With the current trend of global trade exchange, Vietnamese enterprises are generating more and more payments to foreign trade partners, especially advertising costs through channels such as Google, Facebook, youtube, etc. … Accordingly, enterprises that want to record this expense must make a complete contractor tax declaration (if the collecting unit does not have a business establishment in Vietnam). Foreign contractors, foreign sub-contractors doing business in Vietnam or earning income in Vietnam based on contracts, agreements, or commitments between foreign contractors and Vietnamese organizations or individuals or between a foreign contractor and a foreign sub-contractor to perform a part of the work of the contractor contract, which is subject to contractor tax declaration following Vietnamese law.

Legal basis

• Tax Administration Law 2019;
• Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government detailing several articles of the Law on Tax Administration;
• Other manuals.

Contractor tax declaration procedures

Step 1: Enterprises must determine by themselves whether the contract or transaction is subject to tax declaration and payment on behalf of the foreign contractor?

Step 2: Register a tax code to pay tax on behalf of a foreign contractor: Enterprises must register the procedure for a 10-digit tax code to be used for declaring and paying tax on behalf of a foreign contractor.

• The time limit for tax registration for a Vietnamese party to pay tax on behalf of a foreign contractor or sub-contractor is within 10 (ten) working days from the date of arising the responsibility to withhold and pay tax on behalf of the foreign contractor.
• Contractor tax registration dossiers include:

• • Tax registration declaration form No. 04.1-DK-TCT issued under Circular No. 105/2020/TT-BTC dated December 3, 2020, of the Ministry of Finance;
  • A copy of the contract signed with the foreign contractor;
  • List of forms No. 04.1-DK-TCT-BK issued according to Circular No. 105/2020/TT-BTC dated December 3, 2020, of the Ministry of Finance;
  • Receipts and/or invoices.

• Location for submitting contractor tax declaration dossiers: At the tax agency directly managing.
• The time limit for tax identification number notification: The tax authority shall process the first-time tax registration dossier and return the tax registration certificate and tax identification number notification to the taxpayer within 03 (three) days at the latest. ) working days from the date the tax authority receives the complete dossier of the taxpayer.

Step 3: Determine the amount of tax payable by the contractor.

Step 4: Prepare and submit a contractor tax return

• Contractor tax declaration form: Declaration form 01/NTNN (Issued together with Circular No. 156/2013/TT-BTC)
• Deadline for payment of contractor tax:

• By each time: no later than the 10th (tenth) day from the date of payment to the foreign organization;
• By month: No later than the 20th of the month following the month in which the tax liability arises

Our services

• Consulting on issues related to contractor tax and contractor tax declaration;
• Contractor tax consulting services;
• Registration service for granting contractor tax code;
• Service of declaring contractor tax on each arising, monthly basis;
• Contractor tax finalization service;
• Service of confirming contractor tax obligations;
• Service of performing other contractor tax procedures. Processing establishment and execution of authorized transactions, regularly informing on progress and proposing new ideas (note: if there are any adjustments or additions to content, the content of authorization must be made in a new document);
• Handing over the work results after successfully performing the authorized work.

If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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