GENERAL DEPARTMENT OF TAXATION
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 640/TCT-TNCN
Hanoi, February 06, 2007
 
OFFICIAL LETTER
ON PERSONAL INCOME TAX MANAGEMENT FOR NON-RESIDENT TAXPAYERS
To: Binh Duong Provincial Tax Department
In response to Official Letter No. 8694/CT-TT&HT of December 28, 2006, of Binh Duong Provincial Tax Department, requesting guidance on personal income tax management for non-residential taxpayers, the General Department of Taxation gives the following opinion:
According to Points 1 and 2, Section II of the Finance Ministry’s Circular No. 81/2004/TT-BTC of August 13, 2004, foreign individuals, who do not reside in Vietnam and are assigned by a foreign company to work in a Vietnamese company and receive income overseas, shall pay personal income tax at the rate of 25% of the total taxable income generated in Vietnam. They shall produce the following documents as a basis for determining taxable personal income in Vietnam:
- Service contract and income payment voucher, for an individual who signs a service contract with a foreign company.
- Documents such as labor contract, payroll, income payment vouchers, income tax declaration (if after the end of the tax year of foreign individuals), and the foreign company’ certification of individuals’ incomes generated in Vietnam, for an individual being an employee of a foreign company.

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 Based on the above documents, the Tax Departments shall determine the average daily personal income of those individuals (365 days/year). Income generated in Vietnam shall be calculated by multiplying the average daily income by the number of days those individuals reside in Vietnam. When individuals receive other incomes generated in Vietnam, those incomes shall be added for determination of their taxable income in Vietnam.
The General Department of Taxation would like to inform its opinions to Binh Duong Provincial Tax Department for compliance.-
 
 
FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR


Nguyen Thi Cuc
 

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