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In Article 1, Circular 111/2013 / TT-BTC on the determination of taxable income of a foreign national as follows:

“For resident individuals, taxable income is income earned inside and outside the territory of Vietnam, regardless of where the income is paid.

For non-resident individuals, taxable income is income earned in Vietnam, irrespective of where the income is paid ”.

So:

- If a foreigner is a resident individual, the assessable income is the income earned in Vietnam and the income earned abroad (if any).

- For non-resident individuals, taxed income is the income earned in Vietnam, the income generated abroad is not subject to tax.

1. Foreigners are resident or non-resident individuals

Identify a foreigner as a non-resident individual
A foreigner is a non-resident when his / her presence on the Vietnamese territory is less than 183 days in a calendar year or for 12 consecutive months from the date of his / her presence in Vietnam.

The foreign worker does not have a permanent residence in Vietnam, has no registered permanent residence in accordance with the law on residence or does not rent a house in Vietnam.

Identify foreigners as resident individuals

In the case of a foreigner who is present in Vietnam for less than 183 days in a calendar year or for 12 consecutive months from the date of his / her presence in Vietnam but has a regular residence in Vietnam according to either in the following case:

+ Case 1: Having registered place of permanent residence in accordance with the law on residence: having registered place and recorded in the permanent residence card or temporary residence card issued by a competent agency under the Ministry of Public Security

+ Case 2: Having a house to live in Vietnam in accordance with the law on housing, with a lease contract term of 90 days or more in a tax year, specifically:

- Individuals who have not or have no permanent residence, or have not been granted a permanent residence card or temporary residence card, but have a total of 90 days or more renting days in the tax year. The statue is a resident individual, even if it is rented in many places.

- Rented-for-living accommodation includes hotels, guest houses, motels, inns, at work, at offices ... regardless of whether the individual hires or the employer. workers.