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Circular 04/tc-Tct: A Guide To Some Of The Points About The Tax Policy For The Organizational Branch Of Foreign Lawyers Operating In Vietnam

Original Language Title: Thông tư 04/TC-TCT: Hướng dẫn một số điểm về chính sách thuế đối với các Chi nhánh tổ chức Luật sư nước ngoài hoạt động tại Việt Nam

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Circular of the MINISTRY of FINANCE CIRCULAR guide some views on tax policy for the organizational branch of foreign lawyers operating in Vietnam based on the tax Laws and ordinances of tax;
Based on the Decree of the Government detailing the contest hànhcác tax law, applicable tax Ordinances;
Pursuant to Decree No. 42/CP on 8/7/1995 of the Government ban hànhQuy instituted the practice of consulting the laws of foreign lawyer organizations operate tạiViệt;
Based on the letter No. 3755/KTTH on 7/8/1996 of the Government tax vềviệc for the branches of foreign lawyers;
The Ministry of finance instructed some views on tax policy for the cácChi branch of the foreign lawyer organizations operate in Vietnam as follows: i. SCOPE of APPLICATION 1. tax obligations guide in this circular apply to the foreign lawyer uk branch (hereinafter referred to as the branch of law) are allowed into the lậptheo provisions in the statute law consulting practice attached Nghịđịnh 42/CP on 8/7/1995 of the Government.
2. in case of the State, the Government of Vietnam to join or signing a Treaty of quốctế, the agreement or legal commitments to international organizations or to the State, Chínhphủ other countries in signing the text contains regulations for the operation of the branch củacác other foreign lawyer organizations with guidance in circular nàythì applied under international treaties , The agreement or commitment.
 
