Vietnam Regulatory Brief: Foreign Specialist Tax Exemptions and Slated Issuance of International Driving Permits

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Foreign Specialists Exempt from Personal Income Tax

Recent government announcements indicate foreign specialists will be exempt from paying personal income tax. The exemption applies to expatriates that are in Vietnam implementing projects for non-governmental organizations. The exemptions will comply with Decision 06/2016 / QD TTg.

However, foreign specialists will only be exempt if they meet the following terms:

  1. They are foreign nationals.
  2. The foreign national must be contracted with one of the following:
    1. A Non-government organization (NGO)
    2. A company managing the project of an NGO
    3. The sponsor of an NGO that is active in Vietnam

Expatriates in Vietnam that plan to work in such projects will welcome the new rules. In addition, local economists believe that these regulations will enable Vietnam to attract a more talented labour force in NGOs and related sectors, which is likely to catalyze development within the country.

Professional Service_CB icons_2015RELATED: Dezan Shira & Associates’ International Tax Planning Services

Hanoi to Issue International Driving Permits

The Transport Department of Hanoi has announced that the city will issue international driving permits (IDP) for Vietnamese citizens and foreign nationals. The department will grant the licenses from March 1. In order to obtain an IDP, residents will have to submit a valid motorcycle or car-driving license granted for domestic driving by the department. Individuals also need to submit an application with a fee of US $6 (135,000 Vietnamese Dong). Foreign nationals must also include their permanent residency cards in the application.

The IDP will be issued within five working days after the submission of the application. The permit will have a validity of three years and enable drivers that hold the IDP to drive in 73 countries that are members of the Vienna Convention on Road Traffic. The decision to grant IDPs highlights the global approach that Vietnam is taking to modernize the economy. The regulatory change makes Vietnam a more attractive location for foreigners as it creates a system of public amenities that will mitigate inconvenience for foreigners in the country.

 


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