Circulars of the tax regime applicable to foreign institutions without legal personality Vietnam and foreign business or personal income arising in Vietnam based value added tax Act No. 18/1997/QH9; Additional amendment of some articles of the law on VAT number 07/2003/QH11; Decree No. 158/2003/ND-CP on 10/12/2003 detailing the Government's enforcement of the law on value added tax; Decree No. 148/2004/ND-CP dated 23/7/2004 amending and supplementing a number of articles of the Decree 158/2003/ND-CP on 10/12/2003 detailing the Government's enforcement of the law on VAT and the law amending and supplementing a number of articles of the law on VAT;
Pursuant to the law on enterprise income tax number 09/2003/QH11; Decree No. 164/2003/ND-CP dated December 22, 2003 detailing the Government's enforcement of the law on enterprise income tax; Decree No. 152/2004/ND-CP on 6/8/2004 amending Government Decree the Decree 164/2003/ND-CP dated December 22, 2003 detailing the Government's enforcement of the Tax Law;
Pursuant to Decree No. 77/2003/ND-CP dated 1/7/2003 of government functions, duties, powers, organizational structure of the Ministry of finance;
The Ministry of Finance shall guide the service tax apply to foreign institutions without legal personality Vietnam and foreign individuals, business or income arising in Vietnam as follows: a. the SCOPE of the OBJECT I. APPLY the guidance in this circular apply to objects below : 1. Foreign organizations have no legal personality, the Vietnam foreign individuals practising entrepreneurial independence 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 above water. The business is conducted on the basis of the contract, or agreement, or commitment to the Organization, the individual or organization with Vietnam, foreign individuals are doing business in Vietnam.
The case of foreign organizations, foreign individuals provide goods in the form of: point goods located within Vietnam's territory, including the territorial waters, the regions outside Vietnam and attached to the territorial law under which Vietnam Vietnam and in accordance with 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 above water; or the provision of goods accompanying the services conducted in Vietnam such as installation, testing, maintenance, maintenance, replacement, training and other services that 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 subject to tax under the guidance of this circular.
2. Foreign organizations, foreign personal business but not present in Vietnam, having incomes generated in Vietnam, including the earnings from technology transfer, on income royalties, income from other business activities of the alien individual not present trade in Vietnam.
Organizations, foreign individuals in the objects referred to in section I, part A of this circular, depending on each specific context below referred to as foreign contractors or subcontractors abroad.
II. OBJECTS NOT to APPLY the guidance in this circular does not apply to: 1. Foreign organizations have no legal personality, the Vietnam business in Vietnam in accordance with the law on foreign investment in Vietnam, the oil and gas Law, the law on credit institutions.
2. Foreign organizations, foreign made goods offer for individual organization forms: Vietnam-delivered 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. The individual alien income tax under the income subject to the law of income tax for high income earners, including: foreign individuals in Vietnam working on the basis of employment contracts signed with the Organization, personal Vietnam; foreign personal incomes generated in Vietnam in the income tax payers for high income earners (except the earnings listed in point 2, section I, part A of this circular); foreign individuals doing business in Vietnam or have incomes generated in Vietnam but no evidence from the proven individuals are allowed to practice independently, correspond to the activities that bring incomes generated in Vietnam.
Documents prove as individuals are allowed to practice independently include: independent practice license, tax registration certificate or tax code due to the water that the foreign individual is resident object.
4. organizations, foreign individuals have income from the securities investment in Vietnam made the tax obligation according to the tax guide documents for securities trading activities.
III. The TAXES APPLIED to foreign individuals or organizations doing business or having incomes generated in Vietnam made the tax obligations in accordance with the current tax legislation, including: 1. value added Tax (RATES): apply for goods or services subject to VAT;
2. special consumption tax (TTĐB): apply for goods or services subject to bear the SCT;
3. Corporate Income Tax (TNDN) applicable to income from business activities in Vietnam, incomes generated in Vietnam;
4. the export Tax, import tax: applicable to goods, export and import;
5. Income tax on high income earners: applicable to taxable income of individuals working for foreign contractors, subcontractors abroad or foreign business or personal income arising in Vietnam but no evidence from the proven individuals are allowed to practice independently;
6. Taxes, fees and other fees.
The contents of this circular under this specific instruction implementation of VAT, CIT applied for foreign organizations, foreign individuals practising independently in the process of doing business in Vietnam, or have income arising in Vietnam. As for the taxes, charges and other fees, foreign organizations, foreign individuals to follow the text of current legislation.
