Circular No 62/2009/TT-BTC: detailing a number of articles of the Law on Personal Income Tax

The Ministry of Finance issued Circular No 62/2009/TT-BTC on March 27, amending Decree No 84/2008/TT-BTC to expand the definition of non-taxable income under the Law on Personal Income Tax to include one-off relocation allowances for expats residing in Viet Nam

The Ministry of Finance issued Circular No 62/2009/TT-BTC on March 27, amending Decree No 84/2008/TT-BTC to expand the definition of non-taxable income under the Law on Personal Income Tax to include one-off relocation allowances for expats residing in Viet Nam; annual air fare for expats to visit home and allowances for children’s education. Computation of such income shall be based on labour contracts and pay statements.

Non-monetary compensation such as vehicles, club memberships and entertainment expenses are not taxable if the business expense is for employees collectively and a single beneficiary cannot be determined.

This circular also includes provisions allowing a step-parent to be claimed as a dependant. Dependants of working age must satisfy two conditions: (i) be disabled or unable to work, and (ii) have no income or an average monthly income of less than VND500,000. Dependants who are over the working age must only satisfy the second condition.

(Source: DLF)