CIRCULAR guide service tax apply to foreign individuals, organizations and business in Vietnam or have income in Vietnam _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the laws and ordinances of tax, fees and charges of the Socialist Republic of Vietnam and the Government Decree defined the Law enforcement details 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 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: a. the SCOPE of the APPLICABLE OBJECT I. 1. This circular applies to instructions in this circular applies to the following objects (excluding subject referred to in section II of part A of this circular):-foreign business organization has resident establishments in Vietnam or without resident establishments in Vietnam; foreign individuals and business objects reside in Vietnam or not is subject to residence in Vietnam (hereinafter referred to as the foreign contractor) business in Vietnam or have incomes generated in Vietnam on the basis of the contract, agreement, or commitment between them with the Organization personal, Vietnam. 
-Foreign business organization has resident establishments in Vietnam or without resident establishments in Vietnam; foreign individuals and business objects reside in Vietnam or not is subject to residence in Vietnam (hereinafter referred to as foreign subcontractors) business in Vietnam or have income in Vietnam on the basis of the contract, agreement, or commitment between them with foreign contractors to perform part of the work of the contract to the contractor.
2. Taxpayers Who pay taxes according to the instructions in this circular includes: 2.1. Foreign contractors, subcontractors abroad ensure the conditions specified in point 1 of part B of section II of this circular, business in Vietnam or have income in Vietnam, including in the territorial waters of Vietnam, the region outside and tied with Vietnam and territorial accord with Vietnam law , international law, Vietnam has sovereignty with respect to the exploration and exploitation of natural resources at the bottom of the sea, the ground under the sea and water. The business is conducted on the basis of contracts with contractors with organizations, individuals or organizations with Vietnam, foreign individuals are doing business in Vietnam on the basis of contract of subcontractors.
The identification of foreign contractors, subcontractors abroad have resident establishments in Vietnam, or is subject to residence in Vietnam made under the provisions of the law on Enterprise Income Tax, individual income tax laws and the documents guiding the implementation.
In case the agreement avoiding double taxation to which the Socialist Republic of Vietnam concluded otherwise on the basis of a permanent residence, subject to the following provisions of that agreement.
2.2. The organization was established and functioning according to the law of Vietnam, registered organizations operating under the law of Vietnam, other organizations and individuals buying business services, services associated with the goods, or pay the income arising in Vietnam on the basis of the contract of the contractor or subcontractor contracts (hereafter referred to collectively as the Vietnam Party) include :-The business organization to be established under the enterprise law, law on State Enterprise (business law), the law on foreign investment in Vietnam (now the investment law) and the law on cooperatives;
-The economic organization of the political organization, social-political organizations, social organizations, social-professional organization, armed units, organizations and other institutions;
-Oil and gas contractors operating under the oil and gas Law;
-Branches of foreign companies are allowed to operate in Vietnam;
-Foreign organizations or representatives of foreign organizations are allowed to operate in Vietnam; 
-Ticket sales office, dealers in Vietnam by foreign airlines have the right to go to Vietnam, transportation, shipping or direct mailing;
-Organizations, individual business shipping services of maritime transport; dealers in Vietnam of freight forwarders, courier firm abroad;
-Company securities, issuers of securities, the Fund management company, the commercial bank where securities investment funds or foreign organization to open investment accounts in securities;
-Other organizations in Vietnam;
-The production of personal business in Vietnam.
Taxpayers according to the instructions in point 2.2 section I of part A of this circular are responsible for deducting VAT number, tax guidance in section III of part B to this circular before payment for foreign contractors.
3. The taxes applied 3.1. Foreign contractors, subcontractors abroad is business organizations implement value added tax obligations (VAS), corporate income tax (TNDN) under the guidance of this circular.
3.2. foreign contractors, subcontractors abroad is foreign personal business service in VAT according to the instructions in this circular, the personal income tax (ACCOUNTING) according to the law about pit.
3.3. for the taxes, charges and other fees, foreign contractors, foreign subcontractors follow the laws about taxes, fees and other fees.
II. OBJECTS NOT to APPLY the guidance in this circular does not apply to: 1. organizations and individuals, foreign business in Vietnam according to the regulations of the oil and gas Law, investment law, law on credit institutions.
