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Vietnam confirm expat salaries are deductible for corporate tax purposes

On 14 December 2018, the Ho Chi Minh City Tax Department issued Official Letter No.13276/CT-TTHT to provide guidance on Corporate Income Tax (CIT) deduction.

The Official Letter states that salaries paid to expatriates assigned (under an assignment letter) by a Japanese parent company to work in Vietnam for business activities of the company in Vietnam will be deductible for CIT purposes, if the following conditions are met:

  1. the assignment letter fully presents the content of a labor contract as an agreement between the employee and the employer in terms of the paid employment, working conditions, rights and obligations of each party in employment relations, etc.
  2. the expatriates are defined as legal workers in accordance with Labor Code and have work permits
  3. the expatriates’ remuneration package is indicated in the assignment letter.

Further tax highlights and insights on Vietnam can be found at 

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