On January 7th, 2019, Hanoi Department of Tax released the Official Letter No.817/CT-TTHT. Whereby:
– In case the Company in Vietnam pays airline and hotel fees for staff and experts (non-resident individual) who work for joint venture foreign group to Vietnam to support for manufacturing and business activities of this Company , this expense shall be calculated into personal income tax. The company is responsible for deducting 20% before paying for the above officials and experts in accordance with Article 18 of Circular No. 111/2013/TT-BTC of the Ministry of Finance.
– In case the above-mentioned foreign officials and experts are residents in the countries signing the Double Taxation Avoidance Agreement with Vietnam, the income generated in Vietnam shall be exempt from PIT if foreign officials and experts simultaneously satisfy all the conditions in this agreement.
– In case the Company in Vietnam negotiate with a foreign company that it will pays for the above-mentioned expenses, those expense shall be accounted into deductible expenses when calculating CIT taxable income if meeting the provisions of Article 4 of Circular 96/2015 / TT-BTC of the Ministry of Finance.
