THE MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAX
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No: 1947/TCT-CS
Ref: tax policy for foreign contractors
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
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Hanoi, June 08, 2011
 
 
To:   Departments of Tax of central provinces and cities
 
General Department of Tax received some Documents from some questions on the calculation of Value Added Tax (VAT) and enterprise income tax of foreign contractors. The General Department has opinions on this problem as following:
1. Legal Documents:

Pursuant to the regulations at Part C of the Circular No. 134/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance guiding the performance of tax obligations applicable to foreign organizations and individuals doing business or earning incomes in Vietnam, Vietnam party signs contract with foreign contractors to supply goods and services at the effect time of Circular No. 134/2008/TT-BTC, the determination of  VAT and enterprise income tax for the foreign contractor as well as the contract implementation are under the Circular No. 134/2008/TT-BTC.