Personal Income Tax Finalization For Foreigners Before Leaving Vietnam

Foreign individuals who earn income from salaries and wages in Vietnam must file a tax finalization declaration before leaving the country. The documents must comply with regulations and be submitted to the tax authority. This applies to foreigners residing in Vietnam for 183 days or more. The deadline for submission is within 45 days before departure. The necessary documents include personal income tax settlement declaration, income confirmation, tax deduction documents, proof of tax payment, and passport/identification documents. The tax settlement process can be done directly or through an authorized person. Monitoring can be done through the tax portal or an application. An example is given for a U.S. citizen, Mr. A, who worked in Vietnam and is required to go through the tax settlement process. The legal basis for this is the Law on Personal Income Tax and Decree No. 126, 2020. For inquiries, contact TPM via their website or hotline. Foreign individuals residing in Vietnam who earn income from salaries and wages in Vietnam must file a tax finalization declaration with the tax authorities within 45 days before leaving the country upon the termination of their employment contract in Vietnam. The finalization documents must comply with the regulations and be submitted to the managing tax authority. 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 01-TNC-NQTT. 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, thursdaydian2.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 personal income tax finalization declaration form, form 02-QTT-TNCN, tax deduction documents and income confirmation letter, if available, passport, visa, temporary residence card, resignation letter, record of days of residence in Vietnam, 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 090-298-1080 for the fastest support. Legal Basis. Law on Personal Income Tax No. 38, 2008, QH 12. Decree No. 126, 2020, NDCP.