2. organizations, foreign individuals made supplying goods for personal organization, Vietnam does not enclose the service was made in Vietnam under the form:-delivery at the gate: the seller assume all liability, costs, risk related to the export of goods and delivery at the gate; buyers assume all liability, costs, risks related to the receipt of the goods, a freighter from foreign gate about to Vietnam.
-Delivery in Vietnam gate: sellers are all liabilities, costs, risks relating to the goods until the delivery point at the gate Vietnam; buyers assume all liability, costs, risks related to the receipt of the goods, a freighter from gate Vietnam.
3. organizations, foreign individuals have income from services provided and consumption outside Vietnam.
For example, the company H of the Hong Kong offer services to arrange the goods at the port in Hong Kong for the international transport of A company in Vietnam. A company must pay to company H service fee to arrange the goods at the port in Hong Kong.
In this case, the service to arrange the goods at the port of Hongkong is the service offered and consumption in Hong Kong should not subject to tax in Vietnam.
4. organizations, foreign individuals perform the service providers below for organization, personal Vietnam that the services be performed abroad:-repair of means of transport (ship, ship, ship, aircraft spare parts), machinery and equipment (including cable transmission equipment, sea) , including or not including supplies, equipment replacement;
-Advertising, marketing;
-Trade and investment promotion;
-Broker selling goods;
-Training;
-Split (payment rates) postal services, international telecommunications according to the provisions of the Ordinance, telecommunications between Vietnam with foreign countries that these services are carried out in Vietnam; Transmission line rental service and frequency of foreign satellites.
III. The CONCEPT USED in CIRCULAR In this circular, the terms below are interpreted as follows: 1. "contractor contract" is the contract, agreement or commitment between the foreign contractor and Vietnam Side.
2. "the contract" is the contract, agreement or commitment between subcontractors and contractors overseas.
Subcontractors include foreign subcontractors and subcontractors Vietnam.
B. BASE And TAX CALCULATION METHOD I. OBJECTS SUBJECT To VAT And INCOME TAX 1. Object subject to VAT 1.1. Services or the services associated with the goods subject to VAT borne by foreign contractors, subcontractors abroad provided on the basis of the contract of the contractor, the contract of subcontractors used for production, trading and consumption in Vietnam (except for the services specified in section A of Part II of this circular) , including:-services or services associated with the goods subject to VAT borne by foreign contractors, subcontractors provisioning in Vietnam and foreign consumers in Vietnam;
-The service or services associated with the goods subject to VAT borne by foreign contractors, subcontractors provisioning outside Vietnam and foreign consumers in Vietnam.
1.2. where goods are supplied under a contract in the form of: point goods located in the territory of Vietnam (including the territorial waters, the regions outside Vietnam and attached to the territorial law under which Vietnam Vietnam and in accordance with international law, sovereign Vietnam for the exploration and exploitation of natural resources at the bottom of the sea , the ground under the sea and the water block above); or the provision of goods accompanying the services conducted in Vietnam such as installation, testing, maintenance, maintenance, replacement, other services come with the provision of the goods, including the case of the provision of the aforesaid services or not lies in the value of the contract goods, the goods value only incur VAT import sewn according Regulation, the value of services subject to VAT liable according to the instructions in this circular. The case of a contract not to separate the value of goods and services, the value of VAT are calculated for both contracts.
For example:

A business in Vietnam signed a contract to purchase machinery and equipment for chains for cement plant project with B business abroad. The total value of the contract is 100 million USD, including machinery and equipment worth 80 million (including the subject equipment VAT with tax rate of 10%), the value of service installation instruction, monitoring, installation, warranty, maintenance is 20 million.
When importing machinery lines, A business is the import VAT submissions made sewn to the value of import equipment subject VAT.
Determining the VAT obligations of company B for the value of the contract signed with A business as follows:-VAT is calculated on the value of service (us $ 20 million), not on the value chains of imported machinery and equipment.
-The case of the contract does not separate the value chains of machinery and equipment and the value of services, the VAT is calculated on the full contract value (100 million USD).
2. taxable income TNDN 2.1. Income of foreign contractors, subcontractors abroad arising from provided services, the services associated with the goods in Vietnam on the basis of the contract of the contractor, subcontractor contracts (excluding goods and services specified in section A of Part II of this circular).
