OFFICIAL LETTER 68151/CT-TTHT DATED 18 OCT 2017 OF HA NOI TAXATION DEPARTMENT TO DETERMINE PIT TAXABLE INCOME
Official letter 68151/CT-TTHT dated 18 Oct 2017 of Ha Noi Taxation Department guiding PIT determination for foreign experts working in Viet Nam with labor contracts who are resident or nonresident individuals as follows:
- In case, foreign experts are nonresident individuals, the company withholds PIT with 10% rate for employment income before paying to individuals (including effective salary amounts after ending contracts). The nonresident individuals must not finalize PIT. In case, the company temporarily withholds in accordance with gradually aggressive tariff, now re-determined as nonresident individuals ,must declare to add and replace the submitted PIT declaration as instruction of clause 5 article 10 Circular 156/2013/TT-BTC.
- In case, foreign experts are resident individuals, the company withholds gradually aggressive tariff as instruction of article 25 Circular 111/2013/TT-BTC. Resident individuals are foreign individuals ending contracts in Viet Nam must finalize before exiting.
+ In case, the individuals have not yet finalized PIT before exiting and have authorized the company to finalize PIT instead, the company must finalize PIT on behalf of them within 45 days from the exiting date.
+ In case, after they have finalized PIT and exited, not be a resident individual as PIT Law, the company pays the effective salary amounts to them, and withholds PIT of 20% for taxable income before paying to them.
