How is the process of settling personal income tax for foreigners working in enterprises regulated and implemented? What are the conditions and timing of settling personal income tax for this group of subjects? Let’s find out the points to note with MISA MeInvoice electronic invoice in the following article!
What is personal income tax? When do I have to pay personal income tax?
What is personal income tax deduction? If there is no deduction, do I need to declare it?
What is personal income tax deduction at source? Regulations on tax deduction at source
Table of Contents Hide
1. Determine cases of personal income tax settlement for foreigners
1.1. Personal income tax settlement for individuals who are foreigners residing in Vietnam
1.2. Personal income tax settlement for individuals who are foreigners not residing in Vietnam
1.3. Personal income tax settlement for foreign individuals who quit their jobs
1.4. Personal income tax settlement for foreign individuals returning to the country
2. Conditions for making personal income tax settlement for foreigners
3. Procedures for implementing personal income tax settlement for foreigners
3. Conclusion
1. Determine cases of personal income tax settlement for foreigners
In fact, foreign workers working in Vietnam are divided into many different cases. Therefore, each specific case will have a different way of settling personal income tax.
Personal income tax settlement instructions for foreigners
1.1. Personal income tax settlement for individuals who are foreigners residing in Vietnam
Foreigners permanently residing in Vietnam are defined as those who have the nationality of another country, do not have Vietnamese nationality, but reside, do business and live permanently in Vietnam. If a foreigner wants to be allowed . Therefore,To legally reside in Vietnam, he/she must apply for a permanent residence card.
Regarding personal income tax settlement, foreign individuals residing in Vietnam must fully comply with the regulations at the time of taxable income generation, just like Vietnamese citizens. In case foreign employees receive income in foreign currency, according to regulations, they must convert it to Vietnamese currency at the average exchange rate.
Conditions for an individual to be considered a foreigner residing in Vietnam
– First: Foreign individuals must be present in Vietnam for. Therefore, At least 183 days or more in 12 consecutive months or 1 year from the first day. The day the individual arrives in Vietnam and leaves is counted as 1 day.
– Second: In Vietnam, foreigners must have a permanent residence. They must comply with the provisions of the law on permanent residence registration. That means having a registered residence and having it recorded in the Permanent Residence Card or Temporary Residence Card issued by the Immigration Department, Ministry of Public Security; or renting a house to live in with a lease term of at least 90 days or more in the tax year according to the provisions of the law on housing.
Instructions on how to calculate taxes for foreign residents:
– In case a foreigner residing in Vietnam signs a labor contract for 3 months or more, personal income tax on income from salary and wages of that person is calculated according to the progressive tax rate table as follows: (Unit: million VND)