Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance guiding the implementation of a number of articles of the Law on personal income tax and guiding the implementation of the Government’s Decree No. 100/2008/ND-CP dated September 8, 2008, detailing a number of articles of the Law on personal income tax

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Issuing body:	Ministry of Finance	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	84/2008/TT-BTC	Signer:	Nguyen Cong Nghiep
Type:	Circular	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	30/09/2008	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Tax - Fee - Charge

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THE MINISTRY OF FINANCE -----	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No. 84/2008/TT-BTC	Hanoi, September 30, 2008

CIRCULAR

GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LAW ON PERSONAL INCOME TAX AND GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE NO. 100/2008/ND-CP OF SEPTEMBER 8, 2008, DETAILING A NUMBER OF ARTICLES OF THE LAW ON PERSONAL INCOME TAX

Pursuant to November 21, 2007 Law No. 04/2007/QH12 on Personal Income Tax;
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;
Pursuant to the Government’s Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the implementation of a number of articles of the Law on Personal Income Tax and guides the Government’s Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax as follows:

Part A

GENERAL PROVISIONS

I. TAXPAYERS

Under Article 2 of the Law on Personal Income Tax and Article 2 of Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax (below referred to as Decree No. 100/2008/ND-CP), personal income taxpayers 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 Decree No. 100/2008/ND-CP. The scope of determination of taxable incomes of taxpayers is as follows:

For resident individuals, their taxable incomes are incomes earned inside and outside the Vietnamese territory, regardless of where their incomes are paid and received.

For non-resident individuals, their taxable incomes are incomes earned in Vietnam, regardless of where their incomes are paid and received.

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

1.1. 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, of which the date of arrival is counted as one day and the date of departure is also counted as one day. Date of arrival and date of departure are determined based on certifications of the immigration management agency on his/her passport (or laissez-passer) upon his/her arrival at and departure from Vietnam. In case his/her entry and exit are on the same day, this day is counted as one day of residence.

Individuals present in Vietnam under the guidance of this point means those who appear in the Vietnamese territory.

1.2. Having a place of habitual residence in Vietnam in either of the following two cases:

1.2.1. Having a registered place of permanent residence under the law on residence;

a. For Vietnamese citizens: The registered place of permanent residence means a fixed place where a citizen habitually and permanently resides for an indefinite time and for which he/she has made a residence registration under the law on residence.

b. For foreigners: The place of habitual residence of a foreigner means a place registered and indicated in his/her card of permanent residence or temporary residence issued by a competent agency of the Ministry of Public Security.

1.2.2. Having a rented house for dwelling in Vietnam under the law on housing, under a rent contract with a term of 90 days or more in a tax year, specifically:

a. An individual who has not yet found any or has no place of registered permanent residence or is not issued a card of permanent residence or temporary residence under the above guidance, but rents a house under a rent contract for a total of 90 days or more in a tax year is also considered a resident individual, even in case he/she rents several places.

b. Rented houses for dwelling include also hotels, guest houses, inns and working offices where taxpayers are allowed to dwell, regardless of whether they rent by themselves or their employers rent for them.

2. A non-resident individual means a person who does not satisfy any of the conditions specified in Clause 1 above.

3. In some specific cases, taxpayers are identified as follows:

3.1. For individuals earning incomes from business activities (below referred to as business individuals)

3.1.1. In case only one person is named in a business registration, he/she is a taxpayer.

3.1.2. In case more than one person are named in a business registration (a group of business individuals) and jointly conduct business activities, every member whose name is stated in the business registration is a taxpayer.

3.1.3. In case many members of a household jointly conduct business activities but only one of them is named in a business registration, the person whose name is stated in the business registration is a taxpayer.

3.1.4. In case an individual or a household actually conducts business activities without business registration (or practice license), the individual currently conducting business activities is a taxpayer.

