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Working in Vietnam – Tax liabilities

25 Mar

If you having an intention to work in Vietnam, you wouldn’t want to ignore tax liabilities.

Many foreigners work in Ho Chi Minh city as an English teachers, and the demand for this job are really high. From schools, training centers to universities, there are lack of native speakers to help local people improve English. The number for English teachers are rising, but the tax that government receive doesn’t much meet their expectation.

The reason is that local employers don’t really happy to let government know about their number of employees, their income and stuffs like that because if the government know about their real profit, the money for tax that local business have to pay will literally increase.

Normally, foreigners work in Vietnam have to pay 35% of taxation, including health insurance. It’s automatically deducted from your wages. our employer is officially required to register you as a foreign worker, arrange your work permit, and pay these deductions to the local government on your behalf. There doesn’t appear to be any way to get tax refunds from the system, unlike other countries, if you are not here permanently.

Beware of any local business that offers to employ you without deducting tax, or doing the proper registration. If you get caught you will suffer instant expulsion from Vietnam, they are getting that tough on illegal foreign workers.

Still, there are many foreign teachers who have one or more small official jobs, but can make significant money doing private tuition, mainly teaching English. private families will pay well for good quality English teachers to help their teenagers get advanced tuition.

SaigonStay – All the best a local friend can give you!

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Posted by on March 25, 2011 in Living in Saigon

 

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