Uni 02-11-2023 - Settlement period and PIT settlement method for foreign employees

Official letter 4502/CTBNI-TTHT about settlement period and PIT settlement method for foreign employees:

Based on the above regulations, in case the Company has a foreign employee, signed a labor contract from November 1, 2022, but this individual has come to Vietnam to work before (from November 12, 2022). /07/2022), the determination of individual residence is based on the first day the individual arrives in Vietnam (from July 12, 2022). If in 2022 the individual is present in Vietnam for less than 183 days but in 12 consecutive months from July 12, 2022 the individual is present for 183 days or more, he or she is determined to be a resident individual, subject to must finalize personal income tax with the first year tax period from July 12, 2022 to July 11, 2023, the second year tax period according to the calendar year (2023). The amount of personal income tax payable in the second tax year is determined according to the detailed instructions in Point e2, Clause 2, Article 26 of Circular No. 111/2013/TT-BTC mentioned above.