II. TYPES of USE THUẾÁP 1-Theoquy in sales tax law on foreign investment in Vietnam and the legal text hướngdẫn; The law on turnover tax, on 30/6/1990; The revised law, the addition of a sốđiều of the law on turnover tax of 5/7/1993 and the revised Law, some additional sales tax Law điềucủa was passed by Congress on October 28, 1995, nhánhtổ servants of foreign lawyers operating in Vietnam if any revenue arising từhoạt business in Vietnam is subject to turnover tax.
a-taxable turnover: Toànbộ proceeds from the business activity of the Organization branch lawyer nướcngoài, arising in the tax period irrespective of the amount it has obtained haychưa obtained, taxable revenue is revenue.
Doanhthu does not include taxable funds customer authorizes Law Branch thácgiữ households.
Trườnghợp organizations and individuals in the country and/or contract with foreign law Chinhánh done part of the work of the contract that the Law Branch wildlife kývới client, the taxable revenue of the branch of law does not include the payment khoảntiền for organizations, individuals perform the aforementioned tasks.
b-revenue: tax Thuếsuất sales tax for legal activities of the branch of law ápdụng 4% tax rate on taxable revenue (as specified in point 3, the MụcVI, the sales tax attached to the law amending and supplementing a number of articles củaLuật sales tax to be National Assembly IX session 8, via ngày28/10/1995).
c-registration procedures, filing sales tax declaration: Chinhánh law made registration, filing declaration prescribed sales tax tạiThông portfolio of 97 TC/TCT 30/12/1995 of the Ministry of Finance shall guide the implementation of Nghịđịnh 96/CP dated December 27, 1995 by the Government detailing the implementation of the revised Law and revenue Luậtthuế supplementing a number of articles of the law on turnover tax.
Trườnghợp branch of law signed with the institutions and individuals overseas to thựchiện part of the work as stated in point 1.a then before payment of chocác organization, that individual, Law Branch is responsible for the book nộpNgân state tax deduction in accordance with circular No. 37/TC-TCT on 10/5/1995 financial củaBộ.
2. Income taxes Theoquy of the law on foreign investment in Vietnam and the legal text hướngdẫn done, then return by the branch held foreign currency đượctừ attorneys doing business in Vietnam, the other benefit, including the return of phânbổ held for foreign lawyers law branch in Vietnam (if any) làđối objects subject to income taxes.
Trườnghợp branch of law contains the base business dependent put in in and out of Vietnam, the gains from this facility are included on the return of Chinhánh to the law when determining taxable income.
a-taxable income: taxable Lợitức of the Law Branch is the difference between total revenue and cáckhoản costs reasonable, valid having regard to the income subject to thuếcộng with the other benefit (including the extra benefit obtained as lợitức due to the hefty sell or liquidate assets , the difference between interest on deposits and loan rates disparity, lãitiền ... and the return on the Organization's distributed nướcngoài lawyers for Law Branch in Vietnam) during the tax year. Where: a1-the turnover for calculation of taxable income is the entire sốtiền branch of law obtained from business activities in line with the revenue tínhthuế revenue is determined according to the instructions in point 1.a, section II, of this circular.
A2-The reasonable business expenses, duly determined include khoảnsau: + wages, remuneration and allowances paid to laborers, Vietnam and nướcngoài on the basis of employment contracts labour regulation match and France luậthiện.
+ Cost of materials, materials, energy, related to the supply of the service.
+ Depreciation of fixed assets used in the operation to provide services. Haotài fixed assets depreciation rates follow the rate stipulated in the circular 31/TC-TCĐN April 18/7/1992 and decision No. 1062/TC-QD-CSTC on 14/11/1996 on Chếđộ management, use and depreciation of fixed assets of the Ministry of finance.
+ Shopping expenses or paying to use the materials, the service was cungcấp.
+ The cost of management, Law Branch.
Trườnghợp in the Charter of the Organization of foreign Attorney has prescribed terms việcphân addition cost management, the Executive Headquarters for the law đặtở the branch water, cost management, the actual allocation for executive branch luậttại Vietnam was charged to costs when determining taxable income if there is reasonable from đủchứng , valid. In this case, the proportion of the real costs tếphân to branch in Vietnam in the total cost of organizing the lawyer nướcngoài not exceed the ratio of taxable revenue arising in Vietnam sovới the total revenue of the foreign lawyer organizations. At the latest three months after the financial year end date kểtừ, branch of law must submit reports accounting of primary Trụsở have been audited by an independent auditing organization to thuếxác agency expenditures operating management and allocation.
+ The funds filed Insurance Fund for workers in the nhánhluật of the obligations under the provisions of the social insurance regime.
+ The funds to purchase the assets of the insurance law branch.
+ Taxes, fees, tax nature fee already paid (excluding tax).
+ Other expenses not yet mention above but does not exceed 5% of the total chiphí mentioned above.
All the expenses are reasonable, documents must be valid. Regardless of the khoảnchi fee would not have reasonably valid, vouchers are not pharmacy computer in phíkhi determine the taxable income.
Khixác turnover and expenses are subtracted to determine taxable income, tax cơquan have the right to consider the reasonableness of the revenues and expenses for the hợpđồng consulting services and payment relations, transactions between the branch luậtvới organizations, individuals or between branches of law nướcngoài Attorney organization that branch of law subject to the management of the organization. Case number toánvà payment relationships, transactions, service contract .... not clear, khôngtheo trading principles, the tax authorities have the right to assign sales tax thuchịu income and taxable income return.

