Uni 16-10-2013 – Guidance on FCT finalization

According to official letter No.7410/CT-TTHT:

• In case, an enterprise signs a contract with a foreign organization or a foreign individual (foreign contractor), if the foreign contractor pays tax under the direct VAT method to VAT, CIT under the percentage ratio to revenue, within 45 days as from the date of contract termination, the enterprise must declare FCT finalization.
• If the finalization declaration is later than the regulations, the tax administration violation penalty will be applied under Circular No.61/2007/TT-BTC