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

CIRCULAR

Guiding the dossier and procedures for personal income tax exemption for foreign experts who implement non-governmental aid programs and projects in Vietnam[1]

Pursuant to November 21, 2007 Law No. 04/2007/QH12 on Personal Income Tax; November 22, 2012 Law No. 26/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Personal Income Tax; and the Government’s decrees detailing the implementation of these Laws;

Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration; November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration; and the Government’s decrees detailing the implementation of these Laws;

Pursuant to November 26, 2014 Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Tax Laws, and the Government’s Decree No. 12/2015/ND-CP, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws 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 operations 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;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Decision No. 06/2016/ND-CP of February 22, 2016, on personal income tax exemption for foreign experts who implement non-governmental aid programs and projects in Vietnam;

At the proposal of the General Director of Taxation,

The Minister of Finance guides the dossier and procedures for personal income tax exemption for foreign experts who implement non-governmental aid programs and projects in Vietnam as follows:

Article 1. Scope of regulation and subjects of application

1. This Circular guides the dossier and procedures for personal income tax exemption for foreign experts who directly carry out activities of non-governmental aid programs and projects in Vietnam.

2. This Circular applies to foreign experts eligible for personal income tax exemption under the Prime Minister’s Decision No. 06/2016/QD-TTg of February 22, 2016, on personal income tax exemption for foreign experts who implement non-governmental aid programs and projects in Vietnam.

Article 2. Dossier and procedures for tax exemption

1. Tax exemption dossier

A tax exemption dossier comprises:

- A foreign expert certification and request of a project-managing agency (in case the foreign expert signs a contract with a project-managing agency) or a foreign non-governmental aid provider (in case the foreign expert signs a contract with a foreign non-governmental organization or a foreign non-governmental aid provider) for personal income tax exemption for income earned by the foreign expert from direct implementation of foreign non-governmental programs and projects in Vietnam (made according to Form No. 01/XNCG-DNMT provided in the Appendix to this Circular);

- Related documents:

+ A copy of the decision approving a foreign non-governmental aid program or project in Vietnam.

+ A copy of the program or project document approved by a Vietnamese competent agency.

+ A copy of the signed contract between the foreign expert and a foreign non-governmental organization or a project-managing agency or a foreign non-governmental aid provider.

2. Time limit for submission of a tax exemption dossier

Within 30 days after the effective date of the contract signed with a foreign expert, a project-managing agency or foreign non-governmental aid provider shall submit a tax exemption dossier to the tax agency.

3. Place for submission of a tax exemption dossier

- In case a foreign expert signs a contract with a project-managing agency: The place for submission of a tax exemption dossier is the provincial-level Tax Department of the locality where the project-managing agency is headquartered.

- In case a foreign expert signs a contract with a foreign non-governmental organization or foreign non-governmental aid provider: The place for submission of a tax exemption dossier is the provincial-level Tax Department of the locality where the foreign non-governmental aid provider is headquartered.

4. Procedures for tax exemption

Within 15 working days after receiving a complete dossier as guided in this Circular, the tax agency shall issue a certificate of personal income tax exemption for income earned by a foreign expert from direct implementation of a foreign non-governmental aid program or project (made according to Form No. 02/XNMT provided in the Appendix to this Circular) or a notice of ineligibility for tax exemption (made according to Form No. 03/TB-KMT provided in the Appendix to this Circular).

5. In case of change of a foreign expert identified in a foreign expert certification and personal income tax exemption request submitted to the tax agency, a project-managing agency or foreign non-governmental aid provider shall submit a tax exemption dossier as guided in Clause 1 of this Article.

Article 3. Organization of implementation

This Circular takes effect on August 15, 2016, and replaces Circular No. 55/2007/TT-BTC of May 29, 2007, guiding personal income tax exemption for foreign experts who implement foreign non-governmental aid programs and projects in Vietnam.

Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance (the General Department of Taxation) for study and settlement.-

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN