Official document No. 05/TPHCM-QLDN3 The Ho Chi Minh City Tax Department's January 5, 2026, provides important guidance on tax incentives for foreign contractors and experts. This is a key legal document that helps businesses and ODA project management boards accurately settle taxes and avoid legal risks in the context of increasingly stringent tax regulations.
Understanding the content of Official Letter No. 05/TPHCM-QLDN3 not only helps foreign individuals protect their tax exemption rights but also assists income-paying entities in fulfilling their obligations. In this article, MAN – Master Accountant Network will analyze in detail the applicable terms and conditions and practical considerations to optimize tax costs for your ODA project.
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The main content of Official Letter No. 05/TPHCM-QLDN3 regarding ODA tax incentives.
Official document No. 05/TPHCM-QLDN3 focuses on resolving policy-related issues. personal income tax, VAT and Corporate Income Tax This issue arises after the project's disbursement phase has ended. This is a sensitive time when many professionals are still working, but legal documentation may be in place to maintain tax exemption status.
The legal basis is referenced in Official Letter No. 05/TPHCM-QLDN3.
This document is based directly on the Regulations on Foreign Experts issued herewith. Decision 119/2009/QD-TTg and Circular 181/2013/TT-BTC. This combination creates a solid legal framework for enforcing tax and fee exemptions for experts implementing ODA projects in Vietnam.
The subjects to which this applies are those specified in Official Letter No. 05/TPHCM-QLDN3.
According to Official Letter No. 05/TPHCM-QLDN3, the direct beneficiaries are foreign experts with confirmation letters from the project's managing agency. This confirms the importance of completing the necessary paperwork as a prerequisite for tax authorities to approve personal income tax exemptions.
Detailed analysis of Official Letter No. 05/TPHCM-QLDN3 and conditions for personal income tax exemption.
For a foreign expert to be exempt from tax under Official Letter No. 05/TPHCM-QLDN3, the application must demonstrate the individual's connection to the specific ODA project. The Ho Chi Minh City Tax Department emphasizes that tax exemption is not automatic but must be based on official confirmation from the competent authority.
| Review criteria | Regulations as stipulated in Official Letter No. 05/TPHCM-QLDN3 | Practical notes from MAN |
| Project type | ODA projects utilize official development assistance (ODA) funding. | It must be included in the list of projects approved by the competent authority. |
| Certificate | Issued by the project's managing agency (Ministry, sector, or local authority). | It must be clearly stated that the expert is implementing ODA programs and projects. |
| Tax exemption | Exempt from personal income tax, import tax, and registration fees. | This only applies to income directly derived from that ODA project. |
| Time of application | Throughout the project implementation process (including after disbursement). | The validity of the Expert Certification should be checked periodically. |
According to Official Letter No. 05/TPHCM-QLDN3, if a foreign individual does not have a certificate confirming their expertise as per Decision 119/2009/QD-TTg, they must declare taxes as usual. Personal income tax will be calculated according to the progressive tax rate schedule for resident individuals or the 20% tax rate for non-resident individuals.
Procedure for processing tax exemption applications according to Official Letter No. 05/TPHCM-QLDN3
Based on the guidelines of Official Letter No. 05/TPHCM-QLDN3, businesses need to strictly adhere to the process to ensure the validity of their documents. Failure to prepare a crucial document can lead to tax arrears and heavy late payment penalties from the authorities.
Step 1: Apply for a Foreign Expert Certificate
This is the most important step, repeatedly mentioned in Official Letter No. 05/TPHCM-QLDN3. The project's managing agency will base its decision on the contract signed between the foreign contractor and the project management board to review and issue expert certification in accordance with legal regulations.
Step 2: Notify the tax authority of the tax exemption.
After receiving the confirmation letter, businesses need to send a notification along with supporting documents to the Tax Department in accordance with Official Letter No. 05/TPHCM-QLDN3. This helps the tax authorities update data promptly, ensuring that individuals are not included in the tax debt review list during tax declaration periods.
Step 3: Store and reconcile settlement documents
During inspections, Official Letter No. 05/TPHCM-QLDN3 will serve as legal evidence to protect businesses. Chief accountants should retain original copies of confirmation letters, passports, and payroll payment documents to be ready for verification when requested by the tax inspection team at the unit.