3.1.5. For activities of leasing houses or business spaces without business registration, persons who are named as house owners or land use rights holders are taxpayers. In case more than one person are named as house co-owners or land use rights co-holders, every individual whose name is stated in house ownership or land use rights certificates is a taxpayer.

3.2. For individuals earning other taxable incomes

3.2.1. In case of transfer of a jointly owned real estate, every co-owner of the real estate is a taxpayer.

3.2.2. In case of assignment or licensing of a protected object under the Intellectual Property Law or the Technology Transfer Law which is jointly owned or co-authored by many individuals, every individual who jointly owns or authors this object and earns an income from the assignment or licensing is a taxpayer.

3.2.3. In case of a commercial franchise by individuals under the Commercial Law in which the commercial franchisor consists of many individuals, every individual earning an income from the commercial franchise is a taxpayer.

4. Taxpayers under the guidance in Clauses 1 and 2, Section I above include:

4.1. Vietnamese nationals, including those sent on working missions, study tours or as guest workers abroad and earning taxable incomes.

4.2. Non-Vietnamese nationals who earn taxable incomes, including foreigners working in Vietnam and foreigners not present in Vietnam but earning taxable incomes in Vietnam.

II. TAXABLE INCOMES

Under Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 100/2008/ND-CP, incomes liable to personal income tax include:

1. Incomes from business activities

Incomes from business activities are those earned from production or business activities in the following domains:

1.1. Goods production or trading or service provision in all domains and business sectors under law, such as goods production and trading; construction; transport; food and drink catering; provision of services, including house or business space lease service.

1.2. Independent professional ativities of individuals in domains and sectors for which they are licensed or issued practice certificates under law.

1.3. Agricultural production, forestry, salt making, aquaculture or fishing activities which fail to satisfy the conditions on tax exemption specified in Clause 6, Section III, Part A of this Circular.

2. Incomes from salaries or wages

2.1. Incomes from salaries or wages are incomes received by employees from their employers in monetary or non-monetary form, including:

2.1.1. Salaries, wages and amounts of salary or wage nature.

2.1.2. Allowances and subsidies, including cost-of-living allowances received by employees, except some allowances and subsidies specified at Point 2.2 below.

2.1.3. Remuneration received in the form of brokerage commission, payments for participation in scientific and technical researches; payments for participation in projects or schemes; royalties for book or newspaper article authorship or document translation; payments for teaching activities, art and cultural performances, physical training and sport competitions; and charges for advertising services and other services.

2.1.4. Sums of money earned for participation in professional societies or associations, business associations, boards of directors or control boards of enterprises, project management units, management boards, corporate councils and other organizations.

2.1.5. Other monetary or non-monetary benefits other than salaries and wages enjoyable by employees and paid by employers to or on behalf of their employees, specifically:

a. House rents, charges for electricity, water and associated services. For individuals dwelling in their working offices, their taxable incomes are house rents or depreciation costs, charges for electricity, water and other services calculated according to the ratio of the area used by such an individual to the total area of his/her working office.

b. Insurance premiums for employees which employers are not obliged to purchase under law.

c. Membership fees for individuals such as golf course or tennis court membership cards, membership cards for members of cultural, art, physical or sport clubs.

d. Other services for individuals in healthcare, entertainment, sports, recreation, beauty care activities.

e. Other benefits provided by employers to their employees under law, such as payments during weekends or holidays; charges for consultancy or tax declaration services; payment of wages for chauffeurs, cooks and other household servants under contracts, except expenses for stationery, telephone, working mission allowance and uniform.

2.1.6. Monthly, quarterly, annual or irregular monetary or non-monetary bonuses or rewards, 13th month’s salary, including also bonus securities, except bonuses and rewards specified at Point 2.3 below. In case employees are given bonus stocks, the bonus value shall be determined according to the bonus level stated in accounting books of bonus-paying units.

