Do Vietnamese Workers with Income in Foreign Currency Need to Exchange it to Vietnamese Dong for Tax Payment?

- Regarding the issue of converting foreign currency to Vietnamese Dong when calculating personal income tax:

According to the regulations in Article 13 of Circular 92/2015/TT-BTC:

Revenue and taxable personal income are calculated in Vietnamese Dong.

In cases where the revenue and taxable income are received in foreign currency, it must be converted to Vietnamese Dong at the actual transaction buying exchange rate of the bank where the individual holds their transaction account at the time the income arises.

In cases where the taxpayer does not have a transaction account in Vietnam, foreign currency must be converted to Vietnamese Dong at the buying exchange rate of Vietcombank (Joint Stock Commercial Bank for Foreign Trade of Vietnam) at the time the income arises.

For foreign currencies that do not have an exchange rate with Vietnamese Dong, conversion must be done through a foreign currency that has an exchange rate with Vietnamese Dong.

Thus, in your case, a Vietnamese individual earning income abroad and being paid in foreign currency must convert it to Vietnamese Dong at the actual transaction buying exchange rate of the bank Vietcombank (the bank where this individual has their transaction account) at the time the income arises.

- Regarding tax rate:

For income from service contracts where each payment after conversion to Vietnamese Dong exceeds 2 million dong, the recipient is subject to a tax deduction at a rate of 10% as prescribed in Point i, Clause 1, Article 25 of Circular 111/2013/TT-BTC.

Sincerely!