Official letter 7183/CTHDU-TTHT about PIT policy:
Pursuant to the above provisions and the presentation of Ebara Pump Vietnam Co., Ltd. in Official Dispatch No. 2407-32/CV dated July 15, 2024:
- In case Ebara Pump Vietnam Co., Ltd. has 02 foreign employees who are identified as resident individuals, in the calendar year, these 02 employees are present in Vietnam for 183 days or more, the tax period of the resident individual is calculated for the entire calendar year and the individual makes family deductions from January 2022 to the end of December 2022 (12 months).
- Foreign employees with income from salaries and wages who are directly subject to personal income tax settlement declaration with the Tax authority shall make personal income tax settlement declaration according to Form No. 02/QTT-TNCN, Form No. 02-1/BK-QTT-TNCN prescribed in Appendix 1 issued with Decree 126/2020/ND-CP dated October 19, 2020 of the Government, choosing the case of settlement according to the calendar year.
- In case the above 02 employees have income and have paid tax in the country that signed the Agreement with Vietnam, if in the Agreement, Vietnam commits to implementing tax deduction measures, when this resident declares income tax in Vietnam, such income will be included in taxable income in Vietnam according to the provisions of current tax laws in Vietnam and the tax amount paid in the Contracting Country will be deducted from the tax payable in Vietnam according to the provisions of Article 48 of Circular No. 205/2013/TT-BTC dated December 24, 2013 of the Ministry of Finance.
