Khoản 1 Điều 21 Thông Tư 92/2015/tt-btc

4 min read Jun 26, 2024
Khoản 1 Điều 21 Thông Tư 92/2015/tt-btc

Understanding Clause 1, Article 21 of Circular 92/2015/TT-BTC

Overview of Circular 92/2015/TT-BTC

Circular 92/2015/TT-BTC is a guiding document issued by the Ministry of Finance, Vietnam, on June 30, 2015. The circular provides guidance on the implementation of several tax laws, including the Law on Personal Income Tax, the Law on Corporate Income Tax, and the Law on Value-Added Tax. It is an essential document for individuals and businesses operating in Vietnam, as it clarifies the procedures and policies for tax declaration, payment, and exemption.

Clause 1, Article 21: Definition of Tax Residency

Clause 1, Article 21 of Circular 92/2015/TT-BTC defines tax residency for individuals. According to this clause:

"Individuals who have a permanent residence or habitual residence in Vietnam shall be considered as tax residents of Vietnam."

Permanent Residence

A permanent residence refers to a place where an individual has registered their permanent residence in accordance with the law on residence. This can include a house, apartment, or other types of accommodation.

Habitual Residence

A habitual residence, on the other hand, refers to a place where an individual has resided for 183 days or more in a calendar year or a twelve-month period. This can include a place where an individual has lived, worked, or has a regular presence.

Implications of Tax Residency

The definition of tax residency has significant implications for individuals. Tax residents of Vietnam are subject to personal income tax on their worldwide income, regardless of where it is earned. This means that individuals who are considered tax residents of Vietnam must declare and pay tax on all their income, including income earned from foreign sources.

On the other hand, individuals who are not considered tax residents of Vietnam are only subject to personal income tax on their Vietnam-sourced income.

Conclusion

In conclusion, Clause 1, Article 21 of Circular 92/2015/TT-BTC provides a clear definition of tax residency for individuals in Vietnam. Understanding this concept is essential for individuals to determine their tax obligations and comply with Vietnamese tax laws.