This podcast offers an insightful look into Vietnam's Foreign Contractor Tax (FCT), a withholding tax levied on foreign entities generating income from their operations in Vietnam. The FCT includes both Value Added Tax (VAT) and income tax—whether corporate or personal—with rates that differ based on the nature of the transaction, such as services, goods, or leases. Tax obligations kick in as soon as a contract is signed, requiring tax code registration and payment within 10 days of the contract and the corresponding payment, respectively. For foreign businesses, grasping and adhering to these regulations is vital for success in Vietnam, and seeking professional guidance is highly advisable to effectively navigate the intricacies of Vietnamese tax law.
