Official Letter No. 40839/CT-TTHT dated May 25th 2020 issued by Hanoi City Tax Department about The CIT policy for PIT expenses arising from worldwide income of foreigners.
According to guidance from Ha Noi City Tax Department, the expatriate who is assigned from the parents company (Japan) to the Company (subsidiary in Vietnam) to work as labor of the Company, the Company bears PIT obligation arising from worldwide income of the foreigner which will be considered as deductible expense when determine CIT taxable income if following conditions are satisfied:
- These expense meets the conditions stated in Article 4, Circular 96/2015/TT-BTC;
- In assignment letter signed between Japan side and Vietnam side stated clearly about Company’s responsibility for paying PIT arising from the worldwide income of expatriate.
Please kindly find detail in the attached file.