|
Non-residents to pay income tax
The Ministry of Finance yesterday issued new rules concerning delayed collection of taxes pursuant to the new Law on Personal Income Tax, which had been scheduled to take effect back on January 1.
In previously announcing the delay, the ministry had said foreigners – unlike Vietnamese residents – would continue to be required to pay taxes during the deferall period.
The new rule, published on February 18 in Dispatch No 1823/BTC-TCT, now provides that "non-residents" would still be subject to the new tax.
Section 1.2 of the dispatch defines a non-resident as someone with income arising in Viet Nam who is (a) not residing in Viet Nam; (b) will leave Viet Nam prior to June 30, 2009; or (c) has lived in Viet Nam since January 1, 2009, but who has no defined time set for their departure from the country, has not registered for permanent residence, and has not entered into a house rental contract for a term of over 90 days.
In other provisions of the dispatch, taxes would also be deferred on income from business operations during the five-month period, as well as capital transfers, royalties and inheritances, but there would be no deferral of taxes on capital gains from real estate transactions, lottery winnings or cash gifts, the ministry said.
Income from capital transfers and inheritances would be taxable at the point when taxpayers submit legal documentation of the capital transfer or inheritance to relevant State agencies during the January 1 – May 31 period. Royalty income would be that taxpayers actually earned during the deferral period in accordance with copyright licensing or franchise agreements.
During the deferral period, employers which pay wages and salaries to employees would not be authorised to withhold tax amounts but would still be required to declare taxable incomes and tax totals to tax authorities in accordance with Circular No 84/2008/TT-BTC of September 30, 2008.
VietNamNet/Viet Nam News
|
