OFFICIAL LETTER 65143/CT-TTHT DATED 02 OCT 2017 OF HANOI TAXATION DEPARTMENT EXPLANING TAX POLICY FOR JAPAN ENTERPRISES
Official letter 65143/CT-TTHT dated 02 Oct 2017 of Ha Noi Taxation Department replying 20 questions of enterprises in Japan business association. Some contents are guided in the official letter as follows:
- The costs relating to PIT declaration, computation for foreigners working in the company included tax expenses if meeting conditions regulated in contracts or agreements in writing between two parties. The amount paying on behalf of others must be PIT liable.
- In case, the company in Viet Nam paying to the oversea parent company amounts of buying accident insurance, health insurance for experts assigned to work in Vietnam, these amounts must be imposed FCT.
- Guidance on tax period for foreign individuals residing in Viet Nam in 2013 as follows: foreign individuals are resident individuals in Vietnam, assessable income in 2013 is total income incurred in Vietnam and out of Vietnam from Jan 2013 (individuals come to Vietnam to work from June 2013). In case, individuals calculated and paid PIT in compliance with foreign rules, they are allowed to reduce the foreign-paid amounts to the payable amounts in Vietnam, the reduced amounts are not over tax amounts payable in accordance with tax tariff of Vietnam for the oversea incurred income.
