Client: Please be informed we have been selected to be the mentioned service provider, and currently under subcontract negotiation with general contractor. We will send all required staff and crew from China. As for the classification of the project, I dont know exactly but it is without any tax exemption privilege.
Further, the proposed company Vietnam is set for partly supporting service to our company in HK and solely for this project. To be specific, our company in VN is proposed to temporarily import D&B vessel from our company in HK, and manage local legal and logistic issues.
Hopefully above mentioned info will be helpful to you to work out the best solution. Thanks.Thank you for your email below. Please find hereinafter our comments:
Lawyer: 1. Governmental Fee for obtaining Contractor Permit shall be 2,000,000VND (about 100USD) and registration of executive office shall be 500,000VND (about 25USD).
2. After registration of the executive office, and during the operation period, the foreign contractor shall pay Corporate Income Tax (CIT) and Value Added Tax (VAT) which are known as Withholding tax. Rate of CIT shall be from 20-22% of the taxable turnover and Rate of VAT shall be from 5-10%. You also have to pay Personal Income Tax for any Employee having taxable income in Vietnam and other kind of Tax such as Import, Export Duty (if you involve with Import and Export) etc.
3. Executive Office is only for managing and carrying out the project as recorded in the Contractor Agreement. Thus, in some way, it does not have actual business activities. We only note that Withholding Tax is imposed on incomes in Vietnam on the basis of contracts, agreements or commitments between foreign contractors and Vietnamese organizations, individuals, or between foreign contractors and foreign sub-contractors to perform a part of the Contractor agreement. Thus, you shall be subjected to Withholding Tax (Corporate Income Tax and Value Added Tax).
