Official Dispatch No. 18224/CTBDU-TTHT dated December 2, 2022 of the Tax Department of Binh Duong Province guiding the declaration of License tax for representative offices
Accordingly, the Tax Department shall guide the case that the representative office of the Company does not have production and business activities of goods and services, it is not required to declare and pay license tax. Conversely, if trading goods, services, the representative office must pay license tax according to the provisions of law.
However, kindly taking a note that, in practice, if the Representative office conducts one of the following activities, it may be required by the local tax authorities to pay the license tax:
- Support the Company in negotiating and signing contracts with customers.
- Support the Company in after-sales activities for customers.
- Partial support at the sales stage, providing services to customers.
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