Taxes - License fees for representative offices

A representative office is a dependent unit of the enterprise, tasked with authorized representation for the interests of the business and protecting those interests. excise tax by representative office

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Organization and operation of the representative office in accordance with the law

Based on the following provisions:

  • In Article 4 of the Law on Value Added Tax No. 13/2008 / QH12 dated June 03, 06:

"Article 4. Taxpayers

Value-added tax payers are organizations and individuals that produce and trade in goods and services subject to value-added tax (hereinafter referred to as business establishments) and organizations and individuals that import goods. value added tax (hereinafter referred to as importer). "

  • In Clause 1, Article 2 of the Law on Enterprise Income Tax No. 14/2008 / QH12 dated June 03, 06:

"Article 2. Taxpayers

1. Enterprise income tax payers are organizations engaged in production and trading of goods and services with taxable incomes according to the provisions of this Law."

  • At Clause 6 Article 2 Decree No. 139/2016 / ND-CP dated October 04, 10 of the Government stipulating licensing fees:

"License payers are organizations and individuals engaged in goods production and trading and / or service provision activities, except for the cases specified 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). "

  • In Clause 1a, 6 Article 24 of the Ministry of Finance's Circular No. 111/2013 / TT-BTC of August 15, 08, guiding personal income tax (PIT):

"Article 24. Dătax registration

  1. Subjects subject to tax registration

According to Article 27 of Decree No. 65/2013 / ND-CP, đstinkItems subject to personal income tax registration include:

  1. a) Income-paying organizations and individuals include:

...

a.6) Project management boards judgment, Representative offices of foreign organizations. "

  • At Article 25 Circular No. 111/2013 / TT-BTC stipulating the organization's responsibility to withhold PIT for paying taxable incomes before paying income.
  • At Clause 2c Article 5 The Ministry of Finance's Circular No. 95/2016 / TT-BTC of June 28, 06, guiding the tax registration providing for tax identification numbers in a number of specific cases:

"C) Issuing tax identification numbers to enterprises, economic organizations, other organizations and individualsáto withhold and pay taxes on behalf of foreign contractors and subcontractors; organizations and individuals được tax authority authorized to collect; organizations submit on behalf of individuals contracts, business cooperation (hereinafter referred to as tax code paid on behalf) ”.

Conclusion on Taxes and License Fees of Representative Offices

In case the Representative Office only conducts transactions and trade promotion, does not engage in goods production and trading activities, it is not required to pay license fees.

Refer to the following dispatch:

Official Letter No. 1200 / BTC-TCT, guiding the tax policies of representative offices as follows:

Official Letter No. 658 / TCT-CS dated February 28, 2 on licensing fees:

excise tax by representative office



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