General Department of Taxation of Vietnam has recently issued official letter 3369/TCT-HTQT effective Aug 19th, 2014 guiding the procedures for certifying tax paid in Vietnam by foreign residents. Accordingly, pursuantto Article 44.5a, Chapter V, Circular No.156/2013/ TT-BTC dated Jun 11th, 2013 of the Vietnam Ministry of Finance, when a resident of a contracting country has to pay personal income tax in Vietnam according to the treaty and Vietnam’s tax laws, and wishes to have the tax paid in Vietnam certified and deducted from the tax payable in his or her home country, the tax payer has to submit an application to the Department of Taxation of the province where tax is registered.
The application consists of written request for certification of tax paid in Vietnam specifying information about the transactions related to the taxable income and the tax incurred, certificate of residence and the power of attorney if the taxpayer authorizes other to act on behalf. According to aforesaid guidance, a written request for certification of tax paid in Vietnam for foreign residents must include legalized original (or certified true copy) issued by the tax authority of the home country (specifying the tax period). If the foreign tax payer has valid reasons for not providing immediately the certificate of residence but commit to submit it to the tax authority, the Tax Department may consider and grant a certificate of personal income tax paid in Vietnam for the foreign tax payer.
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