22 Tháng Chín, 2023

Contractor tax for international domain name registration services (.com; .io, etc.)

Question: Recently, Vietnamese businesses register international domains through overseas suppliers (e.g. units: name.com, domain.com, namecheap.com, etc.) or use attached services, such as storage, security, etc. at these units, do they need to declare contractor tax? Looking for an answer.


Currently, according to tax regulations, the VAT rate applied to domain name registration is divided into 2 types: the .vn extension (initiated by Vnnic) is not subject to VAT and the second is another type – not initalized by Vietnam (international domain .com, .io, etc.), the tax rate is 10%.[1]

Pursuant to Circular 103/2014/TT-BTC, in case the above-mentioned domain name exchange floors (name.com, domain.com, namecheap.com…) are overseas sellers, not headquartered in Vietnam, providing domain names, providing storage services, security services, etc. and the Company sells the above products to Vietnamese businesses, those who buy domain names of name.com, domain.com, namecheap.com, etc. must declare and pay contractor tax at the rate of VAT and CIT for service suppliers according to the VAT and CIT calculation tax schedule.[2]

If Vietnamese enterprises have signed contracts with overseas suppliers to sell/transfer the right to use Internet domain names in Vietnam, enterprises in Vietnam must calculate, declare and pay VAT at the rate of 10% and CIT on behalf of foreign contractors.

In addition, you can refer to Official Dispatch No. 6307/CT-HTr of the Hanoi Department of Taxation answering about VAT rates, and contractor tax for internet domain names.

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Editing: Compilation

[1] Articles 2, 11 of Circular 219/2013/TT-BTC

[2] Articles 1, 6 and 7 of Circular 103/2014/TT-BTC

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