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QUESTION:
Hello everyone, I plan to work online for a long time on a foreign website. As far as I know, for individuals residing in Vietnam, the tax period for income from salaries and wages is determined according to the calendar year (not each time it is incurred).
1. So, do I need to pay tax and personal income tax for income from online work and how to do tax payment procedures?
2. Assuming the above income is not fixed (months with income, months without), then there is no need to pay PIT?
Hope everybody help please.
ANSWER:
Greetings from MEDLAW, thank you for sending your question to us, based on the information you provided, we would like to advise as follows:
Question 1: For your income from online work, it is an income of salary and wage nature and belongs to the income subject to PIT according to Point a, Clause 2, Article 2 of Circular 111/2013/TT – BTC. Pursuant to Article 2 of Circular 119/2014/TT-BTC, for resident individuals, taxable income is income arising inside and outside the territory of Vietnam, regardless of where the income is paid. Accordingly, if you are a resident individual who meets the conditions to be 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, subject to personal income tax.
According to Item a.2 point a, Clause 2, Article 26 of Circular 111/2013/TT – BTC, resident individuals earning incomes from salaries and wages paid by organizations and individuals from abroad shall declare tax directly. continue with the tax authorities quarterly. Pursuant to Point b, Clause 3, Article 21 of Circular 92/2015/TT-BTC, PIT payment dossiers and procedures include:
b.1) Quarterly tax declaration file
Residents earning incomes from salaries and wages shall declare quarterly tax directly to tax authorities according to the Form No. 02/KK-TNCN issued together with Circular No. 92/2015/TT-BTC.
b.2) Dossier of settlement declaration
b.2.1) Individuals earning incomes from salaries or wages that do not fall into the category of authorizing organizations or individuals to pay incomes for tax finalization on behalf of them shall declare tax finalization directly to the tax authorities using the following form:
– Tax finalization declaration form No. 02/QTT-TNCN issued together with Circular No. 92/2015/TT-BTC.
– Appendix form No. 02-1/BK-QTT-TNCN issued together with Circular No. 92/2015/TT-BTC if there is registration of deduction for dependents.
– Photocopies of documents proving the tax amount already withheld, temporarily paid in the year, tax paid abroad (if any). The individual undertakes to be responsible for the accuracy of the information on that snapshot. In case the income paying organization fails to issue tax withholding documents to individuals because the income paying organization has ceased to operate, the tax authority shall base on the tax branch's database to consider and process the final settlement dossier. tax for individuals without required tax withholding documents.
In case, according to the provisions of foreign law, the foreign tax authority does not issue a certificate confirming the paid tax amount, the taxpayer can submit a photocopy of the tax withholding certificate (specifying that tax has been paid according to the tax declaration). any income tax) issued by the income paying agency or a photocopy of the bank statement for the tax amount paid abroad, certified by the taxpayer.
- Photocopies of invoices and vouchers evidencing contributions to charity funds, humanitarian funds, study promotion funds (if any).

Question 2: Pursuant to Point i, Clause 1, Article 25 of Circular 111/2013/TT – BTC, if the total income payment is two million VND (2,000,000)/time or more, tax must be deducted at the rate of 10% above. income before paying to individuals.
In case an individual has only income that is subject to tax withholding according to the above rate, but the estimate of the individual's total taxable income after deduction of family circumstances is not enough to pay tax, the individual has make a commitment (according to the form promulgated together with the guiding document on tax administration) and send it to the income paying organization for the income paying organization as a temporary basis for not deducting personal income tax.
Pursuant to Point e.1 Clause 1 Article 26 of Circular 111/2013/TT – BTC, in case a resident earns income generated in a foreign country and has calculated and paid personal income tax according to foreign regulations, deducted from the tax paid abroad. The deductible tax amount does not exceed the payable tax amount calculated according to Vietnam's tax table and distributed to the income generated abroad. The distribution ratio is determined by the ratio between the amount of income generated abroad and the total taxable income.
Legal basis:
Pursuant to Point a, Clause 2, Article 2 Income from salary and wages
Income from wages and salaries is the income an employee receives from an employer, including:
a) Salaries, wages and other amounts of salary and wage nature in cash or non-cash forms.
Article 2 Circular 119/2014/TT-BTC
Taxpayers being resident individuals and non-resident individuals as prescribed in Article 2 of the Law on Personal Income Tax, Article 2 of Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government stipulating detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax (hereinafter referred to as Decree No. 65/2013/ND-CP), having income subject to tax according to the provisions of Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP.
The scope of determination of taxable income of taxpayers is as follows:
For resident individuals, taxable income is income generated inside and outside the Vietnamese territory, regardless of where the income is paid;
1. A resident is a person who meets one of the following conditions:
a) Being 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, in which the arrival and departure dates are counted as one (01) day. . The date of arrival and departure is based on the certification of the immigration authority on the passport (or travel document) of the individual upon arrival and departure from Vietnam. In case of entry and exit on the same day, it will be counted as one day of residence.
An individual present in Vietnam under the guidance at this point is his or her presence in the Vietnamese territory.
Pursuant to Point a, Clause 2, Article 26 of Circular 111/2013/TT – BTC
a.2) Resident individuals earning incomes from salaries and wages paid by organizations and individuals from abroad shall declare tax directly to the tax authorities on a quarterly basis.
Pursuant to Point i, Clause 1, Article 25 of Circular 111/2013/TT – BTC
i) Tax deduction for some other cases
Organizations and individuals that pay wages, remunerations and other payments to resident individuals do not sign labor contracts (under the guidance at Points c, d, Clause 2, Article 2 of this Circular) or sign contracts. If the employee has less than three (03) months of labor with a total income of two million (2,000,000) VND/time or more, tax must be deducted at the rate of 10% of the income before paying to individuals.
In case an individual has only income that is subject to tax withholding according to the above rate, but the estimate of the individual's total taxable income after deduction of family circumstances is not enough to pay tax, the individual has make a commitment (according to the form promulgated together with the guiding document on tax administration) and send it to the income paying organization for the income paying organization as a temporary basis for not deducting personal income tax.
Pursuant to Point e, Clause 1, Article 26 of Circular 111/2013/TT – BTC
e.1) In case a resident earns income generated in a foreign country and has calculated and paid personal income tax according to foreign regulations, the tax amount already paid abroad may be deducted. The deductible tax amount does not exceed the payable tax amount calculated according to Vietnam's tax table and distributed to the income generated abroad. The distribution ratio is determined by the ratio between the amount of income generated abroad and the total taxable income.

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