The PIT expense that arising from overseas income of foreign workers: Claimed a deduction from taxable corporate income and included in personal income taxable income

On November 23^rd, 2021, The Hanoi tax department issued the official letter No 48930/CTHN-TTHT, accordingly:

In case the dispatch contract between the mother company and its subsidiary in Vietnam clearly states that all incomes generated in Vietnam and PIT arising from the revenue in Japan are paid by the subsidiary, the above expenses are included in the personal income taxable income from payroll and wages if they are determined as benefits for the employees according to the provisions of Clause 2, Article 2 of Circular 111/2013/TT-BTC.

If the above expenditures meet the requirements specified in Article 4 of Circular 96/2015/TT-BTC dated June 22^nd, 2015, of the Minister of Finance, they shall be determined as deductible expenses when calculating CIT.