Circular No. 97/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance on documents and procedures for grant of personal income tax exemption to vietnamese employees of representative offices in vietnam of un system organizations

THE MINISTRY OF FINANCE

Circular No.97/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance on documents and procedures for grant of personal income tax exemption to vietnamese employees of representative offices in vietnam of un system organizations

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

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

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

Pursuant to Ordinance on immunities for diplomatic missions, consular offices and representative offices of international organizations in Vietnam dated August 23, 1993;

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;

Pursuant to the Prime Minister’s Decision No. 07/2016/QĐ-TTg on grant of personal income tax exemption to Vietnamese employees of representative offices in Vietnam of UN System Organizations;

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

The Minister of Finance provides guidelines for documents and procedures for grant of personal income tax exemption to Vietnamese employees of representative offices in Vietnam of UN System Organizations:

Article 1. Scope  of  adjustment and subject of application

1. This Circular provides for documents and procedures for grant of personal income tax exemption to Vietnamese employees of representative offices of UN System Organizations in Vietnam.

2. This Circular applies to Vietnamese employees of representative offices in Vietnam of UN System Organizations who are eligible for personal income tax (PIT) exemption according to the Prime Minister’s Decision No. No. 07/2016/QĐ-TTg.

Article 2. Documents and procedures for tax exemption

1. Application for tax exemption

1.1. An application for tax exemption consists of:

- The diplomatic note prepared by the representative office of the UN System Organization in Vietnam and list of Vietnamese employees eligible for PIT exemption (Form No. 01/DSMT-LHQ enclosed herewith).

- Copies of employment contracts.

1.2. Application for tax exemption in case of changes of Vietnamese employees:

- The diplomatic note prepared by the representative office of the UN System Organization in Vietnam and the adjusted list of Vietnamese employees eligible for PIT exemption (Form No. 02/TĐDSMT-LHQ enclosed herewith);

- Employment contracts with new Vietnamese employees.

1.3. The application for tax exemption shall be made into 02 sets.

2. Deadline for submitting the application for tax exemption

2.1. The UN System Organization which establishes a new representative office in Vietnam shall submit the application for tax exemption within 30 days from the day on which the head of such organization submits the credentials to a competent Vietnamese authority.

2.2. The UN System Organization which already has a representative office in Vietnam before the effective date of this Circular shall submit the application for tax exemption in accordance with instructions provided herein within 30 days from the effective date of this Circular if such application has not been submitted.

2.3. Where a UN System Organization recruits a new employee or terminates an employment contract with a Vietnamese employee, the application which specifies the change shall submit by the 20^thof the month succeeding the month in which the changes occurs.

3. Receiving body

UN System Organizations shall submit applications for tax exemption to the Ministry of Foreign Affairs (Directorate of State Protocol).

4. Procedures for tax exemption

The Ministry of Foreign Affairs (Directorate of State Protocol) shall verify the list (Form No. 01/DSMT-LHQ or 02/TĐDSMT-LHQ) and send it to the Provincial Department of Taxation of the province where the representative office of the UN System Organization is located to complete tax exemption procedures within 05 working days from the day on which the satisfactory application is received.

Article 5. Effect

This Circular takes effect on August 15, 2016 and replaces Circular No 57/2009/TT-BTC.

Any difficulties arising in the course of implementation of this Circular should be reported to the Ministry of Finance (General Department of Taxation) for consideration./.

For the Minister

The Deputy Minister

Do Hoang Anh Tuan