On February 27, 2020, Hanoi Tax Department issued Official Letter No. 8208/CT-TTHT. Whereby:
In case the Company has foreign experts, who come to Vietnam to work, hold managerial positions in Vietnam, receive salaries in Vietnam under labor contracts signed with the Company:
- Regarding VAT: The company is not allowed to deduct VAT for apartment management expenses for this foreign expert as prescribed in Clause 1, Article 14 of Circular 219/2013/TT-BTC dated 31 December, 2013 of Ministry of Finance.
- Regarding CIT: In case in accordance with labor contract, the Company is responsible for paying salaries, bonuses and expenses relating to accommodation in Vietnam to foreign experts (including apartment management service fee), the apartment management service fee is deducted when determining taxable income if it meets the provisions of Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of Ministry of Finance.
