Tax Commitments

Hi,

There are two cases:

1. Being VN tax resident: you must satisfy any of the following conditions:

*Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of your presence in Vietnam;

Being present in Vietnam under this Point means your presence is in the Vietnamese territory.

*Having a place of habitual residence in Vietnam in either of the following two cases:

- Having a registered place of permanent residence under the law on residence;

- Having a rented house for dwelling in Vietnam under the law on housing, under a rent contract with a term of 183 days or more in a tax year.

2. Being VN non-resident: if you DO NOT satisfy any of the conditions specified above.

Tax practice:

Resident: you are required to pay tax for all of your income (global income) regardless where it is incurred and paid. The tax rate would be progressive (please let me know if you would like to have the progressive tax rate table.

All PIT you are required to pay in other countries shall be refundable when you finalize your tax here in VN at the end of the year (please note that you will be required to provide supporting documents so the tax officer will determine the eligilities of you refund).

[b]Non-resident: you will be required to pay personal income tax for all income incurred in Vietnam and the the fixed tax rate of 20%.

NOTE: Vietnam has signed over 60 agreements on Double Taxation Avoidance so you may want to check if your home country is included. There are few cases you can apply for tax exemption under DTA agreement.

Please do not hesitate to contact me should you need additional information.

Hope this helps.

Mandy

That's great. Thanks, Mandy!

Are there any accountants you'd recommend? And how do I declare what I'm earning? My payslips are sent to my address in the UK.

Here's something I found from HSBC (a British multinational banking and financial services company headquartered in London).

It's a "Worldwide personal tax guide 2012 – 2013" for Vietnam, 5 pages, in PDF, that you might be interested in.

http://www.expat.hsbc.com/1/PA_ES_Conte … ietnam.pdf