CIRCULAR

DOCUMENTATION AND PROCEDURES FOR GRANT OF PERSONAL INCOME TAX EXEMPTION TO FOREIGN EXPERTS PARTICIPATING IN PROGRAMS AND PROJECTS FUNDED BY FOREIGN NON-GOVERNMENTAL AID IN VIETNAM

Pursuant to the Law on Personal income tax No. 04/2007/QH12 dated November 21, 2007; the Law No. 26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal income tax and elaborating Decrees of the Government;

Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006; the Law No. 21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax administration and elaborating Decrees of the Government;

Pursuant to the Law No. 71/2014/QH13 dated November 26, 2014 on amendments to tax laws and the Government's Decree No. 12/2015/NĐ-CP;

Pursuant to the Government's Decree No. 12/2012/NĐ-CP dated March 01, 2012 on registration and management of foreign non-governmental organizations (NGOs) in Vietnam;

Pursuant to the Government's Decree No. 93/2009/NĐ-CP dated October 22, 2009 on management and use of foreign non-governmental aid;

Pursuant to the Government's Decree No. 215/2013/NĐ-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

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At the request of the Director of the General Department of Taxation,

The Minister of Finance provides guidelines for documentation and procedures for grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam:

Article 1. Scope and regulated entities

1. This Circular provides for documentation and procedures for grant of personal income tax exemption to foreign experts who directly participate in programs and projects funded by foreign non-governmental aid in Vietnam.

2. This Circular applies to foreign experts eligible for of personal income tax exemption according to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 on grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam.

Article 2. Documentation and procedures for tax exemption

1. Application for tax exemption

An application for tax exemption consists of:

- The confirmation of foreign experts’ participation and request for personal income tax exemption submitted by the governing body (in case the foreign expert has a contract with the governing body) or foreign non-governmental aid manager (in case the foreign expert has a contract with the foreign NGO or aid manager) on the income from direct participation in a non-governmental program/project in Vietnam (template No. 01/XNCG-ĐNMT enclosed herewith);

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+ A copy of the Decision to approve the foreign non-governmental aid program/project in Vietnam.

+ A copy of the program/project instrument approved by a Vietnamese competent authority.

+ A copy of the contract between the foreign expert and the foreign NGO or governing body or aid manager.

2. Deadline for submitting the application:

The application shall be submitted within 30 days from the effective date of the foreign expert’s contract. The governing body or aid manager shall send the application to the tax authority.

3. Places to submit applications for tax exemption:

- If the foreign expert has a contract with the governing body, the application shall be submitted to the Provincial Department of Taxation of the province where the governing body is located.

- If the foreign expert has a contract with the foreign NGO or aid manager, the application shall be submitted to the Provincial Department of Taxation of the province where the aid manager’s office is located.

4. Procedures for tax exemption

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5. In case of replacement of the foreign expert while the application for tax exemption has been sent to the tax authority, the governing body or aid manager shall send the application in accordance with instructions in Clause 1 of this Article.

Article 3. Implementation

This Circular comes into force from August 15, 2016 and replaces Circular No. 55/2007/TT-BTC dated May 29, 2007 of the Ministry of Finance on grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance (General Department of Taxation) for consideration./.

PP MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

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[NAME OF GOVERNING BODY/AID MANAGER]
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. ………..

[Location and date]

CONFIRMATION OF FOREIGN EXPERTS’ PARTICIPATION AND REQUEST FOR PERSONAL INCOME TAX EXEMPTION

First time:    Yes □      No □

To: Provincial Department of Taxation of …

Pursuant to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 on grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam and Circular No. 96/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance on documentation and procedures for grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam.

[Name of governing body/aid manager] of foreign non-governmental aid program/project in Vietnam hereby confirms the participation of the foreign experts enumerated below and request personal income tax exemption:

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2. Sponsor: (Name of foreign NGO) .................................................................................

3. Program/project instrument is approved by … [name of approving authority] according to document No. … dated …

4. Governing body: .......................................................................................................

5. Aid manager: ...................................................................

6. Total budget of the program/project: .............................................................

7. Duration of the program/project: from … to …

8. Location of the program/project: ......................................................................

9. The persons enumerated below are foreign experts who apply for personal income tax exemption according to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 and Circular No. 96/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance:

No.

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Nationality

Passport number

Contract duration (from … to …)

Tax-free income
(according to contract)

[1]

[2]

[3]

[4]

[5]

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1.

2.

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……….

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3. Enclosures:

(1) ………………….

(2) ………………….

(3) ………………….

I hereby declare that the information provided above is truthful and assume the legal responsibility for such information./.

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AUTHORIZED REPRESENTATIVES OF GOVERNING BODY/AID MANAGER
(Signature, full name and seal (if any))

Template No. 02/XNMT
(Promulgated together with Circular No. 96/2016/TT-BTC)

GENERAL DEPARTMENT OF TAXATION
PROVINCIAL DEPARTMENT OF TAXATION OF …
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. ………..

[Location and date]

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To: [Name of governing body or aid manager)

Pursuant to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 on grant of exemption of personal income tax to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam;

Pursuant to Circular No. 96/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance on guidelines for grant of exemption of personal income tax to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam.

In consideration of the Confirmation of foreign experts’ participation and request for personal income tax exemption dated ... submitted by [Name of governing body/aid manager) and enclosed documents about foreign experts who directly participate in [name of the project] of [name of the NGO] in Vietnam.

Provincial Department of Taxation of … hereby certifies that the persons on the list below are exempt from personal income tax in Vietnam on the income from direct participation in the foreign non-governmental aid program/project in Vietnam.

No.

Full name

Nationality

Passport number

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Tax-free income
(according to contract)

[1]

[2]

[3]

[4]

[5]

[6]

1.

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2.

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………….

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HEAD OF TAX AUTHORITY
(Signature, full name and seal)

Template No. 03/TB-KMT
(Promulgated together with Circular No. 96/2016/TT-BTC)

GENERAL DEPARTMENT OF TAXATION
PROVINCIAL DEPARTMENT OF TAXATION OF …
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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[Location and date]

NOTICE OF INELIGIBILITY FOR PERSONAL INCOME TAX EXEMPTION

To: [Name of governing body/aid manager)

Pursuant to the Law on Tax administration, the Law on amendments to the Law on Tax administration and their applicable instructional documents;

Pursuant to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 on grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam and Circular No. 96/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance on documentation and procedures for grant of personal income tax exemption to foreign experts participating in programs and projects funded by foreign non-governmental aid in Vietnam;

In consideration of the Confirmation of foreign experts’ participation and request for personal income tax exemption dated ... submitted by [Name of governing body/aid manager) and enclosed documents about foreign experts who directly participate in the foreign non-governmental aid program/project in Vietnam of [name of governing body/aid manager];

Provincial Department of Taxation of … hereby notify that the persons on the list below are not eligible for personal income tax exemption according to the Prime Minister’s Decision No. 06/2016/QĐ-TTg dated February 22, 2016 and Circular No. 96/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance.

No.

Full name

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Passport number

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2

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Reasons for ineligibility:

1………………..

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[Name of governing body/aid manager] may contact [the tax authority] at [phone number] or send an enquiry to [the tax authority’s address]

HEAD OF TAX AUTHORITY
(Signature, full name and seal)

Thông tư 96/2016/TT-BTC hướng dẫn hồ sơ, thủ tục miễn thuế thu nhập cá nhân đối với Chuyên gia nước ngoài thực hiện chương trình, dự án viện trợ phi Chính phủ nước ngoài tại Việt Nam do Bộ trưởng Bộ Tài chính ban hành