The Ministry of Finance issued Circular No. 111/2013/TT-BTC
on 15/08/2013 (“Circular 111”) to provide guidance for implementation of PIT Law
No. 04/2007/QH12 dated 21/11/2007, Law No. 26/2012/QH13 dated 22/11/2012
amending and supplementing a number of articles of the PIT Law, and Decree No.
65/2013/ND-CP dated 28/06/2013.
They highlight some of the salient provisions in Circular
111 as follows:
Leased Accommodation and Tax Residence Status- One of the
rules governing the determination of an individual’s tax residence status has
been amended such that a non-Vietnamese citizen with leased accommodations will
be deemed a tax resident of Vietnam
if the lease term is for 183 days (compared with 90 days in the prior rules) or
more in a tax year.
If an individual, who has a residential location in Vietnam for less than 183 days in a tax year,
they will be considered as a non-tax resident of Vietnam provided that they can present
a Certificate of Tax Residence of another country. For cases where a tax
resident is from a country that has signed a Double Taxation Agreement with
Vietnam, but the resident has not been ed
a Certificate of Tax Resident, a copy of passport can be substituted.