Recipients of overseas remittances won’t be required to pay income tax, according to a new regulation issued by the State Bank of Vietnam.
The exemption from taxation is part of an initiative by the Government to encourage and create the best possible conditions for overseas Vietnamese (OVs) to send foreign currencies to their relatives at home.
Foreigners and OVs are permitted to transfer foreign currency into Vietnam through licensed financial institutions or international postal and financial service providers. They can also carry it with them when travelling to Vietnam.
Anyone bringing foreign currency into Vietnam for recipients is required to declare the amount with customs officers.
Recipients can sell it to credit organisations, transfer to individual accounts, deposit in banks or use in line with current regulations on management of foreign currencies.
Credit organisations are allowed to receive foreign currency sent by OVs and remit tax free to recipients at home.