the international depot from Vietnam to foreign countries (not to distinguish the senor or the paid recipient), the GTGT tax revenue is the entire foreign contractor revenue received not including international shipping payable. for shipping (aviation, sea).

-For the international transfer service from Vietnam to foreign countries (not to distinguish it from deposers or payers), GTGT tax revenues are all foreign contractor revenues received.

Example 11:

The overseas company provides mail delivery services from abroad to Vietnam and vice versa. The Company A ' s GTGT tax revenues are defined as follows:

+ For the overseas transfer service of Vietnam (which does not distinguish persons from overseas or recipient in Vietnam paid for service) is not subject to a GTGT tax;

+ For services from Vietnam to foreign countries (not to distinguish persons in Vietnam or foreign recipient), the tax revenue of GTGT is the entire Company A received.

2. Rate (%) GTGT properties on tax revenues:

a) The ratio (%) GTGT counts on tax revenues for the business sector:

STT	Business	Ratio (%) GTGT properties on tax revenue
1	Services (except for oil drilling services), which lease equipment machinery, insurance.	50
2	Oil and gas drilling service	70
3	a) Building, installation with materials or machinery, equipment, equipment, and construction work. b) Build, install no materials or machinery, equipment that comes with the construction work of the building.	30 50
4	Transport, manufacturing, other business	30

b) Define the rate (%) the value added value on the GTGT tax revenue for certain specific cases:

-For contractor contracts, the subcontractor contract includes a variety of business activities or a portion of the non-taxable contract value of the GTGT tax, the adoption of the value added value rate on the GTGT tax revenue when determining the tax number. GTGT must submit to the GTGT tax revenue for each business operation operated by the Foreign contractor, the foreign contractor implemented by the stipulation at the contractor contract, the subcontractor contract. Where the value of the business is not separate, the highest rate of GTGT is applied to the business profession and the highest tax rate for the entire contract value.

For construction, installation with materials or machinery, equipment accompanying construction, the value added to the tax rate increased by 30% on the entire contract value. The case of foreign contractor signing contracts with subcontractors to hand over the entire portion of the work value or category has a tenor of materials or machinery, equipment, foreign contractors only to implement the rest of the service value under contract. The contractor, the percentage of GTGT, is applied to the service industry (50%).

Example 12:

Foreign contractor A signed a contract with Vietnam to build an X power plant with a value of $75 million (the price that has included the GTGT tax), the contract value included:

+ The machine value, the supply device for the work: $50 million.

+ Value of technology chain design, other design: $5 million.

+ Home value, other auxiliary system, construction, installation: $15 million.

+ monitoring service value, installation guide: $3 million.

+ Technical training service value, test operation: $2 million.

As such, the ratio of the% GTGT to the entire contract value of 75 million applies is 30%, not calculated for each business activity provided by the foreign contractor A.

Case of foreign contractor A contracted with subcontractors to hand over parts of the work that includes the material, the foreign contractor A only does the portion of the service value (e.g., the value of the monitoring service, the installation guide) is the value part. This service applies the percentage of GTGT to 50%.

-For the contract to provide a device machine with the installation of installation guidance, training, operation, test, if separated is the value of the device machine and the value of the services when determining the number of GGTGT tax must submit to the GGTGT ratio of each part. A contract value. The case in the contract does not separate the value of the equipment and the value of the services, and the rate of the GTGT rate on tax revenues is 30%.

Example 13:

The South Korean foreign contractor did not implement the Vietnam accounting regime that implemented a contract with business B in Vietnam about the supply of machinery, equipment and installation services, operating, and testing, with a value of $10,000,000. At the contract that does not separate the value of the equipment machinery and the installation service value, the operating operation is 30%.

-GTGT tax revenue for machine rental, equipment, transport is the full amount of rent. The case of machine rental revenue, equipment, transportation including expenses paid by the side directly paid such as media insurance, maintenance, registration certification, vehicle control, machinery and transportation costs. From overseas to Vietnam, GTGT tax revenue does not include these costs if there is evidence from reality.

3. GTGT Tax Tax

The GTGT tax tax on goods, the GTGT taxable service is the regulation tax at the GTGT Tax Law and the execs of the execs.

Foreign contractor, Foreign Contractor of the GGTGT taxpayer tax subject directly on the GTGT is not deductible except for the GTGT tax on goods, the purchase service to implement the contractor contract, the subcontractor contract (including tax). GTGT for the sub-bid contract the Vietnamese subcontractor does.

