{"id":4356,"date":"2021-10-06T13:33:30","date_gmt":"2021-10-06T06:33:30","guid":{"rendered":"http:\/\/medlaw.vn\/?p=4356"},"modified":"2021-10-06T13:49:30","modified_gmt":"2021-10-06T06:49:30","slug":"4356-2","status":"publish","type":"post","link":"https:\/\/medlaw.vn\/en\/4356-2\/","title":{"rendered":"WORKING ONLINE ON FOREIGN SITES HAS TO PAY TAX?"},"content":{"rendered":"

[FREE LEGAL ADVICE]<\/strong>
\nQUESTION:<\/strong>
\nHello 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).
\n1. So, do I need to pay tax and personal income tax for income from online work and how to do tax payment procedures?
\n2. Assuming the above income is not fixed (months with income, months without), then there is no need to pay PIT?
\nHope everybody help please.
\nANSWER:<\/strong>
\nGreetings from MEDLAW, thank you for sending your question to us, based on the information you provided, we would like to advise as follows:
\nQuestion 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 \u2013 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. <\/em>
\nAccording to Item a.2 point a, Clause 2, Article 26 of Circular 111\/2013\/TT \u2013 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:<\/em>
\nb.1) Quarterly tax declaration file<\/em>
\nResidents 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.<\/em>
\nb.2) Dossier of settlement declaration<\/em>
\nb.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:<\/em>
\n\u2013 Tax finalization declaration form No. 02\/QTT-TNCN issued together with Circular No. 92\/2015\/TT-BTC.<\/em>
\n\u2013 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.<\/em>
\n\u2013 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.<\/em>
\nIn 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.<\/em>
\n- Photocopies of invoices and vouchers evidencing contributions to charity funds, humanitarian funds, study promotion funds (if any).<\/em><\/p>\n

Question 2: Pursuant to Point i, Clause 1, Article 25 of Circular 111\/2013\/TT \u2013 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.<\/em>
\nIn 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.<\/em>
\nPursuant to Point e.1 Clause 1 Article 26 of Circular 111\/2013\/TT \u2013 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.<\/em>
\nLegal basis:<\/strong>
\nPursuant to Point a, Clause 2, Article 2 Income from salary and wages
\nIncome from wages and salaries is the income an employee receives from an employer, including:
\na) Salaries, wages and other amounts of salary and wage nature in cash or non-cash forms.
\nArticle 2 Circular 119\/2014\/TT-BTC
\nTaxpayers 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.
\nThe scope of determination of taxable income of taxpayers is as follows:
\nFor resident individuals, taxable income is income generated inside and outside the Vietnamese territory, regardless of where the income is paid;
\n1. A resident is a person who meets one of the following conditions:
\na) 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.
\nAn individual present in Vietnam under the guidance at this point is his or her presence in the Vietnamese territory.
\nPursuant to Point a, Clause 2, Article 26 of Circular 111\/2013\/TT \u2013 BTC
\na.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.
\nPursuant to Point i, Clause 1, Article 25 of Circular 111\/2013\/TT \u2013 BTC
\ni) Tax deduction for some other cases
\nOrganizations 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.
\nIn 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.
\nPursuant to Point e, Clause 1, Article 26 of Circular 111\/2013\/TT \u2013 BTC
\ne.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.<\/p>\n

The content of our consultation is based on the information provided by the Client, is for reference only and based on the legal provisions in force at the time of consultation.\nIn case you ever need detailed consultation, please contact us directly for specific advice.
\nIn case you ever need detailed consultation, please contact us directly for specific advice.<\/p>\n

The content upon is our answer to your question. Please message us on the Fanpage or contact us through the hotline (84\u201328) 2253 7956 or website www.medlaw.vn if you ever need free legal consultancy service.<\/p>","protected":false},"excerpt":{"rendered":"

[T\u01af V\u1ea4N PH\u00c1P LU\u1eacT MI\u1ec4N PH\u00cd] C\u00c2U H\u1eceI: Ch\u00e0o m\u1ecdi ng\u01b0\u1eddi, em d\u1ef1 \u0111\u1ecbnh l\u00e0m vi\u1ec7c online m\u1ed9t th\u1eddi gian d\u00e0i tr\u00ean trang web n\u01b0\u1edbc ngo\u00e0i. Theo nh\u01b0 em t\u00ecm hi\u1ec3u th\u00ec c\u00e1 nh\u00e2n c\u01b0 tr\u00fa \u1edf Vi\u1ec7t Nam, k\u1ef3 t\u00ednh thu\u1ebf thu nh\u1eadp t\u1eeb ti\u1ec1n l\u01b0\u01a1ng, ti\u1ec1n c\u00f4ng \u0111\u01b0\u1ee3c x\u00e1c \u0111\u1ecbnh theo n\u0103m d\u01b0\u01a1ng…<\/p>","protected":false},"author":1,"featured_media":4361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/posts\/4356"}],"collection":[{"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/comments?post=4356"}],"version-history":[{"count":2,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/posts\/4356\/revisions"}],"predecessor-version":[{"id":4359,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/posts\/4356\/revisions\/4359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/media\/4361"}],"wp:attachment":[{"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/media?parent=4356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/categories?post=4356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medlaw.vn\/en\/wp-json\/wp\/v2\/tags?post=4356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}