Official letter No. 4571/TCT-DNNCN dated December 7th, 2022 of the General Department of Taxation regarding determination of personal income tax (PIT)

According to opinions of the General Department of Taxation, in case a foreign worker is a resident in Vietnam, receives Net income (tax – exclusive income) in Vietnam and outside Vietnam and his/her house rent is also paid by the Company in Vietnam on his/her behalf, the limit of 15% of the total taxable income for deduction of PIT with regard to the house rent shall be determined according to the Gross income.

The conversion of Net income into Gross income shall be carried out according to the guidelines at point b clause 4 Article 7 of Circular No. 111/2013/TT-BTC .

In addition, it is required to note that if the foreign worker is a resident in Vietnam, his/her taxable incomes for declaring, making tax accounting are global incomes (incomes earned in Vietnam and outside Vietnam), regardless of places of payment.