VNC Consulting are willing to provide you with an overview of Vietnamese Personnel Income Tax (“PIT”) scheme according to Vietnamese regulations, which we believe to help you have an overview on the scale and tax rate that would apply to an overseas remuneration structure for an expatriate in Vietnam:
Tax residents are subject to tax on their worldwide employment income at progressive tax rates ranging from 5% to 35%:
Taxable income from overseas includes all overseas remuneration and various benefits-in-kind.
A resident taxpayer is allowed to deduct from her taxable income VND11,000,000 every month. The tax reduction for each dependent is pegged at VND 4,400,000 per month if any. Qualified dependents are children aged below 18 years old for example.
Tax compliance in this case generally includes tax code registration, quarterly declarations and payments, year-end tax finalizations and payments. I.e. you have to declare the tax directly with the tax authority under your personal tax code on quarterly and yearly basis.
PIT paid in a foreign country is creditable against tax payable in Vietnam (if any) subject to certain tax administration procedures.
If you have any query on our tax service quotation as well as our professional services, please do not hesitate to let us know.
Thank you.