IV. The CONCEPTS USED in CIRCULAR In this circular, the terms below are interpreted as follows: 1. "foreign contractors" is held abroad have no legal personality, the Vietnam foreign individuals independent practice, business or income arising in Vietnam on the basis of the contract or agreement in writing between them with the Organization personal, Vietnam (Vietnam-party).
2. "subcontractors" is organized or independent practice personally signed the agreement in writing with a foreign contractor to perform part of the work of the contract to the contractor.
Subcontractors include: extra foreign contractors and subcontractors Vietnam.
3. "party Vietnam" includes:-State enterprises established under the State Enterprise Law;
-Enterprise established under the business law;
-Businesses have foreign capital and foreign Parties involved in business cooperation contracts under the law on foreign investment in Vietnam.

-Oil and gas contractors operating under the oil and gas Law;
-Branches of foreign companies are allowed to operate in Vietnam;
-Foreign institutions or representatives of foreign organizations are allowed to operate in Vietnam;
-The organizations and individuals in Vietnam.
4. "the contract of the contractor" is a contract or agreement between Vietnam and foreign contractors.
5. "the contract" is the contract or agreement between subcontractors and contractors overseas.
6. "incomes generated in Vietnam" is earnings under any kind of foreign contractors, subcontractors abroad due to Vietnam-party payments according to the agreement signed between foreign contractors with Vietnam-party (except deliver the goods as stated in point 2 of section II , section A of this circular), regardless of the place of business through which that foreign contractors, subcontractors abroad to conduct its business activities.
7. "royalty" 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); including the transfer of right to use in the form of rent, equipment, machinery and means of transport.
7.1. "the rights of authors, copyright owners of works" defined in chapter I, section 6, of the Civil Code of the Socialist Republic of Vietnam and the writing guide.
7.2. "Industrial Property Rights" specified in chapter II, section 6, of the Civil Code of the Socialist Republic of Vietnam and the writing guide.
7.3. the "technology transfer" provisions in chapter III, section 6, of the Civil Code of the Socialist Republic of Vietnam and the writing guide.
7.4. "renting of machinery and equipment" is equipment rental operations, industrial equipment, scientific equipment, commercial equipment, means of transport and other property in any form, including the parts comes as: software controlled, devices.
8. "the loan interest rate": is the income 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 provisions of economic contracts.
Loan interest rates including the charges that Vietnam Party is charged according to the provisions of the contract.
B. the BASE and the METHOD of TAX CALCULATION I. for FOREIGN CONTRACTORS, SUBCONTRACTORS ABROAD ACCOUNTING REGIMES in VIETNAM foreign contractors, subcontractors abroad apply Vietnam accounting mode perform value-added tax under method of deducting corporate income tax, on the basis of turnover Declaration the cost to determine the taxable income.
1. Value added Tax (RATES): the tax base is the tax and VAT.
VAT price is the selling price of the goods or services subject to VAT by foreign contractors, subcontractors do not include foreign VAT.
VAT for goods or services subject to VAT sales tax provisions of the law on VAT and the writing guidelines.
Input VAT is deductible as is the number of the invoice VAT RATES and VAT filed documents of goods and services purchased to use for production of goods or services subject to VAT.
2. Corporate Income Tax (TNDN): tax base is taxable income and tax rates.
Taxable income includes income from sales other income plus (+) (if available). Taxable income equal to the turnover for calculation of taxable income minus (-) for reasonable expenses related to the operation, business, goods, services in the tax period, to be determined according to the principles stipulated in the Tax Law and guidance documents.
Tax tax imposed under provisions of tax Law is 28%.
Foreign contractors, subcontractors abroad made and filed tax declaration as defined in Tax Law, the text of the law implementation guide and follow the instructions in section I, part C of this circular.
3. for foreign contractors, subcontractors abroad have resident establishments in Vietnam, performed, invoice and voucher regimes reflect on the full accounting of sales of goods and services sold; the value of goods and services purchased on VAT, output, input VAT to be deducted; tax the foreign contractors, subcontractors abroad to register with the tax authorities to make the submission of VAT deduction method as instructed in point 1, section I, part B to this circular and submit the tax as a guide in point 2 of section II, part B to this circular.
Foreign contractors, subcontractors abroad have registered and pay tax according to the instructions in section I, part B to this circular, if continue to sign contracts, contractors or subcontractors contract shall continue to register and pay taxes as instructed in section I, part B to this circular.
The identification of foreign contractors, subcontractors abroad have resident establishments in Vietnam made under the provisions of the corporate income tax law and the text of the current guidelines.
