Are you planning to leave Vietnam and need to know how to officially cease your tax residency? Follow this comprehensive guide to ensure you complete the process correctly and legally.
Determine Residency Status
Verify if you qualify as a tax resident in Vietnam. According to Vietnamese law, an individual is considered a tax resident if they meet any of the following conditions: (1) Reside in Vietnam for 183 days or more within a calendar year, (2) Have a permanent residence in Vietnam, or (3) Lease a house in Vietnam for 183 days or more in a tax year.
Notify Tax Authorities
Inform the local tax authorities of your intention to cease tax residency. This involves submitting a formal notification letter to the tax office where you are registered.
Settle Outstanding Tax Liabilities
Ensure that all outstanding tax liabilities are settled. This includes paying any taxes due up to the date of cessation of residency.
File Final Tax Return
Submit a final tax return to the tax authorities. This final return should cover the period from the beginning of the tax year up to the date of your cessation of residency. Make sure to include all relevant income and tax payments.
Obtain Tax Clearance Certificate
Request a tax clearance certificate from the tax authorities. This certificate serves as proof that you have fulfilled all your tax obligations in Vietnam up to the date of your cessation of residency.
Cancel Permanent Residence or Lease Agreement
If applicable, cancel your permanent residence registration or lease agreement in Vietnam. This step is crucial to ensure that you are no longer considered a tax resident under Vietnamese law.
Legal References
- Law on Personal Income Tax No. 04/2007/QH12
- Circular No. 111/2013/TT-BTC guiding the implementation of the Law on Personal Income Tax
- Decree No. 65/2013/ND-CP detailing a number of articles of the Law on Personal Income Tax
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