Foreign experts to enjoy PIT exemption

Foreign experts employed by non-governmental organizations (NGOs) and Vietnamese nationals working for United Nations (UN) organizations in Vietnam will be exempted from personal income tax (PIT) from May 1.

Recent decisions of the Prime Minister specify that eligible foreign experts are those selected to implement programs and projects of NGOs, which are approved by local authorities in line with the prevailing regulations. They must hold foreign passports and sign contracts with NGOs or management agencies of projects or the provider of the NGO aid in accordance with contents of programs and terms of reference (ToR) documents attached to contracts. 

Regarding contracts signed between foreign experts and NGOs, the provider of the NGO aid must prove the involvement of foreign experts in programs and projects.  

Tax exemption is applicable to foreign experts’ incomes from conducting NGOs’ programs and projects.   

Meanwhile, Vietnamese citizens working for representative offices under the UN in Vietnam will also enjoy personal income tax exemption. Accordingly, their wages paid by the UN’s representative agencies will not be subject to the tax.

Personal income tax exemption is not applicable to part-time employees.

Source: SGT