04:05 APAC
Asia Briefing from Dezan Shira & Associates
employee remains below 183 days in a single calendar year. Once residency applies, employees become taxable on worldwide income at progressive rates of up to 35 per cent, rather than the flat 20 per cent applied to Vietnam- sourced income for non-residents. Employers may also need to recalculate prior monthly withholding if an employee crosses the residency threshold mid-assignment. Housing arrangements, assignment length, and offshore pay structures can therefore materially affect tax costs and compliance exposure. ASEAN Briefing from Dezan Shira & Associates offers employers further information.
Vietnam Vietnam determines personal income tax exposure for foreign employees based on tax residency, not nationality, visa type, or where the employment contract is signed. The key trigger is whether
an individual spends 183 days or more in Vietnam within a calendar year or any rolling 12-month period, or maintains qualifying permanent accommodation. Either condition independently establishes resident status, even if the
82 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 21
Made with FlippingBook - Share PDF online