On January 21st, 2020, Hanoi Tax Department issued Official Letter No. 3342/CT-TTHT. Whereby:
In case the Company pays allowances and benefits to employees (who signed labor contract with the Company for a minimum period of 3 months) after termination of labor contract:
For employees’ incomes paid after the termination of labor contract, if they are not mentioned by the provisions of the Labor Law, the Law on Social Insurance or in the labor contracts between the employees and the Company, and if the payment is more than VND 2 million (VND 2,000,000), the Company must deduct PIT at the rate of 10% of the total income paid.
