PERSONAL INCOME TAX IN VIETNAM

NOTES ON YOUR ANNUAL PERSONAL INCOME TAX SETTLEMENT FOR 2022

WHO SHOULD DIRECTLY DECLARE TAX TO TAX AUTHORITIES?

1. Some of your staff may not join your company full 12 months in a calendar year or have more income from wages/salary from other entities. In this case, these staffs are not allowed to request income payers to settle tax on their behalf but directly declare tax at tax authorities.
2. To make the declaration, they must prepare a letter of income confirmation from the previous income payer + a certificate of tax withheld at source on the income (withheld receipt).
3. Based on current income from your company and other incomes with the withheld receipts, they should prepare the annual settlement sheet and declare it directly to the tax department.
4. This procedure is not the employer’s obligation but a personal matter of every staff, which means, the annual final settlement sheets of the company will not be including their sheets.

WHO WILL PAY TAX ON THE PROGRESSIVE METHOD OR APPLY THE FIXED RATE?

1. To verify a proper method of personal income tax (PIT) declaration for expats, please prepare full pages to copy of your passport + Labor contract/appointment letter/tax withheld receipts.
2. Upon you are resident or nonresident in Vietnam in a calendar year, you should declare and settlement of PIT for the incomes inside Vietnam or global income. Taxable amount/tax rates of resident and no resident are completely different.

NOTES ON TAX FROM GLOBAL INCOMES FOR EXPATS WHO ARE RESIDENT IN VIETNAM

• In case you are a resident of Vietnam, you shall declare global incomes and pay personal income with progressive tax rates from 5% to 35%
• In case you are a no-resident in Vietnam, you just pay 20% personal income tax for what you earn in Vietnam.
• To avoid special inspection on global incomes in Vietnam and any income from countries that have tax agreements with Vietnam, the foreign experts who work in Vietnam shall declare reasonable global incomes, which must be fair with:

• • The position, and job requirement 
  • Professional profile and working history
  • Actual expenditures and living conditions
  • The GDP of their nation
  • The reputation of the employer 
  • Your present days in Vietnam

The tax agencies in Vietnam also have a management system that they can detect unfair declarations from taxpayers. In case you keep submitting tax reports showing that there are foreigners working in Vietnam without reasonable tax payment, there will be special inspection procedures and you going to pay the tax and penalties.

Failure to apply properly declaration of PIT will lead to serious violations with more and more penalties from the tax department in coming years.

VIVA teams will support you to manage standard employee profiles/legal requirement records as well as compliance reports/declarations. We wish to go your files right thing the first time, clean and clear today and for the next 3 or 5 years.

ABOUT VIVA BUSINESS CONSULTING

Who we are?

• VIVA is a business consulting company in Vietnam, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
• The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Secretarial services help us build trust and confidence in the entrepreneur’s community.
• We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigners working in Vietnam, Vietnamese SMEs, Chief Operation Officers.

What we do

• Services for Expats in Vietnam: Visa, Work Permit, Temporary residence card, Compulsory Insurances, Personal Income tax, Labor contracts, Employment Records and Relations, Other Secretarial Services.
• Services for Representative offices in Vietnam: Establishment, extension of representative office licenses. Required compliance procedures during operation. Rights and obligations of the chief of representative office. Closure of representative office risks management.
• Services for a company in Vietnam: Setting up a new company and licensing service. Business records management. Daily business transactions management. Tax management. Accounting and financial statements. Employments, payroll and compulsory insurances. Representative on behalf of competent state agencies for any business administration procedures.

Motivated by our core values of ceaseless improvement, our great insights in local business culture and regulations, as well as the exclusive services, promise to offer you one-stop and tailored-made solutions that optimize every of your business in Vietnam in the lawful manner.

We are looking to be your valued business partner and resources in Vietnam as we have been choosing since 2006.