Uni 02-01-2014 - Guidance on PIT for foreign experts who reside in Vietnam

According to official letter No.4496/TCT-TNCN:

• Foreign experts who come to Vietnam from the mid-year and stay in Vietnam over 183 days (during calendar year) is responsible for PIT declaration in Vietnam for the global income . In case, the individuals leave Vietnam before 31 December, the individuals must only declare the global income in Vietnam from 01 January until the month of leaving Vietnam. The individuals are allowed to include family deduction circumstance from 01 January until the month of leaving Vietnam.
• Under the Double Taxation Avoidance Agreement between Vietnam and Japan, if the individuals have paid taxes in foreign countries, Vietnam will allow them to deduct Vietnamese tax amounts equivalent to the tax amount paid in foreign country but not exceeds the amount of tax calculated under the Vietnam Law.
• Japanese individuals are resident ones in Vietnam will only be taxed in Vietnam unless the works are conducted in Japan. In case, the works are done in Japan, those still must declare tax in Vietnam if there are three conditions being simultaneously satisfied:

1. The Japanese individuals attend in Japan less than 183 days
2. Income payers who pay to Japanese individuals are not resident ones in Japan
3. The incomes are do not arise in a permanent establishments in Japan