Official Dispatch No. 4666/TCT-CS dated October 23, 2023 of the General Department of Taxation Guiding the determination of contractor tax payment rates
Pursuant to the provisions of Point 1.3, Clause 1, Article 69 of Circular 200/2014/TT-BTC (amended by Clause 3, Article 1 of Circular 53/2016/TT-BTC), for the purpose of recording accounting books, preparing and When presenting financial statements, businesses need to determine whether or not the contract value includes tax in the case of foreign tax payment, to determine the appropriate accounting exchange rate:
- For cases where according to a foreign contractor tax contract, there is a debt receivable of an enterprise in Vietnam, the actual transaction rate is the buying rate of the commercial bank where the enterprise appoints the customer to pay at. transaction time;
- For cases where according to the contract foreign contractor tax is included in the value of assets or expenses purchasedfrom foreign contractors that have not been paid immediately, the actual transaction rate is the selling rate of commercial bank where the enterprise intends to transact at the time of transaction;
- For cases where according to the contract foreign contractor tax is included in the asset value or the expenses purchased from foreign contractors are paid immediately in foreign currency, the actual transaction rate is the buying rateof commercial bank where businesses make payments.
Taxpayers make adjustment declarations in accordance with the regulations in Article 47 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.