What is the deadline for submitting report on employment of foreign workers in Vietnam for 2024? Do foreign workers pay personal income tax in Vietnam?

What is the deadline for submitting report on employment of foreign workers for 2024?

Based on Clause 1, Article 6 of Decree 152/2020/ND-CP, supplemented by Clause 3, Article 1 of Decree 70/2023/ND-CP, the regulation on reporting the use of foreign workers is as follows:

Report on the Use of foreign workers

1. Before July 5 and January 5 of the following year, foreign employers must submit semi-annual and annual reports on the use of foreign workers according to Form No. 07/PLI, Appendix I issued with this Decree. The time for finalizing the data for the semi-annual report is from December 15 of the year preceding the reporting period to June 14 of the reporting period, and the time for finalizing the data for the annual report is from December 15 of the year preceding the reporting period to December 14 of the reporting period.

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Thus, the deadline for submitting the report on employment of foreign workers for the year 2024 is before January 5, 2025.

Do foreign workers Pay Personal Income Tax?

Based on Article 2 of the Personal Income Tax Law 2007 which regulates the individual taxpayers as follows:

Taxable Subjects

1. Taxpayers are resident individuals with taxable income as prescribed in Article 3 of this Law arising both within and outside the territory of Vietnam, and non-resident individuals with taxable income as prescribed in Article 3 of this Law arising within the territory of Vietnam.

2. A resident individual is someone who meets one of the following conditions:

a) Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months from the first day of presence in Vietnam;

b) Having a regular residence in Vietnam, including a registered permanent residence or a rented house in Vietnam under a rental contract of 183 days or more.

3. A non-resident individual is someone who does not meet the conditions specified in Clause 2 of this Article.

Simultaneously, based on Article 1 of Resolution 954/2020/UBTVQH14 which stipulates the family deduction amount as follows:

Family Deduction Amount

Adjust the family deduction amount stipulated in Clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12 as amended and supplemented by Law No. 26/2012/QH13 as follows:

1. The deduction level for taxpayers is 11 million VND/month (132 million VND/year);

2. The deduction level for each dependent is 4.4 million VND/month.

Additionally, based on Article 26 of the Personal Income Tax Law 2007 regarding tax on income from wages and salaries for non-resident individuals:

Tax on Income from Wages and Salaries

1. Tax on income from wages and salaries for non-resident individuals is determined by multiplying taxable income from wages and salaries as specified in Clause 2 of this Article with a tax rate of 20%.

2. Taxable income from wages and salaries is the total wages and salaries non-resident individuals receive for work performed in Vietnam, regardless of the place of income payment.

Thus, whether foreign workers need to pay personal income tax depends on whether they are resident or non-resident individuals. Specifically:

- foreign workers who are resident individuals must pay personal income tax if they have taxable income from wages and salaries of 11 million VND/month or more without dependents, and from 15.4 million VND/month or more with one dependent, increasing progressively according to the actual number of dependents.

- foreign workers who are non-resident individuals must pay personal income tax at a rate of 20% on taxable income from wages and salaries regardless of the amount they receive.

What is the deadline for submitting report on employment of foreign workers in Vietnam for 2024? Do foreign workers pay personal income tax in Vietnam? (Image from Internet)

Where is personal income tax submitted in Vietnam?

Based on Clause 1, Article 56 of the Law on Tax Administration 2019, the regulation on where personal income tax is submitted is as follows:

- At the State Treasury;

- At the tax administration office where the tax declaration is filed;

- Through organizations authorized by the tax administration office to collect taxes;

- Through commercial banks, other credit institutions, and service organizations as prescribed by law.

When is the time to determine taxable income for personal income tax from wages and salaries in Vietnam?

Based on point b, Clause 2, Article 8 of Circular 111/2013/TT-BTC, the regulation on determining taxable income from wages and salaries is as follows:

- The time to determine taxable income for income from wages and salaries is when the organization or individual pays income to the taxpayer.

- Specifically, the time to determine taxable income for the fee amount of insurance products with accrual as instructed in point đ.2 Clause 2 Article 2 of Circular 111/2013/TT-BTC is when the insurer or voluntary pension fund management company pays insurance money.