Trang chủNewsQuestion and AnswerPersonal income tax for Head of foreign representative office receives income in Vietnam

Date: 25/11/2019



We have a problem on the tax declaration for Head of representative office of a foreign company in Vietnam. Foreign company has appointed its expatiate staff as head of representative office in Vietnam. Actually, head of representative office does not presence in Vietnam. This person will still work abroad and getting salary from foreign company (including the head of the representative office salaries) and fully paid tax in their country of residence. So for this case, how to declare the PIT for the Head of representative office?


Where the head of the representative office is non residence individual and does not present in Vietnam, based on the provisions of paragraph 1 and 2.a of Article 18 Circular No.111/2013/TT-BTC dated 15 August 2013, PIT is determined as follows:

 - Personal income tax on income from salaries and wages of non-resident individual is defined by the taxable income from salary or wage worker ( x ) the rate of 20 %.

 - The determination of taxable income from salaries and wages in Vietnam for individuals who does not present in Vietnam and does not separate the income arising in Vietnam shall comply with the following formula:

    (No. Of working days for tasks in Vietnam)        
Total income arising in Vietnam = -------------------------  x  Total income from salary, wages (from all sources) before tax x Total income from salary, wages (from all sources) before tax
    (Total working days in a whole year)         

  Of which: Total number of working days in a whole year are calculated according to the provisions of the Labor Code of Vietnam.

  Representative Office in Vietnam shall withhold, declare and pay personal income tax at the tax rate of 20% on all income to be remitted into the state budget.

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