Feb. 12 – On January 15, the Vietnam General Department of Taxation issued Official Letter 187/TCT-TNCN (OL187) to provide guidance on the finalization of personal income taxes (PIT). Some of the key updates can be found below.
183 Day Rule
Foreigners who work in Vietnam do not have to pay PIT if they spend fewer than 183 days in Vietnam in their first calendar year. If they return and live a total of 183 or more days in Vietnam, then they will be subject to PIT starting from 1 January (not the date of their arrival).
Calculations Based on Calendar Year
Foreigners who finish their Vietnam assignment and depart but return to work in the same calendar year are required to complete the PIT finalization covering the entire calendar year.