From January 5th,2016, international experts that work in government projects and Vietnamese citizen who works for United Nations are qualified for income tax exemption.
This new law, recently passed by Vietnamese Prime Minister Nguyen Tan Dung, applies to international experts who are chosen to work directly with Vietnamese projects by foreign NGOs; this is based on the agreements between the foreign NGOs and Vietnamese Government when they are working on projects that are approved based on managing and using FDI laws.
- The income that is tax exempted is the income which international experts are paid directly from their on-going FDI projects.
- Tax exempted income is personal income such as salary, payment that is paid by organizations that represent the United Nations’ NGOs in Vietnam
- This does not apply to Vietnamese citizens who are hired and paid by the hour in organizations that represents the United Nations in Vietnam
International experts who want to qualify for tax exemption must hold an international passport; have a legal working contract between them and the NGOs, organizations that directly manage the non government aids funds or owners of the Non government aid fund; all of these must approved by responsible Vietnamese authority
The contracts between international experts and foreign NGOs must provide additional confirmation of the owner of the foreign aid funds that the experts will directly work in the programs’ activities or foreign investment aid projects that are approved by the responsible Vietnamese authority.
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