DECISION

On personal income tax exemption for foreign experts who implement foreign non-governmental aid programs or projects in Vietnam

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Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 21, 2007 Law on Personal Income Tax; and the November 22, 2012 Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes;

Pursuant to the Government’s Decree No. 65/2013/ND-CP of June 27, 2013, detailing a number of articles of the Law on Personal Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;

Pursuant to the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Laws on Taxes, and amending and supplementing a number of articles of the decrees on taxes;

Pursuant to the Government’s Decree No. 12/2012/ND-CP of March 1, 2012, on registration and management of activities of foreign non-governmental organizations in Vietnam;

Pursuant to the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental aid;

At the proposal of the Minister of Finance,

The Prime Minister promulgates the Decision on personal income tax exemption for foreign experts who implement foreign non-governmental aid programs or projects in Vietnam.

Article 1. Scope and subjects of application

1. This Decision prescribes the personal income tax exemption for foreign experts who implement foreign non-governmental aid programs or projects in Vietnam.

2. This Decision applies to foreign experts who directly implement the activities of foreign non-governmental aid programs or projects agreed upon by foreign non-governmental organizations and Vietnamese managing agencies for these programs or projects under the documents of the programs or projects approved in accordance with the law on management and use of foreign non-governmental aid.

Article 2. Conditions for tax exemption

A foreign expert entitled to personal income tax exemption must satisfy the following conditions:

1. Holding foreign citizenship.

2. Having signed a contract with the foreign non-governmental organization, Vietnamese project-managing agency or owner of the foreign non-governmental aid to directly implement activities of the foreign non-governmental aid program or project under the approved program or project document enclosed with terms of reference (TOR) for the foreign expert.

Particularly for a contract signed between the foreign expert and the foreign non-governmental organization, certification by the Vietnamese owner of the foreign non-governmental aid of the foreign expert’s direct implementation of activities of the foreign non-governmental aid program or project under the approved program or project document approved by competent agencies.

Article 3. Tax-exempt income

Tax-exempt income of foreign experts prescribed in Clause 2, Article 1 of this Decision must be direct income from the implementation of activities of foreign non-governmental programs or projects.

Article 4. Implementation provisions

1. This Decision takes effect on May 1, 2016.

2. The Minister of Finance shall guide the implementation of this Decision.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG