General Department of Taxation in Vietnam has confirmed the guidance in January 2014 on personal income tax for 2013 providing methodologies on how to calculate taxable income and tax liabilities for net and gross employment contracts. Tax liabilities for gross employment contracts are determined on monthly assessable income that derives from the average of taxable income of a year after deducting allowances. Individuals already finalized their tax to leave Vietnam and then again return to work in Vietnam within the same tax year is needed to re-finalize their tax on the basis of their worldwide income and will be entitled to tax credit as usual.
The tax resident those who have income from securities are not required to tax finalization if they have already paid the deemed tax at 0.1% on each transfer and not interested to apply the tax rate of 20% again on the net amount.
