Are Vietnamese Individuals Working Abroad Considered Resident Individuals for Personal Income Tax Calculation?
Article 2 of the 2007 Personal Income Tax Law stipulates:
Taxpayers subject to personal income tax are resident individuals with taxable income as stipulated in Article 3 of this Law arising both within and outside the territory of Vietnam, and non-resident individuals with taxable income as stipulated in Article 3 of this Law arising within the territory of Vietnam.
A resident individual is a person who meets one of the following conditions:
a) Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam;
b) Having a regular place of residence in Vietnam, including a registered permanent residence or a rented house to live in Vietnam according to a term lease contract.
A non-resident individual is a person who does not meet the conditions stipulated in Clause 2 of this Article.
Clause 2d, Article 22 of the 2006 Residence Law stipulates:
A person falling into one of the following cases will be deleted from the permanent residence register:
Going abroad to settle.
Thus, a Vietnamese individual living and working abroad, in the case of being present in Vietnam for less than 183 days in a calendar year or having had their permanent residence registration deleted for settlement abroad, is not considered a resident individual.
If they are present in Vietnam for 183 days or more in a calendar year or have not had their permanent residence registration deleted in the country, then they are considered a resident individual and must pay personal income tax if they have taxable income arising both within and outside the territory of Vietnam.
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