Determining the revenue for calculation of Foreign Contractor Tax when delegating a part of the construction for Vietnam sub-contractor
On May 28th 2018, General Department of Taxation released the Official dispatch No 2044/TCT-CS. Whereby, in case Enterprise is a foreign sub – contractor who does the works regulated in the Contractor Agreement signed with main contractor and then delegates a part of the work for another Vietnam sub – contractor, if this Vietnam sub – contractor is not listed in the contractor lists and items enumerated under Contractor Contract signed between main contractor and Vietnam partner, then the turnover for Corporate Income Tax calculation of foreign contractors shall not be included the value of work, value of equipment and machine leasing, labor cost… that are carried out by Vietnam sub- contractor.
