Question: We have been awarded a contract of construction supervision of a solar plant in Vietnam and the supervision will last for more than 6 months. We would like to know if we are considered a permanent establishment and if we need to set an office or if it’s enough with the client to retain the witholding taxes and not set a permanent establishment.

Answer:

I am Lawyer of SB Law. I was entrusted to provide you legal advice regarding to your question hereunder.

In this case, when you are awarded a 6 months contract for construction supervision, it is not considered as a permanent establishment. Then, you can have two following options:

– Option 1: Your Client shall retain witholding tax and deduct withholding tax before making payment to you.

– Option 2: You shall setup a Project Office in Vietnam to follow the project. Then, the Project Office in Vietnam shall take care withholding tax for you.


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