2.2. where the goods are supplied in the form of: point the goods are situated in the territory of Vietnam (including the territorial waters, the regions outside Vietnam and attached to the territorial law under which Vietnam Vietnam and in accordance with international law, sovereign Vietnam for the exploration and exploitation of natural resources at the bottom of the sea , the ground under the sea and the water block above); or the provision of goods accompanying the services conducted in Vietnam such as installation, testing, maintenance, maintenance, replacement, other services come with the provision of the goods, including the case of the provision of the aforesaid services or not lies in the value of the contract goods, the income tax of foreign contractors Foreign subcontractors, is the whole of the value of goods and services.
For example: A company in Vietnam to sign contracts to buy machinery and equipment lines for cement plant project with company B in foreign countries. The total contract is worth 100 million (not including VAT), including machinery and equipment worth 80 million dollars, the value of service installation instruction installation, monitoring, maintenance, maintenance is 20 million.
Tax obligations of company B for the value of the contract is determined as follows:-Tax is calculated separately for the value chains of imported machinery and equipment (80 million dollars) and the private properties for a service value (20 million dollars) by tax rate according to the regulations.
-The case of a contract not to separate the value of machinery and lines for the value of the computer services tax on the total contract value (100 million USD) with the rate of tax under the regulations. 
2.3. The revenue generated in Vietnam by foreign contractors, subcontractors abroad is the earnings received under any form whatsoever on the basis of the contract of the contractor, subcontractor contracts (except to provide services specified in section II, part A to this circular), does not depend on location to conduct business activities of foreign contractors , Foreign subcontractors, including:-the income from the transfer of ownership, the right to use the property.
-Income from royalties is earnings under any form would be charged for the right to use, transfer of intellectual property rights and transfer of technology (including the funds to pay for the right to use, transfer of copyright and ownership files; transferring ownership of industrial technology transfer).
"The rights of authors, copyright owners of works", "Industrial Property Rights", "technology transfer" defined in the Civil Code of the Socialist Republic of Vietnam and the writing guide.
-Income from assignment, liquidation of assets.
-Income from loan interest rates: as income of the lender from the loans under any form where that loan or not guaranteed by the mortgage, the lender or not be entitled to the return of the borrowers; income from interest on deposits (excluding interest on deposits of the individual alien and deposit interest rates arising from deposit accounts to maintain operations in the Vietnam of foreign representative offices, representative offices of international organizations, non-governmental organizations in Vietnam), including the bonuses comes the deposit interest rate (if any); income from deferred interest rate as required by the contract.
Loan interest rates including the Vietnam Party fee that is charged according to the regulations of the contract.
-Income from securities investments.
-Fines, compensation obtained from the partner breach of contract.
-Other incomes prescribed by law.
II. SUBMISSION Of VAT ACCORDING To The METHOD Of DEDUCTION, TAX FILING On The BASIS Of STATEMENTS Of REVENUES, COSTS To DETERMINE The INCOME TAX 1. Objects and conditions apply to foreign contractors, subcontractors abroad pay tax according to the instructions in section II of part B to this circular if it meets the conditions: (i) has a permanent base in Vietnam, or is subject to residence in Vietnam;
(ii) the time limit for doing business in Vietnam under the contract of the contractor, the contract of subcontractors from 183 days or more from the date of the contract the contractor, sub-contractor contracts in force;
(iii) application of accounting mode of Vietnam.
Vietnam-party contracts with foreign contractors, foreign contractors contracted with foreign sub-contractors responsible for notification in writing to the tax authorities about the foreign contractors, subcontractors abroad make the submission of VAT according to the method of deduction, tax filing on the basis of turnover Declaration the cost to determine the income tax calculation within 20 working days from the time of signing the contract.
2. value added Tax made under the provisions of the law on VAT and the writing guide.
3. Corporate Income Tax made under the provisions of Tax Laws and the documents guiding the implementation.
4. foreign contractors, subcontractors abroad perform duties as instructed in section II of part B to this circular, if continuing contracts contractors or subcontractors contract in Vietnam before the end of the contract the contractor or sub-contractor, the old contract continue stubs payment as instructed in section II of part B to this circular.
