In case a foreigner leaves Vietnam early thereby his/her period of residence in Vietnam is less than 183 days in the current calendar year, his/her residence status is changed from a resident to a non-resident.
Therefore, the way of PIT calculation is changed from applying the progressive table to applying 20% tax rate. The tax paid based on 20% tax rate shall have the difference which may be higher or lower than the payable tax.
In case the difference is higher than the payable tax, the foreigner has to additionally pay tax and must not make tax accounting. If the difference is lower than the payable tax and the foreigner wishes to receive the tax refund, he/she has to prepare the tax refund dosser according to Article 53 of Circular No. 156/2013/TT-BTC .
However, if the foreigner wishes to receive the tax refund he/she has to make the tax accounting. If the foreigner has left Vietnam, he/she may authorize the income payer to make the tax accounting and receive the tax refund on his/her behalf.
|Published||Vietlaw's Newsletter No. 527|