|Tax code for representative office|
Is a representative office required to register for its tax code? And if yes, is the representative office to file its tax report at local tax authority?
A representative office must obtain a tax code. The RO is not required to submit the corporate income tax report nor to maintain its bookkeeping system in accordance with the current Vietnamese regulations. However, the RO has to record and maintain its bank and cashbook to justify the purpose of cash in-flows from foreign holding company to Vietnam. The RO has to calculate tax deduction, tax declaration and tax payment for personal income tax (PIT) and foreign contractor tax (FCT) while making the cash/ bank disbursement for salary, bonus and service fees. The RO can, however, produce internal financial statements as required by its holding company.