II. for FOREIGN CONTRACTORS, SUBCONTRACTORS ABROAD DO NOT PERFORM ACCOUNTING MODE of foreign contractors in VIETNAM, foreign subcontractors not made Vietnam accounting mode value added tax according to the direct method on value and enterprise income tax according to the rate charged on sales (%) particular, the following: 1. value added Tax (RATES): the tax base is the value of goods and services subject to VAT and VAT.
Number of tax = value x VAT 1.1. Value: the value of goods and services subject to VAT are determined by revenue subject to VAT rate workers (%) RATES charged on sales.
-The turnover subject to VAT is the entire revenue by offering goods or services subject to VAT, resistant yet except for the taxes payable that foreign contractors, subcontractors abroad receive, including the expenses paid by the Vietnam Side instead of foreign contractors, subcontractors (if any). The case as agreed in the contract, the sales of foreign contractors, subcontractors abroad receive do not include tax (contract value does not include the tax), the turnover subject to VAT must be converted into revenue there VAT is determined according to the following formula: taxable turnover RATES = revenue excluding VAT-------------------------------------------------------------------------1-rate% RATES on sales tax x Own sales tax rates subject to VAT by foreign contractors, subcontractors abroad implement the service contract, construction, installation, together with the supply of machinery, equipment, materials, except the value of machinery, equipment, and materials below when determining taxable turnover RATES : + machines, equipment, means of transportation lies in technology and construction materials in the country have not produced to create fixed assets of Vietnam is the business Side;

+ Machinery, equipment, means of transport in the country have not produced the need to use directly on the activity of scientific research and technological development of the Vietnam-party;
+ Aircraft, shipbuilding, rig hired by foreign countries in the country have not produced by the Vietnam Party hired for production and business;
+ Equipment, machinery, spare parts, transportation means and materials of its kind in the country have not produced to give individual institutions conduct the search operations, exploration, oil and gas development.
The grounds for determining the import goods not subject to VAT of foreign contractors, subcontractors abroad is the category of machinery, equipment, construction materials, materials, spare parts in the water produced by the Ministry of planning and investment. The value of imported goods is deductible in determining taxable revenue is determined by the provisions of the law on the export tax, import tax.
Foreign contractors in the case of contracts with subcontractors Vietnam to remove a portion of the value of the work specified in the contract signed with Vietnam-party contractor, the turnover subject to VAT by foreign contractors do not include the value of work performed by subcontractors Vietnam. 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.
-The rate of RATES charged on sales tax for some businesses as follows: STT the business rate (%) RATES charged on taxable sales 1 trade: distribution, supply of goods, raw materials, materials, machinery, equipment in Vietnam 10 2 50 3 services 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 4 construction works produced, other business, transport 25-for the contract of the contractor, the contract of subcontractors include many different business activities, the application of the rate of VAT charged on taxable revenue when determining the value added tax payable on taxable turnover RATES for each activity sales by foreign contractors, foreign subcontractors comply with the provisions of the contract. The case does not separate the value of each business activity shall apply the rate of VAT for business lines have the highest tax rate for the entire value of the contract.
1.2. Vat: VAT for goods or services subject to VAT sales tax provisions of the law on VAT and the writing guidelines.
Foreign contractors, subcontractors in foreign VAT payers according to the methods directly on the ADDED VALUE, as specified in point 1, are not deductible VAT for goods, services purchased in order to perform the contract signed with Vietnam.
2. Corporate Income Tax (TNDN): tax base is subject to sales tax and rate (%) calculated on the CIT taxable revenue.
Tax payable = taxable revenue tax rate x TNDN calculated on taxable revenue of 2.1. Sales tax: bear-bear the sales tax is the entire revenue, yet except for the taxes to be paid (if any), not including VAT, that foreign contractors, subcontractors abroad receive. Taxable turnover TNDN is calculated including the expenses paid by the Vietnam Side instead of foreign contractors, subcontractors (if any).
The case, as agreed in the contract of the contractor, sub-contractor contracts, foreign contractors, subcontractors abroad receive revenue does not include the tax payable, the turnover subject to tax is determined by the following formula: taxable turnover = revenue not including TNDN CIT-------------------------------------------------------------1-tax rate charged on taxable sales for example : A contractor provided for 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. The determination of tax, VAT number of foreign bidders must submit the following: a) determine the taxable revenue: revenue subject to CIT = 300,000 + 23,000----------------------(1-0.05) = 340,000.00 USD revenue subject to CIT = 340,000----------------------(1 to 50% x 10%) = $357,894.73 b) determine the tax:-tax payable = 340,000.00 x 5% = $17,000.00 (1) — VAT number must submit = 357,894.73 x 50% x 10% = $17,894.73 (2) total ( 1) + (2): 34,894.73 USD * determine the taxable turnover TNDN for some specific case: a) the case of the foreign contractor contracts with subcontractors Vietnam to remove a portion of the value of the work specified in the contract signed with Vietnam-party contractor, the taxable turnover of foreign contractors do not include the value of work by subcontractors Vietnam perform. 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.
b) taxable turnover TNDN for machinery rental, equipment, means of transport, defined not to include the costs due to direct hire side pay as media coverage, maintenance, certification and register the driver of vehicles, machinery, if any certificate from the proven fact.
