THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 55/2007/TT-BTC
Hanoi, May 29, 2007
 
CIRCULAR
GUIDING PERSONAL INCOME TAX EXEMPTION FOR FOREIGN EXPERTS WHO IMPLEMENT FOREIGN NON-GOVERNMENTAL AID PROGRAMS OR PROJECTS IN VIETNAM
Pursuant to May 19, 2001 Ordinance No. 35/2001/PL-UBTVQH10 of the National Assembly Standing Committee, on income tax on high-income earners (hereinafter referred to as personal income tax - PIT);
Pursuant to March 24, 2004 Ordinance No. 14/2004/PL-UBTVQH11 of the National Assembly Standing Committee, amending and supplementing a number of articles of the Ordinance on Personal Income Tax;
Pursuant to the Government’s Decree No. 147/2004/ND-CP of July 23, 2004, detailing the implementation of the Ordinance on Personal Income Tax;
Pursuant to the Prime Minister’s Decision No. 340/TTg of May 24, 1996, promulgating the Operation Regulation of foreign non-governmental organizations in Vietnam;
Pursuant to the Prime Minister’s Decision No. 64/2001/QD-TTg of April 26, 2001, promulgating the Regulation on management and use of foreign non-governmental aid;
Pursuant to the Government Office’s Official Letter No. 7617/VPCP-KTTH of December 29, 2006, approving PIT exemption for foreign experts who implement non-refundable aid projects of foreign non-governmental organizations in Vietnam;
The Ministry of Finance guides PIT exemption for foreign experts who implement foreign non-governmental aid programs or projects in Vietnam as follows:
1. Scope of application:
Foreign experts entitled to PIT exemption for incomes from the implementation of non-governmental aid programs or projects in Vietnam are foreign nationals recruited as agreed upon between foreign non-governmental organizations and Vietnamese project-managing agencies to directly participate in activities of non-governmental aid programs or projects in Vietnam in line with the programs’ or projects’ documents approved by the Vietnamese project-managing agencies under current regulations on management and use of non-governmental aid and terms of reference (TOR) for foreign experts.
Other foreigners, including foreign individuals working in representative offices or project offices or as project consultants, are not subject to this Circular.
2. Tax exemption dossiers and procedures:
A foreign expert shall present to the Tax Department of the province or centrally run city where the project management unit or project owner is headquartered a dossier of application for PIT exemption, comprising:
- The non-governmental organization’s official letter requesting non-collection of PIT on the foreign expert’s income from the implementation of a program or project;
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