Official letter No. 20525/CTHN-TTHT dated June 9th, 2021 of the Department of Taxation of Ha Noi city regarding personal income tax (PIT) incurred by consultants

According to point c Cause 2 Article 2 of Circular No. 111/2013/TT-BTC , remuneration paid for participation in projects shall be subject to PIT similar to incomes from salary, wage.

According to this Official letter, for experts who are invited to provide consultation for ODA projects without signing employment contract or signing employment contract for less than 3 months, their remuneration for consultation shall be also subject to PIT according to the rate of 10% on the income (point I Clause 1 Article 25 of Circular No. 111/2013/TT-BTC ).

With regard to flat expenditures on stationery, business trips, phone calls, etc. paid for the consultants according to the rate regulated at internal regulations of the management boards of the projects, they shall be exempt from PIT according to point dd.4 Clause 2 Article 2 of Circular No. 111/2013/TT-BTC .