Pursuant to the laws and ordinances of tax, fees and charges of the Socialist Republic of Vietnam and the Government's Decree regulations detailing the implementation of the laws and ordinances of tax, fees and charges;

The base value added tax Act No. 13/2008/QH12 on 03/06/2008; Decree No. 123/2008/ND-CP on 08/12/2008 the Government's detailed rules and instructions for a number of articles of the law on value added Tax;

Pursuant to the law on Enterprise Income Tax of 14/2008/QH12 on 03/06/2008; Decree No. 124/2008/ND-CP on 11/12/2008 the Government detailing and guiding the implementation of some articles of the law on Enterprise Income Tax;

Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government regulations on functions, tasks, powers and organizational structure of the Ministry of finance;

The Finance Ministry additional instructions circular No. 134/2008/TT-BTC on December 31, 2008 of the Ministry of Finance shall guide the implementation of tax obligations applicable to organizations, individual foreign business in Vietnam or have incomes generated in Vietnam as follows: article 1. Section IV supplementary to Part B of circular No. 134/2008/TT-BTC as follows: "IV. Submission of VAT according to the method of deduction, tax filing rate% calculated on the sales tax calculation.

Foreign contractors, subcontractors abroad if meet the two conditions (i), (ii) referred to in point 1 section II part B circular No. 134/2008/TT-BTC on December 31, 2008 of the Ministry of finance and accounting organization in accordance with the accounting legislation and instructions of the Ministry of Finance shall register with the tax authorities to make the submission of VAT according to the depreciation method except as instructed in point 2 of section II, part B and lodging tax as guide in point 3 of section III of part B of the circular No. 134/2008/TT-BTC on December 31, 2008 of Ministry of finance.

Within 20 working days since signing the contract, Vietnam-party contracts with foreign contractors, foreign contractors contracted with foreign sub-contractors responsible for notification in writing to the local tax authority where foreign contractors, subcontractors abroad tax registration of the foreign contractor , Foreign subcontractors directly register and perform the submission of VAT according to the method of deduction, tax filing rate% on taxable sales ".

Article 2. Added after the first gauge, part C circular No. 134/2008/TT-BTC as follows: "where the contract, subcontracting contracts concluded before the date of the circular No. 134/2008/TT-BTC shall effect the determination of VAT obligations, CIT continues to perform as guidance in circular No. 05/2005/TT-BTC dated 11/1/2005 of the Ministry of finance instructed the tax regime applied for foreign organisations without legal personality Vietnam and foreign business or personal income arising in Vietnam until the end of the contract, except in the following cases:-in respect of goods or services in an not subject to VAT pursuant to the VALUE ADDED tax law in force before 1/1/2009 by foreign contractors Foreign subcontractors, provide, since 1/1/2009 onwards in the object subject to VAT, the identification of the sales tax calculation with respect to foreign contractors, subcontractors abroad is done according to the instructions in circular No. 134/2008/TT-BTC.

For example, in 2008, A business in Vietnam contracted purchase lines, equipment for cement factory project with B business abroad. The total value of the contract is 100 million, including the value of machinery and equipment (the kind in the country have not produced) is 80 million, the value of service installation instruction, monitoring, installation, warranty, maintenance is 20 million.

Under the provisions of the law of VAT in force before 1/1/2009, the machinery production line of its kind in the country have not produced to make fixed properties of the business not subject to VAT. To 2009, A business importing machines and equipment in the production line according to the contract signed with the enterprise B and have submitted VAT import stitch. In this case, the calculated sales tax rates for foreign contractors (Enterprise-B) is determined as defined in Point 1.2 section I of part B of the circular No. 134/2008/TT-BTC.

-For the earnings of foreign contractors, subcontractors abroad is personal business that is paid from the date of 1/1/2009, the implementation of obligations under the income tax law for pit ".

Article 3. Effective enforcement of this circular are enforceable after 45 days from the date of signing.

In the process, if there are obstacles, suggest units, business establishments reflect timely the Ministry of finance to be settled.