Warning about foreign contractor tax violations

Foreign contractor tax (NTNN) is a tax applied to foreign contractors who do not have a permanent establishment in Vietnam but earn income in Vietnam.

According to aggregated data, many corporations, project management boards, … especially foreign-invested enterprises have made mistakes in contractor tax and have been arrears and fined tens of billions tax currency.

Some of the errors may include:

• Failing to declare or incorrectly declare tax paid on behalf of foreign contractors when generating taxable services for investment in new production lines; Import of machinery and equipment with warranty service, installation and trial run.
• Borrow capital from foreign enterprises and pay interest but do not declare contractor tax.
• Taxes paid on behalf of foreign contractors have not been fully declared for contractor-related expenses such as accommodation, travel and related services.
• Failure to declare tax paid on behalf of the contractor for the cost of transportation, installation and accompanying services when selling machinery and equipment paid to foreign contractors or false declaration of tax rates for industries as prescribed .
• Failing to declare and pay contractor tax on behalf of contractors when there are contracts with foreign contractors for the reason of applying tax agreements, but in fact there are not enough documents and documents to prove that such agreements are applied. determined.
• There are declarations and payments but incomplete, incorrect declarations, lack of arising tax obligations.

As a difficult tax, the Foreign Contractor Tax always causes many businesses and accountants to worry.

To avoid unnecessary risks, many customers have come to Vision for advice and authorization to declare and pay taxes.

With many years of experience in the field, Vision Tax Accountant will help your business stand firm on a durable foundation with a typical service chain:

• Full tax accounting
• VAT refund
• Establishment of a business
  ….