New PIT Circular
Subsequent to the enactment of the Law No. 26/2012/QH13 dated 22 November 2012 of the National Assembly to amend and supplement the current PIT Law (“the amended PIT Law”) and Decree 65/2013/ND-CP dated 27 June 2013 of the Government (“Decree 65”), the Ministry of Finance (“MoF”) has issued Circular 111/2013/TT-BTC (“Circular 111”) dated 15 August 2013 providing detailed guidelines on the amended Law and Decree 65 on PIT.
Circular 111 now legalizes the supplements/amendments/replacements regulated in previous guiding Circulars and various rulings of the MoF and the General Department of Taxation. Along with key changes noted in our Tax Alert on Decree 65, Circular 111 has introduced some notable points as follows:
Tax Residence Certificate
For the first time, at a circular level, the evidence for proving residency of another country is stipulated. That evidence is a Certificate of Residence (“CoR”). In case the individual is resident of a country or a region which has signed a double taxation avoidance agreement with Vietnam, but does not grant a CoR, then the individual is required to provide a copy of his/her passport instead of the CoR.
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