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Vietnam Clarifies Housing Rent Tax for Expatriate Employees - Vietnam Briefing News

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.

RELATED: Dezan Shira & Associates’ International Tax Planning Services

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 [email protected]