Tiếng Việt- 1 Circular no. 05/2005/TT-BTC of January 11, 2005 guiding the tax regime applicable to foreign organizations without vietnamese legal person status and foreign individuals doing business or earning incomes in Vietnam
- 2 Circular No. 32/2007/TT-BTC of April 09, 2007 on value added tax providing guidelines for implementation of decrees of The Government 148-2004-Nd-Cp dated 23 July 2004 and 156-2005-ND-CP dated 15 December 2005 implementing the law on value added tax and the law on amendments to The Law On Value Added Tax
- 3 Circular No. 120/2003/TT-BTC of December 12, 2003, guiding the implementation of the Government’s Decree No. 158/2003/ND-CP of December 10, 2003 detailing the implementation of the value added Tax Law and the Law amending and supplementing a number of articles of the value added Tax Law
- 4 Circular No. 16/1999/TT-BTC of February 04, 1999, guiding the freight tax on goods transportation by sea-going ships of foreign transport firms that enter Vietnam to conduct transport business activities
| THE MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIET NAM |
| No. 4576/TCT-CS | Hanoi, November 02, 2007 |
OFFICIAL LETTER
ON TAX POLICIES TOWARD INTERNATIONAL CARGO TRANSPORT AND FORWARDING SERVICES
To: The Tax Department of Ho Chi Minh City
In reply to Official Letters No. 9853/CT-TTHT of September 11, 2007, and No. 9844/CT-TTHT of October 2, 2007, of the Tax Department of Ho Chi Minh City on tax policies towards foreign contractors providing international cargo transport services, the General Department of Taxation gives the following opinions:
According to the provisions of Point 23, Section II, Part A of Circular No. 120/2003/TT-BTC of December 12, 2003, and Point 1.23, Section II, Part A of the Finance Ministry’s Circular No. 32/2007/TT-BTC of April 9, 2007, providing guidance on value added tax (VAT), international transport services are not subject to VAT.
According to the provisions of the Finance Ministry’s Circular No. 05/2005/TT-BTC of January 11, 2005, guiding tax regimes applicable to foreign organizations without the legal status in Vietnam and foreign individuals doing business or having income generated in Vietnam, foreign organizations and individuals doing business without presence in Vietnam and having income generated in Vietnam must pay taxes.
Pursuant to the Finance Ministry’s Circular No. 16/1999/TT-BTC of February 2, 1999, guiding the freight tax on shipping activities of foreign transport companies conducting transport business in Vietnam.
In case foreign companies, directly or through their Vietnam-based agents, provide services of sea or air cargo transport and forwarding from Vietnam to foreign countries, turnovers from these services are not subject to VAT. They shall pay business income tax (BIT) on turnover from international cargo transport and forwarding under the above Circular No. 05/2005/TT-BTC. As the turnover from international transport is subject to freight tax (for international sea transport under Circular No. 16/1999/TT-BTC) or VAT and BIT (for international air transport under Circular No. 05/2005/TT-BTC), the turnover used for calculation of BIT in this case does not cover international transport freight payable to carriers. Foreign companies and their Vietnam-based agencies shall supply vouchers proving freight amounts paid to carriers. Otherwise, their taxable income will include all freight amounts collected from customers.
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Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
Regarding tax policies towards cargo delivery, forwarding and storage applicable to postal express services, the General Department of Taxation issued Official Letter No. 4853/TCT-PCCS of December 21, 2006, which provides guidance in accordance with Circular No. 05/2005/TT-BTC of January 11, 2005, and applies as from the effective date of Circular No. 05/2005/TT-BTC.
The General Department of Taxation gives this reply to the Tax Department of Ho Chi Minh City for information and compliance.
FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR
Pham Duy Khuong
- 1 Circular No. 32/2007/TT-BTC of April 09, 2007 on value added tax providing guidelines for implementation of decrees of The Government 148-2004-Nd-Cp dated 23 July 2004 and 156-2005-ND-CP dated 15 December 2005 implementing the law on value added tax and the law on amendments to The Law On Value Added Tax
- 2 Circular no. 05/2005/TT-BTC of January 11, 2005 guiding the tax regime applicable to foreign organizations without vietnamese legal person status and foreign individuals doing business or earning incomes in Vietnam