What? 13. Corporate Income Tax

The tax base is the TNDN tax revenue and the ratio (%) the TNDN tax on tax revenues.

The TNDN tax must submit

=

TNDN tax revenue

x

The TNDN tax rate on tax revenue

1. TNDN Tax Revenue

a) TNDN tax revenues

The TNDN tax revenue is that the entire revenue does not include the GTGT tax that the foreign contractor, the Foreign Contractor Received, excluding the taxes that must be filed. The TNDN tax revenue is included in both the expenses paid by the Vietnamese side in lieu of foreign contractors, foreign subcontractors (if available).

b) Define the TNDN tax revenue for a number of specific cases:

-The case, according to the agreement at the contractor contract, the subcontractor contract, the foreign contractor's revenue, the foreign contractor received not including the TNDN tax must submit, the TNDN tax revenue is determined in the following formula:

TNDN tax revenue	=	Revenue does not include the TNDN tax
		1-TNDN tax rate on tax revenue

Example 14:

The foreign contractor A provides the Viet Cong to oversee mass surveillance of the Z cement plant, the contract price that has not included the GTGT tax, the TNDN tax of $285,000. In addition, the Vietnamese side arranged the accommodation and worked for the management staff of the foreign contractor with a value of $38,000 (not including the GTGT tax, TNDN). Under the contract, the Vietnamese side is responsible for paying the TNDN tax, the GTGT tax instead of foreign contractor. The identification of the foreign contractor TNDN tax must submit as follows:

Specifies tax revenue:

-The case of foreign contractor contracting with the Vietnam subcontractor or foreign subcontractor implementing a tax filing under the deduction, prescribation or foreign subcontractor paying tax in accordance with a mixed method of dealing with a portion of the work value. or whether the category is specified at the Contract of Contender with Vietnam and the list of Vietnamese subcontractors, Foreign Contractors Implementing the work portion or the respective categories listed included under the Contract Contract, the TNDN tax revenues of the country. Foreign contractors do not include work value issued by the Vietnamese subcontractor or foreign subcontractor.

The case of foreign contractors contracted to provide suppliers in Vietnam to purchase raw materials, machinery to implement contractor and cargo contracts, services to serve internally, consumer non-item, The work that the foreign contractor does on a contractor contract is worth a commodity, and this service is not unless it is determined to determine the TNDN tax revenue of the foreign contractor.

Example 15:

Foreign contractor A signed a contract to build Z cement plant with Vietnam for a total contract value of $9 million (the price has not included the GTGT tax). According to the contractor Contract, the Foreign contractor A will hand over the portion of the construction value (stipulated at the contractor contract with Vietnam) to the Vietnamese subcontractor B with a value of $01 million (the price has not included the GTGT tax); in addition, during construction. set up the Z cement plant to implement the contractor contract, the foreign contractor A purchase of raw materials (bricks, cement, sand etc.) to implement construction and purchase of goods, services such as car rentals, hotels for professionals, purchasing stationery ... catering to the Make a deal.

The TNDN tax revenue of the foreign contractor A in this case is determined as follows:

Net tax revenues TNDN = $9 million-$1 million = $8 million

The TNDN tax revenue of the A foreign contractor A was not excluded from material capitalization, goods, services such as car rental, hotel rental to the expert, purchasing stationery ...

-The case in which the contractor is a foreign contractor does the tax filing under a proportional method, the TNDN tax revenues of the foreign contractor are all foreign contractor revenues received under contract with the Vietnamese side. Foreign foreign contractors do not have to pay a TNDN tax on the portion of the employment of the Foreign Contractor in accordance with the provisions at the contractor contract with the Foreign contractor.

-TNDN tax revenue for machine rental, equipment, transport is the full amount of rent. The case of machine rental revenue, equipment, transportation including expenses paid by the side directly paid such as media insurance, maintenance, registration certification, vehicle control, machinery and transportation costs. Equipment from overseas to Vietnam, TNDN tax revenue does not include these costs if there is evidence from reality.

-The foreign airline ' s TNDN tax revenue is the passenger ticket sales, air transport and other revenues (except for state or institutional payments by law) in Vietnam for the transport of passengers, goods, and businesses in the country. And other transport objects are carried out on airline's own flights or in contact.

