Personal Income Tax (PIT) for foreigners in Vietnam
Dear DB Legal Law Firm in Da Nang, Viet Nam. I am foreigner living in Da Nang and in Hoi An. I am working for IT Company in China. May I ask the questions about Personal Income Tax in Viet Nam? Does I need to pay the Personal Income Tax in Viet Nam? because I am now living for one year and more.; How much money I have to pay? Penalty for late tax declartion/ payment?
Thank you for your email.
There are some notable points relating PIT in Viet Nam that the foreigners should study and consider whether you are payer or not.
- Foreigners are residents:
(Living in Viet Nam for at least 183 days or 12 months from the first day of the presence in Viet Nam)
Having a regular residence in Viet Nam.
- Foreigners are not residents.
What kind of income?
- Residents: income earned within and beyond Vietnam’s territory regardless of the place where income is paid.
- Non-residents: income earned in Viet Nam, regardless of the place where income is paid and received.
- Residents: from 5~35% per income (depend on income levels).
- Non-residents: 20% per income.
Foreigners who have taxable incomes shall make tax declaration, pay tax into the state budget quartly (dealine is the last day of the first month of the succeeding quarter) and make PIT tax settlement yearly (the last day of the 4th month from the end of the calendar year).
The payers have to declare and settle tax according to the Law of Viet Nam.
The deadline of PIT settlements by yourself in 2020 is April 30 2021.
Penalty for late tax delaration/payment.
According to Degree (125/2020/NĐ-CP) of Regulationg Administrative penalties for tax or invoice-related violations.
Penalty for payment late: 0,03%/day
Penalty for late tax delaration:
From 1-5 days (First time): Form of Cautions
From 1-30 days: VND 2,000,000 (USD 87) to VND 5,000,000 (USD 218)
From 31-60 days: VND 5,000,000 (USD 218) to VND 8,000,000 (USD 348)
From 61-90 days: VND 8,000,000 (USD 348) to VND 15,000,000 (USD 652)
From 91 days: VND 15,000,000 (USD 652) to VND 25,000,000 (USD 1,087)
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