In Vietnam, Personal Income Tax (PIT) is levied on residents staying for over 183 days annually, taxing their worldwide income. Non-residents are taxed only on income generated in Vietnam.

 

Non-taxable personal incomes include:

 

- Benefits for Foreigners: Covering airfare, tuition fees, and sponsorships for foreign employees.

 

- Allowances and Subsidies: Includes various allowances, hazardous, hardship, and occupational accident benefits.

 

- Office Expenses: Office supplies, fees, and uniforms.

 

- Meal Allowances: Lunch and mid-shift meal allowances, not exceeding 730,000 VND per person per month.

 

- Membership Fees & Services: Entertainment, sports, and healthcare expenses.

 

- Transportation Fees: Pick-up, drop-off, and workplace transport costs.

 

- Training Expenses: Employee skill improvement costs.

 

- Bonuses: Exempt bonuses with state titles or recognition.

 

- Other Benefits: Medical support, transportation payments, and participation fees.

 

Understanding these categories helps accurately compute PIT in Vietnam.

 

We invite you to read our article that further develops this topic!

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