Definition: A representative office is a dependent unit of the enterprise, with the task of authorized representation for the interests of the business and protect those interests. Representative offices do not perform business functions of the enterprise

What taxes must a representative office pay?

License fees:License fee payers are organizations and individuals engaged in production activities. exporting and trading goods and services according to the provisions of Article 3, Decree 139/2016 Branch, representative offices and business locations of organizations specified in Clauses 1, 2, 3, 4 and 5 This (if any), So representative office has operations When producing and trading goods and services, you must pay license fees.

Value added tax:

Based on the concept mentioned above, Representative Offices do not have business functions, so businesses do not have to pay value added tax., Representative offices do not carry out production or business activities, do not generates revenue, so there is no need to carry out tax declaration procedures, the company will declare centrally at the headquarters.

Personal income rental:

If a representative office does not sign a labor contract or pay salaries to employees, the representative office does not have to declare and pay personal income tax.

Clause 3 Article 19 Circular 80/2021/TT- BTC stipulates:

a.1) Submitted by Tax payments on salaries and wages for employees working at dependent units or business locations in provinces other than where the head office is located, and personal income tax deductions for income from salaries , wages according to regulations and submit tax declaration documents according to form No. 05/KK-TNCN, appendix table determining the amount of personal income tax payable to localities enjoying the revenue according to form No. 05-1/PBT -KK-PIT issued together with Appendix II of this Circular for direct tax management; Pay personal income tax on income from salaries and wages to the state budget for each province where the employee works according to the provisions of Clause 4, Article 12 of this Circular. The personal income tax amount is determined for each province on a monthly or quarterly basis corresponding to the personal income tax declaration period and is not determined again when finalizing personal income tax.

Accordingly, in case the representative office does not sign a labor contract, does not pay salaries to workers, the enterprise signs a labor contract and pays all If the salary and wages of employees working at a representative office are set, the representative office does not have to declare and pay personal income tax.

When the Company directly signs a labor contract and pays employees working at the Representative Office, the company is responsible for declaring deductions, pay personal income tax centrally at the company.