In this issue

Personal Income Tax (PIT) for the employees of foreign contractors and short-term business travelers

The PIT compliance for the employees of foreign contractors and short term business travelers has always been a controversial matter.

A Vietnamese enterprise signs the service contract with a foreign contractor under which the foreign contractor sends its expatriate employees to Vietnam to perform the services. Shall the income of these expatriate employees be subject to PIT and how to declare PIT for such income?

Shall short-term business travelers not receiving any income in Vietnam be subject to PIT in Vietnam and how to declare PIT for such income?

It is observed that the PIT compliance for these groups of individuals is not consistently applied in the practice given the fact that the current regulations fail to provide a clear guidance. We discuss the following in this issue.

► Background
► Discussion on PIT compliance matter of “Employee of foreign contractors and short-term
business travelers”
► Our recommendations

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