DECREE

CONCERNING THE AMENDMENTS OF SOME ARTICLES OF GOVERNMENTAL DECREE NO.05/CP DATED JANUARY 20, 1995 PROVIDING DETAILED REGULATIONS ON THE IMPLEMENTATION OF THE ORDINANCE ON INCOME TAX APPLICABLE TO HIGH-INCOME EARNERS

THE GOVERNMENT

Pursuant to the Law on Governmental Organisation dated September 30, 1992;
Pursuant to Ordinance No.14/1999/PL-UBTVQH10 dated June 30, 1999 by the National Assembly's Standing Committee mending some articles of the Ordinance on Income Tax Applicable to High-income Earners;
According to the proposal of the Minister of Finance,

DECREES

Article 1:

To hereby amend some articles of Governmental Decree No.05/CP dated January 20, 1995 providing detailed regulation on the implementation of the Ordinance on Income Tax Applicable to High-income Earners:

1. Article 4.10.1 of the Decree is amended as follows:

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2. Article 7.2 and Article 7.3 of the Decree are amended as follows:

"2. Vietnamese citizens earning additional incomes home and abroad are subject to the Tax Table stated in Article 1.3 of the Ordinance on Income Tax Applicable to High income Earners (amendment) which was approved by the National Assembly's Standing Committee on February 6, 1997; and Article 1.2 of Ordinance No.14/1999/PL-UBTVQH10 dated June 30, 1999 by the National Assembly's Standing Committee amending some articles of the Ordinance on Income Tax Applicable to High-income Earners. The taxable income is counted by dividing the total domestic and overseas incomes by twelve (months) and then applying the corresponding Tax Table".

"3. Foreigners having resided in Vietnam for more than 183 days and Vietnamese citizens working or accomplishing business abroad are subject to regulations of the Partially Progressive Tax Table stated in Article 1.2 of Ordinance No.14/1999/PL-UBTVQH10 dated June 30, 1999 by the National Assembly's Standing Committee amending some articles of the Ordinance on Income Tax Applicable to High- income Earners".

3. Article 12.2 of the decree is amended as follows:

"2. For foreigners:

- Foreigners having resided in Vietnam from 30 days to 182 days are required to make tax declarations in accordance with the Tax Table stated in Article 10.3 of the Ordinance on Income Tax Applicable to High-income Earners, approved by the National Assembly's Standing Committee on May 19, 1994.

- Foreigners having resided in Vietnam for 183 days or more are required to make tax declarations in consonance with the Partially Progressive Tax Table stated in Article 1.2 of Ordinance No.14/1999/PL-UBTVQH10 dated June 30, 1999 by the National Assembly's Standing Committee amending some articles of the Ordinance on Income Tax Applicable to High-income Earners.

- For the first year subject to tax, the period of foreigners residing in Vietnam is fixed by twelve consecutive months. For the following years, the period is defined on the basis of the solar year. The arrival and departure days will be understood as one day".

Article 2:

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Article 3:

The Minister of Finance is entrusted with the responsibility of providing guidance on the implementations of this Decree.

Ministers, heads of ministerial level bodies, heads of Governmental bodies, chairpersons of Centrally controlled municipal and provincial People's Committees are responsible for implementing this Decree.

ON BEHALF OF THE GOVERNMENT
P/P PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung