The Ministry of Finance issued on 11 January 2005 the Circular No. 05/2005/TT-BTC guiding the taxation applicable to foreign organizations of non-juridical status and individuals carrying out business activities and earning income in Vietnam.
The Ministry of Finance issued on
Foreign organizations and individuals carrying out business activities or earning income in Vietnam shall be liable to pay taxes as in accordance with current taxation regulation, including value added tax (VAT), special consumption tax, corporate income tax (CIT), import tax, export tax, personal income tax subject to high income earners, and other taxes, fees and charges.
Foreign contractors and sub-contractors who apply Vietnamese accountancy regime shall pay VAT under the deduction method and pay CIT on the taxable income calculated by declaration of incomes and costs. Foreign contractors and sub-contractors who do not apply Vietnamese accountancy regime shall pay VAT under direct method and pay CIT calculated by percentage fixed against income.
The Circular comes into effect after 15 days since being published on the Official Gazette and substitutes to Circulars No. 169/1998/TT-BTC dated
(Source: Ministry of Finance)