Private revenue subject to CIT for vessel hire is defined as follows: + case party going to pay rental costs as cost control, insurance, maintenance, register certificate, the turnover tax calculated for the ship rental by 30% the money for rent.
+ The case lessor must pay these costs as cost control, insurance, maintenance, certification of sales tax calculation register for ship rental in 20% of the money for rent.
c) taxable turnover TNDN foreign airline, air transport activity in Vietnam, is the amount of charge actually collected for the number of passengers, goods carried folded up that airline's aircraft at airports go in Vietnam to airports to overseas-is the port to the last of the passengers goods according to the contract or shipping documents due to foreign airlines itself has sold air transportation in Vietnam made, not harbor that passengers, goods only stop in the the purpose of transit (transit).
loan interest rate: d) as specified in point 7, section IV, part A of this circular.
Private loan interest rate of the loan contract signed before foreign 01/01/1999 not subject to tax under the guidance of this circular. The case had the contract adjustment, renewals: + 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, long term debt loans upto 1/2 term agreed in the loan contract, the interest rate of the loan is not subject to bear tax.
+ For new loan contract but in the loan contract regulating the loans to replace old loans, the lender does not change, the conditions on interest rates, favorable payment terms than the old loan contract, the interest rate on the loan is 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, then the loan interest incurred since the expiration of the original loan contract subject tax.
2.2. The proportion (%) of the calculated tax on the taxable turnover: STT (%) rate business tax calculated on taxable sales 1 trade: distribution, supply of goods, raw materials, materials, machinery, equipment in Vietnam 1 2 5 3 2 4 building services production activities, other business transportation loan interest rate 2 5, 10 6 Copyright income 10-for the contract of the contractor, the contract of subcontractors include many different business activities, the applied tax rate when determining corporate income tax amount payable based on the turnover subject to tax for each business activity by foreign contractors Foreign subcontractors, to comply with the provisions of 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.
-Particularly for the contract to provide machinery, equipment and have attached the service installation instruction, training, operations, test case in the contract not to separate the value of machinery, equipment and services, the application of the general tax rate is 2% (applicable to production operations , other business) for the entire value of the contract.
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 this case the applicable rate of VAT, the tax rate is as follows: for the value of machinery, equipment for applying the rate for commercial sector (excluding VAT for the machinery and equipment of its kind in the country have not produced); 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.
C. Registration, TAX DECLARATION, TAX I. For FOREIGN CONTRACTORS, SUBCONTRACTORS ABROAD MADE VIETNAM ACCOUNTING MODE 1. Registration tax: foreign contractors or subcontractors abroad perform tax registration to be granted tax code with the local tax authorities where the executive offices of foreign contractors or subcontractors abroad, within 15 working days since the signing of the contract the contractor , Foreign subcontractors contract or since the date of business license or licensure (regulatory case must have a business license or licensure).
Tax registration dossiers including the suggested level: + tax code according to the instructions of the Ministry of Finance on tax code registration for foreign bidders;
+ Declaration of tax registration form No. 04-REGISTER-TCT attached to circular No. 80/2004/TT-BTC on 13/8/2004 of the Ministry of finance guidelines on the grant of tax payers code;
+ Copy of the contract the contractor, subcontractors and contract summaries contract by South Vietnamese with the main contents include the norms: scope of work, the value of the contract (including a detailed appendix constitutes the value of the contract-if available), method of payment, contract term , obligations and responsibilities of the parties to the contract. Foreign contractors, subcontractors abroad must be responsible before the law for the accuracy of the content posted to the tax authorities;
+ Copy of business license or licensed by the competent authorities of Vietnam (if available);
+ South Vietnamese translation and copy of business license or independent practice permit (for foreign contractors, subcontractors abroad is personal), tax registration certificate by the country in which the foreign contractor is subject resides;
The above mentioned copy must be signed and verified copies of authorized representatives of foreign contractors or subcontractors abroad.
Vietnam-party is responsible to notify tax authorities about the foreign contractors, subcontractors abroad directly pay tax to the tax authorities (annex No. 01-NTNN attached to this circular), within 10 working days from when signing the contract.
