Job Discussion Forums

[Mattdp87]

Hi,

I will be heading out to Vietnam in November to do a 4 week in class TEFL course before hunting for a job. My savings will comfortably be in order by then and I think I'm aware of most of the things I need to take care of before I head out there, e.g. CRB check, having my degree notarized.

However, one thing that still seems a bit blurry is the tax situation.Presumably I will be taxed in Vietnam on my income, however upon returning to the UK am I liable to pay tax on that income/whatever savings I have accumulated? Advice seems to be conflicting. I've read that there is a double taxation treaty in place which sets off overpaying but then I've read elsewhere that I have to pay upon my return. Bear in mind that I am unsure of how long I will spend in Vietnam at this point.

Any advice anyone can give would be much appreciated. Thanks a bunch!

[TRH]

Wouldn't the answers to your questions be in a taxation office in Britain rather than in Vietnam, or have you already asked and don't like the answers you got?

[Mattdp87]

I will be contacting them in the morning. I'm just asking around for personal experiences and trying to gather as much information as possible. I will be complying with whatever I am legally required to.

[TRH]

Wondering what you found out, since you never got back. I know the US is about the worst as they lay claim to anything you earn anywhere in the world. There is an exemption of $100,800 so no ESL teacher is going to pay taxes but might get dinged by their state as I did. My state of Hawaii takes the exclusion and adds it back to income while others may not. I can say now that I was honest with my income only because I needed to sponsor my wife's immigration.

Tell us how it will be for Brits. There may be a new twist upcoming for many living in EU countries, but I would guess that Brexit will not impact those in Vietnam.

[LarssonCrew]

Matt I can tell you the UK doesn't double tax, i.e. if you've paid tax on income somewhere they won't tax again. Therefore if you can show the money has been earned and tax paid on it already they shouldn't, in theory, tax you again.

The USA however will double tax *wince* if you get hit with a nordic tax then a 'bringing into America' tax that's like 65$ gone.

[Mattdp87]

I got in contact with HMRC(they deal with tax over here). The guy that I spoke to said it basically depends on whether I stay a UK resident or not.

If I become a non-resident then I don't pay any UK tax and don't have to inform them about my earnings. However to become a non-resident you have to have been out of the UK for at least 183 days in a tax year, and given that it will be November by the time I go over to Vietnam that ship will have sailed.

The other option is remaining a UK resident whilst out in Vietnam. If I do this they *will* look to tax my earnings at the end of the year however due to the double taxation treaty that the UK has in place with Vietnam they will also credit me(essentially refund me) any tax I have paid in Vietnam.

So basically yes, I won't get taxed twice as the UK will re-reimburse me what I have been taxed in Vietnam but they will still look to tax me. Thats how I understood it anyway. However I have since spoken to other numerous brits out in Vietnam who have said they remained UK citizens, transferred money back and had no problems, no questions asked.

I think the best thing to do when I go out there is just keep hold of all payslips, tax receipts if I ever get queried about it back home. I might try and speak to an accountant before I go out there too.

With regards to Brexit, I doubt that will have much of an effect on English teachers working outside of Europe from a logistical stand point. However due to a weak sterling I'm now going out there with a bit less money than I originally anticipated. We will see...uncertainty is never a good thing

[TRH]