Example 16:

The foreign airline A in the first quarter of 2013 was a $100,000 sales, in which passenger ticket sales were $85,000, sales of $10,000 worth of $10,000 and sales of MCO (price certificate) of $5,000; and simultaneously growing. State procurement (airport fee) $1,000, the reimbursable reimbursable cost of $2,000.

The 2013 annual TNDN tax revenue of the foreign airline A was defined as follows:

Tax revenues TNDN = 100,000-(1,000 + 2,000) = $97,000

-The foreign shipping company 's TNDN tax revenue is the entire amount of money obtained from passenger shipping, freight, and other revenues that the marine carrier enjoyed from Vietnam' s quatting port to the last port of the country. The unloading of that cargo (including the shipments of the shipments must be transferred through the intermediate ports) and/or the proceeds from the goods between the ports of Vietnam.

The money-based TNDN tax base does not include TNDN tax in Vietnam port for foreign owners and money paid for Vietnamese shipping business due to being involved in shipping from the port of Vietnam to a neutral port. Time.

Example 17:

Company A makes dealership for the foreign shipping company X. According to the transport contract, Company A on behalf of the X Company receives shipping abroad, releasing a single, collecting money for shipping ...

Vietnam's B business hired X Corporation (through Company A) to transport goods from Vietnam to the U.S. with $100,000.

Company A hired the shipping of Vietnam or overseas shipping from Vietnam to Singapore with a shipping deposit of $20,000 and from Singapore will be shipped to the United States by X.

The foreign X Transport Corporation's TNDN tax revenue is defined as follows:

TNDN tax revenue = 100,000-20,000 = $80,000

-For the delivery service, the international depot from Vietnam to foreign countries, (not to distinguish it from deposers or payers), the TNDN tax revenue is the entire foreign contractor revenue received not including international shipping payable. for shipping (aviation, sea).

-For the international transfer service from Vietnam to foreign countries (not to distinguish the senor or the paid recipient), the TNDN tax revenue is the entire foreign contractor revenue received.

Example 18:

The overseas company provides mail delivery services from abroad to Vietnam and vice versa. The A Company ' s TNDN tax revenue is defined as follows:

+ For the overseas transfer service of Vietnam (which does not distinguish persons from overseas or recipient in Vietnam paid for service) is not part of the TNDN taxable income;

+ For service from Vietnam to foreign countries (not to distinguish persons in Vietnam or foreign recipient), the TNDN tax revenue is the entire Company A received.

-For reinsurance, the TNDN tax revenue defines as follows:

+ For foreign reinsurance operations, the TNDN tax revenue is the amount of foreign reinsurance to foreign contractors that the foreign contractor receives (including reinsurance commissions and customer reimbursable costs).

+ For foreign reinsurance activity, the TNDN tax revenue is the reinsurance commission that the foreign contractor receives.

The specific regulation of tax policy on insurance services is carried out in accordance with the Ministry of Finance ' s own guidelines.

-For the stock transfer, the TNDN tax revenue is defined as follows:

For securities transfers, bonds (excluding tax exempt bonds), deposit certificates, corporate income tax revenues are total stock sales, bonds, deposit certificates at the time of transfer.

The specific regulation of tax policy on securities activity is carried out in accordance with the Ministry of Finance ' s own guidelines.

-TNDN tax revenues on interest exchange transactions are the difference between the payable interest and interest that the foreign contractor received in a calendar year. The identification of the tax period according to the calendar year is carried out by regulation at the TNDN Tax Law, Tax Management Law and Guide documents.

Example 19:

Bank A (A) has a loan of $10 million with a fixed interest rate of 5.2% of the month. The contract period was three years from 1/2/2012 to 1/2/2015, the payment term payment of 6 months and payment at the start of the period.

On the basis of A loan contract of A, A negotiated with 1 bank B (B) abroad for the implementation of interest rate swaps, namely:

-The deadline for the implementation of the contract was 3 years from 1/2/2012 to 1/2/2015, the payment term of 6 January payment and payment at the start of the period.

-A float interest rate A must pay B is libor + 0.25% and B must pay a fixed interest rate of 5.2%. This means that if the interest rate libor + 0.25% is higher than the fixed interest rate under the swap contract the B receives a difference of interest rates from A calculated: (libor + 0.25%)-the interest is payable at a 5.2% interest rate. Conversely, if the libor rate + 0.25% is lower than the fixed interest rate under the swap contract, A receives a difference of interest rates from B as equals: 5.2%-interest A receives as per libor rate + 0.25%.