The above incomes which serve as a basis for determination of taxable incomes are incomes before personal income tax is withheld (pre-tax incomes). In case actually earned incomes are exclusive of personal income tax (after-tax incomes), these incomes must be converted into pre-tax incomes according to Appendix No. 01/PL-TNCN to this Circular.

2.2. Allowances and subsidies which are deductible upon determination of taxable incomes from salaries or wages include:

2.2.1. Allowances for persons with meritorious service to the revolution under the law on preferential treatment of persons with meritorious service, including allowances and subsidies for war invalids, diseased soldiers and fallen heroes’ next of kin; allowances and subsidies for revolutionary activists; allowances and subsidies for armed forces heroes, labor heroes or heroic Vietnamese mothers.

2.2.2. Defense or security allowances as provided for by law.

2.2.3. Allowances under the Labor Code, including:

a. Hazard or danger allowances for persons working in branches, occupations or jobs at places where exist hazardous or dangerous elements;

b. Allowances for attraction of laborers to work in new economic zones, economic establishments and offshore islands with particularly difficult living conditions.

c. Region-based allowances as provided for by law for persons working in remote and deep-lying areas or areas with bad climate conditions.

2.2.4. Subsidies provided for by the Social Insurance Law and the Labor Code:

a. Subsidies for sudden difficulties, subsidies for laborers having labor accidents or suffering from occupational diseases.

b. Lump-sum maternity or child adoption subsidies.

c. Subsidies for working capacity reduction.

d. Lump-sum retirement subsidies, monthly survivorships.

e. Severance and job loss or unemployment subsidies.

f. Other subsidies paid by the Social Insurance.

2.2.5. Subsidies for combat of social evils under law.

The above allowances, subsidies and allowance and subsidy levels which are deductible upon determination of taxable incomes for incomes from salaries or wages comply with guiding documents of competent state agencies and are uniformly applicable to all taxpayers and economic sectors.

In case documents guiding allowances, subsidies and allowance and subsidy levels are applicable to the state sector, other economic sectors and business establishments may base themselves on the list of allowances and subsidies and allowance and subsidy levels guided for the state sector to make deduction. If allowances and subsidies are paid higher than the specified allowance and subsidy levels, excessively paid amounts shall be accounted as taxable incomes.

2.3. Rewards which are deductible upon calculation of taxable incomes from salaries or wages:

2.3.1. Rewards accompanying titles conferred by the State, including also those accompanying emulation titles and other forms of commendation and reward under the law on emulation and commendation, specifically:

a. Rewards accompanying emulation titles, including National Emulator, Emulator of ministerial, branch, central organization, provincial or municipal level; Grassroots Emulator, Outstanding Laborer, Outstanding Soldier;

b. Rewards accompanying various forms of commendation and reward, including orders and medals of all classes.

c. Rewards accompanying state honorary tides, such as Heroic Vietnamese Mother, People’s Armed Forces Hero, Hero, People’s Teacher, Physician or Artist.

d. Rewards accompanying the Ho Chi Minh Prize or State Prize.

e. Rewards accompanying commemorative or other badges.

f. Rewards accompanying certificates of merits.

Competence to issue commendation and reward decisions and reward levels accompanying emulation titles and commendation forms above must comply with the Emulation and Commendation Law.

2.3.2. Rewards accompanying international or national prizes recognized by the Vietnamese State.

2.3.3. Rewards for technical renovations, innovations or inventions recognized by competent state agencies.

2.3.4. Rewards for detection of and reporting on illegal acts to competent state agencies.

3. Incomes from capital investment

Incomes from capital investment are those earned in the following forms from activities of providing loans to or purchasing shares from or contributing capital to production or business establishments for production or business activities:

3.1. Interests on loans provided to organizations, enterprises, households, groups of business individuals or individuals under loan agreements (except deposit interests received from banks or credit institutions).

3.2. Profits or dividends received for equity contribution.

3.3. Profits received for contribution of capital to limited liability companies, partnerships, cooperatives, joint ventures, business cooperation contracts and other business forms under the Enterprise Law and the Cooperative Law.

