Actualités
On the 14th of December 2018 Ho Chi Minh City Tax Department issued Official Letter No.13276/CT-TTHT in order to provide guidance on Corporate Income Tax (“CIT”) deduction for Japanese expatriate workers.
According to this Official Letter, in case the Japanese expatriates are assigned to work in Vietnam by their Japanese parent company, that are involved in production and business activities of the parent company in Vietnam under the assignment letter, and provided that (i) the assignment letter fully stipulates the terms of a labour contract as an agreement between an employer and an employee in terms of remunerated employment, working conditions, rights and obligations of each party in the framework of the employment relations, etc., and (ii) that the Japanese expatriates are defined as legal workers in accordance with the Labor Code, and they were granted work permits and that (iii) the expatriates’ remuneration package is indicated in the assignment letter, the expatriates' salary shall be deductible for CIT purpose.
