What are procedures for tax exemption or reduction under Double Taxation Agreements with foreign contractors operating activities by direct method in Vietnam?
What are procedures for tax exemption or reduction under Double Taxation Agreements with foreign contractors operating activities by direct method in Vietnam? What are regulations on procedures for tax exemption or reduction under Double Taxation Agreements for foreign airlines by direct method in Vietnam? Thankyou.
What are procedures for tax exemption or reduction under Double Taxation Agreements with foreign contractors operating activities by direct method in Vietnam?
Pursuant to Point b.1 Clause 1 Article 62 of Circular 80/2021/TT-BTC providing for procedures for tax exemption or reduction under Double Taxation Agreements with foreign contractors operating activities by direct method as follows:
b) In case direct method is applied:
b.1) For operating activities and other incomes:
b.1.1) Within 15 days before the deadline for tax declaration, the foreign contractor or the Vietnamese party that signs the contract or pays income (hereinafter referred to as "Vietnamese party") to the foreign contractor shall send the supervisory tax authority of the Vietnamese party the application for tax exemption or reduction under the Double Taxation Agreement, which shall contain:
b.1.1.1) The application form No. 01/HTQT in Appendix I hereof;
b.1.1.2) The consular legalized original copy (or authenticated copy) of the residence certificate issued by the tax authority of the country of residence in the year preceding the year in which the eligibility for tax exemption or reduction under the Double Taxation Agreement is notified;
b.1.1.3) Copies of the contract with the organizations and individuals in individual certified by the taxpayer;
b.1.1.4) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.
b.1.2) In case of securities trade without a contract, the taxpayer shall submit the certificate of depository account for shares or bonds certified by the depository bank or the securities company according to Form No. 01/TNKDCK in Appendix I hereof.
b.1.3) Regarding income from capital transfer: The taxpayer shall also submit a copy (bearing the taxpayer's certification) of the capital transfer contract, copy (bearing the taxpayer's certification) of the investment certificate of the Vietnamese company to which the foreign investor contribute capital.
b.1.4) In case the foreign governmental authority earns income eligible for tax exemption according to the loan interest clauses of the Double Taxation Agreement, the taxpayer shall submit a copy (bearing the taxpayer's certification) of the loan contract between the foreign governmental authority and the organization or individual in Vietnam.
b.1.5) In case the taxpayer already submitted the application for tax exemption or reduction under the Double Taxation Agreement in the previous year, the taxpayer only needs to send copies of the new business contracts with Vietnamese and foreign organizations and individuals (if any) that are certified by the taxpayer.
b.1.6) Within 15 days before the expiration of the employment contract in Vietnam or before the end of the tax year, whichever comes first, the foreign contractor shall send the consular legalized original copy (or authenticated copy) of the residence certificate issued by the tax authority of the country in which the taxpayer resides in the tax year to the Vietnamese party. Within 03 working days from the receipt of the residence certificate, the Vietnamese party shall submit it to the tax authority.
b.1.6) In case the residence certificate is still unavailable, the foreign contractor shall make a commitment to send the consular legalized original copy (or authenticated copy) of the residence certificate in the quarter succeeding the end of the tax year.
What are regulations on procedures for tax exemption or reduction under Double Taxation Agreements for foreign airlines by direct method in Vietnam?
Pursuant to Point b.2 Clause 1 Article 62 of Circular 80/2021/TT-BTC on procedures for tax exemption or reduction under Double Taxation Agreements for foreign airlines by direct method as follows:
b.2) For foreign airlines:
b.2.1) Within 15 days before operation of the flight market or before the first tax period of the year, whichever comes first, the office in Vietnam of the foreign airline shall send the tax authority an application for tax exemption or reduction under the Double Taxation Agreement, which shall contain:
b.2.1.1) The application form No. 01/HTQT in Appendix I hereof;
b.2.1.2) The consular legalized original copy (or authenticated copy) of the residence certificate issued by the tax authority of the country of residence in the year preceding the year in which the eligibility for tax exemption or reduction under the Double Taxation Agreement is notified;
b.2.1.3) Copy of the flight permit which is issued by Civil Aviation Administration of Vietnam in accordance with the Law on Civil aviation and certified by the taxpayer;
b.2.1.4) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.
b.2.2) IN case the taxpayer already submitted the application for tax exemption or reduction under the Double Taxation Agreement in the previous year, the taxpayer only needs to send the copy of the flight permit.
b.2.3) Within 15 days before the termination of the employment contract in Vietnam or the end of the tax, whichever comes first, the office in Vietnam of the foreign airline shall send the consular legalized residence certificate and the statement of income from international transport in case tickets are sold in Vietnam according to Form No. 01-1/HKNN or Form No. 01-2/HKNN to the tax authority. These are the basis for grant of exemption or reduction of CIT on international transport by the foreign airliner.
Best Regards!
