Pay the services for individual abroad, withholding contractor tax or personal income tax

Guidelines tax declaration when a company is hiring non-resident individual to introduce its services, sell products overseas.

                         Withholding tax for foreign trader

Accordingly , if the individual is a trader (ie registered business overseas or have proof that traders are recognized by foreign law ), upon payment of the Company is required to pay withholding tax as follows:

- VAT sales tax = Sale tax x % VAT rate ( 50 % ) x 10 % VAT rate
- Personal Income Tax = Sales tax x personal income tax rate of 5 %

For individuals who are not traders only pay personal income tax deduction at the rate of 20 % is similar to income from salaries and wages