Vietnam Foreign Contractor Tax | FCT Calculation Tool
You can calculate the FCT from this calculation tool.
In Vietnam, there is a foreign contractor tax (FCT) as a unique taxation system. The taxable object isGeneral services such as interest and royalties between parents and children, services related to goods sales, consulting, etc.Is also included. In addition, foreign contractors are not limited to companies, but also individuals.
⇒ Foreign contractor tax (FCT) tax rate
⇒ Foreign contractor tax (FCT) calculation tool
Overview of Foreign Contractor Tax (FCT)
| Overview of Foreign Contractor Tax (FCT) | |
|---|---|
| What is foreign contractor tax? | Foreign contractors (individuals / corporations outside Vietnam) provide services to individuals / corporations in VietnamTaxes that will be levied if you do |
| Taxable | Applicable service transactions (see service list below) |
| Tax payment time | Principle: For taxable servicesWithin 10 days from the payment date(Each time) Exception: Monthly (requires approval from tax authorities) |
| Taxpayer | Principle: Foreign contractor Exception: Service recipient ⇒ Usually, the local corporation pays the tax on behalf of the foreign contractor |
| Payer | Individuals / corporations (organizations) receiving services in Vietnam |
| important point | ・Taxes that are prone to tax omissions ・ It is a tax borne by the service provider to the last, and sufficient explanation is required for unfamiliar Japanese companies. ・ Export Processing Enterprises (EPE) are exempt from VAT tax (similar to others) ・ For transaction detailsProduct sales and XX services, etc., Be careful if the description is included Whether or not a transaction is specifically applicable depends on the monetary importance, but prior confirmation is important. |
Foreign Contractor Tax (FCT) Tax Rate List of Eligible Services
| Industry | Deemed VAT tax rate | Deemed CIT tax rate |
|---|---|---|
| Sale of goods with services | - | 1% |
| General services, machinery and equipment leasing, insurance services | 5% | 5% |
| Restaurant / hotel / casino management service | 5% | 10% |
| Derivative transactions | - | 2% |
| Leasing of aircraft, aircraft engines, aircraft parts, and ships | 5% | 2% |
| Construction / installation (without supply of materials / machinery / equipment) | 5% | 2% |
| Construction / installation (with supply of materials / machinery), transportation services | 3% | 2% |
| Other businesses | 2% | 2% |
| Transfer of securities, reinsurance overseas, reinsurance fee | - | 0.10% |
| interest | - | 5% |
| royalty | - | 10% |
Foreign contractor tax (FCT) filing and tax payment method
The reason why foreign-affiliated companies choose the direct method is that it is deemed taxation, and the side receiving the service declares and pays the tax on behalf of the foreign contractor.
The filing deadline is from the occurrence of FCT taxable transactionsWithin 10 daysIt is necessary to file and pay tax. Even after the contract endsWithin 45 daysYou must file and pay tax. As with a local corporation, you also need to obtain a tax code.
If you don't know what to apply, or if you have any questions about how to file a tax return or pay taxes, feel free to contact us.To AACS,Please contact me.
Foreign Contractor Tax (FCT) Calculation Tool
We have set up a calculation tool for foreign contractor tax, which is difficult to understand.
The calculation tool assumes that the foreign contractor bears the foreign contract tax, keeping in mind the direct method of the calculation method often used by foreign-affiliated companies.
result
Consulting contract: 200 million VND (about 1 million yen)
FCT tax amount: 19.5 million VND (about 100,000 yen)
* * * * Please enter a numerical value in the skin color item on the following calculation sheet * * * *
* * * * Yellow items are the calculation results * * * *
Disclaimer
* This is a simple calculation system, and we are not responsible for the calculation results.
Please be sure to consult the accounting office for details.
AACS Accounting Office provides useful information about Vietnam's taxes. AACS Accounting OfficeThere are 8 bases all over Vietnam, and we cooperate with the tax authorities in each region to support smooth accounting audits and tax affairs.To do.