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Legal updates

Official letter No 3168/CTBNI-TTHT dated Sept 06th 2021 of Bac Ninh Tax Department guided on Tax policy for foreign employees dispatched to Vietnam

In cased the Corporation has signed agreement with parents company in Japan, whereby: Parents company assigns technical employees to work at the corporation. The expat is still belonged to parents company in Japan and this expat doesn’t sign labour contract with subsidiary company in Vietnam

In the period foreign employee works in Vietnam. The subsidiary has responsibility for accommodations, transportation, Covid-19 testing and other related expenses and pay back to parents company those amount to carry out this service.

Hence, FCT liability, CIT and PIT for paid amount related to foreign expat dispatched to corporation determined as follow:


The parents company in Japan has income from agreement about technical support to subsidiary company in Vietnam has to pay FCT for this income.

The corporation has responsibility to declare on behalf for parents company as guidance as Article 11,12,13 Circular 103/2014/TT-BTC


The corporation is included into deductible expense for all expense related to employees dispatched to work at Corporation which has fully invoice, noncash payment document according to regulation as Article 4 Ciruclar 96/2015/TT-BTC


The corporation in Vietnam has responsibility to announce to parents company about PIT liability of expat and has responsibility to provide foreign employee’s information to corporation to provide to Tax department by 07 days since the dated expat started to work in Vietnam

In cased due to Covid-19 affection, the dispatched employee could not exit on time, become resident in Vietnam which must declare, pay PIT for all income received in tax period ( global income) and finalize PIT in Vietnam

Please kindly check attachment file for further detail

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