Circular No. 111/2013/TT-BTC of August 15, 2013

/// This Circular takes effect on October 01, 2013.

/// The regulations on personal income tax in the Law on the amendments to the Law on Personal income tax, and the Decree No. 65/2013/NĐ-CP from the effective date of the Law and Decree (July 01, 2013).

/// The guidance on personal income tax in the Circular No. 84/2008/TT-BTC dated September 30, 2008, Circular No. 10/2009/TT-BTC dated January 21, 2009, Circular No. 42/2009/TT-BTC dated March 09, 2009, Circular No. 62/2009/TT-BTC dated March 27, 2009, Circular No. 161/2009/TT-BTC dated August 12, 2009, Circular No. 164/2009/TT-BTC dated August 13, 2009, Circular No. 02/2010/TT-BTC dated January 11, 2010, Circular No. 12/2011/TT-BTC dated January 26, 2011, Circular No. 78/2011/TT-BTC dated June 08, 2011, Circular No. 113/2011/TT-BTC dated August 04, 2011 of the Ministry of Finance are abolished.

/// The guidance on personal income tax that are provided by the Ministry of Finance before this Circular takes effect and at odds with the guidance in this Circular are abolished.

Decree No. 65/2013/ND-CP detailing the Law on Personal Income Tax 2013

Article 1. Scope of regulation

This Decree details and guides a number of articles of the Law on personal income tax and Law amending and supplementing a number of articles of the Law on personal income tax.

Article 2. Taxpayers

1. PIT payers include resident and non-resident individuals who earn taxable incomes specified in Article 3 of the Law on personal Income Tax and Article 3 of this Decree.  Scope to define taxable income of taxpayers shall be as follows:

a) For resident individuals, their taxable incomes are incomes earned inside and outside the Vietnamese territory, regardless of where their incomes are paid;
b) For non-resident individuals, their taxable incomes are incomes earned in Vietnam, regardless of where their incomes are paid.

2. A resident individual means a person who satisfies any of the following conditions:

a) Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of his/her presence in Vietnam;
Individuals present in Vietnam under this Point means those whose presence is in the Vietnamese territory.
b) Having a place of habitual residence in Vietnam in either of the following two cases:
– Having a registered place of permanent residence under the law on residence;
– Having a rented house for dwelling in Vietnam under the law on housing, under a rent contract with a term of 183 days or more in a tax year.
In case an individual has a place of permanent residence in Vietnam as prescribed in this point but he/she actually presents in Vietnam less than 183 days in tax year and he/she fail to prove that he/she is resident person of other country, so he/she will be considered as resident person in Vietnam.

3. A non-resident individual means a person who does not satisfy any of the conditions specified in Clause 2 of this Article.

Please download entire Decree No. 65/2013/ND-CP here

Law on Personal Income Tax amending and supplementing

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented a number of articles  under the Resolution No. 51/2001/QH10;

The National Assembly promulgates the Law on amending and supplementing a number of articles of the Law on personal income tax No. 04/2007/QH12,

Article 1.

To amend and supplement a number of articles of the Law on personal income tax:
1. Clause 2 and clause 5 of Article 3 are amended and supplemented as follows:
“2. Incomes from salaries and wages, including:
a) Salaries, wages and amounts of similar nature;
b) Allowances, subsidies, except for amounts: Those paid under legal provisions on preferential treatment of persons with meritorious services; defense or security allowances; hazard or danger allowances for persons working in branches, occupations or jobs at places where exist hazardous or dangerous elements; allowances for attraction of laborers to work in certain branches or in certain regions specified by law; allowances for sudden difficulties, allowances for laborers having labor accident or suffering from occupational disease, lump-sum maternity or child adoption allowances; allowances for working capacity loss, lump-sum retirement allowances, monthly survivorship allowances and other allowances as prescribed by law on social insurance; , severance and job-loss allowances specified in the Labor Code; subsidies of social relief nature and other allowances, subsidies without nature of salaries, wages as prescribed by the Government.”

“5. Incomes from transfer of real estate, including:
a) Incomes from transfer of rights to use land and assets attached to land;
b) Incomes from transfer of right to own or use residential houses;
c) Incomes from transfer of right to lease land or water surface;
d) Other incomes earned from transfer of real estate under any form.”

Please download entire law on personal income tax here PIT

Circular No. 06/2012/TT-BTC guidance on value added tax

The Ministry of Finance issued Circular No. 06/2012/TT-BTC (“Circular 06”) dated 11 January 2012 replacing Circular No. 129/2008/TT-BTC (“Circular 129”) and Circular No. 112/2009/TT-BTC.

Please download entire circular here Circular No. 06/2012/TT-BTC