Finalization of personal income tax for foreign individuals not residing in Vietnam

Foreign workers who do not reside in Vietnam, that is, do not meet the above conditions for residence in Vietnam, must make personal income tax finalization according to the following regulations:

– Employee working in Vietnam means the presence of that individual in the Vietnamese territory for less than 183 days in a calendar year or in 12 consecutive months counted from the first day that person is present in Vietnam (based on the entry date stamped on the Passport).

– Foreign workers do not have a permanent residence in Vietnam, do not register permanent residence according to the provisions of law or do not have a long-term rental contract in Vietnam.

For example: Mr. Wichapas is a Thai who came to Vietnam to work as a chef on March 18, 2018. In 2018 as of December 31, 2018, he was present in Vietnam for a total of 163 days. Because his stay in Vietnam was less than 183 days, in this case he was determined to be a non-resident individual.

In there:

– In case the individual is a non-resident foreigner Authorize personal income tax finalization: If an individual has income at an organization with a contract of 3 months or more, at the time of personal income tax finalization, he or she will be able to authorize tax finalization. The unit receiving authorization for finalization will only perform personal income tax finalization for the income that the individual is paid by the organization.

– In case an individual is a non-resident foreigner who directly finalizes tax: That individual has income from salary, business or from many taxable people and has a tax amount that must be overpaid or paid in addition or offset. In the following declaration periods, personal income tax will be self-finalized.

Instructions on how to calculate taxes for non-resident foreigners:

Whether the labor contract of a foreigner who does not reside in Vietnam has a term of less than 3 months or 3 months or more, the tax is calculated according to the Full Table x 20% Tax Rate:

Note: Taxable income of a non-resident individual is income arising in the territory of Vietnam, regardless of the organization or place where this income is paid. The personal income tax portion from salaries and wages of non-resident individuals does not have to be finalized.

In addition, for special cases where foreigners are present in Vietnamese territory for less than 183 days in the first calendar year but from 183 days in 12 consecutive months, personal income tax finalization shall be carried out according to the following procedures: separate regulations.

Above are the regulations that businesses need to pay attention to when finalizing personal income tax for foreigners. If you find this article useful, please share it with others.