Q&A: Withholding tax in Vietnam

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Withholding tax in Vietnam

Q: What does the term “Withholding tax” mean in practice?  I.e. which are the consequences of this?

A: Withholding tax in practice shall mean Corporate Income Tax and Value Added Tax applicable to foreign company not having representation in Vietnam.

For real estate management service, the VAT applicable to foreign company not having representation in Vietnam shall be 2%; and the Corporate Income Tax shall be 10%.