Official Letter No. 4221/CT-CS dated October 03, 2025 issued by the Tax Department regarding personal income tax policies for foreign individuals returning to their home country

In case a foreign individual works in Vietnam during the period from January 01, 2025 to July 01, 2025 (the date of work termination and departure from Vietnam), the company withholds personal income tax (PIT) on the basis of residency status and the individual self-declares PIT on income paid from abroad for work performed in Vietnam under the resident category (calculated under the progressive PIT tariff). However, in fact, if such individual stays in Vietnam for fewer than 183 days during the period from January 01, 2025 to July 01, 2025, the PIT obligation must be settled prior to exit from Vietnam. The taxpayer shall determine PIT liability as a non-resident individual for income arising from January 01, 2025 to July 01, 2025 (calculated at the 20% flat PIT rate on total income arising in Vietnam, regardless of the place of payment or receipt).

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