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PERSONAL INCOME TAX IN VIETNAM
NOTES ON YOUR ANNUAL PERSONAL INCOME TAX SETTLEMENT FOR 2022

PERSONAL INCOME TAX IN VIETNAM
NOTES ON YOUR ANNUAL PERSONAL INCOME TAX SETTLEMENT FOR 2022

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

Notes on your annual personal income tax settlement for 2022

Personal income tax is a tax calculated on an individual’s income sources earned from business activities and other sources such as salaries and wages paid by employers, from capital investments, capital transfer, real estate transfer, prize-winning, copyright, and inheritance gifts. Regardless of Vietnamese or foreigners, depending on residence status, and income level, an individual may have to pay from 5% to 35% of the income earned… Among them, income from salary and wages is the most common and also has the most detailed regulations.

WHO SHOULD DIRECTLY DECLARE TAX TO TAX AUTHORITIES?

  1. Some of your staff may not join your company full 12 months in a calendar year or have more income from wages/salary from other entities. In this case, these staffs are not allowed to request income payers to settle tax on their behalf but directly declare tax at tax authorities.
  2. To make the declaration, they must prepare a letter of income confirmation from the previous income payer + a certificate of tax withheld at source on the income (withheld receipt).
  3. Based on current income from your company and other incomes with the withheld receipts, they should prepare the annual settlement sheet and declare it directly to the tax department.
  4. This procedure is not the employer’s obligation but a personal matter of every staff, which means, the annual final settlement sheets of the company will not be including their sheets.

WHO WILL PAY TAX ON THE PROGRESSIVE METHOD OR APPLY THE FIXED RATE?

  1. To verify a proper method of personal income tax (PIT) declaration for expats, please prepare full pages to copy of your passport + Labor contract/appointment letter/tax withheld receipts.
  2. Upon you are resident or nonresident in Vietnam in a calendar year, you should declare and settlement of PIT for the incomes inside Vietnam or global income. Taxable amount/tax rates of resident and no resident are completely different.

NOTES ON TAX FROM GLOBAL INCOMES FOR EXPATS WHO ARE RESIDENT IN VIETNAM

  • In case you are a resident of Vietnam, you shall declare global incomes and pay personal income with progressive tax rates from 5% to 35%
  • In case you are a no-resident in Vietnam, you just pay 20% personal income tax for what you earn in Vietnam.
  • To avoid special inspection on global incomes in Vietnam and any income from countries that have tax agreements with Vietnam, the foreign experts who work in Vietnam shall declare reasonable global incomes, which must be fair with:
    • The position, and job requirement 
    • Professional profile and working history
    • Actual expenditures and living conditions
    • The GDP of their nation
    • The reputation of  the employer 
    • Your present days in Vietnam

The tax agencies in Vietnam also have a management system that they can detect unfair declarations from taxpayers. In case you keep submitting tax reports showing that there are foreigners working in Vietnam without reasonable tax payment, there will be special inspection procedures and you going to pay the tax and penalties.

Failure to apply properly declaration of PIT will lead to serious violations with more and more penalties from the tax department in coming years.

VIVA teams will support you to manage standard employee profiles/legal requirement records as well as compliance reports/declarations. We wish to go your files right thing the first time, clean and clear today and for the next 3 or 5 years.

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services,  VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

 

 

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