Enterprises apply the CIT deduction method to incomes from salaries and wages of foreigners working in Vietnam as follows:
- According to the partial progressive schedule: for foreign workers who have worked in Vietnam for 183 days or more during the tax year.
- According to the full tax schedule: for individuals who have worked in Vietnam for less than 183 days during the tax year.
The enterprise must base the calculation on the foreign employee’s working period in Vietnam as stipulated in the employment contract or the assignment document for work in Vietnam.
In case an enterprise hires a foreign worker to work in Vietnam but this person has not been granted a work permit by a competent authority in Vietnam, there is no basis to include it in deductible expenses when determining CIT taxable income.
(According to Official Letter No. 27325/CTBDYU – TTHT dated December 2, 2024)
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