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Vietsourcing is a professional service provider in Accounting - Tax Consulting - Finance - Training - Human Resources.
Services for Representative Office operation includes:
PIT Consulting Service:
- PIT code registration
- PIT declaration and finalization
- PIT planning & consulting
FCT Consulting Service:
- Foreign Contractor code registration
- FCT declaration and finalization
Accounting service for the Representative Office and Foreign Holding Company 's partners currently operate in Vietnam:
- Book keeping
- Book keeping review and financial statements preparation
Payroll Service:
- Social insurance code registration
- Payroll system management
SOME COMMON INTERESTED ENQUIRIES
Question 1: Does the Representative Office have a Tax Code? And if yes, Is the Representative Office to submit Tax Report to local Tax Department?
A Representative Office must obtain a Tax Code. The Representative Office is not to s ubmit the Corporate Income Tax Report or maintain book keeping system in accordance with the current Vietnamese regulations. However the Representative Office has to record and maintain bankbook and cashbook to justify the purpose of cash in-flows from foreign holding company to Vietnam. The Representative Office has to calculate tax deduction, tax declaration and tax payment for Personal Income Tax (PIT) and Foreign Contractor Tax (FCT) while making the cash/ bank disbursement for salary, bonus and service fees. The Representative Office still can make internal financial statements as required by its holding company.
Question 2: ABC company, that located in Australia, opens a Representative Office in Vietnam. ABC Company is a foreign contractor who signed a consulting & engineering supervision contract with HCMC Urban Management Committee. In this case, is ABC company considered as a legal entity in Vietnam? And can the Representative Office of ABC company pay FCT in accordance with the FCT regulation on the contractor that does not comply with Vietnamese accounting system?
Self tax registration, self tax compliance, self tax finalization of foreign contractor are to be accomplished just incase they have a managing office in Vietnam. Representative Office is a foreign organization that is not a legal entity in Vietnam, can not do business, so it can not register, pay or finalize tax obligation for FCT.
Question 3: Mrs. A works for a Representative Office of a Singapore company. In 2009, Mrs. A takes maternity leaves of 4 months and receives an allowance from social insurance fund for that period. Is this allowance subjected to PIT deduction?
Pursuant to PIT code, section 2b, article 3, this allowance is regulated by maternity policy stated in Social Insurance Code (including allowance for salary and baby). This allowance is tax-free. In summary, Mrs. A only has to pay PIT for the remaining 8 months (in case Mrs. A doesn't work for any other employers)
Question 4: Mr. X (has an PIT Code already) is the chief representative of ABC's Representative Office. The Representative Office is implementing tax compliance such as deduction, declaration and payment for taxable income of Mr. X. However Mr. X prefer to pay PIT himself instead of paying via Representative Office. Is this acceptable?
In accordance with PIT regulations, income from salary, wages must be the deductible one so that salary, wages of Mr. X, as chief representative, has to be monthly deducted, reported and monthly paid off (tentative payment that is subject to be finalized at year end) by Representative Office. At year end, Mr. X has two options either to do the PIT finalization by himself or authorize the Representative Office to do it.
Please register on website at both Hanoi and Ho Chi Minh city address, if you would like to receive a bulletin board service or propose to use our service:
Vietsourcing Business Services Co.,Ltd
Level 6, 57 Quang Trung Str, Hai Ba Trung Dist., Hanoi City
Tel: +84 43 3944 6456
Fax: +84 43 3944 6455
E-mail:
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Suite 601, Phoenix Building, 13-13 Bis Ky Dong Str., Ward 9, Dist. 3, HCM City
Tel: +84 83 932 0248
Fax: +84 83 932 0249
E-mail:
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