According to the regulation at clause 1 Article 1 of Circular No. 111/2013/TT-BTC , a foreigner that is a resident in Vietnam has to declare and pay tax on incomes earned inside and outside the Vietnamese territory, regardless of places where his/her incomes are paid.
In case the foreigner being a resident in Vietnam earns income but, under laws on his/her host country and Tax Agreement, such income may be taxed in the host country, the paid tax shall be deducted corresponding to the Vietnamese tax imposed on that income.
However, the tax deduction must be done in accordance with regulations of the Tax Agreement and must comply with the principles regulated at Article 48 of Circular No. 205/2013/TT-BTC .
Procedures for tax deduction shall comply with the guidelines provided at clause 3 Article 62 of Circular No. 80/2021/TT-BTC .
|Published||Vietlaw's Newsletter No. 612|