The Ministry of Finance recently issued Circular 92/2015/TT-BTC providing guidance on PIT under the Law 71/2014/QH13 and Decree 12/2015/ND-CP. Circular 92 restates many provisions of Decree 12 and applies to tax year 2015.

Some of the key points are as below:

1. Employment income

• One–off relocation payment are non taxable income to foreigner coming to work in Vietnam and Vietnamese leaving Vietnam to work in overseas. This has now been extended to Vietnamese residing in overseas on a long term basis and returning to Vietnam to work.

• The taxable value of employer-provided accommodation (including utilities and services expenses) is concessionally taxed at the lower of the actual rental paid or 15% of the employee’s gross taxable income (excluding the taxable housing, utilities and service expenses). For the purposes of this calculation, gross taxable income do not include income from prior employment as the provided accommodation is from the current employer.

• Employer’s contributions to local and overseas non-mandatory insurance scheme which do not pay based on accumulated contributions, (such as medical insurance, accident insurance, etc) are non taxable.

• Certain allowances/benefits paid/provided by an employer for special occasions such as wedding and funeral in accordance with the company internal policy are now exempted from PIT subject to a cap.

Please click PwC Vietnam Newsbrief_Circular 92 guiding Law 71 and Decree 12 on PIT_EN for more information and PwC Vietnam Newsbrief_Circular 92 guiding Law 71 and Decree 12 on PIT_VN_ for Vietnamese version.



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