Tax and Charge Policies Take Effect in May 2016

Decision 06/2016/QD-TTg on exemption from personal income tax for foreign experts implementing programmes and projects funded by foreign non-governmental organisations in Vietnam came into force on May 1, 2016.

Accordingly, to be eligible for PIT exemption, a foreign expert who works for a project funded by a foreign NGO must sign with such NGO, the project-managing agency or the unit assigned to act as the owner of the aid amount, a contract to directly perform jobs under such project.

 

Decree 12/2016/ND-CP, effective on May 1, 2016, provided fees for mineral extraction as follows:

- Environment protection fee for crude oil extraction is VND100,000 per tonne and VND50 per cubic metre of natural gas or methane. Extraction of natural gas (associated gas) during crude oil exploitation incurs a fee of VND35 per cubic metre.

Environment protection fees for other mining activities are defined in the fee schedule enclosed under this Decree.

Environmental protection fees for salvage exploitation of minerals shall be 60 per cent of the fees for such minerals as prescribed in the fee schedule enclosed to this Decree.

Provincial People’s Councils shall consider the fee schedule under this Decree and specify the local environment protection fee for each type of mineral from time to time, according to actual circumstances.

 

Decision 07/2016/QD-TTg dated February 22, 2016 on personal income tax exemption for Vietnamese people working in representative units of UN’s international agencies in Vietnam came into effect as from May 1, 2016.

Accordingly, individuals exempted from personal income tax must meet the following requirements: Holding Vietnamese nationality; working for a representative unit of a UN international agency in Vietnam and having such employment asserted by an authorised representative of that unit in the list of employees submitted to tax authorities.

 

The average salary for State officials, State employees and workers in the General Department of Taxation ( GDT) and the General Department of Vietnam Customs (GDC), and their additional income from the saving and regular spending funds, shall be respectively at most 1.8-fold and 0.2-times the salary for state officials and state employees as regulated by the Government.

This is the content of Decision 13/2016/QD-TTg, which will be effective from the budget year 2016 to the budget year 2020.

According to this decision, the additional income excludes duty allowances, night shift allowances and overtime pay.