The case of the signing of the implementation contract, contractor or sub-contractor new contracts at the time of the contract the contractor or sub-contractor old contracts have ended, if it meets the conditions specified in point 1 of part B of section II of this circular, foreign contractors, subcontractors made foreign tax obligations for new contract according to the instructions in section II part B Information This investment.
The case at the same time that foreign contractors, subcontractors abroad made many contracts, if there is a qualified contract to foreign contractors, subcontractors abroad pay tax according to the instructions in section II of part B to this circular, the other contracts (including contracts that do not qualify) must also make payment according to the instructions in section II part B This circular.
III. SUBMISSION Of VAT ACCORDING To The DIRECT METHOD On VALUE ADDED TAX, Filing RATE% COUNT On TURNOVER Of 1. Objects and conditions apply Vietnam Party filed the tax changes for foreign contractors, subcontractors abroad pay tax according to the instructions at point 2, point 3 section III part B to this circular if foreign contractors, subcontractors abroad does not meet one of the conditions referred to in point 1 section II part B to this circular.
Vietnam-party responsible for tax registration with tax authorities to implement tax changes for filing foreign contractors, subcontractors abroad within 20 working days from the time of signing the contract.
2. value added Tax tax base is the value of a service, the services associated with the goods subject to VAT and VAT.

Number of tax = value x VAT 2.1. Value-the value of the service, the service associated with the goods subject to VAT is determined by the sales VAT calculation multiply the rate (%) RATES charged on sales.
2.1.1 revenue VAT calculation: a) turnover calculated VAT is the entire revenue by providing services, services associated with the goods in the subject of VAT, yet except for the taxes payable that foreign contractors, subcontractors abroad receive, including the expenses paid by the Vietnam Side instead of foreign contractors , Foreign subcontractors (if any).
b) turnover calculated VAT for some particular cases: b1) case as agreed in the contract of the contractor, subcontractors, contract sales to foreign contractors, subcontractors abroad receive do not include the sales tax calculated VAT must be converted into revenue has VAT and is determined by the following formula revenue calculated VAT = revenue excluding VAT 1-rate% RATES on revenue x VAT for example A foreign contractor give Vietnam Party monitoring the mass construction of cement Z, reviews the contract tax is $ 300,000. In addition, Vietnam accommodation arrangements and Party work for the management staff of foreign contractors with a value of $ 40,000. According to the contract, Vietnam Party liable to pay VAT in lieu of foreign contractors. The determination of taxable turnover RATES to foreign contractors as follows: determine the taxable revenue: revenue subject to VAT = 300,000 + 40,000 = $ 357,894.73 (1-50% x 10%) b2) where foreign contractors to sign contracts with subcontractors or Vietnam foreign sub-contractors carry tax under section II part B to this circular to remove a portion of the value of the work is prescribed in Combination Council contractors register with the Vietnam Side, the turnover tax calculation of foreign contractors do not include the value of work, the value of machinery and equipment by subcontractors or Vietnam foreign sub-contractors carry.

Vietnam subcontractors, subcontractors abroad make stubs, pay tax according to the instructions at point 2, point 3 section II part B to this circular.
This provision does not apply in the case of foreign contractors to sign contracts with suppliers in Vietnam to buy goods or services serving the implementation of the contract the contractor.
For example, A foreign contractor signed a contract to build cement factory in Vietnam with a total Party with the Z value of the contract is 10 million USD (price includes VAT), according to A foreign contractor contract will reduce the construction value part delivery (specified in the contracts signed with contractors in Vietnam) for subcontractors Vietnam B with a value of 1 million USD.
Sales tax calculation of A foreign contractor in this case is defined as follows: VALUE ADDED tax revenue = $ 10 million-$ 1 million = 9 million USD b3) where the sub-contractor is foreign sub-contractors carry tax under section III of part B of this circular, the turnover tax calculation of foreign contractors is whole turnover of foreign contractors receive According to the contract signed with Vietnam. Foreign subcontractors not to pay VAT on the value of work of foreign subcontractors comply with the provisions of the contract of subcontractors signed with foreign contractors.
B4) for logistics services, warehousing, computer sales international VAT not including shipping charges to international transport (air, sea).
