Foreign contractor withholding tax for transfer of rights to use trademark
Global Tax Update:December 2016/Vietnam
Official Letter 15888/BTC-CST ISSUED BY the MINISTRY OF FINANCE DATED 07 November 2016 PROVIDING GUIDANCE ON FOREIGN CONTRACTOR WITHHOLDING TAX (FCWT) ON TRANSFER OF RIGHT TO USE TRADEMARK (Global Tax Update: December 2016/Vietnam)
In the Global Tax Update issued in November 2015, Deloitte Vietnam has updated the guidance of several provincial Tax Offices on 5% withholding VAT applicable to income of foreign contractors from transfer of right to use trademarks. Thereby, Deloitte Vietnam recommends enterprises to consider tax impacts of this issue and make necessary tax adjustments.