After receiving a full profile above, the tax agency issued a certificate of registration taxes for tax payers and send 1 copy of tax registration certificate of foreign contractors, subcontractors abroad for Vietnam Party or foreign contractors. Tax registration certificate issued by the tax authorities for foreign contractors and subcontractors abroad is written confirmation of foreign contractors, subcontractors direct foreign service tax with the tax authorities and the Vietnam Side, or foreign contractors have no responsibility to deduct and pay taxes instead of foreign contractors , or foreign sub-contractors, since getting a copy of tax registration certificate of foreign contractors, subcontractors abroad. The case has arisen the payment for foreign contractors in Vietnam-party time has not yet received a copy of the tax registration certificate of foreign contractors in Vietnam party temporarily deduct and pay VAT accounts, foreign contractor tax payable is defined as in section II Part B, this circular before payment for foreign contractors.
2. Declaration, filing tax: foreign contractors, subcontractors and filed Declaration foreign VAT according to tax deduction method under the provisions of the law on VAT and writing guidelines, Declaration and submit the tax according to the provisions of the Tax Law and guidance documents.
Foreign contractors, subcontractors abroad in subjects referred to in point 3, section I, part B to this circular declaring and submitting VAT according to tax deduction method as prescribed by the law on VAT and the writing guide; to declare and pay tax according to the method of fixing instructions at point 2 of section II, part C of this circular.
The case of foreign contractors, subcontractors abroad have administrative offices at a local but made construction contract, installed at a local declaration is Temp and filed VAT as specified in local where the current buildings, tax filing and payment of VAT , the local tax office.
3. Tax: foreign contractors, subcontractors abroad apply Vietnam VAT settlement accounting, tax under the provisions of the law on VAT, Tax Law and the text of the current guidelines.

Foreign contractors, other foreign sub-contractors, direct submission of VAT according to the method of deduction and tax according to the determined with tax authorities tax according to each contract bidders. At the latest within 10 working days from the conclusion of the contract, foreign contractors, subcontractors abroad filed declarations each settlement of taxes under the provisions for the direct tax authorities tax management.
II. for FOREIGN CONTRACTORS, FOREIGN SUBCONTRACTORS NOT MADE VIETNAM ACCOUNTING MODE registration, tax declaration, tax of foreign contractors, subcontractors abroad do not perform accounting mode Vietnam Vietnam party done.
1. tax registration: Vietnam-party registration, tax declaration foreign contractors, household subcontractors abroad with local tax authorities where the executive offices of Vietnam Party within 15 working days since the signing of the contract the contractor.
Tax registration records are: + Declaration for tax registration tax Vietnam party households foreign contractors as the current guidelines of the Ministry of Finance on tax code registration for foreign bidders; accompanied by A contractor, the sub-contractor abroad according to the attached form Addendum No. 01-NTNN attached to this circular).
+ Copy of the contract the contractor, subcontractors and contract summaries contract by South Vietnamese with the main contents include the norms: scope of work, the value of the contract (including a detailed appendix constitutes the value of the contract-if available), method of payment, contract term , obligations and responsibilities of the parties to the contract. Vietnam party, foreign contractors to be responsible before the law for the accuracy of the content posted to the tax authorities;
+ Copy of business license or licensed by the competent authorities of Vietnam (if available);
+ Vietnamese translation and copy of business license or independent practice permit (for foreign contractors, subcontractors abroad is personal), tax registration certificate by the country in which the foreign contractor is subject resides;
The above mentioned copy must be signed and verified copies of authorized representatives of the Parties or foreign contractors in Vietnam.
With regard to the contract of the contractor's construction contract: Vietnam-party Declaration more 1 the tax registration records of foreign contractors and sent local tax agency Office of Vietnam Party sets 01 to track, 1 set of local tax authorities sent home to buildings to register , tax, VAT, tax instead of the contractor, subcontractors abroad.
Private profile registration tax for foreign airlines include: + tax registration form according to the instructions of the Ministry of Finance on tax code registration for foreign bidders;
+ Vietnamese translation and copy of business license, tax registration certificate or tax code by country foreign airline that is the object of residence issued (certified by the representative offices of the foreign airline in Vietnam);
2. Declare, deduct and pay tax: within 15 days from the day the accomplished payment for foreign contractors in Vietnam established Parties, declarations, specify the number of VAT and tax on foreign contractors to be paid (annex No. 02-NTNN attached to this circular) and make tax filing has declared on the State budget.
The case of foreign contractors have the foreign side, the Vietnam Party determines the number of VAT, tax on foreign contractors, subcontractors abroad must file and deducted, remitted foreign contractors and households subcontractors abroad.