3.4. Increased value of contributed capital amounts received upon the dissolution of enterprises, transformation of operation models, merger or consolidation of enterprises or capital withdrawal (excluding recovered principal capital amounts).

3.5. Incomes from interests of bonds, bills and other negotiable instruments issued by domestic organizations (including foreign organizations licensed to be established and operate in Vietnam), except incomes from interests of bonds issued by the Vietnamese Government.

3.6. Incomes from capital investment in other forms, including contribution of capital in kind, reputation, land use rights, creations or inventions.

3.7. Incomes from dividend values paid in the form of share certificates.

4. Incomes from capital transfer

Incomes from capital transfer are profits received from transfer of capital of individuals in the following cases:

4.1. Incomes from transfer of contributed capital amounts in limited liability companies, partnerships, joint-stock companies, business cooperation contracts, cooperatives, economic organizations or other organizations.

4.2. Incomes from transfer of securities, including incomes from transfer of share certificates, bonds, fund certificates and other securities specified in the Securities Law.

4.3. Incomes from capital transfer in other forms.

5. Incomes from transfer of real estate

Incomes from transfer of real estate are earnings from transfer of real estate, including:

5.1. Incomes from transfer of land use rights.

5.2. Incomes from transfer of rights to use land and assets attached to land. Assets attached to land include:

5.2.1. Residential houses;

5.2.2. Infrastructure and construction works attached to land;

5.2.3. Other assets attached to land, including farms produce, forest or fishery products (plants or animals).

5.3. Incomes from transfer of the right to own or use residential houses.

5.4. Incomes from transfer of the right to lease land or water surface.

5.5. Other incomes earned from transfer of real estate.

6. Incomes from won prizes

Incomes from won prizes means sums of money or objects received by individuals in the following forms:

6.1. Lottery winnings paid by lottery companies that issue lotteries.

6.2. Sales promotion winnings in all forms for goods or service purchasers.

6.3. Lawful betting winnings.

6.4. Lawful casino winnings.

6.5. Winnings in prized games and contests and other forms of lucky draw organized by economic organizations, administrative or non-business agencies, mass organizations and other organizations or individuals.

7. Incomes from copyright

Incomes from copyright are those earned from assignment or licensing of objects of intellectual property rights under the Intellectual Property Law or from technology transfer under the Technology Transfer Law, specifically:

7.1. Objects of intellectual property rights specified in Article 3 of the Intellectual Property Law and relevant guiding documents, including:

7.1.1. Objects of copyright, including literary, cultural or scientific works; objects of related rights, including video or audio recordings of broadcasts, satellite signals bearing encrypted programs.

7.1.2. Objects of industrial property rights, including inventions, industrial designs, layout designs of semi-conductor integrated circuits, business secrets, marks, trade names and geographical indications.

7.1.3. Objects of rights to plant varieties, which are plant varieties and propagating materials.

7.2. Objects of technology transfer specified in Article 7 of the Technology Transfer Law, including:

7.2.1. Technical know-how.

7.2.2. Technical knowledge about technologies in the form of technological plans or processes, technical solutions, formulas, technical parameters, drawings, technical diagrams, computer programs or data.

7.2.3. Solutions to production rationalization and technological renewal.

Incomes from assignment or licensing of objects of intellectual property rights or from technology transfer as specified above include incomes from re-assignment or re-licensing.

8. Incomes from commercial franchising

Commercial franchising is a commercial activity whereby the franchisor permits and requests the franchisee to conduct by him/her/itself the goods sale and purchase or service provision under conditions set out by the franchisor.

Incomes from commercial franchising are those earned by individuals from above commercial franchising contracts, including commercial sub-franchising under the law on commercial franchising.

