On September 4, 2018, the General Department of Taxation issued Official Letter No. 3387/TCT-CS answering queries from Vietnam Consult Law Firm about the personal income tax, in which since January 1, 2015, profit after tax divided for individuals who are owners of one-member limited liability companies are not subject to personal income tax.

On October 3, 2018, General Department of Taxation issued Official Letter 3744/TCT-TNCN guiding the personal income tax declaration of workers from Song Da 5 Joint Stock Company, who have a temporary deduction of personal income tax in Laos (with which Vietnam has a double taxation treaty).

According to the official letter, workers who are residents with income from 2 countries (Laos and Vietnam) are not eligible for the authorized declaration of personal income tax as per point a.4, clause 3, article 21 of Circular No. 92/2015/TT-BTC regulating personal income tax management. Therefore, the workers must directly declare their personal income tax with tax agencies.

The laborers’ tax amounts which have already been deducted in Laos are eligible for being deducted from the taxable income when calculating personal income tax in Vietnam, provided that the deducted amounts are not higher than the amount to be paid. It is noted that the proportionate rate for taxable income in Laos is calculated based on the worldwide income and the total taxable income.