In Vietnam, what are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign transport companies in direct method?

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• What are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign transport companies in direct method in Vietnam?
• What are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign reinsurers in direct method in Vietnam?

What are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign transport companies in direct method in Vietnam?

Pursuant to Point b.3, Clause 1, Article 63 of the Circular 80/2021/TT-BTC stipulating procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign transport companies in direct method in Vietnam as follows:

b.3) For foreign transport companies

b.3.1) Upon tax finalization, the foreign transport company or agent thereof shall send the tax authority an application for tax exemption or reduction under the Double Taxation Agreement, which shall contain:

b.3.1.1) The application form No. 01/HTQT in Appendix I hereof;

b.3.1.2) The original copy (or certified copy) of the residence certificate issued by the tax authority of the foreign transport company's home country in the tax year preceding the year in which the application is submitted. The copy must be consular legalized.

b.3.2) The agent or representative office of the foreign transport company shall retain documents in accordance with the Law on Accounting, its elaborating Decrees and the Law on Maritime; present them when requested by tax authorities.

b.3.3) In case the foreign transport company or its agent authorizes a legal representative to follow procedures for application of the Double Taxation Agreement, which shall contain, the original authorization letter shall be included.

b.3.4) At the end of the year, the foreign transport company or its agent shall send the tax authority the residence certificate of the company in the year, which must be consular legalized.

b.3.5) In case the taxpayer already submitted the application for tax exemption or reduction under the Double Taxation Agreement in the previous year, the foreign transport company or its agent only needs to notifications of changes in Form No. 01/HTQT of the previous year and provide supporting documents.

b.3.6) In case the foreign transport company has agents in multiple provinces of Vietnam or the agent of the foreign transport company has branches or representative offices (hereinafter referred to as "branches") in multiple provinces of Vietnam, the foreign transport company or its agent shall submit the consular legalized original copy (or certified copy) of the residence certificate to the Department of Taxation of the province where the agent is headquartered, send consular legalized copies of the residence certificates to the Departments of Taxation of the provinces where the branches are located and specify where the original copy (or certified copy) is submitted in the written request for tax exemption or tax reduction under the Double Taxation Agreement.

What are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign reinsurers in direct method in Vietnam?

Pursuant to Point b.4, Clause 1, Article 63 of the Circular 80/2021/TT-BTC stipulating procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign reinsurers in direct method in Vietnam as follows:

b.4) Foreign reinsurers

The foreign reinsurer shall directly submit the application for Double Taxation Agreement application in each year to all reinsurance contracts that have been concluded or will be concluded in the year. The foreign reinsurer may authorize tax agents, representative offices in Vietnam or a Vietnamese reinsurer to submit the application, in which case the foreign reinsurer shall submit 02 applications, including a draft application and an official application. To be specific:

b.4.1) Draft application: 05 days before the date of conclusion of the contract or 05 days after execution of the contract; 05 days before payment, whichever comes first, the foreign reinsurer shall submit to the tax authority the draft application together with relevant documents. The foreign reinsurer that has a representative office in Vietnam shall submit the application at the Department of Taxation of the province where the representative office is located. In case the foreign reinsurer does not have a representative office in Vietnam:

b.4.1.1) In case the foreign reinsurer directly submits the application, it shall be submitted to the Department of Taxation of the province where the first Vietnamese reinsurer plans to conclude the contract;

b.4.1.2) In case the foreign reinsurer authorizes a legal representative in Vietnam (tax agent, audit company or the first Vietnamese reinsurer that concludes the contract) to submit the application, it shall be submitted to the Department of Taxation of the province where the legal representative registers to pay tax.

b.4.1.3) The draft application shall include: The application form No. 01/TBH-TB in Appendix I hereof; consular legalized original copy (or authenticated copy) of the residence certificate issued by the tax authority of the country of residence in the year preceding the year in which the draft application is submitted; a list of reinsurance contracts that have been or are expected to be concluded according to Form No. 01-1/TBH-TB in Appendix I hereof, the authorization letter in case the taxpayer authorizes a legal representative to follow procedures for application or the Double Taxation Agreement.

b.4.2) An official application shall contain: Within the first quarter of the next year, the foreign reinsurer shall submit the official application and relevant documents to the tax authority together in the same manner as the submission of the draft application.

The official application shall include: The application form No. 02/TBH-TB in Appendix I hereof; original copy (or authenticated copy) of the residence certificate issued by the tax authority of the country of residence which is consular legalized in the same year; copies of reinsurance contracts that are executed in the year (including the contracts in the plan and the contracts that are not in the plan sent to the tax authority) but have not been sent to the tax authority; the list of contracts according to Form No. 02-1/TBH-TB in Appendix I hereof.
When submitting the official application, the taxpayer shall classify the contracts and send a list of contracts that are sorted by type (under certain criteria); each type of contract shall have a copy certified by the taxpayer for use as a model contract. The taxpayer shall be responsible for this; The authorization letter in case the taxpayer authorizes a legal representative to follow procedures for application or the Double Taxation Agreement.