1. Official Letter 53948/CTHN-TTHT, guiding the declaration of PIT for foreign employee who works in Vietnam and has income paid oversea
On 13 December 2021, Hanoi Tax Department issued Official Letter 53948/CTHN-TTHT, guiding the declaration of PIT in case that the enterprise employs foreigner from the parent company abroad, under the agreement the entire salary of this employee shall be paid by the enterprise in Vietnam and they only has income from working at the enterprise, not at others.
In such case, the enterprise is responsible for withholding, declaring and paying PIT on the total taxable income paid to the foreign employee.
From 1 January 2022, the enterprise should use the form promulgated under Circular No. 80/2021/TT-BTC guiding the Law on Tax Administration and Decree 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration for declaration.
For details, please refer to the Official Letter here.
2. Official Letter No. 54819/CTHN-TTHT 2021, guiding the personal income tax for supporting payment in case of funeral and wedding
On 15 December 2021, Hanoi Tax Department issued Official Letter 54819/CTHN-TTHT, guiding the calculation of PIT for supporting payment in case of funeral or wedding.
Accordingly, in case the enterprise incurs supporting payment in case of funeral or wedding of employee or their families member, if the supporting payment meets the provisions of Clause 5, Article 11 of Circular 92/2015/TT-BTC dated 15 June 2015 and consistent with the determination of taxable income according to Point 2.30, Clause 2, Article 4 of Circular No. 96/2015/TT-BTC (amended in Clause 4, Article 3 of Circular 25/2018/TT-BTC) BTC), such payment is not included in the employee's taxable income.
For details, please refer to the Official Letter here.