supports FTC
related services<\/a><\/li>\n<\/ul>\n
What is Foreign Contractor Tax?<\/h3>\n\nForeign Contractor Tax or Foreign Contractor Withholding Tax –
abbreviated as FCT, FCWT, is a tax applied when foreign legal entities provide services to a Vietnamese legal entities.
\nIn other words , it’s the tax that applies to the expenses payable by Vietnamese legal entity
(not the revenue\/profit of the Vietnamese legal entity). The taxable party can be a foreign legal entity or a Vietnamese legal entity,
it’s depending on the provisions of the contract. However, taxpayer must be a Vietnamese legal entity.<\/p>\n
\n![\"Subjects](\"https:\/\/www.i-glocal.com\/wp-content\/themes\/igl\/images\/tax_img01_en.jpg\")
<\/dt>\n- \u203b Either party can bear the tax.<\/dd>\n<\/dl>\n<\/section>\n
Tax<\/h3>\n\nFCT includes 2 types of taxes – Value Added Tax (VAT) and Corporate Income Tax (CIT), each tax have difference<\/p>\n
\n\n\nContent<\/th>\n VAT
(\uff05)<\/span><\/th>\n CIT
(\uff05)<\/span><\/th>\n<\/tr>\n<\/thead>\n\n\nProduct trading with services, exporting on the spot<\/td>\n Tax Exemption<\/td>\n 1<\/td>\n<\/tr>\n \nConstruction, installation which does not include bidding for materials or machinery and equipment<\/td>\n 5<\/td>\n 2<\/td>\n<\/tr>\n \nConstruction, installation which is including materials or machinery and equipment; transportation services, production<\/td>\n 3<\/td>\n 2<\/td>\n<\/tr>\n \nGeneral services, equipment rental<\/td>\n 5<\/td>\n 5<\/td>\n<\/tr>\n \nInterest rate<\/td>\n Tax Exemption<\/td>\n 5<\/td>\n<\/tr>\n \nCopyright fee<\/td>\n Tax Exemption<\/td>\n 10<\/td>\n<\/tr>\n \nCopyright fee management services for the trademark use ; restaurant , hotel, casino management services<\/td>\n 5<\/td>\n 10<\/td>\n<\/tr>\n \nSecurities transfer, reinsurance<\/td>\n Tax Exemption<\/td>\n 0.1<\/td>\n<\/tr>\n \nDerivative financial products<\/td>\n Tax Exemption<\/td>\n 2<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/section>\nThe reason why FCT
is important<\/h3>\n\nFCT is only in Vietnam, so the regulations are difficult to explain.
However, FCT has a big effect on Vietnamese businesses that have transactions with foreign partners, so this tax is quite important.<\/p>\n
\n\n\n- Wide range of taxable objects<\/li>\n
- Contract signed with foreign organization, individual.<\/li>\n
- Many points need to attention on the way specified in the contract<\/li>\n<\/ul>\n
\n- The taxable party is definite in the contract<\/li>\n
- Declare and pay tax within 10 days from the date of payment<\/li>\n
- Easily pointed out as a violation when tax inspection in Vietnam<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
Examples when consulting
on Foreign Contractor Tax<\/h3>\n\nWe provide a wide range of consultations from basic questions to specific cases.<\/p>\n
\n\n- What is FCT?<\/li>\n
- Do all transactions need to be reviewed to check which transactions are subject to contractor tax?<\/li>\n
- Until now we have not filed the FCT, is there any retrospective tax payment during tax inspection?<\/li>\n
- Will tax amount change based on the ways on writing the contract?<\/li>\n
- How is the FCT different from the Japanese withholding tax?<\/li>\n
- If already taxed in Japan, is it possible to avoid being taxed according to the regulation of the agreement to avoid double taxation? Is it possible to deduct taxes paid abroad?<\/li>\n
- Is it true that when sending people to work under a technical support contract, we need to pay both FCT and PIT?<\/li>\n
- FCT is a tax applied on services, so is it taxable when importing equipment items?<\/li>\n
- Is FCT applicable in international trade terms?<\/li>\n<\/ul>\n<\/div>\n<\/section>\n
I-GLOCAL also supports
Foreign Contractor Tax
related services<\/h3>\n\nI-GLOCAL also has a lot of knowledge and practical experience in Foreign Contractor Tax.<\/p>\n
\n- I-GLOCAL is providing Tax – Accounting services for over 1,000 Japanese enterprises currently, we solved problems with a high expertise.
\nBased on practical experiences, I-GLOCAL is confident to support enterprises invest in Vietnam
by the most suitable way to help businesses avoid potential risks or unnecessary taxes.
\nWith a variety of support forms, we will try to support companies to expand investment to Vietnam<\/dt>\n - Consulting on Foreign Contractor Tax is
conducted any time through Annual Consulting Contract!<\/a><\/dd>\n<\/dl>\n<\/section>\n\nFCT related reports<\/p>\n
\n- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Vietnam Foreign Contractor Tax (FCT) Overview and Practical Considerations<\/a><\/dd>\n<\/dl>\n
\n- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Foreign Contractor Tax and Incoterms in Vietnam<\/strong><\/a><\/dd>\n<\/dl>\n
\n- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Main transactions subject to foreign contractor tax in Japanese companies in Vietnam<\/strong><\/a><\/dd>\n<\/dl>\n<\/section>\n
Foreign Contractor Tax or Foreign Contractor Withholding Tax –
abbreviated as FCT, FCWT, is a tax applied when foreign legal entities provide services to a Vietnamese legal entities.
