blue-check How to determine taxable income when a foreigner receives both net salary and gross salary

Official letter No. 69252/CT-TTHT dated September 4th, 2019 of the Department of Taxation of Ha Noi city regarding how to convert incomes of foreigners
Posted: 5/9/2019 2:20:22 PM | Latest updated: 17/10/2019 3:12:31 PM (GMT+7) | LuatVietnam: 4821 | Vietlaw: 428


According to Clause 4 Article 7 of Circular No. 111/2013/TT-BTCstatus2 and Clause 1 Article 14 of Circular No. 92/2015/TT-BTCstatus2 , the conversion of tax-exclusive income into taxable income according to Annex No. 02/PL-TNCN only applies to incomes exclusive of tax (net incomes).

Accordingly, in case a foreigner is a resident in Vietnam who receives 2 income sources, including net income in Vietnam and gross income (inclusive of tax and compulsory insurance premiums) outside Vietnam, it is only required to gross up the net income in Vietnam; the gross income outside Vietnam is not required to be grossed up.

Income liable to personal income tax of the foreigner in this case is the total income in Vietnam after it is grossed up plus the gross income received outside Vietnam.

Ms Phuong Thao (
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PublishedVietlaw's Newsletter No. 428
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Read more:

nexto  Regarding the conversion of post-tax income into pre-tax income after July 1st, 2013 (16/7/2017) 

nexto  Regarding conversion of PIT – exclusive incomes of foreign worker (8/3/2017) 

nexto  Regarding PIT policies for presumptive tax and house rent (11/9/2014) 

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