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blue-check Regarding PIT on house rent paid on behalf of foreign workers

Official letter No. 51239/CT-TTHT dated June 12th, 2020 of the Department of Taxation of Ho Chi Minh city regarding determination of incomes liable to personal income tax (PIT) on house rent paid on behalf of foreign workers
Posted: 16/6/2020 9:49:24 AM | Latest updated: 19/8/2020 8:37:29 AM (GMT+7) | LuatVietnam: 4981 | Vietlaw: 472
VietlawOnline

In case a company in Vietnam pays house rent on behalf of a foreign worker, it shall withhold and pay PIT on behalf of the foreign worker.

The amount of tax to be withheld is the whole house rent paid on behalf. However, if this amount exceeds 15% the total income earned in Vietnam, it shall be limited at 15%.

The PIT rate shall be 20% if the foreign worker is a non-resident.

In case the company fails to withhold tax, it shall make immediately adjustments to the declaration form and additionally pay the tax together with the late payment interests.

Ms. Phuong Thao (VietlawOnline.com)
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PublishedVietlaw's Newsletter No. 472
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