A3-The rather benefit to calculate taxes including but not limited to the following: cáckhoản + gains from the ownership, use the assets of the branch of law.
+ The financial benefit, such as the difference between the interest rates of deposits collected and lãitiền loans; the return on the stock purchase ... + return on allocated from Headquarters to branch rules.
b-income tax: income tax Thuếsuất for legal activities of the branch law dụngmức 25% tax on taxable income (as defined in nướcngoài investment law in Vietnam and the legal text guidelines).
c-registration procedures, tax declaration and tax return: Chinhánh law made registration, submission of statements and tax return under quyđịnh in the legal text guide to make foreign investment law in South tạiViệt.
3. personal income tax for high income earners outside Ngườinước and Vietnam who work in the branches of law have the obligation to nộpthuế personal income as defined in the income tax Ordinance for high income consideredhuman issued on 19/5/1994 and the legal text thihành tutorial of this Ordinance.
4. Transfer tax offshore profits offshore profit Khichuyển, the branch must pay transfer tax law lợinhuận abroad with tax rate of 10%. Tax declaration procedure moved offshore lợinhuận follow the instructions in the legal text direction dẫnthực does the law on foreign investment in Vietnam.
5. other taxes Ngoàicác taxes mentioned above, the branch of law have the obligation to pay tax binge, thuếxuất export, import duty and taxes, other income under the provisions of the luậtthuế, the current tax laws and legal texts instructions.
Trongqua operation, the branches of law have the obligation to declare, deduct and nộpcho Vietnam State taxes (if any) of the following:-tax revenue from royalties as specified in circular No. 08/ngày5/2 TCT TC/1994 of the Ministry of finance guidelines on tax for income from royalty.
-In Tax obligations of organizations and individuals active in foreign Namtheo the provisions in circular No. 37 TC/TCT on 10/5/1995 of the Ministry of finance hướngdẫn the tax regime applicable to economic organizations, personal trading activities in Vietnam are not in the form of investment according to the law on investment ngoàitại Vietnam (including the activities provided by the service Held nướcngoài lawyer offer branch law in Vietnam).
Nămtính of the tax law branch beginning on January 1 and ends on December 31 nămdương. The first taxable year beginning from the date of registration and kếtthúc on December 31 of that year.
 
III. LIABILITY CỦACÁC BRANCH ORGANIZING FOREIGN LAWYERS OPERATING in VIETNAM 1. Least 5 days before the start of the activity or dissolved, or rather đổiđịa setpoint operating headquarters, the branch of law must do the registration with the tax authorities nộpthuế province, central cities headquarters điềuhành as defined in the legal text guide We nướcngoài investment law in Vietnam.
2. Accepted the rules on Declaration of registration tax in the direction of dẫntại the legal text guide to make foreign investment law Namvà of this circular.
3. Present the full range of Windows, accounting and other necessary documents related to tax calculation, tax when the tax agency requirements.
4. Payment in full, in a timely manner in accordance with the current tax laws in Vietnam.
 
IV. MICRO PHẠMVÀ HANDLING COMPLAINT RESOLUTION 1. violating Mọihành handling violations of tax law provisions are dealt with according to the rules địnhcủa applicable law in Vietnam.
CácChi branch of the law is not done correctly the provisions on registration procedures, tax declaration, establishing accounting books, used and kept the vouchers depending on the extent violated the will bịcảnh reports or a fine in accordance with the law of Vietnam.
Law Branch Cácchi behaving perjury, tax evasion, tax payer or slow tiềnphạt scored in the notice, the tax receiver command or the handling of the decision quanthuế shall be dealt with according to the provisions of the Act and the Decree địnhsố 22/CP dated 17/4/1996 of the Government on sanctioning administrative violations in the lĩnhvực tax.
2. Complaint resolution Cáckhiếu complaint about taxes local tax agency will directly manage currency settlement Law Branch cácChi tax. A complaint must be sent to the local tax authority, where the release of the decision of tax processing, within 30 days from the date of chinhánh the law get tax processing decisions. If the complainant chưathoả with the handle of the tax authorities collect taxes management directly, you can gửiđơn a complaint to the General Department of taxation and finance. The decision of the financial trưởngBộ processing is finally decided. While awaiting the decision of cóthẩm level processing rights, the complainant must still perform strictly cơquan the conclusion of direct local taxes tax management has launched.
Cáckhiếu complaint about taxes related to the provisions of a treaty signed between Chínhphủ and the Government of Vietnam of the other country will be resolved according to the tụcgiải player complaints and disputes were specified in that agreement.
 
V. ORGANIZATION of the Cụcthuế THỰCHIỆN province city, centrally responsible for thuthuế management and dissemination, to guide the branch held foreign lawyer độngtại Vietnam strictly implement the provisions of this circular.
This Thôngtư be enforceable from the date signed. The provisions of this circular is to check căncứ payment of tax obligations the Law Branch, 1996. Of the changes (if any) of the tax law and the text under the law after the date of this circular, the banhành will in effect apply to the respective taxes hướngdẫn of this circular.
Trongquá the implementation of this circular, if there are difficulties and obstacles, suggest the Chinhánh law, the tax Bureau reflects on the Ministry of finance to have additional instructions./.