Official letter No. 48921/CTHN-TTHT
dated November 23rd, 2021 of the Department of Taxation of Ha Noi city regarding personal income tax (PIT) policy applicable to expenses of applying for temporary residence cards, visas for workers
Posted: 30/11/2021 10:52:35 AM | Latest updated: 3/12/2021 9:58:19 AM (GMT+7)
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The Department of Taxation of Ha Noi city assumes that in case under agreements, expenses of applying for temporary residence cards, visas, etc. for foreign workers entering Vietnam to work belong to obligation of enterprise, they shall not be subject to PIT.
In contrast, if such expenses belong to obligation of the foreign workers but the enterprise agrees to pay on behalf of the foreign workers, these amounts are considered to be benefits of the foreign workers, they shall be subject to PIT withholding.
With regard the expenses of applying for visas for workers to make overseas business trips, if they belong to business trip allowances in line with finance regulations or internal regulations of the Company and they are within the prescribed level prescribed at point d.4 clause 2 Article 2 of Circular No. 111/2013/TT-BTC , they shall be exempt from PIT.