25 November 2021
Hanoi Tax Department has issued Official Letter No. 44397/CTHN-TTHT dated 5 November 2021 on determination of PIT for employees working for foreign airlines with the following contents:
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In case, the employees meet the requirements as regulated in Article 1.1 of Circular 111/2013/TT-BTC, he/ she shall be determined as resident. Regarding the resident, taxable income is income generated within and outside the Vietnam territory, regardless of the place of income payment.
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For a resident who signs a labor contract of three months or more, the income paying organization or individual shall deduct tax according to the partially progressive tax schedule, even if the individual signs a contract for three months or more at many places as prescribed at Article 25.1.b of Circular No. 111/2013/TT-BTC.
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For a resident who does not sign a labor contract or signs a labor contract for less than three months with a total income of 2 million VND/time or more, the income paying organization or individual must withhold tax at the rate of 10% of income before paying to individuals as prescribed in Article 25.1.i of Circular No. 111/2013/TT-BTC.
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