Official Dispatch No. 301/TCT-CS dated January 22, 2013 of the General Department of Taxation concerning VAT of ODA projects
MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
Concerning VAT of ODA projects
SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Ha Noi, January 22, 2013
To: Management Board of CSEDP Project
In response to the official dispatch No. 659/BQLDA-KT on November 22, 2012 of the Management Board of comprehensive socio-economic development project of Thanh Hoa city (CSEDP) on tax policy for ODA projects The General Department of Taxation have the following opinions:
- At Point 1, Section III of Circular No. 134/2008/TT-BTC dated December 31, 2008 guiding the subjects and conditions applicable to the case of payment of VAT by the direct method of calculation on VAT, payment of corporate income tax as a percentage of revenue as follows:
“Vietnamese party shall make payment on behalf of foreign contractor and subcontractor shall make payment of tax under the guidance at Point 2, Point 3, Section III, Part B of this Circular if the foreign contractor or subcontractor does not meet one of the conditions stated at Point 1, Section II, Part B of this Circular.
Vietnamese party is responsible for tax registration with the tax agency to make payment of tax on behalf of foreign contractor and subcontractor within 20 working days after signing the contract."
- In Clause 2 of Section III of the Circular No. 134/2008/TT-BTC stated above guiding on taxable VAT revenue as follows: