Tax accounting for foreign representative offices

Posted on 10/07/202110/07/2021 by admin

According to the provisions of Clause 2, Article 16 of the 2005 Commercial Law, foreign traders have the right to set up representative offices in Vietnam. However, representative offices may only carry out trade promotion activities without conducting direct profitable activities in Vietnam; therefore, the tax obligations of a foreign representative office are narrower than those of a company. According to Clause 3, Article 17 of the 2005 Commercial Law, representative offices have the right to recruit Vietnamese or foreign workers to work in offices and this is also the only basis for giving birth to tax obligations of foreign representative offices.

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Luat VN tax agent provides tax accounting services to foreign representative offices according to the following contents:

Advising on tax matters related to the operation of foreign representative offices in Vietnam;
Advising on matters related to labor contracts; work permits and temporary residence cards for foreign employees working at foreign representative offices in Vietnam;
Advising on the development of salary, bonus, welfare, social insurance and health insurance benefits for employees working at foreign representative offices in Vietnam;
Tax declaration and final settlement representatives for foreign representative offices in Vietnam;
Making payroll, declaring and submitting PIT deduction declarations monthly or quarterly;
Making cash fund books, reviewing bank account statements with actual expenditures of representative office;

Declare and submit social insurance to the representative office by month;
Declaring and submitting the annual PIT finalization declaration to the representative office;
Make a letter confirming income and pit deduction documents for employees of the Representative Office;
Make annual report (year) to the Department of Industry and Trade.
Foreign representative offices with difficulties in tax declaration and procedures please contact Luat VN Tax Agent for the most quick, timely and accurate package tax accounting service support!