| THE MINISTRY OF FINANCE No. 205/2013/TT-BTC | THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, December 24, 2013 |
CIRCULAR
Guiding the implementation of the Agreements on avoidance of double taxation avoidance and prevention of fiscal evasion with respect to taxes on income and property between Vietnam and other countries currently in force in Vietnam
Pursuant to the current legal documents on enterprise income tax and personal income tax;
Pursuant to June 14, 2005 Law No. 41/2005/QH11 on Conclusion, Accession to and Implementation of Treaties;
Pursuant to the Agreements on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and property between Vietnam and other countries and territories currently in force;
Pursuant to the Government’s Decree No. 118/2008/ND-CP, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of General Director of Taxation;
The Minister of Finance promulgates the Circular to guide the fundamental contents of the Agreements on avoidance of double taxation and prevention of fiscal evasion (below referred to as Agreements) with respect to taxes on income and property between Vietnam and other countries and territories (below collectively referred to as Contracting State or State, as the context requires) in force in Vietnam.
Chapter I
GENERAL PROVISIONS
Section 1
SUBJECTS AND SCOPE OF APPLICATION
Article 1. Subjects of application
This Circular governs subjects that are residents of Vietnam or of the Contracting State to an Agreement concluded with Vietnam or of both.
1. Under the Agreements, the term “a resident of the Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of:
1.1. That person has a home, a period of residence in that State or meets any other criterion of similar nature, in the case of an individual; or
1.2. That person has a place of management, a registered office, or is established in that State or meets any other criterion of similar nature, in the case of an organization; or
1.3. This term covers also the State or local authorities of such State as it is prescribed in the Agreement.
2. Pursuant to the current tax laws of Vietnam, the following person is regarded as a resident of Vietnam:
2.1. An individual who meets either of the following conditions:
a/ Being present in Vietnam for 183 or more days computed in a calendar year or over 12 consecutive months from the first day of presence in Vietnam;
Individuals present in Vietnam under this Point are those who appear in the territory of Vietnam;
b/ Having a habitual abode in Vietnam in either of the following cases:
- Having a registered permanent home available to him/her in accordance with the law on residence;
- Having a house rented for residence in Vietnam in accordance with the law on housing, with the term of house rent contracts of at least 183 days in the taxable year.
In case an individual who has a habitual abode in Vietnam under this Point is actually present in Vietnam for less than 183 days in the taxable year but cannot prove that he/she is a resident of another State, then he/she is a resident of Vietnam.
