On 26 August 2016, Ho Chi Minh Department of Taxation issued Official letter No. 8244/CT-TTHT. Accordingly, in case a company imports goods from foreign suppliers and authorizes via a third party which is a foreign financial company for purchase payment, if this payment authorization is specified in contract and in the form of writing, this then is considered as non-cash payment and as basis for deductible input VAT and deductible expenses when determining CIT taxable income. When paying service charges to foreign financial company, the company should deduct and declare foreign contractor tax under the provisions of in Article 11, 12 and 13 of Circular No. 103/2014/TT-BTC.
