Oil and gas prospection, exploration and exploitation activities; e-commerce business, digital-based business and other services of overseas suppliers... are subject to tax declaration and tax payment in freely convertible foreign currencies as prescribed in Circular 80/2021/TT-BTC of Vietnam
Article table of contents
Instructions for tax return and tax payment in foreign currencies (Illustration image)
Specifically, in Clause 1, Article 4 of Circular 80/2021 of Vietnam, cases of tax declaration and payment in freely convertible foreign currencies include:
(1) Petroleum exploration and extraction (except crude oil, condensate, natural gas for sale in Vietnam or otherwise prescribed by the Government), including:
- Resource royalty
- Corporate income tax (CIT)
- Surcharges on distributable surplus of oil in case of increase in crude oil price
- Profit on oil and gas distributed to the host country;
- CIT on income from transfer of right to participate in petroleum contracts;
- Special taxes, surcharges and CIT on retained oil surplus of Vietsovpetro JV in block 09.1 that are declared and paid to state budget using convertible foreign currencies.
Then, declare and pay to the state budget in a freely convertible foreign currency used in payment transactions.
(2) Fees, charges and other amounts collected by diplomatic missions of the Socialist Republic of Vietnam.
Declared and paid to state budget using the foreign currencies prescribed in the documents on fees, charges and other amounts.
(3) Fees and charges that may be collected in foreign currencies by agencies and organizations in Vietnam:
Declared and paid to state budget using the foreign currencies prescribed in the documents on fees and charges.
(4) E-commerce, digital platform-based business and other services provided by overseas suppliers without permanent establishments in Vietnam:
Declared and paid to state budget using convertible foreign currencies.
Actual exchange rates shall comply with accounting laws of Vietnam
Circular 80/2021/TT-BTC of Vietnam takes effect from January 1, 2022. Besides, Tax registration, declaration and payment for overseas suppliers specified in Articles 76, 77, Article 78 and Article 79 of this Circular shall be effected from the time of notification of The General Department of Taxation of Vietnam on the system of tax registration, declaration and payment of overseas suppliers on the portal comes into operation.
Bao Ngoc
