Circular No.57/2009/TT-BTC dated March 24, 2009 of the Ministry of Finance guiding personal income tax exemption for Vietnamese staff of representative offices of United Nations organizations in Vietnam

THE MINISTRY OF FINANCE

Circular No. 57/2009/TT-BTC of March 24, 2009, guiding exemption from personal income tax for Vietnamese individuals working in Vietnam-based representative offices of United Nations organizations

Pursuant to the Convention of Privileges and Immunities of the United Nations which was passed by the United Nations General Assembly on February 13, 1946;

Pursuant to June 14, 2005 Law No. 41/2005/QH11 on Conclusion, Accession to and Implementation of Treaties;

Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration and the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration;

Pursuant to November 21, 2007 Law No. 04/2007/QH12 on Personal Income Tax and 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. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organization of the Ministry of Finance;

In furtherance of the Prime Minister’s opinion in Official Letter No. 7835/VPCP-KTTH of November 14, 2008, on personal income tax on Vietnamese staff members of Vietnam-based representative offices of the United Nations;

The Ministry of Finance guides the exemption from personal income tax for Vietnamese individuals employed to work in Vietnam-based representative offices of United Nations organizations as follows:

Article 1. Subjects eligible for tax exemption

Vietnamese individuals who are employed under labor contracts and currently working in Vietnam-based representative offices of United Nations organizations (below referred to as staff members) are eligible for personal income tax exemption under this Circular.

Other individuals employed and salaried on an hourly basis by Vietnam-based representative offices of United Nations organizations are not governed by this Circular.

Article 2. Tax-exempt incomes

Staff members’ tax-exempt incomes under this Circular are salary and remuneration amounts paid by representative offices of United Nations organizations to these staff members.

For other incomes not paid by United Nations organizations, staff members shall pay personal income tax under current regulations.

Article 3. Dossiers and procedures for tax exemption

Not later than May 30, 2009, Vietnam-based representative offices of United Nations organizations shall submit lists, made according to a form provided in the Appendix to this Circular (not printed herein), of their Vietnamese staff members who are eligible for personal income tax exemption to provincial-level Tax Departments of localities where they are located.

In case these representative offices change their staff members working under labor contracts through new recruitment or termination of contracts, they shall submit lists of staff member changes to tax offices not later than the last day of the month when these changes occur.

Chiefs of Vietnam-based representative offices of United Nations organizations shall be held responsible for the accuracy of lists of their staff members eligible for personal income tax exemption submitted to tax offices.

Tax offices will not collect personal income tax from Vietnamese staff members of Vietnam-based representatives of United Nations organizations who are on the lists of staff members certified by these representative offices.

Article 4. Organization of implementation

This Circular takes effect 45 days from date of its signing. All previous regulations contrary to this Circular are annulled.

Any problems arising in the course of implementation shall be reported to the Ministry of Finance for consideration and settlement.-

For the Minister of Finance
Vice Minister
DO HOANG ANH TUAN