What are procedures of application for tax exemption or reduction under Double Taxation Agreements for foreign individuals in Vietnam?

Pursuant to Clause 2, Article 62 of the Circular 80/2021/TT-BTC stipulating application for tax exemption or reduction under Double Taxation Agreements for foreign individuals in Vietnam as follows:

a) Regarding individuals who are foreign residents, earns income from salaries, remunerations, business operation, capital investment, copyright, real estate transfer, capital transfer, securities transfer, independence practice and other incomes and pays tax via the Vietnamese party:

a.1) Within 15 days before execution of the contract with the Vietnamese party, the foreign individual shall send the Vietnamese party an application for tax exemption or reduction under the Double Taxation Agreement, which shall be submitted to the supervisory tax authority of the Vietnamese party together with the first tax declaration dossier. The application shall contain:

a.1.1) The application form No. 01/HTQT in Appendix I hereof;

a.1.2) The original copy (or certified copy) of the residence certificate issued by the tax authority of the country of residence in the tax year preceding the year in which the application is submitted. The copy must be consular legalized;

a.1.3) Copies of the employment contract with the overseas employer bearing the individual's signature (if any);

a.1.4) Copies of the employment contract with the employer in Vietnam (for income from salaries, remunerations and income from business operation) or copies of legal documents proving income origins (for other incomes) bearing the individual's signatures;

a.1.5) Copies of the passport used for entry into Vietnam bearing the individual's signature;

a.1.6) Copies of the business registration certificate or practice certificate, tax registration certificate issued by the country of residence if the individual earns income from independence practice (as a physician, lawyer, engineer, architecture, dentist, accountant) bearing the taxpayer's signature;

a.1.7) Copies of the business registration certificate or practice certificate issued by Vietnamese authorities (required by Vietnam's law) if the individual earns income from independence practice (as a physician, lawyer, engineer, architecture, dentist, accountant) bearing the taxpayer's signature;

a.1.8) Copies of the contract with the Vietnamese organizations and individuals bearing the taxpayer's signature. To be specific:

a.1.8.1) In case of real estate transfer: copies of the real estate transfer contract.

a.1.8.2) In case of capital transfer: copies of the capital transfer contract; investment certificate of the Vietnamese company to which the foreign investor contribute capital. The copies must bear the taxpayer's signature.

a.1.8.3) In case of securities transfer: Copies of the securities trade contract. In case securities are traded without a contract, the taxpayer shall submit the certificate of depository account for shares or bonds certified by the depository bank or the securities company according to Form No. 01/TNKDCK in Appendix I hereof.

a.1.9) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.

a.2) IN case the taxpayer already submitted the application for tax exemption or reduction under the Double Taxation Agreement in the previous year, the taxpayer only needs to send copies of the new employment contracts with Vietnamese and foreign organizations and individuals (if any).

a.3) Within 15 days before the termination of the employment contract in Vietnam or before the end of the tax year, whichever comes first, the individual shall send the residence certificate of the tax year and copy of the passport to the Vietnamese party. Within 03 working days from the receipt of the residence certificate, the Vietnamese party shall submit it to the tax authority.

a.4) In case the residence certificate is still unavailable, the foreign individual shall make a commitment to send the residence certificate in the quarter succeeding the end of the tax year.

a.5) In case the individual belongs to a country or territory that has entered into a Double Taxation Agreement with Vietnam and does not have the residence certificate, the passport copy may be provided instead.

a.6) In case it is not determined that whether the individual is a resident of the foreign country or territory when the passport copy is submitted, the individual shall make a commitment to send the passport copy in the first quarter of the succeeding year.

b) Regarding athletes and artists who are foreign residents and earn income from art performance or sport activities in Vietnam:

b.1) Within 15 days before execution of the contract (or the art/sport exchange program) with the Vietnamese party, the foreign individual shall send the Vietnamese party an application for tax exemption or reduction under the Double Taxation Agreement, which shall be submitted to the supervisory tax authority of the Vietnamese party together with the first tax declaration dossier. The application shall contain:

b.1.1) The application form No. 01/HTQT in Appendix I hereof;

b.1.2) The original copy (or certified copy) of the residence certificate issued by the tax authority of the country of residence in the tax year preceding the year in which the application is submitted. The copy must be consular legalized;

b.1.3) A certificate issued by the Vietnamese representative authority in the art/sport exchange program regarding the activities and the income to be granted tax exemption under the Double Taxation Agreement;

b.1.4) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.

