Guidelines for Determining Residency Status for Personal Income Tax Declaration

13:23, 11/07/2024

On October 25, 2017, the General Department of Taxation issued Official Dispatch 4936/TCT-TNCN addressing issues related to the determination of the residency status of Vietnamese individuals sent abroad for internships and training who are present in Vietnam for less than 183 days.

Vietnamese individuals sent by the Company to intern and receive vocational training in Japan, with a permanent residence in Vietnam but actually present for < 183 days/year, shall have their residency status determined as follows:

- If individuals can prove their residency in Japan, they are classified as non-resident in Vietnam and shall declare any PIT generated in Vietnam based on the whole tax rate.

For the income arising in Vietnam that the Company has deducted and declared PIT according to the progressive tax schedule, it will be adjusted to the tax rate applied to non-resident individuals.

- If they cannot provide such proof, they are classified as a resident in Vietnam and are responsible for declaring tax on income generated both inside and outside of Vietnam according to the progressive tax schedule.

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