Vietnam: New circular on personal income tax applies from July 1, 2013

Global Watch ()

The Ministry of Finance has introduced a personal income tax (PIT) Circular (Circular 111/2013/TT-BTC) that provides guidance on various issues such as tax residency determinations, gross up benefits in kind, tax treatment of contributions to voluntary insurance schemes, and airfares provided to employees working on a rotational basis. The Circular was released in August to guide the implementation of the new PIT Law and Decree 65/ND-CP.

Although the guidance is effective from October 1, 2013, it will be applied in relation to PIT matters arising from July 1 of this year. Mobility program managers should review the guidance and consider how it may affect their assignees currently working in Vietnam.