9. Incomes from inheritance

Incomes from inheritance are those received by individuals under testaments or the law on inheritance estate, including the following kinds of asset:

9.1. For inheritances being securities, they include share certificates, bonds, bills, fund certificates and other kinds of securities specified in the Securities Law.

9.2. For inheritances being capital holdings in economic organizations or business establishments, they include capital contributions to limited liability companies, joint-stock companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises, proprietorships, associations or funds licensed to be established under law or whole business establishments being private enterprises or proprietorships.

9.3. For inheritances being real estate, they include land use rights, right to use land with assets attached to land, right to own houses, condominium apartments, right to lease land or water surface.

9.4. For inheritances being other assets subject to compulsory ownership or use right registration applicable to state management agencies, they include automobiles, motorbikes (motorcycles), ships, boats and aircraft.

10. Incomes from gifts

Incomes from gifts are those received by individuals from domestic or foreign organizations and individuals in the form of the following assets:

10.1. For gifts being securities, they include share certificates, bonds, bills, fund certificates and other kinds of securities specified in the Securities Law.

10.2. Gifts being capital holdings in economic organizations or business establishments, they include capital contributions to limited liability companies, joint-stock companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises, proprietorships, associations or funds licensed to be established under law or whole business establishments being private enterprises or proprietorships.

10.3. For gifts being real estate, they include land use rights, right to use land with assets attached to land, right to own houses, condominium apartments, right to lease land or water surface.

10.4. For gifts being other assets subject to compulsory ownership or use right registration applicable to state management agencies, they include automobiles, motorbikes (motorcycles), ships, boats and aircraft.

III. TAX-EXEMPT INCOMES

Under Article 4 of the Law on Personal Income Tax and Article 4 of Decree No. 100/2008/ND-CP, tax-exempt incomes and dossiers serving as a basis for determination of tax-exempt incomes are as follows:

1. Incomes from transfer of real estate between spouses; parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law; grandparents and their grandchildren; or among blood siblings.

A tax exemption dossier for each specific case is as follows:

1.1. For real estate transferred between spouses, one of the following papers are required: a copy of the household registration book or the marriage certificate or the court ruling on divorce or re-marriage (for the case of house division due to divorce or consolidation of house ownership due to re-marriage).

1.2. For real estate transferred between parents and their children, either of the following papers is required: a copy of the household registration book (if they share the same household registration book) or copy of the birth certificate.

For out-of-wedlock children, a copy of a competent authority’s decision on recognition of parent and child is required.

1.3. For real estate transferred between adoptive parents and their adopted children, either of the following papers is required: a copy of the household registration book (if they share the same household registration book) or a competent authority’s decision on recognition of child adoption.

1.4. For real estate transferred between paternal grandparents and their grandchildren, the following papers are required: a copy of the birth certificate of the grandchild and a copy of the birth certificate of his/her father; or a copy of the household registration book showing the relationship between the paternal grandparent and the grandchild.

1.5. For real estate transferred between maternal grandparents and their grandchildren, the following papers are required: a copy of the birth certificate of the grandchild and a copy of the birth certificate of his/her mother; or a copy of the household registration book showing the relationship between the maternal grandparent and the grandchild.

1.6. For real estate transferred between blood siblings, the following papers are required: a copy of the household registration book or copies of the birth certificates of the transferor and the transferee showing their relationship and the fact that they have the same father and mother or the same father and different mothers or the same mother and different fathers, or other papers evidencing their blood ties.

1.7. For real estate transferred between fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law, the following papers are required: a copy of the household registration book showing the relationship between the father-in-law, the mother-in-law and the daughter-in-law or the son-in-law; or copies of the marriage certificate and the birth certificate of the husband or the wife to serve as a ground for identifying the relationship between the transferor being the husband’s father or mother and the daughter-in-law or the wife’s father or mother and the son-in-law.

In case of transfer of real estate eligible for tax exemption as specified above in which the transferor has no birth certificate or household registration book, there must be the commune-level People’s Committee’s certification of the relationship between the transferor and the transferee to serve as a basis for determination of tax-exempt incomes.