B5) for international courier service from Vietnam to go overseas, sales tax calculation is the entire revenue of the foreign contractors receive.
2.1.2. VALUE ADDED ratio: a VALUE ADDED calculated on rate) sales tax for some businesses as follows: STT the business rate (%) RATES charged on tax revenue 1 services, equipment rental, insurance 50 2 a) construction, installation of how bid materials or machinery, the equipment included construction works b) construction, installation contractors not raw materials or machinery, the device comes 30 50 3 of transport constructions other business, production, 30 b) determine the ratio of value added calculated on sales tax calculation for some specific cases such as the following: b1) with respect to the contract of the contractor, the contract of subcontractors include many different business activities or part of the value of contracts not subject TVA , the application of the rate of value added calculated on sales tax calculation when determining the number of tax revenues based on the calculated VAT for each business activity by foreign contractors, foreign subcontractors perform as required in the contract to the contractor, the contract of subcontractors. The case does not separate the value of each business operation, then apply the highest ADDED VALUE rate for business lines and the highest tax rate for the entire value of the contract.
B2) for a contract to provide equipment for enclosed installation guide services, training, operations, test run, if separate the value of machinery and equipment and the value of the services when determining the number of tax rates applicable RATES of each part of the value of the contract. In case the contract does not segregate the value of machinery and equipment and the value of the services shall apply the rate of value added tax on sales was 30%.
For example, the contractor does not perform Korean's H modes of Vietnam accounting made contract with B business in Vietnam about the supply chain machinery, enclosed equipment installation services, operate the test run with a value of USD 10,000,000. In the contract does not segregate the value of machinery, equipment and installation services value, operate the test run, the rate of VAT applied is 30%.
B3) turnover calculated VAT for equipment rental, equipment, means of transport is the full money for rent. Case sales for equipment rental, equipment, means of transport include the costs due to direct hire side pay as media coverage, maintenance, certification, register the driver of vehicles, machinery and shipping cost of machinery and equipment from abroad to Vietnam, the turnover tax RATES do not include the expenses if there is evidence of the fact demonstrate.
2.2. Vat VAT for goods or services subject to VAT is the tax rate stipulated in the law on VAT and the writing guide.
Foreign contractors, subcontractors in foreign VAT payers according to the methods directly on the ADDED VALUE, as specified in point 1 of part B of section III of this circular, non-deductible VAT for goods, services purchased in order to make the contract the contractor, subcontractor contracts (including VAT for subcontracting contracts that subcontractors real Vietnam does).
3. Enterprise Income Tax tax base tax calculation and revenue is the percentage (%) tax calculated on the sales tax calculation.

Tax payable = turnover × tax rate calculator tax calculated on tax revenues 3.1. Sales tax calculation: a) sales tax calculator tax calculator revenue is the entire revenue does not include VAT, yet except for the taxes to be paid (if any) that foreign contractors, subcontractors abroad receive. Sales tax calculation is calculated including the expenses paid by the Vietnam Side instead of foreign contractors, subcontractors (if any).
b) determine sales tax calculation for a specific case number: b1) case, as agreed in the contract of the contractor, subcontractors, contract sales to foreign contractors, subcontractors abroad receive do not include the tax payable, the turnover tax calculation is determined according to the following formula revenue = sales tax calculator does not include the tax 1-percentage of tax charged on the tax revenue for example A foreign contractor give Vietnam Party monitoring the mass construction of cement Z, reviews the contract tax is $ 300,000. In addition, Vietnam accommodation arrangements and Party work for the management staff of foreign contractors with a value of $ 23,000. According to the contract, Vietnam Party liable to pay tax, VAT instead of foreign contractors. Determining tax foreign bidders must submit the following: determine tax revenues: sales tax calculator = 300,000 + 23,000 = 340,000.00 USD (1-0.05) b2) where foreign contractors to sign contracts with subcontractors or Vietnam foreign sub-contractors carry tax under section II part B to this circular to remove a portion of the value of the work specified in the contract Vietnam-party signed with the contractor, the turnover tax calculation of foreign contractors do not include the value of work, the value of machinery, equipment by subcontractors or Vietnam foreign sub-contractors carry.
Vietnam subcontractors, subcontractors abroad make stubs, pay tax according to the instructions at point 2, point 3 section II part B to this circular.
