Vietnamese Regulations On Foreign Contractor Tax

Vietnamese regulations on foreign contractor tax are primarily governed by the Tax Law and related implementing guidelines. Here are some important points regarding foreign contractor tax in Vietnam.

Foreign contractor tax is imposed on individuals or foreign organizations when they earn income from providing services or supplying goods in Vietnam. Foreign contractors are classified as follows:

• For foreign organizations, according to Article 5, Clause 1 of Circular 103/2014/TT-BTC, foreign contractors, foreign subcontractors are business entities that are subject to value-added tax (VAT) and corporate income tax (CIT) as guided by Circular 103.
• For individuals, according to Article 5, Clause 2 of Circular 103, foreign contractors, foreign subcontractors are foreign individuals conducting business subject to VAT as guided by this Circular and personal income tax (PIT) as per the regulations on PIT.