2. Incomes from transfer of residential houses or rights to use residential land and assets attached to residential land of individuals in case the transferor has only one residential house or the sole right to use residential land in Vietnam.

2.1. An individual having only one residential house or the sole right to use residential land specified at this Point is an individual transferor who has the ownership of only one house or the right to use only one land lot in Vietnam, regardless of whether a house has been built on that land.

2.2. In case of transfer of a residential house under a joint ownership or a residential land plot subject to the same use right, only individuals who do not have the ownership of residential houses or the right to use residential land in other localities are entitled to tax exemption. Individuals sharing the ownership of the same residential house or the right to use the same land lot may own other residential houses or have the right to use other land lots without enjoying tax exemption.

2.3. In case a husband and a wife are named in the same certificate of residential house ownership or the right to use the same land lot, which is the only house or land lot under their joint ownership, and they also separately own or have the right to use other houses or land lots, when the residential house or land lot under their joint ownership is transferred, only husband or wife who has no own residential house or land lot is entitled to tax exemption. Husband or wife who already has his/her own residential house or land lot is not entitled to tax exemption.

2.4. In case an individual owns only one residential house or has the right to use only one residential land lot or individuals share the ownership of the same residential house or the right to use the same residential land lot and transfer part of that house or land lot, they are not entitled to tax exemption for the transferred part.

2.5. Bases for determination of tax-exempt income from transfer of the sole residential house or residential land lot shall be declared by the transferor himself/herself who shall take responsibility for the truthfulness of his/her declaration. If the declaration is detected untruthful, personal income tax shall be retrospectively collected and a fine for the tax fraud shall be imposed under the Law on Tax Administration.

3. Incomes from the value of land use rights of individuals who are allocated land by the State without having to pay land use levy or with reduced land use levy under law:

3.1. For individuals entitled to land use levy exemption or reduction upon land allocation, when transferring land areas eligible for land use levy exemption or reduction, cost prices of transferred land areas shall be determined according to the price set by the provincial-level People’s Committee at the time of land allocation.

3.2. A tax exemption dossier comprises a copy of a competent authority’s land allocation decision clearly stating the land use levy exemption or reduction level.

4. Incomes from receipt of inheritances or gifts that are real estate between spouses, parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law; grandparents and their grandchildren; or among blood siblings.

Tax exemption dossiers for these cases are similar to those for cases of real estate transfer specified in Clause 1, Section III, Part A of this Circular.

5. Incomes from conversion of use purposes of agricultural land areas allocated by the State to households and individuals for production.

5.1. For households and individuals directly engaged in agricultural production and converting use purposes of their agricultural land areas for agricultural production rationalization, incomes from agricultural land conversion are tax-exempt.

5.2. A tax exemption dossier comprises a written agreement on land conversion between involved parties certified by a competent authority.

Copies of papers required for cases of real estate transfer specified in Clauses 1, 2, 3, 4 and 5, Section III above must be notarized or certified by commune-level People’s Committees. In case these copies are not notarized or certified by commune-level People’s Committees, transferors shall produce original papers to tax offices for comparison.

For cases of real estate transfer specified in Clauses 1, 2, 3, 4 and 5, Section III above under Point 2.5, Clause 2, Section II, Part D of this Circular, real estate transferors shall carry out procedures for tax exemption.

6. Incomes of households and individuals directly engaged in agricultural or forest production, salt making, aquaculture, fishing and trading of aquatic resources not yet processed into other products or preliminarily processed aquatic products.

Households and individuals directly engaged in agricultural or forest production, salt making, aquaculture, fishing and trading of aquatic resources not yet processed into other products or preliminarily processed aquatic products and have tax-exempt incomes must satisfy the following conditions:

6.1. They have lawful land or water surface use or lease rights for production, and being directly engaged in agricultural or forest production, salt making or aquaculture.