This provision does not apply in the case of foreign contractors to sign contracts with suppliers in Vietnam to buy goods or services serving the implementation of the contract the contractor.
For example, A foreign contractor signed a contract to build cement factory in Vietnam with a total Party with the Z value of the contract (no VAT) is $ 10 million, according to A foreign contractor contract will reduce the construction value part delivery (specified in the contracts signed with contractors in Vietnam) for subcontractors Vietnam B with a value of $ 1 million.
Sales tax calculation of A foreign contractor in this case is defined as follows: sales tax calculator = $ 10 million-$ 1 million = 9 million USD b3) where the sub-contractor is foreign sub-contractors carry filed under section III of part B of this circular, the turnover tax calculation of foreign contractors is whole foreign contractor revenue received by the contract signed with Vietnam. Foreign subcontractors not to pay tax on the value of work of foreign subcontractors comply with the provisions of the contract of subcontractors signed with foreign contractors.
B4) sales tax calculation for cases for hire of machinery, equipment, transport means is the full money for rent. Case sales for equipment rental, equipment, means of transport include the costs due to direct hire side pay as media coverage, maintenance, certification, register the driver of vehicles, machinery and shipping cost of machinery and equipment from abroad to Vietnam, the turnover tax calculator does not cover the expenses if there is evidence of the fact demonstrate.
B5) sales tax calculation of the foreign airline is revenue passenger tickets, invoices and other revenues (except revenues the State household or organization prescribed by law) in Vietnam for the transport of passengers, cargo and other transport objects made on the main airline's flights or codeshare.
For example, A foreign airline in the first quarter of 2009 was $ 100,000 sales arise in which passenger ticket sales is $ 85,000, tracking sales of goods is $ 10,000 and sales of MCO (certificate from the price) is $ 5,000; at the same time the State household revenues arise (airport fees) $ 1,000, 2,000 tickets return by completing USD.
Sales tax calculation for the first quarter 2009 of A foreign airline is defined as follows: sales tax calculator = 100,000-(1,000 + 2,000) = $ 97,000 ticketing office, agent in Vietnam of foreign airline to make tax declaration according to the Declaration form attached to this circular and made tax filing has on the State budget.

B6) sales tax calculation of foreign shipping is the entire cost of money derived from the activity of carriage of passengers, freight and other cargo airline revenue from sea ports of Vietnam to the port queue finally unloading such goods (including rates of shipments must be conveyed through the intermediary ports) and/or money billing currency is due to transport goods between the ports of Vietnam.
Charge tax calculation base do not include the cost of money has calculated tax in the port of Vietnam for the foreign ship owners and the rates charged for business transport in Vietnam joined by shipping from the port of Vietnam to an intermediate Harbour.
For example, A company that made agents for sea transportation of foreign countries. According to the contract of freight forwarding, A Airline on behalf of the company X received shipping abroad, issuing invoices, collect money without transportation.
B business of Vietnam rent X (company A) shipped from Vietnam to America with the shipping amount is $ 100,000.
A company hired by the Vietnam business ships or foreign ships carrying goods from Vietnam to Singapore with the charge is $ 20,000 and from Singapore will be transported by ship to America the next X. Taxable turnover TNDN shipping company X's are defined as follows revenue subject to CIT = 100,000-80,000 = 20,000 USD b7) for logistics services, international, sales tax calculation does not include the cost of international shipping to transport (air, sea).
B8) for international courier service from Vietnam to go overseas, sales tax calculation is the entire revenue of the foreign contractors receive.
B9/for re-insurance, sales tax calculation is the amount of reinsurance premiums abroad.
B10/for the transfer of securities, sales tax calculation is determined as follows: + for transfer of securities (excluding subject bonds tax free) is total revenue selling securities at the time of the transfer;
+ For bond interest rates (except in bonds tax free) is the total sale of bonds (including the face value on the bonds and the interest rate of the bonds get) at the time of receipt of interest.
B11/loan interest rate of the loan contract signed before foreign 01/01/1999 not subject to tax under the guidance of this circular.
+ For the renewal or modification of term debt owed does not change the content of interest, the payment conditions agreed in the loan contract and the renewal time of the debt short term loan with a maximum production cycle but not more than 12 months time, medium term loan debt long term, the maximum loan term ½ agreed in the loan contract, the interest rate of the loan is not subject to bear tax.
