OFFICIAL LETTER NO. 302/TCT-CS DATED 17/01/2025 FROM THE GENERAL DEPARTMENT OF TAXATION PROVIDING GUIDANCE ON FOREIGN CONTRACTOR TAX POLICY

On January 17, 2025, the General Department of Taxation issued Official Letter No. 302/TCT-CS providing guidance on foreign contractor tax policy as follows:

In cases where a contract for the supply of goods is signed between the Vietnamese party and the foreign contractor under DDU and DAP delivery terms, where the seller is responsible for transporting the goods to the delivery location specified by the buyer, and the contract does not include any services in Vietnam such as installation, testing, warranty, maintenance, etc. (including free accompanying services), the contract is subject to value-added tax on goods at the import stage and applies a corporate income tax rate of 1% calculated on taxable revenue.