For the case of sublease of land or water surface from other organizations or individuals, written land or water surface lease contracts under law are required.

For fishing activities, certificates of lawful ownership or charter parties of ships or boats for fishing purposes are required and households and individuals must be directly engaged in fishing activities.

6.2. They actually reside in localities where agricultural or forest production, salt making or aquaculture activities are conducted.

Localities where agricultural or forest production, salt making or aquaculture activities are conducted specified at this Point are urban districts, rural districts, towns or provincial cities (collectively referred to as district-level administrative units) or adjacent districts where production activities are conducted.

Particularly for fishing activities, the condition on places of residence is not required.

6.3. Products of agricultural or forest production, salt making, aquaculture, fishing which are not yet processed into other products or are preliminarily processed are construed as follows:

6.3.1. Unprocessed or preliminarily processed farm produce include those which are sun-dried, heat-dried, cleaned or freshly preserved with chemicals, peeled, sorted and packaged.

6.3.2. Unprocessed or preliminarily processed husbandry and aquatic products include those which are sun-dried, heat-dried, cleaned, frozen, salted, sorted and packaged.

7. Incomes from interests on deposits at banks or credit institutions or interests from life insurance policies.

7.1. Tax-exempt deposit interests under this Point are interests received by individuals from their deposits at banks or credit institutions. All cases of receipt of deposit interests not from credit institutions established and operating under the Credit Institutions Law are not exempt from tax.

7.2. Interests from life insurance policies are interests received by individuals under life insurance policies issued by insurance companies.

7.3. Bases for determination of tax-exempt incomes for above interests are as follows:

7.3.1. Savings books (or savings cards) of individuals, for incomes from deposit interests.

7.3.2. Vouchers of payment of interests from life insurance policies, for incomes from these interests.

8. Incomes from foreign exchange remittances

8.1. Tax-exempt incomes from foreign exchange remittances are sums of money received by individuals in the country from their relatives who are overseas Vietnamese, guest laborers, persons on working missions or study courses abroad.

8.2. Bases for determination of tax-exempt incomes from foreign exchange remittances include papers evidencing sums of money received from abroad and vouchers of payment by organizations which pay these sums of money on behalf of remitters (if any).

9. Salary or wage amounts paid for night shift or overtime work, which are higher than those paid for day shifts or prescribed working hours under the Labor Code:

9.1. Salary or wage amounts paid for night shift or overtime work which are higher than those paid for day shift, are exempt from tax based on actually paid salary or wage amounts for night shift or overtime work minus those paid for ordinary workdays.

Example: An individual has his/her wage of VND 20,000/hour paid for ordinary workdays under the Labor Code.

- In case he/she performs overtime work on an ordinary workday and gets an overtime pay of VND 30,000/hour, his/her tax-exempt income will be:

VND 30,000/hour - VND 20,000/hour = VND 10,000/hour

- In case he/she performs overtime work on a weekend or holiday and gets an overtime pay of VND 40,000/hour, his/her tax-exempt income will be:

VND 40,000/hour - VND 20,000/hour = VND 20,000/hour

9.2. Employing units shall make a list showing working time in the night shift or overtime work and wage amounts for the night shift or overtime work already additionally paid to laborers. This list shall be sent to the tax office together with dossiers of declaration for tax finalization.

10. Incomes from retirement pensions paid by the Social Insurance under the Social Insurance Law.

For laborers who participate in social insurance and retire under retirement regulations, their incomes from pensions paid by the Social Insurance are tax-exempt.

Individuals residing in Vietnam are eligible for exemption from personal income tax on pensions paid by foreign countries under the social insurance laws of these countries.

11. Incomes from scholarships, including:

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Decision No. 129/2008/QD-TTg dated September 19, 2008 of the Prime Minister stipulating the absolute export duty rate applicable to Barite and Apatite Ore