Tax declaration services for individuals with foreign income in Vietnam

Personal income tax (PIT) is the amount of money that income earners must deduct and pay in part of their salary, or from other sources of revenue into the state budget after it has been deducted. This is a direct tax, which is levied on some high-income individuals. Pursuant to the provisions of Article 2 of the PIT Law and Article 1 of Circular 111/2013/TT-BTC, accordingly, in addition to taxable income arising in the territory of Vietnam, income from abroad for resident individuals is still determined as personal income taxable income. Viet An Tax Agent is a unit specializing in providing accounting services, including a professional personal tax declaration service package with foreign income, bringing convenience and peace of mind to customers in the process of handling tax issues. Our personal income tax preparation service not only saves you time and effort, but also ensures accuracy and compliance with tax regulations. Viet An Tax Agent’s team of financial and accounting experts has extensive experience in this field, will support you from collecting information, processing documents to paying taxes effectively.

Subjects of application of tax declaration for individuals with foreign income

Individuals with foreign income can fall into 1 of the following 2 forms:

• Income from abroad under labor contracts;
• Income from abroad under service provision contracts.

For income from abroad under labor contracts, subjects of application:

• Vietnamese individuals (resident individuals) who earn income from salaries and wages paid from abroad;
• Individuals who are foreigners (non-resident individuals) who earn income from salaries and wages arising in Vietnam but are paid from abroad;
• Individuals who earn income from salaries and wages paid by international organizations, embassies and consulates in Vietnam but have not yet deducted tax.

For incomes from abroad under service provision contracts, the subjects of application are Vietnamese individuals (resident individuals) earning incomes from foreign organizations or enterprises under service provision contracts, for example:

• Graphic designers in Vietnam sign contracts to design logos, business cards… for companies in the US;
• A translator in Vietnam contracts with a publishing company in Germany to translate a book from German to Vietnamese;
• Freelance programmers in Vietnam sign mobile application development contracts with businesses in Canada…

Dossiers of declaration of income tax from abroad that the unit needs to provide to Viet An Tax Agent

Depending on the type of contract you sign with a foreign business, you need to provide Viet An Tax Agent with different legal documents, specifically:

• For individuals earning income from abroad under labor contracts, dossiers for individuals earning income from abroad under labor contracts include:
• Labor contracts;
• MST of salaries and wages of individuals;
• Payroll and monthly salary receipt statement.
• For individuals earning income from abroad under service provision contracts, dossiers for individuals earning income from abroad under service provision contracts include:
• Tax identification number of the business individual or business household establishment license;
• Service contracts signed with foreign organizations;
• Statement of the account to receive income.

Scope of work when providing tax declaration services for individuals with foreign income

• Free consultation and answer to all questions related to foreign income tax declaration;
• Assist clients in collecting and preparing the necessary documents for the tax filing process;
• Evaluate and analyze sources of income from abroad to determine accurate tax obligations;
• Calculate PIT payable monthly, make PIT returns and submit declarations to customers according to the prescribed period.

Benefits when declaring tax for individuals with foreign income at Viet An Tax Agent

All customers, whether Vietnamese citizens or foreigners living and working in Vietnam, when using tax declaration services, are committed to the following 6 benefits:

• Ensure that all information and documents are declared accurately and completely;
• Commitment to absolute confidentiality of customers’ personal and financial information;
• Ensure to submit tax declaration dossiers on time;
• Always ready to support and answer all questions of customers during the service implementation process;
• Ensure that all tax declaration processes comply with current legal regulations;
• Committed to finding and implementing the best tax preparation options to optimize tax benefits for customers.

How to determine payable tax on foreign income

Tax declaration for individuals with foreign income under labor contracts

Individuals earning income from abroad under labor contracts must declare and pay PIT according to regulations. The payable tax rate will be calculated as PIT from salaries and wages. Concrete:

• For non-resident individuals: Calculate tax at the full tax rate of 20%;
• For resident individuals with labor contracts of less than 3 months and without labor contracts: Tax shall be calculated at the full tax rate of 10%;
• For resident individuals with labor contracts of full 3 months: Tax calculation is based on the partial progressive tariff.

The PIT calculation formula is as follows:

Table of tax rates according to partial progression:

Tax declaration for individuals with foreign income under service provision contracts

Similar to business households and other business individuals, individuals earning income from abroad under service provision contracts with an income of over 100 million VND/year must declare and pay personal income tax

The PIT calculation formula is as follows:

PIT rate:

Frequently asked questions

What should be provided when using tax declaration services for individuals with foreign income?

• A dossier for an individual earning income from abroad under a labor contract includes:
• Labor contracts;
• Individual salary and wage tax codes;
• Payroll and monthly salary receipt statement.
• A dossier for an individual earning income from abroad under a service provision contract includes:
• Tax identification number of the business individual or business household establishment license;
• Service contracts signed with foreign organizations;
• Statement of the account to receive income.

If I sign a contract to provide services and receive salaries from abroad, do I have to pay tax?

Individuals earning income from abroad under service provision contracts with an income of over 100 million VND/year must declare and pay 3 types of taxes including: license fee, PIT and VAT.

Do individuals who do not sign contracts or work as freelancers for foreign countries have to pay taxes?

Individuals who work as freelancers for foreign companies, do not sign contracts, if they generate income, must declare and pay PIT according to regulations.

If you have any difficulties or questions related to tax declaration services for individuals with income from abroad, please contact Viet An Tax Agent for the most specific advice.