THE MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.:
10440/BTC-TCT
Re: Procedures for immunities from taxation for International Finance
Corporation (IFC).
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Hanoi, August 05,
2011
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To: Provincial
Departments of Taxation
The Ministry of Finance of Vietnam has received the
Official Dispatch No. 663/CT-TTHT dated April 04, 2011 from Thanh Hoa
Department of Taxation requesting guidance on procedures for immunities from
taxation for International Finance Corporation (hereinafter referred to as
“IFC”).
In response to such request, the Ministry of
Finance of Vietnam gives some guidelines hereunder:
1. IFC's tax obligations:
The Joint Ministerial Circular dated May 06, 1994
signed by the Deputy Governor of the State Bank of Vietnam (SBV) stipulates:
“This Circular asserts all immunities and
privileges of International Finance Corporation (IFC), an international
organization established under the IFC Articles of Agreement that have a full
force and effect in the Socialist Republic of Vietnam. All relevant immunities
and privileges are set out in Article VI of the said IFC Articles of Agreement
and repeated in the Appendix enclosed to this Circular”.
Section 9 Article VI of the IFC Articles of
Agreement stipulates:
“The Corporation, its assets, property,
income and its operations and transactions authorized by this Agreement, shall
be immune from all taxation and from all customs duties. The Corporation
shall also be immune from liability for the collection or payment of any tax or
duty.”
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IFC shall be immune from liability for the payment
of value-added tax (VAT) and corporate income tax (CIT) in respect of added
value and incomes earned from its operations and transactions authorized by the
IFC Articles of Agreement.
This official dispatch, accompanied with the Joint
Ministerial Circular and the IFC Articles of Agreement in both English and
Vietnamese language, shall be sent to Provincial Departments of Taxation for
implementation.
2. Procedures for immunities
from taxation for IFC:
2.1. For IFC:
On the date of signing contract with Vietnamese
party (i.e. the taxpayer as prescribed in Point 2.2 Section I Part A of the
Circular No. 134/2008/TT–BTC dated December 31, 2008 of the Ministry of Finance
of Vietnam providing guidelines for tax obligations of foreign organizations
and individuals doing business in Vietnam or earning incomes in Vietnam; or the
capital transferee or Vietnamese enterprise invested by IFC as prescribed in
Point 8 Article 11 Chapter II of the Circular No. 28/2011/TT-BTC dated February
28, 2011 of the Ministry of Finance of Vietnam), IFC has provided Vietnamese
party with the notification of immunities from taxation, including following
documents:
i) The notice of immunities from taxation (using
the form enclosed herewith).
ii) The photocopy of the contract signed with
Vietnamese party and bearing IFC’s certification.
iii) The summarized translation of the contract
(bearing IFC’s certification) (if the contract is made in a foreign language).
The summarized translation of the contract includes
the following contents: name of the contract, names of articles of the
contract, scope of the contract, and tax obligations under the contract.
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If IFC makes investment in securities in Vietnam
(without signing contracts), on the date of application for registration of
securities trading code with securities companies or custodian banks operating
in Vietnam (Vietnamese party), IFC shall provide the notification of immunities
from taxation for Vietnamese party. In this case, IFC shall only provide each
Vietnamese party with a set of documents for notification of immunities from
taxation used for all securities transfer transactions with regard to that
Vietnamese party. Such documents include: i) (The notice of immunities from
taxation) and iv) (The power of attorney, in case of authorization).
2.2. For Vietnamese party:
Within 03 working days from the receipt of the
notification of immunities from taxation from IFC, the Vietnamese party shall
send all documents received from IFC to the local tax authority where that
Vietnamese party follows tax registration procedures.
After the submission of such documents to the local
tax authority and at the time of declaration of foreign contractor withholding
tax (as prescribed in Clause 2 Article 18 or Clause 8 Article 11 Chapter II of
the Circular No. 28/2008/TT–BTC dated February 28, 2011 of the Ministry of
Finance of Vietnam), if the Vietnamese party receives neither information nor
request from the local tax authority, it shall not deduct any tax amounts from
payments made to IFC.
2.3. Local tax authorities:
After receiving all documents for notification of
immunities from taxation for IFC from the Vietnamese party, the relevant local
tax authority shall examine received documents and refer to the scope of
immunities from taxation under the IFC Articles of Agreement for ensuring the
accuracy and truthfulness of the notification of immunities from taxation.
If the local tax authority deems it necessary, it
may request the Vietnamese party and/or IFC to provide explanation about
contents of the notification of immunities from taxation.
These guidelines are aimed at serving Provincial
Departments of Taxation’s information and implementation. Provincial
Departments of Taxation are requested to strictly comply with legislative
documents on taxation and other relevant legislative documents as well as
guidelines given herein./.
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BY PROXY OF
MINISTER
DIRECTOR GENERAL OF GENERAL DEPARTMENT OF TAXATION
Bui Van Nam
Form No.: 01/MTIFC
(Enclosed with the Circular No. 10440/BTC-TCT
dated August 05, 2011 of the Ministry of Finance of Vietnam)
NOTICE OF
IMMUNITIES FROM TAXATION UNDER ARTICLES OF AGREEMENT
1. Requester: International Finance
Corporation (IFC)
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Tel.:…………………..
Fax: ………………………… E-mail:
.....................................
2. Authorized representative: (In case
IFC authorizes a Vietnamese organization or individual to follow procedures for
notification of immunities from taxation).
Full name (in capital letters):
.......................................................................
Number of business license/practicing license:
...........................
Date of issue:……../………. Issuing authority:
…………………………………..
Address:…………………………………………………………………………..…………………
Tel.:………………….. Fax:…………….
E-mail:............................
TIN:
......................................................................................
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3. Information on transactions requesting
immunities from taxation:
(Brief description of business
operations/transactions generating revenues. Which articles of the IFC Articles
of Agreement authorizing such business operations/transactions to be immune
from taxation must be indicated)
4. Enclosed documents:
i) The photocopy of the contract signed with
Vietnamese party;
ii) The summarized translation of the contract;
iii) Power of attorney[1].
I undertake that all information and documents
provided are truthful and adequate, and I shall assume legal responsibility for
such provided information and documents./.
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[1] The
power of attorney must bear signatures of representatives of two parties.
Notarization or certification of the power of attorney is not required.