4 January 2022
On 14 December 2021, the Tax Department of Binh Duong province issued Official Letter No. 1984/CTBDU-TTHT to guide the tax policy on tuition fees for children of foreign employees working in Vietnam. The content of the guidance is as follows:
In case an enterprise signs a labor contract with a foreign employee working in Vietnam:
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If the labor contract has a provision on tuition fees for the children of the employee studying in Vietnam from preschool to high school, which is paid by the enterprise with the nature of salary and wages and has full invoices and documents with information of the enterprise, the tuition fees shall be included in deductible expenses when determining income subject to cooperation income tax.
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Such tuition fee is not included in the employee's PIT taxable income.
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