Payment times	Libor Interest (%)	A must pay B (%)	B must pay A (%)	After clearing an A or B interest received (%)		The amount of the difference A or B receives each term ($1,000m)
				A	B	A	B
1/2/2012-31/7/2012	4.80.	5.05	5.20.		0.15	-	15
1/8/2012-January 31, 2013	5.00	5.25.	5.20.	0.05		5
1/2/2013-31/7/2013	4.90	5.15.	5.20.		0.05	-	5
1/8/2013-January 31, 2014	4.95.	5.20.	5.20.	0.00		-	-
1/2/2014-31/7/2014	4.90	5.15.	5.20.		0.05		5
1/8/2014-January 30, 2015	5.05	5.30	5.20.	0.10		10

The determination of the TNDN tax revenue for B is as follows:

-2012 (January 1, 2012-December 31, 2012): The total number B received from A is: (15,000-5,000) = $10,000;

-2013 (from 01/01/2013-31 December 2013): The total number B received from A is: (5,000-0) = $5,000;

-2014 (from 01/01/2014-31 December 2014: B Did not receive the money but payment for A was $5,000 (Tax Revenue = 0);

-In 2015: Due to a contract payment agreement in the first term should not develop a clearing between A and B.

The specific regulation of tax policy on derivative financial services is made in accordance with the Ministry of Finance's own guidelines.

2. Rate (%) the TNDN tax on tax revenue

a) Rate (%) the TNDN tax on tax revenues for the business sector:

STT	Business	Rate (%) TNDN tax on tax revenue
1	Trade: distribution, supply of goods, materials, supplies, machinery, equipment attached to the service in Vietnam {including supply of goods in the form of entry-in-place imported goods (except for the case of public goods for the organization, foreign individual); supply. commodities under DDP delivery conditions, DAT, DAP (International Trade Articles-Incoterms)}	1
2	Service, rental machinery, insurance, rig rental.	5
3	Restaurant management services, hotels, casinos.	10
4	Charter flights, flying boat engines, flying parts, sea ships	2
5	Build, pre-ordered installation or no raw materials or machinery, equipment that comes with the construction work of the building.	2
6	Manufacturing, other business, shipping (including sea transport, air transport)	2
7	Transfer of securities, reinsurance abroad, reinsurance and reinsurance.	0.1
8	Derivative Financial Services	2
9	Loan interest	5
10	Copyright income	10

b) Rate (%) the TNDN tax on tax revenues for certain specific cases:

-For the contractor contracts, the subcontractor contract includes many different business activities, the adoption of the TNDN tax rate on tax revenue when determining the TNDN tax number must submit to the TNDN taxable revenue for each of its business operations. business due to foreign contractors, foreign contractors implemented by contract. The non-separate case that is valued at every business activity applies the TNDN tax rate to the business industry with the highest TNDN tax rate for the entire contract value.

For construction, installation with raw materials or machinery, equipment accompanying construction, the ratio of the TNDN tax on tax revenues is 2% across the entire contract value. The case of foreign contractor signing contracts with subcontractors to hand over the entire portion of the work value or category has a tenor of materials or machinery, equipment, foreign contractors only to implement the rest of the service value under contract. The contractor then rates the TNDN tax on the TNDN tax revenue applied to the service industry (5%).

Example 20:

Foreign contractor A signed a contract with Vietnam to build an X power plant with a value of $75 million (the price has not included the GTGT tax, but has included the TNDN tax), the contract value included:

+ The machine value, the supply device for the work: $50 million.

+ Value of technology chain design, other design: $5 million.

+ Home value, other auxiliary system, construction, installation: $15 million.

+ monitoring service value, installation guide: $3 million.

+ Technical training service value, test operation: $2 million.

As such, the TNDN tax rate for the entire contract value of 75 million applies is 2%, not calculated for each business activity provided by the Foreign contractor A.

Case of foreign contractor A contracted with subcontractors to hand over parts of the work that includes the material, the foreign contractor A only does the portion of the service value (e.g., the value of the monitoring service, the installation guide) is the value part. This service applies a rate of 5% to the TNDN tax.

-For the contract to supply the device machine with built-in instruction, training, operation, test, if separate separation of the device's machinery and the value of the services, the tax rate is calculated according to the individual tax rate of each portion of the contract value. The case in the contract does not separate the value of the equipment and the value of the services, and the applicable TNDN tax rate on tax revenues is 2%.

