We had a meeting with our management and other related parties on last week to discuss on how to manage our foreign expatriate in Vietnam appropriately and what proper directions & decision for moving forward to minimize risks prior to kicking off the payroll payment in Vietnam.
After the meeting, we had directions and decision of the management on the working status of all expatriates that they should be hired as the local hire, not secondment to Vietnam. That’s mean the Vietnam Local Contracts should be provided for them as well.
According to these expatriates sign the labour contract in Vietnam, we understand that they receive their full employment income from Vietnam Company. If this case, their PIT will need to be declared on the same PIT return with other employees in their companies. In such case, the confidentiality couldn’t be strictly maintained because of the consolidating information of all employees’ tax reports in one return is still required to be sent back to HR team for keeping records.
We would ask PwC to whom the tax report need to be sent back after being filed with the IRS Vietnam. In case we do not want to send this report to the HR team to Vietnam, we will ask you to submit this work to transform our representatives or agents in Vietnam.
Looking forward to hearing your helpful advice or suggestion soon.