OFFICIAL LETTER 1625/CT-TTHT DATED 28 JUNE 2018 OF BAC NINH TAX DEPARTMENT GUIDING THE INDIVIDUALS COMING BACK HOME BUT NOT TO COMPLETE THE TAX OBLIGATION IN VIETNAM
Official letter 1625/CT-TTHT dated 28 Jun 2018 guiding PIT obligations for experts of foreign contractor as follows:
Foreigners who are specialists sent by foreign contractors to Vietnam for installation and guidance on machinery testing shall be determined as non-resident individuals; Salaries, wages paid by foreign contractors (Vietnamese companies do not bear any costs), individuals must declare and pay PIT, or individuals can authorize the Vietnamese company Nam shall declare and pay tax at the rate of 20% of the total income generated in Vietnam (regardless of where the income is paid in Vietnam or abroad) according to form No. 02 / KK-TNCN issued together with Circular No. 92 / 2015 / TT-BTC.
The Company is responsible for informing the foreign contractor of the obligation to pay PIT of the foreign worker and the responsibility to provide information on the foreign worker, so that the Company can provide the tax authority with a delay. The first seven days from the date the foreigner starts working in Vietnam.
In cases where foreign individuals have returned but have not yet fulfilled their tax obligations arising in Vietnam, the tax offices shall issue decisions to handle tax law violations committed by such foreign individuals. If the Company is required to make a deduction for debts payable to the Contractor for the payment of personal income tax, fines and late payment from individuals working for the Contractor, the Company shall be obliged to comply with such obligation. as stipulated in Article 16 and Article 93 of the Law on Tax Administration
The amount of taxes, fines, and late payments paid by the Company on behalf of the individual shall be deducted from the amounts payable to the Contractor.
