CHAP 5 : FCT

Question 1

What is the primary nature of the Foreign Contractor Tax (FCT) in Vietnam?

Accepted Answer

1

Question 2

Which two main tax components typically constitute the FCT package?

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2

Question 3

Who is generally considered a target for FCT, even if they only have a temporary presence in Vietnam?

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2

Question 4

If a Japanese company wins a construction bid in Vietnam and hires a Korean company for the electrical work, who is responsible for FCT obligations?

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3

Question 5

Under which condition would a foreign company selling goods into Vietnam be exempt from FCT on the goods themselves?

Accepted Answer

1

Question 6

A foreign cosmetics company manages its distribution and advertising in Vietnam without a local office, setting prices for its products. Why are they subject to FCT?

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1

Question 7

If a foreign contractor negotiates a contract in Vietnam through a local representative, why is FCT still applicable?

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2

Question 8

Which of the following scenarios would typically NOT be subject to FCT, based on the 'Border Gate Delivery' exemption?

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0

Question 9

A company hires a law firm in France to consult on opening a branch in Paris. Why would this service not be subject to FCT in Vietnam?

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2

Question 10

If a German company repairs a machine sent from Vietnam to Germany, is the payment subject to FCT?

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2

Question 11

Advertising services performed on platforms like Facebook, viewed by users in Vietnam, are considered consumed where?

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0

Question 12

If you hire a broker in Japan to find customers for your goods in Japan, and the broker operates in Japan, are they subject to FCT?

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0

Question 13

Training provided online by a Singaporean instructor to employees in Vietnam is considered consumed where?

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0

Question 14

Goods stored in a bonded warehouse in Vietnam and then re-exported without entering the domestic market are generally subject to FCT for the warehousing activity. Why?

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0

Question 15

In an "in-transit processing" case, Maxi (Foreign) pays processing fees to Thanh Long and Duc Phat (both VN companies) to create a finished product. Why is Maxi exempt from FCT?

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1

Question 16

Foreign company A buys fabric from Vietnamese company B and instructs B to deliver it directly to Vietnamese company C. Company A profits from selling the fabric to C. Why is Company A subject to FCT?

Accepted Answer

3

Question 17

Company X (foreign) hires Company Y (Vietnam) to produce goods, then asks Y to deliver them to Company Z (Vietnam). X collects payment from Z for these goods. Why is Company X liable for FCT?

Accepted Answer

3

Question 18

Company H (Hong Kong) provides loading services at a Hong Kong port for the international transport of Company A (Vietnam). Company A pays H. Is H subject to FCT?

Accepted Answer

3

Question 19

For VAT purposes under the Declaration Method, what is the basis for calculating the tax payable?

Accepted Answer

1

Question 20

Under the Direct Method for FCT, what is the basis for calculating Corporate Income Tax (CIT)?

Accepted Answer

1