On April 4, 2024, the Tax Department of Hai Duong province issued Official Letter No. 3122/CTHDU-TTHT:
In the case where a company purchases imported raw materials from abroad and transports them by railway to an international transit station located within the territory of Vietnam but not at a border gate, foreign organizations are obligated to pay foreign contractor tax on income generated in Vietnam according to regulations.
In the event that a foreign organization does not meet the conditions for tax declaration in Vietnam, the company is responsible for deducting, declaring, and paying foreign contractor tax on behalf of the foreign subcontractor in accordance with the guidelines stipulated in Articles 12 and 13 of Circular No. 103/2014/TT-BTC.