Example 21:

The foreign contractor A signed a contract with Vietnam to supply a machinery line, the device with a value of $70 million. The contract value includes:

+ Machine value, supply device for the work: $60 million

+ Value of technology chain design, other design: $5 million

+ monitoring service value, installation guide: $3 million

+ Technical training service value, test operation: $2 million.

In the case of separate separation of the device's machinery and the value of this service, the application of the TNDN tax rate is as follows: for machine value, the device applies rates to the commercial sector; for design service value, installation monitoring, training, and more. We ' re going to be able to do this, and we ' re going to try to apply the

The case is not separate, and the TNDN tax rate is 2% across the entire contract value ($70 million).

Section 4

THE GTGT TAX IS IN ACCORDANCE WITH THE DEDUCTION, PAYING TNDN BY PERCENTAGE COUNT ON REVENUE

(the following is a mixed method)

What? 14. Subject and conditions applicable

Foreign contractors, Foreign Contractors if they meet the two conditions (i), (ii) states at Article 8 Section 2 Chapter II This Information and organizes the accounting accounting under the laws of accounting and guidelines of the Ministry of Finance are registered with the tax authority. to carry out the GTGT tax in the deduction and file TNDN in accordance with the rate of% on tax revenue.

What? 15. Value Added Tax

Follow in accordance with Article 9 Section 2 Chapter II This message

What? 16. Corporate Income Tax

Follow the instructions at Article 13 Section 3 Chapter II This message

Section 5

REGULATION OF IMPLEMENTATION, TAX FILING

What? 17. Opening, tax in cases

1. Foreign contractor, Foreign Contractor Implementing a tax obligation in one of the three methods such as guidelines at Chapter II This is to continue to open, paying taxes under the current implementation method until the end of the contract.

2. Foreign contractor, Foreign Contractor is implementing a tax obligation in one of the three methods such as guidelines at Chapter II This Smart, if continue to sign a contractor contract or new sub-contractor contract in Vietnam at the end of the contract. The contractor or the former subcontractor contract will continue to implement, tax on the contractor contracts, the new subcontractor contracts under the implementation of the contractor contract or the old subcontractor contract.

3. Cases of the signing, implementation of the contractor contract or new subcontractor contract at the time of the contractor contract or the former subcontractor contract ended then the Foreign contractor, the Foreign Contractor was reregistered to the payment method according to a letter. in three methods such as the guide at Chapter II This is for the new contract.

4. The case at the same time that the foreign contractor, the foreign subcontractor does many contracts, if a contract is eligible under the regulation and the foreign bidder, the Foreign Contractor registers taxes in accordance with the deduction, prescribation. Or the mixed method then other contracts (including unqualified contracts) must also carry out the taxon in accordance with the method by which the Foreign contractor, the Foreign Contractor Registered.

5. The case of foreign contractors, Foreign Contractors offering goods, services to conduct search operations, exploration, development and extraction of oil fields, gas-filing of the GTGT payment in accordance with a direct calculation on GTGT, Vietnam may have. The responsibility of the deduction, the submission of a GTGT tax in accordance with the specified rate.

In the case of foreign contractors, Foreign Contractors provide goods, services to conduct search, exploration, development and extraction of oil fields, gas-filing of the GTGT filing in accordance with the deduction: During the time of foreign contractor, Foreign foreign contractors have not yet been given tax registration certificates to declare, pay the GTGT tax in accordance with the deduction, if Vietnam pays the money to the Foreign contractor, the Foreign Contractor is responsible for deductible. change the GTGT tax in accordance with the regulation rate. In the case of foreign contractors, foreign contractors have been granted tax registration certification by the state tax authority, foreign contractors, Foreign Contractors in charge of testimony, filing a GTGT tax in a deductible method for the revenues that arise since. when granted a tax registration certificate. The number of GTGT taxes in Vietnam has submitted to foreign bidder, the Foreign Minister under the non-compensated rate for the service of the GTGT tax must submit to foreign contractor, Foreign Minister Contracting Foreign Contractors, Foreign Contractor Undeductible. Except for the first GTGT tax on birth before being granted a tax registration certificate.

