Uni 09-12-2025 - On determining individual residence

Official letter 3363/TNI-QLDN1 on determining individual residence:

Based on the above provisions, in case the Company signs a contract with a foreign employee on September 19, 2022, but this individual has been present in Vietnam before (specifically the first time: from July 4, 2015 to July 19, 2018; the second time from April 22, 2019 to April 26, 2019), the Company shall base on the taxpayer's working time in Vietnam stated in the Contract and based on the certification of the immigration authority on the taxpayer's passport (or travel document) when arriving and leaving Vietnam to determine the taxpayer's residence status as a basis for determining the taxpayer's personal income tax obligations according to the provisions of Article 1 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

In case a foreign individual is present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam, he/she is considered a resident individual, so the income subject to personal income tax is income arising inside and outside the territory of Vietnam, regardless of where the income is paid. Individuals shall declare and settle personal income tax directly with the Tax authority according to the provisions of Point d.3, Clause 6, Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government. The basis for tax calculation and taxable income shall be implemented according to the provisions of Article 7, Article 8, Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.