On September 8th, 2020 Hanoi Tax Department issued Official Letter No. 81763/CT-TTHT. Whereby: for companies established aboard, when they engage in capital transferring in the joint venture in Vietnam to other organizations then:
If the capital transferee party is an organization that is established under Vietnamese law, the transferee organization will be responsible for determining, declaring, deducting and paying the CIT payable on behalf of the foreign companies for their capital transferring activities.
If the capital transferee party is a foreign organization that is not operating in accordance with the Law on Investment, Law on Enterprises, the joint venture in Vietnam will be held accountable for determining, declaring, deducting and paying the CIT on behalf of the foreign companies for their capital transferring activities.
