Uni 13-11-2017 - Guidance on resident situation of individuals

Official letter 4936/TCT-TNCN dated 25/10/2017 guiding on determining resident situation of individuals of Vietnamese assigned to train, go on intership in Japan attending in Vietnam less 183 days as follows:

In case, the Vietnam individuals are assigned to train, go on intership in Japan, those individuals have  regular accommodation in Vietnam but actually attend in Vietnam under 183 days in the year, they are selected to determine resident situation of individuals in Vietnam as follows:

-          If individuals prove to be resident individuals in Japan under regulations of Japan, they are nonresident individuals in Vietnam and declare PIT taxable income incurred in Vietnam with a fixed tax rate. The income incurred in Vietnam if the company withheld and declared PIT with partly progressive tariff, they will adjust to tax rate applying to nonresident individuals.

-          If individuals do not prove to be resident individuals in Japan as regulations of Japan, individuals are determined as resident individuals in Vietnam. The individuals are responsible for declaring income incurred in Vietnam and out of Vietnam (if any) with partly progressive tariff.