FCT must be paid for the income from incurred abroad services but being consumed in Vietnam

On November 20^th, 2020, Dong Nai Tax Department issued Official Letter No. 11846/CT-TTHT, whereby:

If the Company enters a contract with a foreign Law firm to conduct document drafting and prepare dossiers, files-related to a capital borrowing transaction under the Leasing foreign bank’s request and legal consulting which may incur overseas due to a capital borrowing transaction between the Company and a foreign bank. Although the aforementioned services are conducted abroad, they are consumed in Vietnam, thus the abroad Law firm’s income from conducting the above services will be subjected to the law on the foreign contractors at the contribution rate of 5% for VAT and 5% for CIT on the taxable revenue.