Effective from July 1, 2026, the Government’s Decree No. 253/2026/ND-CP, issued on June 30, 2026, officially came into force, detailing specific articles and measures for the implementation of the Law on Personal Income Tax (“Decree 253”). Like the Decree No. 65/2013/ND-CP it replaces, Decree 253 devotes its initial articles to defining the two categories of individual taxpayers, though with greater specificity than the previous regulation.
Below is a summary regarding resident and non-resident individuals under Decree 253 (effective July 1, 2026):
1. Classification of Resident and Non-Resident Individuals
a) Resident Individual:
A resident individual is an individual who meets at least one of the following criteria:
- Physical Presence Condition: Being physically present in Vietnam for 183 days or more within a calendar year or within 12 consecutive months from the first day of arrival in Vietnam.
Note: The date of arrival and date of departure are each counted as one (1) day (determined based on the entry/exit verification stamps of the immigration authority on the passport or relevant travel documents). If entry and exit occur on the same day, it is counted as one (1) day of residence.
- Habitual Residence Condition:
- For Vietnamese citizens: Having a registered permanent residence (a stable, indefinite place of living registered in accordance with residence laws).
- For foreign individuals: Holding a Permanent Residence Card or declaring a temporary residence when applying for a Temporary Residence Card issued by the competent authority under the Ministry of Public Security.
- Lease Contract: Having rented housing in Vietnam (including hotels, guesthouses, inns, workplaces, etc., whether rented by the individual or by the employer on their behalf) under lease contracts with a total term of 183 days or more in the tax year.
- Special Rule on Sub-183 Day Presence: An individual who has a habitual residence in Vietnam but is physically present in Vietnam for fewer than 183 days in the tax year shall still be deemed a resident individual if they fail to prove residence status in another country (proven via a Certificate of Residence or passport copies where applicable under relevant Avoidance of Double Taxation Agreements).
b) Non-Resident Individual
A non-resident individual is an individual who does not satisfy any of the resident criteria set forth above.
2. Scope of Personal Income Tax (PIT) Liability
The classification of tax residency status determines the scope of taxable income subject to Vietnamese PIT:
| Classification | Scope of Taxable Personal Income |
|---|---|
| Resident Individual | Taxable income arising both within and outside the territory of Vietnam (Worldwide Income). |
| Non-Resident Individual | Taxable income arising solely within the territory of Vietnam. |
Legal grounds: Articles 3, 4 and 5 of Decree 253.
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