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VAT on Income of Foreign Contractors from Transfer of Trademark-use Rights

Global Tax Update:November 2015/Vietnam

Hanoi Department of Taxation (“HDT”) and Ho Chi Minh Department of Taxation (“HCMDT”) have issued a number of Official Letters (“OL”) guiding VAT liability on income of foreign contractors from the transfer of trademark-use rights (OL No. 3159/CT-TTHT dated 15 April 2015 and OL No. 53638/CT-HTr dated 14 August 2015). (Global Tax Update: November 2015/Vietnam)

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According to the guidance in these OLs, the transfer of brand name/ trademark-use rights (not a permanent transfer, not a transfer of intellectual property rights in accordance with the Law on Intellectual Property) should be subject to Vietnamese Foreign Contractor Witholding Tax (“FCWT”) at the VAT rate of 5%.

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>> Click for Japanese [外国契約者の商標使用権移転に係る所得に対するVAT]

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