In this legal column,we would like to introduce to you about the concept of ‘Project Office’ (P.O) in Vietnam and how a project office can be levied Corporate Income Tax(CIT) and Value Added Tax(VAT) under the laws.
Project Office is a temporary registered office to carry outconstruction service based on a construction contract signed with a Vietnamese contractor (or a subcontract with a foreign subcontractor), without having to establish a legal entity in Vietnam. In order to finalize establishment of a project office, obtainingapprovals from the Ministry/Department of Construction and related Tax department is required, and apart from the contents of the contract, meeting minimum legal conditions is also necessary. Specifically, the procedures to be taken are obtaining foreign contractor’s permitfrom the Ministry/Department of Construction, registering office at the related Department of Construction, registering tax code at the related tax department and having the P.O seal issued at the related police authority. Although such various conditions exist, P.O can be established comparatively quickly with minimum conditions to carry out business as a recognized ‘fixed business office’. This form of establishment is frequently chosen by majority of foreign construction companies entering into the Vietnamese market. The following is frequently asked enquiries and respective guidance.
1. Conditions to set up a Project Office / Procedures for Establishment/ Period of establishment/ Termination of a Project Office.
2. Tax Payment for the operation of Project Office.
Please click JP_Legal Column_20151103_Guidance on Project Office in Vietnam for more information.
OTHER NEWS ON THE AUSCHAM WEBSITE
In the toolbar of this website, click on “NEWS” for the drop down menu which includes: