On January 21st, 2020, Hanoi Tax Department issued Official Letter No. 3353/CT-TTHT. Whereby:
In case the Company signs a service contract with a foreign individual who is a trader andhas a business registration in accordance with foreign laws or documents proving that he/she is a recognized foreign business entity (Foreign papers and documents when being used in Vietnam, must be consularly legalized in accordance with the law), then he/she shall be identified as business individual and his/her income from the service contract is subject to Foreign Contractor Tax (FCT). The Company is responsible for deducting and declaring VAT and Personal Income Tax (PIT) on behalf of that foreign business individual usingthe form No. 01/CNKD, issued in Circular No. 92/2015 / TT-BTC dated June 15th, 2015 by Ministry of Finance.
Tax registration dossier for taxpayers are organizations or individuals withholding payment shall comply with the provisions of Clause 4, Article 7 of Circular No. 95/2016/TT-BTC.
