Tax returns on foreign income

@Somnamnaa

Hi Somnamnaa,

Because you didn’t mention your specific situation, it's a bit difficult to give the proper answer. Regarding taxes, and here it is personal income tax (PIT), the very important point is the reason for being in Vietnam. Are you here for work or on a tourist visa? Do you have any income in Vietnam? I mean income from business activities or salary in Vietnam territory? You can refer 2 typical cases as follow:

1.      If you’re in Vietnam working for a company, that company is responsible for deducting taxes from your salary and handling tax payments to the government monthly. This is the company's obligation according to tax laws -  but It's just an estimated monthly tax, and:

          + If you stay in Vietnam for more than 183 days, you become a tax resident – just for tax purposes. The company will do Tax Finalization at the end of the year (Regarding the Double taxation avoidance agreement between Vietnam and more than 80 other countries). There will be 2 situations: you pay addition if your payable PIT > your paid PI and you get return if your payable PIT < paid PIT.

     +  If you stay in Vietnam for less than 183 days, you'll finalize taxes in your country and declare income, PIT generated in Vietnam for offsetting against the total taxes that you have to pay governments.

2.     If you’re in Vietnam for a short stay without any company sponsorship, under a tourist visa (maybe a couple times of extending) and without generating income in Vietnam, you won’t need to declare or pay taxes here as the income you mentioned would be taxed in your country.

You can search for Circular 111/2013/TT-BTC, Circular 92/2015/TT-BTC for more details; all these circulars are available in English.