Official Letter 12264/CTBDU-TTHT dated May 9, 2024, regarding foreign contractor tax for foreign processing expenses issued by Binh Duong province Tax Department.
If a company exports goods to overseas customers and those goods fail to meet the quality requirements outlined in the sales contract, the company is required to engage another organization for reprocessing. As this processing service takes place outside of Vietnam, the revenue earned by the foreign organization is not subject to foreign contractor tax.