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blue-check Regarding tax on tuition fees paid on behalf of foreign employees’ children

Official letter No. 36819/CTHN-TTHT dated July 28th, 2022 of the Department of Taxation of Ha Noi city regarding incomes liable to personal income tax (PIT) with regard to tuition fees for children of foreign employees
Posted: 24/8/2022 8:01:20 AM | Latest updated: 25/8/2022 7:05:02 PM (GMT+7) | LuatVietnam: 5525
VietlawOnline

According to point 2.6 clause 2 Article 4 of Circular No. 96/2015/TT-BTCstatus2 , in case an enterprise pays tuition fees for children of foreigners to study in Vietnam from preschool to high school, this expenditure shall be included in deductible expenditures upon determination of incomes liable to enterprise income tax and shall be exempt from PIT according to the regulations at point g.7 clause 2 Article 2 of Circular No. 111/2013/TT-BTCstatus2 .

However, if tuition fees are paid on behalf of children of Vietnamese workers working outside Vietnam to study outside Vietnam, such amount shall be only exempt from PIT but not allowable to be included in deductible expenditures because point 2.6 clause 2 Article 4 of Circular No. 96/2015/TT-BTCstatus2 does not mention this expenditure.

For the case where an individual that has 2 passports, 2 nationalities, including Vietnam passport and nationality, whether he/she is determined a foreign worker working in Vietnam or not, the Department of Taxation of Ha Noi city assumes that it is required to study the Law on Nationality to determine.

Ms Phuong Thao (VietlawOnline.com)
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