On March 20th, 2019, Hanoi Department of Tax issued the Official Letter No.10419/CT-TTHT. Where by, in case Enterprise establishes a Representative Office, it is required to register the 13-digit tax code for the Representative Office in accordance with Article 8 of Decree No.78/2015/ND-CP dated 14th September 2015 by Government. Representative offices shall declare and pay taxes as follows:
+ License fees: Representative offices shall implement to follow the guidelines in Article 2 of Circular No. 302/2016/TT-BTC dated November 15, 2016 of the Ministry of Finance.
+ Value-added tax: In case the Representative Office does not directly sell goods and generate revenue, the Company shall make a concentrated declaration at the head office according to the guidance in Clause 1, Article 11 of Circular No. 156. / 2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.
+ Personal income tax of employees working at representative offices: In case the representative office does not sign a labor contract and does not pay wages to employees, the company meanwhile signs a labor contract and pays all wages and the remuneration of employees working at the Representative Office, then the Representative Office is not required to declare and pay PIT, the Company is responsible for withholding and declaring PIT as stipulated in Clause 1, Clause 2 Article 16 Circular No. 156/2013 / TT-BTC dated November 6, 2013 of the Ministry of Finance.
+ Corporate Income Tax: In case the representative office is a dependent unit but keep accounting record independently, the Representative Office is not required to submit a dossier of corporate income tax declaration. The Enterprise is responsible for the centralized declaration at the head office, including the arising part of the subsidiary.
* In case the Representative Office does not have to declare and pay tax, the Enterprise does not need to register a digital signature for the Representative Office.
