The taxed global income for Personal Income Tax (PIT) that was paid by the company on behalf of the foreigner is considered as deductible expense

On May 25^th ,2020 Hanoi Tax Department issued Official Letter No. 40839/CT-TTHT. Whereby:

In case the company pays on behalf of the foreigner the Personal Income Tax (PIT) on global income, such expense can be deducted when determining the payable CIT if the conditions prescribed in Article 4 of the Circular No. 96/2015/TT-BTC are met, and the dispatching contract between the subsidiaries and their parent company in Japan must include the provision that the subsidiaries shall be responsible for paying the dispatched employee’s personal income tax.