Aug. 6 – Authorities clarified regulations regarding input value added tax on housing rent for expatriate employees in an official letter released July 22.
Official Letter No. 2696/TCT-CS verifies that expatriate employees holding management positions in Vietnamese companies and working in the country with a valid labor contract shall have their housing rental included in their taxable income following the rules of personal income tax. Housing rent paid for by the local company for the expatriate employee shall not be eligible for a refund or deduction.
For foreign nationals sent to Vietnam to work by a foreign company, their company-paid housing rent is eligible for a refund or deduction by its Vietnamese subsidiary. This is on the condition that the expatriate employee’s work contract indicates that the Vietnamese subsidiary will shoulder housing costs.
For more advice on tax issues in Vietnam, e-mail Dezan Shira & Associates at vietnam@dezshira.com.
Hi,
I am from malaysia, of less than 183days working in Vietnam. My net income is 4000usd, my housing allowance is paid for by the vietnam company. But upon finding out that housing accommodation has certain rate level for each salary level, I transferred to a better place equivalent to the amount of rent indicated to my level of salary. But upon receiving my next salary, housing tax was deducted from my net income. I read in the above article that housing allowance paid by the company for the expatriate employee shall not be eligible for refund or deduction. Not refund or deduction…What is the proper manner of this condition? Is the housing tax included or excluded from the housing accommodation and is part of the personal income tax? Please enlighten my knowledge regarding this matter. Very truly yours, joytolentino
Hello,
Housing rent paid by your employer will be included under taxable income.
Regards,