To: S.K Tech Electronics Production and Trading Company Limited
(Address: Khac Niem industrial cluster, Khan Niem ward, Bac Ninh city, Ban Ninh province)

In response to Official Dispatch No.04082016/SK dated August 04, 2016 of the S.K Tech Electronics Production and Trading Company Limited (hereinafter referred to as “S.K Tech”) regarding policies on personal income tax, below are opinions from the General Department of Taxation:

Pursuant to Clause 2 Article 15 of the Agreement on avoidance of tax imposition twice and prevention from tax evasion for income tax between Vietnam and Korea dated May 20, 1994;

Pursuant to Clause 1 and 4 Article 31 of Decree No.65/2013/ND-CP dated June 27, 2013 of the Government elaborating a number of Articles of the Law on Personal Income Tax and the Law on Amendments to the former law;

Pursuant to Point dd Clause 2 Article 2 of Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance providing for guidelines on enforcement of the Law on Personal Income Tax and the Law on Amendments to the former law and Decree No.65/2013/ND-CP of the Government elaborating a number of Articles of the two aforementioned laws regarding incomes from salaries and remunerations subject to personal income tax;

Pursuant to Clause 2 Article 11 of Circular No.92/2015/TT-BTC dated June 15, 2015 on guidelines for value-added tax and personal income tax imposed on permanent individuals doing business; guidelines for a number of amendments to personal income tax provided in the Law on amendments to a number of Articles of the Tax Law No.71/2014/QH13 and Decree No.12/2015/ND-CP dated February 12, 2015 of the Government on enforcement of the Law on amendments to a numbers of the Tax Law and Decrees on tax.

Pursuant to the regulations mentioned above and information provided by S.K Tech in Official Dispatch No.04082016/SK:

If the expert of DH Trading Company (Korean contractor) is sent to Vietnam to give advisory assistance or assistance in technology transfer under the service provision contract signed with S.K Tech, which specifies that payment for house rent and other attached services is made by S.K Tech, such payment shall be considered benefits with nature of salaries or remunerations paid to such expert. As for that reason, such income shall be subject to personal income tax as prescribed in the Law on Personal Income Tax of Vietnam, except for the case in which such foreign expert satisfy requirements specified in Clause 2 Article 15 of the Agreement on tax between Vietnam and Korea.

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S.K Tech shall contact to Bac Ninh Tax Department for detailed instructions.

PP. DIRECTOR GENERAL
PP. DIRECTOR OF PERSONAL INCOME TAX MANAGEMENT DEPARTMENT
DEPUTY DIRECTOR




Nguyen Duy Minh

Công văn 4345/TCT-TNCN năm 2016 về chính sách thuế thu nhập cá nhân do Tổng cục Thuế ban hành