PIT obligations for cases where employees of the parent company work at the Company in Vietnam

1/6/2025
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PIT obligations for cases where employees of the parent company work at the Company in Vietnam under Dispatch Decision according to Official Letter No. 4496/CTHPH-TTHT dated 11 November 2024 issued by the Hai Phong Tax Department

In the case where Fujimold Industry Co., Ltd (the parent company abroad, abbreviated as FMI) sends a foreign employee to work at Fujimold Vietnam Co., Ltd (the subsidiary in Vietnam, abbreviated as FMV); the salary of this individual is paid by the subsidiary in Vietnam according to the method (as stipulated in the decision to send the employee to work in Vietnam and the reimbursement agreement): part of the salary is paid by FMV, and part is paid by FMI. Subsequently, FMV will reimburse FMI for the amount FMI has paid on behalf of FMV. In this case, FMV is responsible for withholding, declaring, and paying the PIT of the employee based on the total taxable income. The PIT declaration form No. 05/KK-TNCN is specified in Section VII of Appendix II of the Tax Declaration Form Catalog (issued together with Circular No. 80/2021/TT-BTC dated 29 September 2021, by the Ministry of Finance).