How is contractor tax calculated ? Let’s read the article below with MISA meInvoice to better understand the concept of contractor tax as well as how to calculate contractor tax according to different methods.Table of Contents Hide
1. What is contractor tax?
What is the concept of contractor tax?
Types of taxes contractors must pay
2. Subjects subject to contractor tax
3. Contractor tax rate
3.1. Contractor tax rate for CIT
3.2. Contractor tax rate for VAT
4. Detailed instructions on how to calculate contractor tax
Method 1. Calculate contractor. Tax by declaration method.
Method 2. Calculate contractor. Tax by direct method.
Method 3.how to calculate contractor. Tax based on net and gross prices.
5. Answers to some japan telegram data questions about contractor tax
When does contractor tax arise?
Deadline for paying contractor tax?
How to pay contractor tax?
6. Conclusion
1. What is contractor tax?
What is the concept of contractor tax?
Contractor tax is understood as a type of tax applied to foreign contractors and foreign subcontractors
when doing business or having income in Vietnam.
In there:
Foreign contractor: An organiz the innovator’s dilemma ation established under foreign law or an individual of foreign nationality job data participating in the bidding. (According to the provisions of Clause 29, Article 4 of the Law on Bidding 2023).
Foreign subcontractor: Is a contractor participating in the implementation of a bid package under a contract signed with the main contractor. According to Clause 2, Article 3 of Circular 103/2014/TT-BTC , foreign subcontractors belong to the group of subcontractors.
Types of taxes contractors must pay
Pursuant to the provisions of Clauses 1, 2, 3, Article 5 of Circular 103/2014/TT-BTC, the types of taxes
applicable to contractor tax include
Foreign contractors and foreign subcontractors are business organizations: Must fulfill value added tax (VAT) and corporate income tax (CIT) obligations according to the instructions in Circular 103/2014.
Foreign contractors and foreign subcontractors who are foreign individuals doing business: Must fulfill VAT obligations according to the instructions in Circular 103, personal income tax (PIT) according to the law on PIT.
For other taxes, fees and charges, foreign Contractors and foreign Subcontractors shall comply with current legal documents on taxes, fees and other charges.
2. Subjects subject to contractor tax
The subjects that must pay contractor tax and calculate contractor tax are stipulated by law in Articl