On July 8th 2019, Hanoi Tax Department issued Official Letter No.53582/CT-TTHT. Whereby:
- In case the company purchases software through a foreign supplier’s Website:
– The company is responsible for deducting, declaring and paying contractor taxes in accordance with Article 11, Article 12, Article 13 of Circular 103/2014 / TT-BTC.
– The company is accounted for deductible expenses when calculating CIT for the cost of purchasing software if it is actually related to the operation and business activities, and meets the requirement about invoices, vouchers and payments as regulated.. In case the invoices that meet Vietnamese regulations is unavailable (because foreign suppliers do not use invoices in Vietnam), there must be a declaration and vouchers of foreign contractor tax payment as prescribed.
Sales and purchase contract between parties shall comply with the provisions of the Commercial Law and relevant regulations.
- In case the company books a hotel room through foreign websites providing booking services in Vietnam such as Agoda and Booking.com
– Those hotels, are responsible for billing services provided in accordance with regulations. This booking cost is recognized as deductible expense when calculating CIT if the provisions of Article 4 of Circular 96/2015 / TT-BTC are met.
