The Vietnamese customer has the obligation to inform its foreign contractors of their Vietnam PIT reporting and payment requirements. Additionally, there is a requirement for the Vietnamese customer to provide information in relation to the employees of the foreign contractor that are working in Vietnam to the tax authorities at least 7 days before the individuals start working in Vietnam.
The Dong Nai Tax Department has recently issued Official Letter No.
9084/CT-TN CN (“OL 9084”) reminding Vietnamese entities operating in Dong Nai of these obligations.
OL 9084 states that the Dong Nai Tax Department will recover any unpaid PIT relating to the employees of foreign contractors from the Vietnamese customer if they fail to undertake the necessary reporting to the tax authority.
This extension of the obligations of the Vietnamese customer beyond reporting and to now include liability for unpaid PIT is beyond the requirements of the PIT regulations. However, OL 9084 shows the continued efforts by the Dong Nai Tax Department to closely monitor the employees of foreign contractors and collect all PIT due.