About Turnkey home energy storage EPC contract price in Vietnam
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3 FAQs about [Turnkey home energy storage EPC contract price in Vietnam]
What is an EPC contract in Vietnam?
The EPC-contract is usually regarded as sub-category of a construction contract according to the “Construction Law”. Unlike domestic contractors, foreign contractors must be granted a construction operation license (in Vietnamese: giấy phép hoạt động xây dựng) as a key license for their construction activities in Vietnam.
Do EPC contractors pay personal income tax in Vietnam?
Under current regulations, the employees of EPC contractors working for the Vietnamese project are subject to PIT (Personal Income Tax) in Vietnam, regardless of their actual presence in the country. The Vietnamese customer has to notify EPC contractors of the obligations to pay Personal Income Tax incurred by the foreign employees.
Should EPC contracts be split in on- and offshore parts?
If EPC contractors apply the “Credit Method”, the split of EPC contracts in on- and offshore parts would not further mitigate tax risks. In the “Withholding Method” or “Hybrid Method”, splitting EPC contract in on- and offshore parts might optimize FCWT.
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