blue-check Regarding PIT on incomes paid to foreign workers after they have stopped working

Official letter No. 4251/CT-TTHT dated May 4th, 2020 of the Department of Taxation of Ho Chi Minh city regarding tax policy
Posted: 29/6/2020 11:00:21 AM | Latest updated: 13/7/2020 10:22:09 AM (GMT+7) | LuatVietnam: 4992 | Vietlaw: 466

In case a foreign worker has stopped working and returned his/her home country in previous years but now he/she is paid severance allowances, upon making the payment, the payer shall withhold 20% personal income tax (PIT) and pay it on behalf of the foreign worker.

If the income the foreign worker receives is the Net income (after-tax income), it is required to be converted into pre-tax income before withholding 20% PIT.

Ví dụ, nếu phải trả 3.000 USD thu nhập Net (sau thuế) cho người này thì số thuế phải nộp sẽ là:
(3.000 x 1.2) x 20% = 720 USD
Ms. Phuong Thao (
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PublishedVietlaw's Newsletter No. 466
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nexto  Regarding PIT incurred by a resident who receives both income in Vietnam and income outside Vietnam (3/6/2018) 

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