FCT policy on service contract implemented in foreign countries


On October 9th, 2019, General Department of Taxation has issued Official Letter No. 4102/TCT-CS as guidance on Foreign contractor tax (FCT) policy on service contract of advertising and marketing activities implemented in foreign countries. Accordingly,

In case the Company engages in a service contract with foreign residents to carry out investment and trade promotion, including research, market reporting, customer search, advertising, and marketing for products in foreign markets (except for online advertising and online marketing) are not subjected to Circular No. 103/2014/TT-BTC. 

The Company should prepare supporting documents for activities of advertising, marketing, investing and trade promotion in foreign markets to serve the Company’s production and business activities, namely: Service contract signed with foreign residents; Report on the results of research, market research, customer search, advertising and marketing for products in foreign markets in accordance with the terms of the signed contract; Payment documents for foreign residents and other supporting documents.