On January 15th, 2020, Hanoi Tax Department issued Official Letter No. 1969/CT-TTHT. Whereby:
– In case foreign contractors who do not have an account at commercial banks in Vietnam, receive revenues in foreign currencies (other than US dollars) paid by Vietnamese partner through accounts opened at commercial banks in Vietnam of the Vietnamese partner, the selling rate of the commercial bank where the Vietnamese partner opened account, at the time the foreign currency payment transaction, shall be used to convert the contractor’s taxable income from foreign currencies to Vietnamese Dong.
– In case the payment currency does not have direct exchange rate with Vietnam Dong, the cross-currency exchange rate of Vietnam Dong with other foreign currencies shall be used to determine the taxable value in accordance with Article 3. Decision No. 2730/QD-NHNN.
