Official Letter No. 1435/CTDAN-TTHT regarding PIT of foreign workers:

In case the employee is a citizen of Japan (a country that has signed an Agreement with Vietnam on the avoidance of double taxation and prevention of tax evasion on income) and is an individual residing in Vietnam, the PIT obligation is calculated from the month the employee first appears in Vietnam to the month of termination of the contract working and leaving Vietnam (fully calculated on a monthly basis) according to the guidance in Article 1 of Circular No. 111/2013/TT-BTC and calculating family circumstance deduction for themselves from the month of arrival in Vietnam according to the guidance at Point c.1.2, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC.

In case the company pays the one-time relocation allowance to the employee who is a foreigner residing in Vietnam, it shall not be included in the employee's taxable income at the rate stated in the labor contract or collective labor agreement under the guidance at Point b.9, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC and shall be included in the expenditure fees are deducted when determining CIT taxable income if they meet the conditions guided in Clause 1, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance.

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