Regulations on Contractor Tax for Goods in Bonded Warehouses

According to Article 5 of Circular No. 103/2014/TT-BTC, if a foreign company only uses a bonded warehouse for auxiliary purposes in international transportation, transit, transshipment, or storage of goods, or for subcontracting to other enterprises, it is not subject to contractor tax (TNDN) in Vietnam.

However, if a foreign company outsources manufacturing to an enterprise within an export processing zone, then stores the goods in a bonded warehouse for sale to overseas customers, with ownership transferred at the bonded warehouse before exportation, the foreign company must pay contractor tax (TNDN) in Vietnam.

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