DECREE

AMENDING A NUMBER OF ARTICLES OF DECREE No.05-CP OF JANUARY 20, 1995 OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF THE ORDINANCE ON INCOME TAX ON HIGH INCOME EARNERS

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Ordinance amending a number of Articles of the Ordinance on Income Tax on High-Income Earners adopted by the National Assembly Standing Committee on February 6, 1997;
At the proposal of the Minister of Finance,

DECREES:

Article 1.- To amend a number of Articles of Decree No.05-CP of January 20, 1995 of the Government detailing the implementation of the Ordinance on Income Tax on High-Income Earners as follows:

1. Item 2 of Article 2 of the Decree is amended:

"2. Irregular incomes:

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- Incomes from technological transfer according to each contract, comprising: transfer of ownership right or the right to use industrial property; transfer through the sale and purchase or supply of technical secrets, technological solutions, trade marks...; the provision of technological consultancy and support services, transfer of the use or the right to use industrial, commercial or scientific equipment.

- Incomes from construction technical designs, industrial technical designs and other services.

In cases where the present or gift is the technological transfer or the transfer of industrial property ownership, the individual receiving incomes therefrom shall not have to pay tax levied on irregular incomes.

- Incomes from the sale of the copyright over literary and artistic works.

- Lottery wins".

2. Item 1 of Article 7 is amended:

"1. For Vietnamese citizens in the country and other individuals having settled in Vietnam, the partially progressive tax rate stipulated in Item 3 of Article 1 of the Ordinance amending a number of Articles of the Ordinance on Income Tax on High-Income Earners, adopted on February 6, 1997 by the National Assembly Standing Committee shall apply, if after the payment of the tax at this tax rate, the remaining income exceeds 8,000,000 VND/month, they have to pay an additional 30% of the amount in excess of 8,000,000 VND".

Article 2.- This Decree takes effect from February 18, 1997.

With regard to taxes on incomes from presents and gifts in cash from abroad, the individuals who received such presents and gifts during the period from April 1st, 1995 to February 18, 1997 shall have to fully pay such taxes to the State Budget.

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Article 3.- The Ministry of Finance shall provide detailed guidances for the implementation of this Decree.

ON BEHALF OF THE GOVERNMENT FOR THE PRIME MINISTER DEPUTY PRIME MINISTER




Phan Van Khai