• Tiếng Việt

Income tax for foreigners

Income tax for foreigners is one of the issues of great concern. The declaration, finalization and payment of income tax for foreigners are a very important thing for both employees and employers, especially when foreign workers are recruited and worked in Vietnam. 

Income tax for foreigners
Income tax for foreigners

Income tax for foreigners working in Vietnam

Currently, there are many foreigners working in Vietnam. And the issue of declaration, finalization and payment of income tax for foreigners in Vietnam is very important for both employees and employers.

There are a total of 9 types of income tax that foreigners must pay when working or doing business in Vietnam:

1. Income tax for foreigners doing business in Vietnam

Foreigners must fulfill the obligation to pay income tax to the Vietnamese state when conducting business in the Vietnamese territory. Enterprises earning income from activities of producing and trading goods and services in all fields of industry, construction services, restaurant business, real estate rental services, business education services, etc. education, etc. and all other legal business services that are granted business licenses or practice certificates in accordance with Vietnamese law.

2. Income tax for foreigners from salaries and wages paid by the employer

Employers must pay income tax for foreigners working in Vietnam at the following intervals:

  • Income tax for foreign employees when paying salaries, allowances, labor allowances, etc.
  • Income tax for foreign employees from agency and brokerage activities, bonuses from scientific and technical research awards, inventions and inventions according to relevant regulations on intellectual property rights. , sport awards, grants from teaching, etc.
  • In addition, the employer must pay the life insurance, elective insurance, pension fund that the employer needs to pay on behalf of the employee.

3. Income tax for foreigners investing capital in the territory of Vietnam

Foreigners, when participating in capital investment in any form in the territory of Vietnam, need to fulfill the following tax obligations:

  • Income tax from lending from organizations, businesses, business households, business individuals and groups of business individuals under loan contracts or agreements.
  • Income tax on dividends from capital contribution.
  • Tax on income from capital investment in other forms, including capital contribution with assets, reputation, land use rights, and patents.
  • Income tax from income paid by bonds, income from reinvested profits.
Income tax for foreigners
Income tax for foreigners

4. Income tax for foreigners from capital transfer

Foreigners need to fulfill tax obligations when collecting profits arising from capital contribution to a Limited Liability Company (Limited Company), including a one-member limited liability company, etc., and other organizations.

In addition, it also pays income tax arising from the transfer of securities, income tax from the transfer of shares of individuals in a joint-stock company in accordance with the Law on Enterprises of Vietnam.

5. Income tax for foreigners from real estate transfer in the territory of Vietnam

Foreigners need to fulfill tax obligations in Vietnam when participating in real estate transfer activities in the territory of Vietnam:

  • Income tax from the transfer of the right to use real estate
  • Income tax from the transfer of the right to use real estate and assets attached to real estate
  • Rent income from the transfer of ownership or use of houses, including houses in legal project status

6. Income tax for foreigners from winning prizes

Foreigners living and working in Vietnam need to pay the tax of personal income when winning the Vietnamese lottery, winning the prizes in the form of the promotions when buying products or services according to Vietnamese commercial law.

Income tax for foreigners
Income tax for foreigners

7. Income tax for foreigners from owning copyright

Foreigners are obliged to pay tax on income from the license, which is income from the transfer of ownership rights, the right to use intellectual property, income from technology transfer under the Law on Technology Transfer in Vietnam.

8. Income tax for foreigners from inheriting property in the Vietnamese territory

Foreigners living in the territory of Vietnam are obliged to pay tax when inheriting any property such as inheritance of stocks, bonds, bills, dividends, shares, business capital, real estate, ownership and rights to use copyrights, motorbikes, cars, etc.

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