Taxation of international executives
Are there special residency considerations for short-term assignments?
Assignees may consider the rule of non-resident in Vietnam. If an assignee stays in Vietnam less than 183 days or has a rented house in Vietnam or the likes i.e. hotels, guest houses, location of offices for 90 days or more and has a certificate of tax residence of a country other than Vietnam or does not have a permanent residential place in Vietnam during a tax year, only Vietnam-sourced income is taxed at a flat rate of 20 percent.
Are there special payroll considerations for short-term assignments?
If the assignees stay in Vietnam is less than six months, they may consider the following.
What income will be taxed during short-term assignments?
For assignees staying in Vietnam less than 183 days or having a rented house in Vietnam for 90 days or more with a certificate of tax residence of a country other than Vietnam or not having a permanent residential place in Vietnam during a tax year, only Vietnam-sourced income is subject to personal income tax in Vietnam.
If assignees do not fall into the position mentioned above, their worldwide income will be taxed.
Are there any additional considerations that should be considered before initiating a short-term assignment in Vietnam?
Some tax saving tools can be used when entering into a short-term assignment in Vietnam such as payments of bonuses before or after the assignment to Vietnam, and so on. Employer-paid expenses and accommodation in Vietnam should be carefully considered as Vietnam tax saving tools.
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