On 14th November 2013, The Tax Department of Ho Chi Minh City issued Official Letter No. 8207/CT-TTHT guiding FCT for services.
If the company signs a contract with a foreign contractor to provide services to the company’s clients and the services are carried out oversea:
· If the foreign contractor does not have permanent establishment in Vietnam and meets the requirement for tax exemption as per the Treaty, the above income of the foreign contractor is exempted from CIT.
· The company is responsible for deducting and paying foreign contractor VAT.
