From February 06, 2014, which subjects are considered residents of Vietnam?

18:28, 10/07/2024

Recently, Circular 205/2013/TT-BTC was issued by the Minister of Finance, providing guidance on the basic contents of Double Taxation Avoidance Agreements and the prevention of tax evasion with respect to taxes on income and assets between Vietnam and other countries and territories (hereinafter collectively referred to as Contracting States or countries depending on the context) that have entered into force in Vietnam (hereinafter referred to as the Agreement).

According to the current Vietnamese tax laws and Circular 205/2013/TT-BTC, the following subjects are considered residents in Vietnam:

doi tuong cu tru tai Viet Nam, Thong tu 205/2013/TT-BTC

Source: Internet

- Firstly: for individuals, one must meet one of the following conditions:

- Being present in Vietnam for 183 days or more in a calendar year or in 12 consecutive months from the first day present in Vietnam;    - An individual being present in Vietnam as stipulated in this point refers to the presence of that individual within the territory of Vietnam;- Having a regular place of residence in Vietnam in one of the following cases:    - Having a registered permanent residence as per the law on residence;    - Having a rented house to live in Vietnam according to the housing law, with rental contracts having a duration of 183 days or more in the tax year.    - In the case where an individual has a regular place of residence in Vietnam as stipulated in this point but is actually present in Vietnam for less than 183 days in the tax year and cannot prove residency of another country, that individual is considered a resident in Vietnam.

Example: In 2010, a Japanese expert came to work in Vietnam for 10 months. In two months of 2010 (June and December), this expert visited his family. In 2009, the expert lived and worked in Japan. Japan's tax year is from April 1 to March 31 of the following year. Thus, in 2010, because the Japanese expert mainly worked in Vietnam and regularly lived in Vietnam, even though the expert still had a house and family in Japan and held Japanese nationality, the expert is still considered a resident of Vietnam for tax purposes. (As stipulated at Article 4, Clause b, Agreement between Vietnam and Japan). However, during the period from January 2010 to March 30, 2010, the expert is considered a resident of Japan for tax settlement purposes in Vietnam and Japan.

- Secondly: Organizations established and operating under the laws of Vietnam.

See more related regulations at Circular 205/2013/TT-BTC effective from February 6, 2014.

Thu Ba

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