Applicable Entities:

Foreign individuals residing in Vietnam, earning income from salaries and wages in Vietnam, and present in Vietnam for 183 days or more when concluding their work contracts in Vietnam shall make tax finalization with the tax authority before leaving the country.

Submission Deadline:

• Before departure;
• Within 45 days from departure, the foreign individual authorizes tax settlement.

Tax Settlement Documentation:

• Personal Income Tax Settlement Declaration (Form 02/QTT-TNCN)
• Income Confirmation Documents (from all sources of income such as salaries, and wages)
• Tax deduction documents or Proof of tax paid (receipts of tax payments to the state budget)
• Documents proving tax exemptions or reductions (if any)
• Passport or valid identification documents of the foreign individual
• Documents proving departure (e.g., plane tickets)

Procedure:

• Foreign individuals directly process tax settlement procedures at the tax office where taxes are filed.
• Authorize someone else to process tax settlement procedures (with a valid authorization letter).

Monitoring Tax Settlement Documents:

Monitor directly on the Electronic Tax Portal of the General Department of Taxation (thuedientu.gdt.gov.vn) or via the Ho Chi Minh City Tax Department’s Application (HCMTAX).

Specific Example:

Mr. A, a U.S. citizen, came to Vietnam in December 2020 for work. On January 1, 2021, Mr. A began working concurrently at Companies X and Y under labor contracts. Each month, Companies X and Y withheld Personal Income Tax from Mr. A’s salary for tax purposes. On October 30, 2021, Mr. A left both companies to return to the U.S. In this case, we would proceed with tax settlement as follows:

Step 1: Determine if Mr. A falls under the category requiring tax settlement.

Mr. A has been a foreign worker in Vietnam for 183 days or more within the Gregorian calendar year. Therefore, he falls under the category requiring tax settlement before leaving Vietnam.

Step 2: Prepare complete documentation including:

1. Personal Income Tax Finalization Declaration Form (Form 02/QTT-TNCN)
2. Tax deduction documents and Income Confirmation Letter (if available)
3. Passport/Visa
4. Temporary residence card
5. Resignation letter
6. Record of days of residence in Vietnam
7. Declaration of global income

Step 3: Submit to the competent tax authority.

Step 4: Monitor the settlement process.

For further inquiries regarding the settlement of Personal Income Tax on salaries and wages for foreigners, please contact TPM via our website or directly at the hotline number 028 3505 1800 for the fastest support.

Legal Basis:

Law on Personal Income Tax No. 38/2008/QH12

Decree No. 126/2020/ND-CP

Quyen Nguyen