Vietnam Clarifies Foreign Contractor Tax for Online Advertising Services

Vietnam's Ministry of Finance has issued Tax Policy Letter No. 2501/TCT-CS of 21 June 2019, which addresses questions on the Foreign Contractor Tax (FCT) policy in relation to advertising services provided by foreign contractors such as Facebook, Google, and YouTube without a presence in Vietnam.

The letter includes that pursuant to regulations, where a Vietnam company uses such advertising services from a foreign contractor without a presence in Vietnam, the company is obligated to declare…