Cases, there are many foreign contractors, subcontractors abroad participated in the contract of the contractor and the contractor have the needs determined tax then the Vietnam Party registration to be granted tax code, Declaration, filing taxes separately for each foreign contractors, subcontractors abroad. Vietnam party recorded details of VAT, the tax payable by each foreign contractors, subcontractors abroad at the paper paid into GOVERNMENT EXCESSIVE.
VAT number Vietnam Party has filed for the foreign contractors is the number of input VAT of Vietnam Party and deductible under the provisions of the VAT Law and the text of the current guidelines. Vouchers to determine input tax deductible receipts are Vietnam-party value added tax or paid into the State budget have stamped confirmation of State Treasury authorities about VAT number is submitted.
The case Vietnam-party at the same time signed many contracts, the contractor to declare, pay tax for foreign contractors to be done separately for each contract.
Vietnam-party case no declaration, deduct and pay VAT, CIT households foreign contractors, subcontractors abroad will result, sanctioned under the current regulations and must file instead of foreign contractors.
VAT number, the tax payable and the result instead of foreign contractors, on Vietnam was not deducted tax and don't count on costs when determining the business results and the number of corporate income tax payable of the Vietnam Side.
3. the Declaration and payment for some particular cases: 3.1. The case of foreign contractors providing goods and services in Vietnam through the agent's personal Vietnam, organization, the dealer must deduct, declare and pay tax for foreign contractors such as instructions in section II, part B to this circular.
3.2. foreign airlines that operate air transport in Vietnam, the Declaration filed tax as follows: within the first 10 days of the first month of the Calendar Quarter (January 1, 4, 7, 10), representative offices are allowed to sell shipping of foreign airlines, or base of a foreign airline to make tax declaration (Appendix number 03-NTNN attached to this circular) sent to the local tax office and tax filing has made statements on the State budget.
Foreign airlines case has held the transport agents in Vietnam, representative offices of foreign airlines must file lists the name, address of the shipping agents and contract agents (copy) to the local tax authorities where the offices are allowed to sell the airline's headquarters.
3.3. procedure for Declaration and payment for the foreign contractors associates many of the parties, with the Vietnam economic organizations to conduct business in Vietnam on the basis of the contract the contractor:-where the party associates founded the venture board, the Executive Committee implemented 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 issue invoices for the revenue obtained, each party may make a direct tax registration with the tax authorities as the guidance in part B and part C of this circular.
Vietnam responsible party declare, deducted and remitted tax, tax for foreign contractors, foreign subcontractors not to sign direct tax to the tax authorities.

3.4. in case of foreign contractors, subcontractors abroad have registered to pay tax according to the applicable object Vietnam accounting mode but not in compliance with the regulations on accounting, invoices, vouchers, to failing to ensure the base to determine the exact obligations of the contractor TNDN VAT and Foreign sub-contractors, the tax authorities will determine the tax obligations of the contractor, subcontractors abroad under the guidelines for foreign contractors, foreign subcontractors not Vietnam accounting regimes.
3.5. The representative offices of foreign organizations in Vietnam have business activities make it a permanent facility as specified by tax Laws and the documents the current instructions, will have to declare, registered with the tax authorities according to the instructions in section I Part C, and make tax payment as instructed in section II, part B to this circular.
4. Tax: The tax made under each contract bidders. Vietnam-party responsible for payment of taxes on foreign contractors, subcontractors abroad must file, within 20 working days from the end date of the contract the contractor.
Tax records of foreign contractors, subcontractors abroad submit to tax authorities where the registration and pay tax for foreign contractors, subcontractors abroad include: + tax declaration according Appendix number 04-NTNN attached herewith;
+ Table of foreign contractors, subcontractors participated in the contract the contractor (according to the attached annex form No. 02-NTNN).
+ Tax Declaration foreign contractors was formed and sent to the tax authorities included the 3 a. The case, tax records are incomplete, then within 3 working days, the tax agency announced in writing to Vietnam-party supplements. Within 15 working days from receipt of the application, the tax authorities make tax-settlement of foreign contractors, subcontractors abroad must file and sent to the Vietnam 2 a tax was a tax agency. Vietnam-party hold a tax settlement and send a foreign contractor. Several foreign contractors, subcontractors abroad participated in the contract, Vietnam responsible Party stars and send tax for foreign contractors, subcontractors abroad.
Figures in the tax settlement is official confirmation about the implementation of tax obligations of foreign contractors, subcontractors abroad. The case prescribed in the contract of the contractor, the additional payment within Vietnam and foreign bidders have to make after the liquidation of the contract, the tax of the foreign contractors, subcontractors abroad is based on the value of the contract at the end of the term of the contract the contractor. When the actual Vietnam Party additional payments for foreign contractors in Vietnam, the party responsible for tax declaration for the additional payment.
