Official letter 4278/CTHYE-TTHT about PIT policy for foreign experts:
1. For the paying agency in Vietnam In case Dong Giang Joint Stock Company has a foreign expert who is sent by the partner to Vietnam to perform services under a contract signed between the Company and the foreign partner, the income from salary and wages that the foreign expert receives during the working period in Vietnam is subject to personal income tax according to regulations. The Company shall base on the provisions of Article 1 of Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance to determine whether a foreign expert is a resident or a non-resident individual to determine taxable income according to the corresponding cases prescribed in Clause 2, Article 8 (for resident individuals), Clause 2, Article 18 (for non-resident individuals) Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance. The Company shall base on Article 8 of Decree No. 126/2020/ND-CP and Clause 2, Article 1 of Decree No. 91/2022/ND-CP to declare, deduct tax and pay personal income tax for foreign experts according to the provisions of law.
2. For foreign individuals In case a foreign expert is a resident individual with income from salaries and wages paid from abroad or a non-resident individual with income from salaries and wages arising in Vietnam but paid from abroad, he/she is required to directly declare tax to the tax authority according to the provisions of Section a.2, Clause 3, Article 19 of Circular No. 80/2021/TT-BTC. In case a foreign employee is a resident individual with income from salaries and wages received from abroad, the individual shall declare and submit tax declaration documents directly to the tax authority managing the place where the individual works in Vietnam according to the instructions in Clause 8, Article 11 of Decree No. 126/2020/ND-CP according to Form No. 02/KK-TNCN - Personal income tax declaration (applicable to resident individuals and non-resident individuals with income from salaries and wages who declare tax directly to the tax authority) issued with Circular No. 80/2021/TT-BTC.
