Two foreign subjects exempted from personal income tax

August 17, 2016 | 08:53

(0) user say

Foreign experts in non-governmental aid programs and projects and Vietnamese working at representative offices of the United Nations system in Viet Nam enjoy personal income tax (PIT) exemption in Viet Nam.

illustration photo

Question: What are regulations on Decision No. 06/2016/QD-TTg (Decision 06) and Decision 07/2016/QD-TTg (Decision 07) detailing the personal income tax exemption for foreign experts?

Answer:

Under Decision 06, foreign experts shall be exempted from PIT on the direct income from the implementation of the activities of the foreign non-governmental aid programs and projects. The conditions for PIT exemption includes (i) a foreign nationality; (ii) entering into the contract with any agency, organization as the project owner or the foreign non-governmental aid owner that directly implements the aid project activities by the competent authority and the assignment terms for foreign experts accompanying the contract.

The contract signed between foreign experts and foreign non-governmental organizations needs to add the confirmation by the non-governmental aid program/project under the program/project instrument approved by the competent authority.

Decision 07 stipulates any Vietnamese working or employed under any labor contract to work at the representative office of the international organization of the UN in Viet Nam shall be exempted from PIT on any salary, wages paid in such office.

The conditions for PIT exemption includes (i) the nationality of Viet Nam; (ii) an employee as confirmed by the authorized attorney of the representative office of the UN organizations in Viet Nam.

Decision 06 and Decision 07 took effect from May 1, 2016.

VGP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional