On September 3rd, 2019, Hanoi Department of Tax issued the Official Letter No.68923/CT-TTHT. Accordingly:
In case a Vietnamese company opens a representative office abroad and employs native labors to work for this one, if these individuals are not Vietnamese residents, the income earned by working for such office in foreign countries shall not be subject to PIT in Vietnam.
If the Company covers the expenses such as accommodation and travel for foreign employees to work in Vietnam (as non-resident individuals), those expenses shall be included in the income subject to PIT; The company is responsible for deducting 20% before paying to individuals as prescribed.
Salary and remuneration paid by the company to foreign employees (who are non-residents in Vietnam) when performing work in Vietnam is determined as PIT taxabe income in Vietnam. The company is responsible for deducting 20% of PIT before paying to individuals as prescribed.