+ For new loan contract but in the contract stipulated conditions of loan interest rates, favorable payment terms than the old loan contract is signed before 01/01/1999, lending money to replace old loans, do not change the lender, loan duration and other conditions of the contract, the loan interest rate not subject to bear tax.
+ For the renewal or modification of term debt owed does not change the content of interest, the payment conditions agreed in the loan contract but grace period exceeds the time limit extended above the maximum loan interest incurred since the expiry of the aforesaid maximum extension subject to bear tax.
+ For the case of loan contract adjustment accompanied the change of the main content of the contract, such as interest rates, loan terms, methods of payments, loan term, loan interest incurred since the expiration of the original loan contract subject tax.
3.2. The proportion (%) of the tax charged on the tax revenue a) rate (%) tax calculated on the sales tax rate in business (STT%) tax calculated on the sales tax 1 trade: distribution, supply of goods, raw materials, materials, machinery, equipment associated with service in Vietnam 1 2 services renting of machinery and equipment, building 2 4 5 3 insurance operation, other business, transportation (including transport by sea, air transport) 2 5 For chartering, ship, vessel, aircraft spare parts 2 6 2 7 reinsurance stock transfer 0.1 8 loan interest rates 10 9 10 copyright income b) the rate of tax charged on sales (%) tax revenue for some particular cases: b1) with respect to the contract of the contractor, the contract of subcontractors include many different business activities, the applied tax rate charged on sales tax calculation when determining the tax to be paid based on revenue subject to tax for each business activity by foreign contractors , Foreign subcontractors perform as required in the contract. The case does not separate the value of each business operation tax rate shall apply for the business lines have the highest tax rate for the entire value of the contract.
B2) for a contract to provide equipment for enclosed installation guide services, training, operations, test run, if separate the value of machinery and equipment and the value of services the tax according to the tax rate of private parts contract value. In case the contract does not segregate the value of machinery and equipment and the value of the services shall apply the rate of tax on sales tax is 2%.
For example, A foreign contractor signed a contract with Vietnam to build a power plant F with a value of 70 million USD.  The value of the contract include: + the value of machinery, equipment provided for: 50 million + worth of design technology, design: 5 million + worth of factories, other auxiliary systems, construction, installation: 10.5 million + worth monitoring, installation instruction: 3 million + worth of technical training services o try: 1.5 million.
In a separate case to be part of the value of machinery and equipment and the value this service tax rate is applied as follows: for the value of machinery, equipment for applying the rate for commercial sector; for the value of design services, installation supervision, training, operations to try to apply the rate for the service sector; the value of construction work, installation (10.5 million) tax rate applied for the construction industry.
The absence of separate be shall apply the rate of tax is 2% of the entire value of the contract (70 million).
4. tax, tax for foreign contractors in the case of multiple parties, associates with the Vietnam economic organizations to conduct business in Vietnam on the basis of tender-the case of the parties founded the venture Board of Associates, perform accounting , have accounts at the Bank and is responsible for issuing an invoice; Vietnam economic organization or join venture is responsible for general accounting and Division of profits for the parties, the Board of the partnership, or organization responsible, Vietnam Economic Declaration, filing and payment of VAT, CIT as defined on the entire revenue made the contract bidders.
-Where the parties to the partnership under the method of dividing revenue, production sharing, or venture together but each job Contracting Parties to make a joint venture work separately, the parties themselves determine the portion of revenues earned, each side can make the payment as instructed in section B to this circular.
C. IMPLEMENTATION of this circular have the effect after 15 days from the date The quote and apply from 01/01/2009, replacing circular No. 05/2004/TT-BTC on January 11, 2005 of the Ministry of finance instructed the tax regime applicable to foreign institutions without legal personality Vietnam and foreign business or personal income play born in Vietnam, circular No. 16/1999/TT-BTC on 04/02/1999 of the Ministry of Finance tax implementation guide for business activity charges transport goods by sea ships of foreign carriers into Vietnam exploitation of transport.
In the process, if there are obstacles, suggest units, business establishments reflect timely the Finance Ministry to be addressed promptly.