b.2) Within 15 days before the termination of the employment contract in Vietnam (or the art/sport exchange program) or before the end of the tax year, whichever comes first, the foreign individual shall send the residence certificate of the tax year to the Vietnamese party. Within 03 working days from the receipt of the residence certificate, the Vietnamese party shall submit it to the tax authority.

b.3) In case the residence certificate is still unavailable, the foreign individual shall make a commitment to send the residence certificate in the quarter succeeding the end of the tax year.

b.4) In case there is not employment contract with the overseas employer or with the Vietnamese employer, the taxpayer may submit the designation letter or any document that is equivalent to an employment contract to the tax authority.

b.5) In case the individual belongs to a country or territory that has entered into a Double Taxation Agreement with Vietnam and does not have the residence certificate, the passport copy may be provided instead. The individual shall make a declaration and take responsibility for the unavailability of the residence certificate in the written request for tax exemption or reduction under the Double Taxation Agreement.

b.6) In case it is not determined that whether the individual is a resident of the foreign country or territory when the passport copy is submitted, the individual shall make a commitment to send the passport copy in the first quarter of the succeeding year.

c) Regarding individuals who are foreign residents, whose incomes are earned from salaries, remunerations, business operation, receipt of inheritance, gift in Vietnam, paid by overseas organizations and individuals (including non-resident individual earning income in Vietnam but receiving income overseas)

c.1) On the date of submission of the first tax declaration dossier, the individual who is a foreign resident shall directly or authorize another entity in Vietnam to submit the application for tax exemption or reduction under the Double Taxation Agreement to the Department of Taxation of the province in which the individual works or does business. The application shall contain:

c.1.1) The application form No. 01/HTQT in Appendix I hereof;

c.1.2) The original copy (or certified copy) of the residence certificate issued by the tax authority of the country of residence in the tax year preceding the year in which the application is submitted. The copy must be consular legalized;

c.1.3) A copy of the employment contract or legal documents proving origin of the income or the right to receive the inheritance or the gift, or copies of the business contracts with Vietnam organizations and individuals (if income is earned from business operation) bearing the individual's signature;

c.1.4) Copies of the passport used for entry into Vietnam bearing the individual's signature;

c.1.5) Copies of the business registration certificate or practice certificate, tax registration certificate issued by the country of residence if the individual earns income from independence practice (as a physician, lawyer, engineer, architecture, dentist, accountant) bearing the taxpayer's signature;

c.1.6) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.

c.2) In case the taxpayer already submitted the application for tax exemption or reduction under the Double Taxation Agreement in the previous year, the taxpayer only needs to send copies of the new employment contracts with Vietnamese and foreign organizations and individuals (if any).

c.3) Within 15 days before the expiration of the employment contract in Vietnam or before the end of the tax year, whichever comes first, the individual shall directly or authorize another entity in Vietnam to send the residence certificate of the same tax year to the supervisory tax authority of the area where the individual works or does business.

c.4) In case the residence certificate is still unavailable, the foreign individual shall make a commitment to send the residence certificate in the quarter succeeding the end of the tax year.

c.5) In case the individual belongs to a country or territory that has entered into a Double Taxation Agreement with Vietnam and does not have the residence certificate, the passport copy may be provided instead.

c.6) In case it is not determined that whether the individual is a resident of the foreign country or territory when the passport copy is submitted, the individual shall make a commitment to send the passport copy in the first quarter of the succeeding year.

d) Regarding individuals who are Vietnamese resident and are eligible for exemption or reduction of tax on incomes from serving the Government, incomes of university and vocational school students, incomes of teachers, professors and researchers

d.1) Within 15 days before execution of the contract with the Vietnamese party, the foreign individual shall send the Vietnamese party an application for tax exemption or reduction under the Double Taxation Agreement, which shall be submitted to the supervisory tax authority of the Vietnamese party together with the first tax declaration dossier. The application shall contain:

d.1.1) The application form No. 01/HTQT in Appendix I hereof;

d.1.2) The original copy (or authenticated copy) of the residence certificate issued by the tax authority in the year preceding the year in which the eligibility for tax exemption or reduction under the Double Taxation Agreement is notified.

d.1.3) A certificate issued by the Vietnamese representative authority about the income-generating activities;

d.1.4) The authorization letter in case the taxpayer authorizes the legal representative to follow procedures for application of the Double Taxation Agreement.

Best regards!