\nIn other words , it’s the tax that applies to the expenses payable by Vietnamese legal entity
(not the revenue\/profit of the Vietnamese legal entity). The taxable party can be a foreign legal entity or a Vietnamese legal entity,
it’s depending on the provisions of the contract. However, taxpayer must be a Vietnamese legal entity.<\/p>\n
- \n
- <\/dt>\n
- \u203b Either party can bear the tax.<\/dd>\n<\/dl>\n<\/section>\n
Tax<\/h3>\n
\n FCT includes 2 types of taxes – Value Added Tax (VAT) and Corporate Income Tax (CIT), each tax have difference<\/p>\n
\n\n
\n Content<\/th>\n VAT
(\uff05)<\/span><\/th>\nCIT
(\uff05)<\/span><\/th>\n<\/tr>\n<\/thead>\n\n\n Product trading with services, exporting on the spot<\/td>\n Tax Exemption<\/td>\n 1<\/td>\n<\/tr>\n \n Construction, installation which does not include bidding for materials or machinery and equipment<\/td>\n 5<\/td>\n 2<\/td>\n<\/tr>\n \n Construction, installation which is including materials or machinery and equipment; transportation services, production<\/td>\n 3<\/td>\n 2<\/td>\n<\/tr>\n \n General services, equipment rental<\/td>\n 5<\/td>\n 5<\/td>\n<\/tr>\n \n Interest rate<\/td>\n Tax Exemption<\/td>\n 5<\/td>\n<\/tr>\n \n Copyright fee<\/td>\n Tax Exemption<\/td>\n 10<\/td>\n<\/tr>\n \n Copyright fee management services for the trademark use ; restaurant , hotel, casino management services<\/td>\n 5<\/td>\n 10<\/td>\n<\/tr>\n \n Securities transfer, reinsurance<\/td>\n Tax Exemption<\/td>\n 0.1<\/td>\n<\/tr>\n \n Derivative financial products<\/td>\n Tax Exemption<\/td>\n 2<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/section>\n The reason why FCT
is important<\/h3>\n\n FCT is only in Vietnam, so the regulations are difficult to explain.
However, FCT has a big effect on Vietnamese businesses that have transactions with foreign partners, so this tax is quite important.<\/p>\n\n\n- \n
- Wide range of taxable objects<\/li>\n
- Contract signed with foreign organization, individual.<\/li>\n
- Many points need to attention on the way specified in the contract<\/li>\n<\/ul>\n
- \n
- The taxable party is definite in the contract<\/li>\n
- Declare and pay tax within 10 days from the date of payment<\/li>\n
- Easily pointed out as a violation when tax inspection in Vietnam<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
Examples when consulting
on Foreign Contractor Tax<\/h3>\n\n We provide a wide range of consultations from basic questions to specific cases.<\/p>\n
\n- \n
- What is FCT?<\/li>\n
- Do all transactions need to be reviewed to check which transactions are subject to contractor tax?<\/li>\n
- Until now we have not filed the FCT, is there any retrospective tax payment during tax inspection?<\/li>\n
- Will tax amount change based on the ways on writing the contract?<\/li>\n
- How is the FCT different from the Japanese withholding tax?<\/li>\n
- If already taxed in Japan, is it possible to avoid being taxed according to the regulation of the agreement to avoid double taxation? Is it possible to deduct taxes paid abroad?<\/li>\n
- Is it true that when sending people to work under a technical support contract, we need to pay both FCT and PIT?<\/li>\n
- FCT is a tax applied on services, so is it taxable when importing equipment items?<\/li>\n
- Is FCT applicable in international trade terms?<\/li>\n<\/ul>\n<\/div>\n<\/section>\n
I-GLOCAL also supports
Foreign Contractor Tax
related services<\/h3>\n\n I-GLOCAL also has a lot of knowledge and practical experience in Foreign Contractor Tax.<\/p>\n
- \n
- I-GLOCAL is providing Tax – Accounting services for over 1,000 Japanese enterprises currently, we solved problems with a high expertise.
\nBased on practical experiences, I-GLOCAL is confident to support enterprises invest in Vietnam
by the most suitable way to help businesses avoid potential risks or unnecessary taxes.
\nWith a variety of support forms, we will try to support companies to expand investment to Vietnam<\/dt>\n - Consulting on Foreign Contractor Tax is
conducted any time through Annual Consulting Contract!<\/a><\/dd>\n<\/dl>\n<\/section>\n\n FCT related reports<\/p>\n
- \n
- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Vietnam Foreign Contractor Tax (FCT) Overview and Practical Considerations<\/a><\/dd>\n<\/dl>\n
- \n
- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Foreign Contractor Tax and Incoterms in Vietnam<\/strong><\/a><\/dd>\n<\/dl>\n
- \n
- I-GLOCAL \u30fbVietnam Report\u3000
\uff5eAccounting and Tax<\/dt>\n - Main transactions subject to foreign contractor tax in Japanese companies in Vietnam<\/strong><\/a><\/dd>\n<\/dl>\n<\/section>\n
- I-GLOCAL \u30fbVietnam Report\u3000
- I-GLOCAL \u30fbVietnam Report\u3000
- I-GLOCAL \u30fbVietnam Report\u3000
- I-GLOCAL is providing Tax – Accounting services for over 1,000 Japanese enterprises currently, we solved problems with a high expertise.