THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.: 7333 TC/TCT
Re: Corporate income tax and personal income tax applicable to grant ODA projects
Hanoi, July 2, 2004
 
To:
- Ministries, Ministerial Equivalent Bodies and Government bodies
- People’s Committees of provinces and centrally-managed cities
- Taxation Departments of provinces and centrally-managed cities
For the implementation of the direction of the Prime Minister in Official Letter No. 1048/VPCP-KTTTH dated March 5, 2004 of the Government Office on “the exemption from corporate income tax (CIT), personal income tax (PIT) to foreign contractors and individuals engaged in the implementation of grant ODA projects in Vietnam, the tax exemption shall be specifically agreed upon commitments with each donor,” the Ministry of Finance hereby provides guidelines as follows:
1. Foreign contractors engaged in the implementation of the grant ODA projects shall be exempted from CIT levied on incomes generated from the supply of goods and services to the grant ODA projects based upon the contract signed with the project owner.
2. Foreign individuals shall be exempted from PIT for income generated from working for foreign contractors engaged in the implementation of the grant ODA projects.
3. The exemption from CIT and PIT as stated in Item 1 and 2 above must be provided in the Agreement on grant ODA. Based upon conditions, nature and characteristics of each grant ODA project and request of specific donor, the body signing Agreement, before signing the Agreement must collect opinions from the Ministry of Finance and report to the Prime Minister regarding the CIT and PIT exemption applicable to foreign contractors and individuals.
4. The foreign contractors and individuals who carry out the grant ODA project shall fulfill their tax obligations in accordance with the current legislation on tax and the agreement on the avoidance of double taxation entered into between Vietnam and other countries if the agreement on grant ODA has no provision on the tax exemption.
The Ministry of Finance hereby provides guidelines to relevant agencies for information and implementation.
 
FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Truong Chi Trung