Official letter No. 8210/CTHN-TTHT dated March 14th, 2022 of the Department of Taxation of Ha Noi city regarding declaration and payment of tax in incomes from online service provision of individuals

Based on clause 1 Article 2, clause 2 Article 6 of Circular No. 40/2021/TT-BTC , the Department of Taxation of Ha Noi city assumes that if a foreign individual residing in Vietnam earns incomes from performing online digital information services from 100 million VND/year, he/she has to declare and pay taxes.

The payable taxes include 2% personal income tax and 5% value added tax, paid under separate declarations (Appendix I of Circular No. 40/2021/TT-BTC ).

If the foreign individual is eligible for PIT exemption under an Agreement on avoidance of double taxation, he/she shall prepare the application for tax exemption according to Clause 13 Article 16 of Circular No. 156/2013/TT-BTC .