Official letter 5971/CTTBI-TTHT about tax policy of FCT as follows:
In case, the Company pays the brokerage commission for selling goods abroad to a foreign organization or individual, if the brokerage is performed in a foreign country, the brokerage commission will be paid by the organization or individual. Foreign employees are not subject to the application of FCT; In this case, the income of non-resident foreigners in this case is determined as income earned outside Vietnam, the Company is not required to withhold PIT when paying brokerage commissions. In case this brokerage is partially or wholly performed in Vietnam or the contract / contractual agreement cannot determine whether the service is to be performed inside or outside Vietnam; If the specific job cannot be determined, it will be subject to the contractor tax / PIT according to the provisions of Circular No. 103/2014 / TT-BTC and Circular 111/2013 / TT-BTC.
