Uni 10-09-2018 - Guidance on PIT policy

Official letter 2465/CT-TTHT dated 17Aug2018 of Bac Ninh Tax Department guiding PIT:

-          Identification of resident and non-resident individuals: Where the legal representative of the company is a foreigner with a permanent residence in Vietnam stated on the temporary residence card but is actually present in Vietnam 183 days and do not have a residence certificate of another country, individuals are identified as individuals residing in Vietnam.

-          PIT for income of laborers who have left Vietnam: The company has paid income to foreign laborers after the termination of the labor contract and the foreigner has returned to the country. , authorizing the company to make personal income tax finalization as prescribed, the foreign individual who is not a resident in Vietnam and the paying organization is responsible for deducting 20% of the income before paying individuals and paying into the state budget according to regulations.

-          In case the company pays all premiums (social insurance, health insurance, unemployment insurance) to laborers (including the compulsory insurance premium paid by the employer and the premium paid by the laborers according to the regulations The payable insurance premiums paid by laborers according to the provisions of the insurance law shall be included in their taxable incomes but shall be deducted when calculating PIT calculation income.