Example 22:

In January 2013, foreign contractor A signed a contract with Vietnam on the provision of oil and gas drilling services for a $1 million contract. During the time the Foreign contractor A has not yet been granted tax registration certification to file a GTGT in accordance with the deduction, the foreign contractor A broadcast the number of input GTGT taxes on goods, the purchase service to make the tender contract. $5,000; to the deadline for Vietnam to pay the money for Foreign contractor A with a value of $100,000 (which includes the GTGT tax, which has not included the TNDN tax), Vietnam is responsible for deduction of the GTGT tax for Foreign contractor A with the rate of GTGT. revenue tax on oil drilling service is 70%, tax rate of 10%, as such, the number of GGTGT taxes that the Vietnamese paid to the Foreign contractor A is. $7,000.

As of May 1, 2013, the foreign contractor A registered and was granted tax registration certification by the Tax Office and Foreign contractor A self-declared, paying the GTGT tax in accordance with the deduction. On 15 May 2013, the Vietnamese side paid the next payment for Foreign contractor A was $200,000, Foreign contractor A export.

The number of GTGT bills for Vietnam with the number of GTGT taxes was $20,000 ($200,000 x 10%), the GTGT tax input from 1/5/2013 to 15/5/2013 was $2000. The value of the GTGT foreign contractor A must submit is $18,000 (US$ 20,000 -2000 USD). The foreign contractor A was not deductible $5000 in the first GGTGT tax before 1 May 2013.

Chapter III

THE ORGANIZATION.

What? 18. Effect of execution

1. This information comes into effect after 45 days from the date of signing, replacing the Digital 134 /2008/TT-BTC December 31, 2008, of the Ministry of Finance directed to implement a tax obligation applicable to the organization, foreign individual business in Vietnam, or earning income in Vietnam, U.S. Digital News 197 /2009/TT-BTC October 9, 2009 by the Ministry of Finance 134 /2008/TT-BTC, Digital 64 /2010/TT-BTC April 22, 2010 of the Ministry of Finance amended, the Digital Information plugin 134 /2008/TT-BTC.

2. The case of the contracts, the subcontracting contract signed before this date of this date in effect, the identification of the GTGT tax obligation, the TNDN tax continues to perform as guidelines at the corresponding law enforcement documents at the time of the contract signing, unless. the following cases:

-For goods, the service is not subject to a GTGT tax under the regulation of the GTGT tax law effective before January 1, 2009 due to foreign contractor, foreign contractor provided, since 1 January 2009 onwards under the GTGT tax subject. the determination of the GTGT tax revenue to the Foreign contractor, the foreign subcontractor is carried out in accordance with this Information.

Example 23:

In 2008, Business A in Vietnam signed a contract to purchase machinery, equipment for the cement Plant Project with Business B overseas. The total contract value was $100 million, which included the value of the equipment machinery (of the unproduced domestic product) of $80 million, the value of installation guidance, the installation, maintenance, maintenance of $20 million.

According to the regulation of the GTGT tax law that came into effect before January 1, 2009, the machinery of equipment in the unproduced country was imported to create a fixed asset of the non-taxable GTGT business. In 2009, Enterprise A imported machine-based equipment machinery was signed to Business B and had paid the GTGT import tax. In this case, the GTGT tax revenue for the Foreign contractor (Enterprise B) is determined by regulation at Article 6 of this Information Act.

-For the income of the Foreign contractor, the foreign subcontractor is a business individual who is paid from January 1, 2009, the implementation of a tax obligation in accordance with the TNCN tax law.

-For the contractor contracts, the contract tender provides a non-tax-free GTGT, TNDN tax, or non-tax-free TNDN loan contracts on loan interest rates at the U.S. Digital. 169 /1998/TT-BTC December 22, 1998 of the Ministry of Finance, now subject to the GTGT tax subject, the TNDN tax on the provisions of this Information applies at the same time as of March 1, 2012.

-For the contractor contracts, the contract contract is applying the rate of the TNDN tax on the tax revenue by regulation at previous investments higher than the rate at this Smart, which applies the rate at the same rate as of March 1, 2012.

-The percentage of the TNDN tax on tax revenues on the contract provides the service of the restaurant management, hotel, casino applicable under the regulation at this Smart since March 1, 2012.

3. The case at the International Convention that the Socialist Republic of Vietnam either signs or participate has stipulated that the taxpayer ' s tax return, the foreign foreign contractor with the guiding content at this Smart is done in accordance with the following regulations. It's the International Convention.

In the course of execution, if there is an entangrium, offer the units, the business base reflects on the Ministry of Finance to be solved in time.