On December 7, 2022, the General Department of Taxation issued Official Letter No. 4571/TCT-DNNCN, according to which:
In case, Mr. A is a foreign worker who is an individual residing in Vietnam, working at a Company with Net income in Vietnam and Japan, then:
- For the Company, monthly the Company calculates the house rent according to the actual amount paid on behalf of but does not exceed 15% of the total taxable income (Gross income) arising (excluding rent, electricity and water and associated services) (if any) at the Company regardless of whether the place of income payment is Vietnam or Japan.
- For Mr. A, taxable income for personal income tax finalization is determined as income arising inside and outside the territory of Vietnam, regardless of where the income is paid; the way to convert tax-exclusive income into taxable income according to the guidance at Point b, Clause 4, Article 7 of Circular No. 111/2013/TT-BTC dated August 15, 2013.
