According to Clause 4 Article 7 of Circular No. 111/2013/TT-BTC and Clause 1 Article 14 of Circular No. 92/2015/TT-BTC , 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.
|Published||Vietlaw's Newsletter No. 428|