A representative office is a subsidiary unit of a business, tasked with representing the business's interests and protecting those interests under authorization. Business license tax for representative offices
The organization and operation of representative offices are governed by law.
Based on the following regulations:
- Article 4 of the Value Added Tax Law No. 13/2008/QH12 dated June 3, 2008 stipulates:
"Article 4. Taxpayers
Value-added tax payers are organizations and individuals producing and trading goods and services subject to value-added tax (hereinafter referred to as business establishments) and organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).
- Clause 1, Article 2 of the Corporate Income Tax Law No. 14/2008/QH12 dated June 3, 2008 stipulates:
"Article 2. Taxpayers
1. Corporate income tax payers are organizations engaged in the production and business of goods and services that generate taxable income as stipulated in this Law."
- In Clause 6 Article 2 Government Decree No. 139/2016/ND-CP dated October 4, 2016, stipulates the following regarding business license fees:
“The payers of business license fees are organizations and individuals engaged in the production and business of goods and services, except for cases stipulated in Article 3 of this Decree, including: …
6. Branches, representative offices, and business locations of organizations specified in Clauses 1, 2, 3, 4, and 5 of this Article (if any).”
- Clause 1a, Article 6 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, guiding personal income tax (PIT), stipulates:
"Article 24. Dătax registration
- Those required to register for tax
According to the provisions of Article 27 of Decree No. 65/2013/ND-CP,stinkIndividuals required to register for personal income tax include:
- a) Organizations and individuals paying income include:
...
a.6) Project Management Boards judgment"Representative offices of foreign organizations."
- At Article 25 Circular No. 111/2013/TT-BTC stipulates the responsibility of organizations paying taxable income to deduct personal income tax before paying the income.
- In section 2c Article 5 Circular No. 95/2016/TT-BTC dated June 28, 2016, issued by the Ministry of Finance, provides guidance on tax registration and stipulates the issuance of tax identification numbers in certain specific cases:
"c) Issuing tax identification numbers to businesses, economic organizations, other organizations, and individuals with tax identification numbers."áResponsible for withholding and remitting taxes on behalf of foreign contractors and subcontractors; organizations and individuals được Authorized tax authorities; organizations paying on behalf of individuals under contract., business cooperation (hereinafter referred to as the substitute tax code).
Conclusion regarding Taxes and Business License Fees for Representative Offices
If the representative office only conducts transactions and promotes trade, and does not engage in the production or trading of goods, it is not required to pay business license fees.
Please refer to the following documents for further information:
Official document No. 1200/BTC-TCT provides guidance on tax policies for representative offices as follows:
Official document No. 658/TCT-CS dated February 28, 2017, regarding business license fees:
Business license tax for representative offices
