Official Dispatch No. 3301/CTHPH-TTHT dated October 17, 2022 of the Tax Department of Hai Phong City guiding the personal income tax policy for the cost of assignment foreign employees to Vietnam for work
In case the Company has employees who are foreign experts to manage and administer the Company’s business activities from the office of the Parent Company in Japan. Periodically, the Company will assign employees to work in Vietnam, thereby incurring expenses such as return airfare, hotel fees during the working time in Vietnam, the Tax Department guides the PIT policy for these expenses as follows:
- If the above expenses are eligible to be determined as per diem and the payment rate is in accordance with the Company’s policy and regulations on business travel, they are not included in the Personal Income Tax.
- If the above expenses are not per diem or per diem but exceed the per diem regulations of the Company, they must be included in the Personal Income Tax.