The case when the tax, the tax is greater than the number of VAT, CIT has temporarily then Vietnam Party filed the missing tax supplement on the State budget, within 5 working days from the date of the tax.
The case when the tax, the tax is less than the tax already paid, the Ministry of finance will refund overpaid tax for foreign contractors, subcontractors abroad through Vietnam Party or representative be foreign contractors, authorized foreign sub-contractors. Profile tax refund proposal include: + tax refund form which stated the reason tax refund proposal (annex No. 05-NTNN attached to this circular).
+ The authoritative legal Paper for Vietnam Party or representative of foreign contractors implemented the tax refund and receive a tax refund (for foreign contractors authorized tax refunds).
+ Settlement thereon, liquidation of the contract (A copy and stamp of authorized representative);
+ Tax, including confirmation of the local tax authorities about VAT number, tax payable, has been filed and the filing of the entire contract;
+ Confirm in writing by the Agency of the State Treasury of taxes already paid.
Profile tax refund proposal sent to the local tax Bureau where Vietnam Party registered and pay tax households foreign contractors. The tax Bureau is responsible for checking, tax identification number of foreign contractors, subcontractors abroad is completed and submitted in writing to the Ministry of Finance (tax administration), enclose the profile recommended reimbursement of foreign contractors, subcontractors abroad.
Within 30 days of receiving the application, the Ministry of finance will refund overpaid tax for foreign contractors, subcontractors abroad.
The case, on Vietnam have deducted VAT account foreign contractors overpaid, then when the contractor has decided to refund VAT, Vietnam Party must submit VAT number access foreign contractors are complete.
D. HANDLING COMPLAINTS and VIOLATION I. HANDLE VIOLATION of foreign contractors, subcontractors and offshore Vietnam Party is responsible for the correct implementation of the provisions of the applicable tax laws and instructions of this circular.
The violations of the law as no declaration, registration taxes, late tax, perjury tax evasion will be sanctioned according to the current law.
Vietnam-party does not perform sufficient and timely declaration, notification to the tax authorities the information about contracts the contractor, subcontractors abroad will be penalizing the violation on declaration. The case Vietnam-party fault in the Declaration on this leads to being the State's tax losses, the Vietnam Side will be sanctioned according to the provisions on sanctioning administrative violations in the field of taxation.
II. COMPLAINTS complaints about tax herewith by the local tax authorities directly handling tax collection management. If the subject of the complaint is not yet satisfied with the handling of tax authorities of tax revenue management directly, you can file a complaint to the General Department of taxation and finance. The decision dealt with by the Minister of finance is the final decision. While awaiting the decision of the authorized processing, the object of the complaint must still make the right conclusions of local tax offices directly manage tax collection has taken off.
Complaints about the tax relating to the provisions of a treaty signed between the Government of Vietnam with the Government of another country will be resolved in accordance with the procedure for resolving complaints and disputes were specified in that agreement.
E. IMPLEMENTATION I. RESPONSIBILITIES Of TAX PAYERS 1. Foreign contractors, subcontractors (for cases directly pay tax), or Vietnam Party (for cases filed tax changes) make provisions on tax registration, registration and payment method with the tax agency under the guidance of this circular. Case, change the location of business or Executive Office must do the registration tax due to change places with the tax authorities of the province, the city according to the current rules.
2. the party Vietnam, foreign contractors, subcontractors, in the course of running the business must obey the rules of tax declaration, tax under the guidance of this circular and the text of the current guidelines.
3. Present the full range of bookkeeping, accounting and the necessary documents related to tax calculation and tax when the tax agency requirements.
4. The conclusion of the contract of the contractor, subcontractor or contract ended trading in Vietnam, Vietnam signed Parties and/or foreign contractors, subcontractors abroad must notify tax authorities and tax settlement reports filed under the rules.
II. LIABILITY OF TAX AUTHORITIES

1. Guide the tax payers make tax registration and tax declaration according to the prescribed regimes, notify the tax payers the account contents, budget lodging taxes.
2. check the tax return, check books, accounting documents and the documents needed to calculate the tax.
3. Notify the tax payers in the case:-Not Send or submit incomplete tax returns, tax;
-Pay tax on time or lack of filing taxes.
4. Ask the tax payers provide bookkeeping, invoices and records of other documents related to tax calculation and payment; ask credit institutions, banks and organizations, other relevant individuals provide documents relevant to the calculation and payment of business establishments.