List of 21 types of income exempt from personal income tax according to Circular No. 05/TPHCM-QLDN3 (Updated 2026)
In addition to the case of ODA experts mentioned in Official Letter No. 05/TPHCM-QLDN3, the Personal Income Tax Law 2025 also stipulates other income that is exempt from tax. This helps individuals and businesses proactively optimize their after-tax income in the most legal and transparent way.
- Transfer of real estate between people related by blood or marriage.
- Transfer of ownership of a sole residence in Vietnam owned by a resident individual.
- Income derived from the value of land use rights granted by the State.
- Income from the production of unprocessed agricultural, forestry, salt, and aquatic products.
- Converting agricultural land for household production.
- Interest earned on bank deposits, interest from life insurance policies.
- Income from remittances sent from abroad.
- Overtime and night work pay higher wages than daytime wages.
- Pensions are paid by the Social Insurance Fund or voluntary retirement funds.
- Income from scholarships and educational support programs.
- Insurance compensation and compensation for work-related accidents as stipulated by law.
- Income from non-profit charitable foundations.
- Foreign aid for humanitarian purposes has been approved.
- Wages of Vietnamese seafarers working for international shipping companies.
- Income of owners of offshore fishing vessels.
- The first transfer of greenhouse gas emission reduction results.
- Income derived from carrying out scientific, technological, and innovative tasks.
- Copyright for scientific and technological projects that are commercialized.
- Income of professionals working on innovative startup projects.
- Income of ODA experts (According to Official Letter No. 05/TPHCM-QLDN3).
- Net income after corporate income tax of the owner of a private enterprise or a single-member limited liability company.
Prohibited practices in corporate tax management that should be avoided.
When applying documents such as Official Letter No. 05/TPHCM-QLDN3, businesses must absolutely uphold the law. Article 6 of the 2019 Tax Administration Law clearly stipulates prohibited acts to prevent profiteering from the State's preferential policies for ODA projects.
Falsifying ODA expert records to benefit from tax exemptions, as per Official Letter No. 05/TPHCM-QLDN3, constitutes serious fraud. Furthermore, collusion between taxpayers and tax officials to falsify records will also be subject to criminal prosecution depending on the nature and severity of the violation.
Using illegal invoices when providing services for ODA projects is also a common mistake. Therefore, when applying Circular No. 05/TPHCM-QLDN3, the accounting department needs to carefully check the legality of the relevant parties, ensuring transparency and safety for the business.
Conclude
Official Document No. 05/TPHCM-QLDN3 is a detailed guidance document that helps resolve tax issues for ODA experts and contractors in Vietnam. Understanding and fully applying the conditions in Official Document No. 05/TPHCM-QLDN3 not only brings economic benefits but also builds credibility for businesses with regulatory authorities.
If you are having difficulty obtaining expert certification or need further advice regarding Official Letter No. 05/TPHCM-QLDN3, please contact MAN – Master Accountant Network immediately. We provide solutions. auditing services, tax accounting, tax settlement and tax reporting Professional. With a team of experienced professionals, MAN is committed to helping businesses optimize their tax obligations and ensure absolute compliance with the law.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Official Document No. 05/TPHCM-QLDN3
Yes. Official document No. 05/TPHCM-QLDN3 confirms that if the expert is still confirmed by the managing agency as performing duties for an ODA project, then the personal income tax exemption will continue to be maintained.
The VAT and corporate income tax for contractors are not completely exempt like those for individual experts. Circular No. 05/TPHCM-QLDN3 provides guidance for businesses to implement Circular 103/2014/TT-BTC on tax policies for foreign contractors.
No. Official document No. 05/TPHCM-QLDN3 only applies tax exemption to income directly generated from the implementation of ODA projects. Other sources of income outside the project must still be declared and taxed according to general regulations. If the project has finished disbursing funds but the experts are still working, are they eligible for tax exemption according to Official Letter No. 05/TPHCM-QLDN3?
What taxes are foreign contractors subject to when implementing ODA projects, according to Official Letter No. 05/TPHCM-QLDN3?
If an expert earns income outside of the ODA project, is that income tax-exempt?
