Template for Foreign Contractor Tax Declaration Form 01/NTNN? Which Organizations or Individuals Are Required to Pay Foreign Contractor Tax?

Template for the Foreign Contractor Tax Declaration Form 01/ntnn?

In Appendix 2 issued with Circular 80/2021/TT-BTC, there is a regulation for the foreign contractor tax declaration form 01/ntnn.

See details and download the declaration form here Download

Foreign contractor tax declaration form 01/ntnn? Which organizations and individuals are required to pay foreign contractor tax? (Image from the Internet)

Which organizations and individuals are required to pay foreign contractor tax?

Article 1 of Circular 103/2014/TT-BTC specifies the subjects liable to foreign contractor tax as follows:

Subjects liable

The guidance in this Circular applies to the following subjects (except as provided in Article 2, Chapter I):

1. Foreign organizations doing business with or without a permanent establishment in Vietnam; foreign individuals doing business who are residents or non-residents of Vietnam (hereinafter collectively referred to as Foreign Contractors, Foreign Subcontractors) doing business in Vietnam or having income arising in Vietnam based on contracts, agreements, or commitments between Foreign Contractors and Vietnamese organizations or individuals, or between Foreign Contractors and Foreign Subcontractors to perform part of the work of the contractor contract.

2. Foreign organizations and individuals supplying goods in Vietnam in the form of on-the-spot import and export and having income arising in Vietnam based on contracts signed between foreign organizations or individuals and enterprises in Vietnam (except for cases of processing and returning goods to foreign organizations or individuals) or distributing goods in Vietnam or supplying goods under delivery conditions of international commercial terms (Incoterms) where the seller bears the risk related to the goods until they arrive in Vietnam.

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Thus, the subjects required to pay foreign contractor tax are:

- Foreign organizations or individuals doing business with or without a permanent establishment in Vietnam.- Foreign organizations and individuals supplying goods in Vietnam in the form of on-the-spot import and export and having income arising in Vietnam based on contracts or distributing goods in Vietnam or supplying goods under delivery conditions of international commercial terms - Incoterms.- Foreign organizations and individuals performing part or all of the business activities of distributing goods, providing services in Vietnam.- Foreign organizations and individuals through Vietnamese organizations or individuals to negotiate, sign contracts in the name of the foreign organizations or individuals.- Foreign organizations and individuals exercising export rights, import rights, and distribution in the Vietnamese market, purchasing goods for export, selling goods to Vietnamese traders under commercial law.

Who is exempt from foreign contractor tax?

According to Article 2 of Circular 103/2014/TT-BTC, foreign contractor tax does not apply to the following subjects:

[1] Foreign organizations and foreign individuals doing business in Vietnam according to the provisions of the Investment Law 2020, Law on Credit Institutions 2010.

[2] Foreign organizations and individuals supplying goods to Vietnamese organizations and individuals without accompanying services performed in Vietnam in the following forms:

- Delivery at a foreign border gate: The seller bears all responsibilities, costs, and risks related to the export and delivery of goods at the foreign border gate. The buyer bears all responsibilities, costs, and risks related to receiving the goods, transporting the goods from the foreign border gate to Vietnam.(Even in cases of delivery at the foreign border gate with warranty clauses being the responsibility and obligation of the seller).

- Delivery at a Vietnamese border gate: The seller bears all responsibilities, costs, and risks related to goods until the point of delivery at the Vietnamese border gate. The buyer bears all responsibilities, costs, and risks related to receiving the goods, transporting the goods from the Vietnamese border gate.(Even in cases of delivery at the Vietnamese border gate with warranty clauses being the responsibility and obligation of the seller).

[3] Foreign organizations and individuals having income from services provided and consumed outside Vietnam.

[4] Foreign organizations and individuals providing the following services to Vietnamese organizations and individuals with services being performed outside Vietnam.

[5] Foreign organizations and individuals using bonded warehouses, inland clearance depots (ICD) as goods warehouses to support international transportation, transit, transshipment, storage of goods, or for other enterprises to process.

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