Decision No. 06/2016/QD-TTg dated February 22, 2016 of the Prime Minister on exemption from personal income tax for foreign experts implementing programs and projects on foreign non-governmental aid in Vietnam

THE PRIME MINISTER

Decision No.06/2016/QD-TTg dated February 22, 2016 of the Prime Minister on exemption from personal income tax for foreign experts implementing programs and projects on foreign non-governmental aid in Vietnam

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on personal income tax dated November 21, 2007; the Law on amendments to a number of articles of the Law on personal income tax;

Pursuant to the Law on amendments to a number of articles of the Law on Tax dated November 26, 2014;

Pursuant to the Governments’ Decree No. 65/2013/ND-CP dated June 27, 2013 detailing a number of articles of the Law on personal income tax and the law on amendments to a number of articles of the Law on personal income tax;

Pursuant to the Governments’ Decree No. 12/2015/ND-CP dated February 22, 2015 detailing a number of articles of the Law on personal income tax and the law on amendments to a number of articles of the Law tax;

Pursuant to the Government’s Decree No. 12/2012/ND-CP dated March 01, 2012 on registration and management of activities of foreign non-governmental organizations in Vietnam;

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

At the request of the Minister of Finance;

The Prime Minister promulgates the decision on exemption from personal income tax for foreign experts implementing programs and projects on foreign non-governmental aid in Vietnam.

Article 1. Scope of adjustment and subject of application

1. This Decision regulates exemption from personal income tax for foreign experts implementing programs and projects on foreign non-governmental aid in Vietnam.

2. This Decision applies to foreign experts selected to be directly involved in programs and projects on foreign non-governmental aid on the basis of an agreement between foreign non-governmental organizations and Vietnam’s governing body as prescribed in the program and project document that has been approved according to laws on management and use of foreign non-governmental aid.

Article 2. Requirements for tax exemption

A foreign expert eligible for exemption from personal income tax should meet following requirements:

1. Have foreign nationality;

2. Have a contract signed between the foreign expert and foreign non-governmental organizations, or the governing body or the owner of foreign non-governmental aid in Vietnam for direct implementation of activities of the programs and projects on foreign non-governmental aid under the program and project document approved by competent agencies and terms of reference (TOR) documents attached to this contract.

Particularly for the contract signed between the foreign expert and foreign non-governmental organizations, it is required to include confirmations from owner of Vietnamese non-governmental aid regarding the foreign expert directly involved in the implementation of programs and projects on foreign non-governmental aid under the program and project document approved by competent agencies.

Article 3. Tax-free income

Tax-free income of foreign experts as prescribed in Clause 2, Article 1 hereof is the direct income from the implementation of programs and projects on foreign non-governmental aid.

Article 4. Implementation provisions

1. This Decision takes effect on May 01, 2016.

2. The Ministry of Finance shall provide instructions on the implementation of this Decision.

3. Ministers, heads of ministerial-level agencies, heads of governmental agencies, presidents of People’s committees of central-affiliated cities and provinces shall be responsible for executing this Decision./.

The Prime Minister

Nguyen Tan Dung