5. Have the right to assign tax in case the tax payers do not self declaration prescribed deadlines or incomplete declaration, or does not provide sufficient, accurate information related to tax calculation or the case the revenues were affected by the financial and trade relations cannot by contract the transaction promptly.
6. test, inspection, tax situation tax of foreign contractors, subcontractors abroad as stipulated by the current legislation.
7. Set the minutes and treated for tax violations in the jurisdiction are regulated by law.
8. Responsible for tax law enforcement, to ensure the integrity, accuracy and objectivity.
9. Confirmation of taxes already paid by foreign contractors, subcontractors and be responsible for the accuracy of the amounts claimed.
III. confirmation of TAXES ALREADY PAID the tax certificate was filed against foreign contractors, subcontractors abroad directly pay tax in Vietnam made after foreign contractors, subcontractors abroad fulfilling tax obligations under tax years. Tax authorities certificate level of tax on foreign contractors, subcontractors abroad have filed within 10 working days after the tax.
The grant of a tax certificate was filed against foreign contractors, subcontractors abroad by the Vietnam Party filed instead made after foreign contractors, subcontractors abroad fulfilling tax obligations under tax for each contract to the contractor. Tax authorities certificate level of tax on foreign contractors, subcontractors abroad have filed within 10 working days after the tax. The case of the contract the contractor, sub-contractor contracts done in many years, foreign contractors, subcontractors abroad granting demand confirmation of taxes already paid for each financial year, the proposal with the local tax authorities to be granted the certificate of the tax already paid. Tax authorities certificate level of tax on foreign contractors, subcontractors abroad within 10 days from the receipt of the proposal or of foreign contractors in Vietnam, foreign subcontractors.
The confirmation of taxes already paid to follow Appendix number 06-NTNN attached to this circular.
Cases, when the tax inspector arises the foreign contractor tax, other foreign subcontractors than tax and tax numbers were confirmed, the tax authorities have to adjust again.
IV. REMUNERATION for the DEDUCTION and PAYMENT 1. Vietnam-party signing the contract the contractor is responsible for performing work deduction of taxes on foreign contractors, foreign subcontractors not to sign Vietnam accounting regimes, and filed taxes in the budget as the guidance in section II, part C of this circular.
With regard to foreign contractors, subcontractors to sign contracts with foreign parties to Vietnam to conduct search operations, exploration and exploitation of oil and gas under the oil and gas law, which under the provisions of the contract, the total oil companies pay the taxes instead Of oil companies do deduct and remit tax of water contractors In addition, foreign subcontractors into the State Treasury. The case of Vietnam oil and gas Corporation does not directly make the deductions and tax instead of the contractor, subcontractors, the foreign corporation has the authoritative text for subdivisions Of the company made.
2. With regard to the amount of tax the foreign contractors, subcontractors abroad by the Vietnam Party made the deduction and filed into the State Treasury, Vietnam Party are entitled to a compensation equal to 0.8% of the tax already deducted to pay into the State Treasury, but must not exceed 50 million on the amount of tax to deduct and pay taxes every time.
The amount of this remuneration is deducted from the amount of tax collected before filing into the State Treasury and is used to cover the costs for the Declaration, deduct and pay tax and to commend you for the individuals involved managed to declare, pay tax.
V. EFFECTIVE IMPLEMENTATION of this circular have the effect after 15 days from the date The quote and replace the circular No. 166/1998/TT-BTC dated 22/12/1998, circular No. 95/1999/TT-BTC on 06/8/1999 of the Ministry of finance, guide the tax regime applicable to the Organization foreign individuals doing business in Vietnam not under the form of investment according to the law on foreign investment in Vietnam.
With regard to the contract of the contractor, the contract foreign sub-contractors have signed before the date of this circular in force shall determine the tax method, determine the tax, the tax was continued as guidance in circular 169/1998/TT-BTC dated 22/12/1998 and circular No. 95/1999/TT-BTC on 06/8/1999 until the end of the contract. The case since the day this circular effect enforcement have the extension for tender, contracts signed before subcontracting this circular effect enforcement of the tax calculation, declare and pay tax from the date a contract made as a guide in this circular.
The case of the Socialist Republic of Vietnam have signed a participation agreement or international treaties which in the agreement or the international treaties which have regulations on the tax of the foreign contractors, subcontractors abroad other than the content of the guide in this circular shall follow the provisions of international treaties. Foreign contractors, subcontractors abroad have text sent tax authorities where tax registration proposal is made under the agreement tax obligations in international treaties or agreements signed. Suggested bases of foreign contractors, subcontractors and signed international treaties, tax authorities have written verification of the foreign contractors, subcontractors made foreign tax obligations under international treaties or performing duties in accordance with the current tax legislation.