Residence and income tax requirements for foreigners

Question (A Vietnamese citizen whose husband is a Singaporean national): We intend to reside permanently in Việt Nam. As a freelance securities investor in Singapore, my husband does not serve for any Việt Nam-based enterprises or agencies and makes money abroad. What are procedures for my husband to obtain permanent residence? Is he required to pay personal income tax for his investment gains?

Answer (Lawyer NHQuang’s Office, B23 Trung Hòa–Nhân Chính Villa Complex, Thanh Xuân District, Hà Nội):

* Registration for permanent residence cards

Under Ordinance No. 24/1999/PL-UBTVQH10 dated April 28, 2000 on Entry, Exit and Residence of Foreigners in Việt Nam, foreigners temporarily residing in Việt Nam, whose wife, husband, children or parents are Vietnamese permanent residents, are allowed to reside in Việt Nam.

Accordingly, your husband can apply for his permanent residence in Việt Nam. 

An application dossier consists of:

 a. The application form for permanent residence issued by the Ministry of Public Security, made in two copies;

1. b. Two copies of the applicant’s judicial record endorsed by the competent authority of the country which the applicant is a citizen or currently a permanent resident;
2. c. The diplomatic note of the competent body of the country of which the applicant is a citizen, asking for Việt Nam’s permission of the applicant’s permanent residence in Việt Nam; 
3. Marriage certificate  
4. Two copies of the passport;
5. Photo of the applicant 
6.  The dossier will have to be submitted at the Immigration Department under the Ministry of Public Security or immigration offices under provincial or municipal police departments. Within five days after receiving the notice from the Immigration Department, provincial or municipal police departments shall grant residence cards. The card is valid for three years. 

* Personal income tax (PIT)

Under Part A, Section 2, Point 3, Circular No. 84/2008/TT-BTC dated September 30, 2008, guiding the implementation of some articles of the Law on Personal Income Tax, securities gains are taxable.  

If your husband does not stay in Việt Nam for 183 days or more a year or has not yet had a permanent residence card or is not renting a house for at least 90 days, he will not have to pay PIT for his income from overseas sources. 

In case of getting a permanent residence card in Việt Nam, your husband is identified as a habitual resident in Việt Nam and has to pay a PIT rate of 5% for his gains from overseas securities investments.   

Between January 1, 2009 and December 31, 2009, any income from capital investment will be exempted from tax. Since January 1, 2010 on, securities investors will have to pay PIT.