THE MINISTRY OF FINANCE
 
No. 128/2014/TT-BTC
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
 
Hanoi, September 5, 2014
 
 
CIRCULAR
Guiding the personal income tax reduction for persons working in
economic zones
 
Pursuant to the 2007 Personal Income Tax Law and the 2012 Law Amending and Supplementing a Number of Articles of the Personal Income Tax Law;
Pursuant to the 2006 Tax Administration Law and the 2012 Law Amending and Supplementing a Number of Articles of the Tax Administration Law;
Pursuant to the Government’s Decree No. 65/2013/ND-CP of June 27, 2013, detailing a number of articles of the Personal Income Tax Law and the Law Amending and Supplementing a Number of Articles of the Personal Income Tax Law;
Pursuant to the Government’s Decree No. 83/2013/ND-CP of July 22, 2013, detailing a number of articles of the Tax Administration Law and the Law Amending and Supplementing a Number of Articles of the Tax Administration Law;
Pursuant to the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, providing industrial parks, export-processing zones and economic zones;
Pursuant to the Government’s Decree No. 164/2013/ND-CP of November 12, 2013, amending and supplementing a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, providing industrial parks, export-processing zones and economic zones;
Pursuant to the Prime Minister’s Decision No. 72/2013/QD-TTg of November 26, 2013, promulgating financial mechanisms and policies applicable to border-gate economic zones;
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;
At the proposal of the General Director of Taxation;
The Minister of Finance guides the personal income tax reduction for persons working in economic zones and border-gate economic zones (below collectively referred to as economic zones) as follows:
Article 1. Taxpayers and scope of application
Taxpayers eligible for personal income tax reduction under this Circular are residents and non-residents as defined in the personal income tax law who are working in economic zones, including:
1. Persons who sign labor contracts with economic zone management boards or state management agencies based in economic zones and actually work in economic zones.
2. Persons who sign labor contracts with organizations or individuals having business establishments based in economic zones and actually work in economic zones.
3. Persons who sign labor contracts with organizations or individuals based outside economic zones but are sent to work in economic zones to perform economic contracts signed between organizations or individuals based outside economic zones and economic zone management boards, state management agencies based in economic zones or organizations or individuals conducting investment, production and business activities in economic zones.
4. Individuals and groups of individuals that have fixed places of business in economic zones and conduct production and business activities under their business registration certificates in economic zones.
5. Persons who sign labor contracts with organizations in economic zones and actually work in economic zones’ hazardous waste treatment plants which, according to state regulations on environment and approved economic zone master plans, must be located outside economic zones.
Article 2. Taxable incomes used as a basis for tax reduction
Incomes used as a basis for calculation of personal income tax amounts to be reduced under this Circular include:

 

[1] Công Báo Nos 871-872 (23/9/2014)