Official Letter No. 6002/TCT-DNNCN on PIT policies regarding mandatory insurance contributions abroad

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On 29 December 2023, the GDT issued Official Letter No. 6002/TCT-DNNCN (“OL 6002”) to an enterprise regarding the tax treatment of overseas compulsory insurance contributed by inbound expatriates.

According to OL 6002, where an expatriate is working in Vietnam under an intra-corporation transfer scheme, receiving income paid by both Vietnam and overseas entities and where the overseas income (including compulsory insurances paid overseas) will be subsequently reimbursed by the Vietnam entity in full, any compulsory insurances contributed paid overseas are not allowed to be deducted when calculating the PIT liability in Vietnam.