On September 22nd, 2020 Hanoi Tax Department issued Official Letter No. 85106/CT-TTHT. Whereby:
In case that the Representative office incurs interests from its bank deposit, then:
If its revenues, expenses and incomes from business activities are determined, the payable CIT for Representative office shall be determined as prescribed in Clause 2 Article 1, Article 2 Circular No. 96/2015/TT-BTC dated June 22nd, 2015 and Clause 1 Article 3 Circular No. 78/2014/TT-BTC dated June 18th, 2014 both are issued by the Ministry of Finance.
On the other hand, if the Representative office can only determine its revenue but not its expenses, incomes from the business activities, its payable CIT will be calculated on the rate of the revenue for bank deposit interests at 5% as stipulated in Clause 5 Article 3 Circular No. 78/2014/TT-BTC dated June 18th, 2014 issued by the Ministry of Finance.
