The Tax Department of Hung Yen Province issued Official Letter No. 6566/CTHYE-TTHT dated 23 December 2021 to respond to the enterprise’s letter on guiding the PIT calculation period for foreigners with the following content:
According to the guidance in Article 1.1 of Circular 111/2013/TT-BTC, in the case of tax period 2020 (from 01 January 2020 to 31 December 2020), the foreign experts who are present in Vietnam under 183 days and has no permanent residence in Vietnam, in the tax year 2020, shall be considered as a non-resident individual in Vietnam. Therefore, for the taxable income from salaries and wages, PIT must be declared and paid at the rate of 20% and no finalization is required. The next tax period is determined from 01 January 2021 to the end of 31 December 2021.
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