On March 26th, 2019, Hanoi Department of Tax issued the Official Letter No.11717/CT-TTHT. Whereby, in case the Enterprise signs a franchise contract with a foreign company and paid on behalf of the foreign contractor tax, then the foreign contractor refunds the money to the Company after both parties liquidate the contract. If the Company determines that the amount of contractor tax already paid is greater than the payable tax amount according to regulations, it shall be automatically compensated with the amount of tax, late payment, outstanding or payable tax of the same tax. In case the Enterprise still has the tax amount, late payment, and overpayment after compensating, it can send the tax refunding application form to the direct management tax office with a view to be entitled to a tax refund.
