Which form is the tax declaration form for foreign contractors in Vietnam?

Which form is the tax declaration form for foreign contractors in Vietnam?

The tax declaration form for foreign contractors in Vietnam is specified in Form No. 01/NTNN issued together with Circular 80/2021/TT-BTC as follows:

>> Download Tax Declaration Form for foreign contractors in Vietnam

Which form is the tax declaration form for foreign contractors in Vietnam? (Image from the Internet)

What is the formula for calculating corporate income tax for foreign organizations and individuals doing business in Vietnam?

According to Article 13 of Circular 103/2014/TT-BTC, the formula for calculating corporate income tax for foreign organizations and individuals doing business in Vietnam is taxable corporate income revenue and the corporate income tax rate (%) calculated on taxable revenue.

What are the taxable corporate incomes of foreign organizations and individuals doing business in Vietnam?

According to Article 7 of Circular 103/2014/TT-BTC, the taxable corporate incomes of foreign organizations and individuals doing business in Vietnam include:

(1). The taxable corporate income of foreign contractors and foreign sub-contractors is the income generated from activities of providing, distributing goods; providing services, services associated with goods in Vietnam based on the contractor contracts and sub-contractor contracts (except for cases specified in Article 2, Chapter I of Circular 103/2014/TT-BTC).

(2). In cases where goods are supplied in the forms of: delivery points within the territory of Vietnam (except for cases specified in Clause 5, Article 2, Chapter I of Circular 103/2014/TT-BTC); or the supply of goods accompanied by certain services performed in Vietnam such as advertising (marketing), trade promotion activities, post-sale services, installation, trial operation, warranty, maintenance, replacement, and other services associated with the supply of goods (including cases where the services provided are free of charge), whether such services are included in the invoice value of the supplied goods or not, the taxable corporate income of foreign contractors and foreign sub-contractors is the total value of goods and services.

(3). Income generated in Vietnam by foreign contractors and foreign sub-contractors includes all incomes received under any form based on the contractor contracts and sub-contractor contracts (except for cases specified in Article 2, Chapter I of Circular 103/2014/TT-BTC), regardless of the location where the business activities are conducted by the foreign contractors or foreign sub-contractors.

Taxable incomes of foreign contractors and foreign sub-contractors in some specific cases include:

- Income from the transfer of ownership, usage rights of assets; transferring rights to participate in economic contracts/projects in Vietnam, transferring property rights in Vietnam.

- Income from royalties is any form of income paid for the rights to use, transfer of intellectual property and technology transfer, software copyright

(including: payments for the rights to use, transfer of copyright and copyright ownership of works; industrial property rights transfers; technology transfers, software copyright).

“Copyright, copyright holder’s right,” “Industrial property rights,” "Technology transfer" are specified in the Civil Code, the Intellectual Property Law, Technology Transfer Law 2017, and guiding documents.

- Income from the transfer, liquidation of assets.

- Interest income: includes the income of the lender from loans of any kind, whether the loan is secured by collateral or not, whether the lender enjoys the borrower’s interest or not; interest income from deposits (except for interest on deposits of foreign individuals and interest on deposits arising from deposit accounts to maintain operations in Vietnam of diplomatic representative agencies, representative offices of international organizations, non-governmental organizations in Vietnam), including bonuses accompanied by interest if any; interest on late payments as stipulated in contracts; income from interest on bonds, discounts on bond prices (except for tax-exempt bonds), treasury bills; income from interest on deposit certificates.

Loan interest also includes fees that the Vietnamese side must pay as specified in the contract.

- Income from the transfer of securities.

- Fines and compensation received from the partner for violating the contract.

- Other incomes as stipulated by law.