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garo
Joined: 26 Sep 2009
Posts: 13
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 Posted: Wed Oct 06, 2010 2:31 pm Post subject: Why am I taxed 20%? |
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I've been in Vietnam over 1 year, and started teaching for the first time, on a part-time basis.
My tax rate for my first check is 20% for about $500 USD worth of wages for a whole month.
I thought it would only be 10%.
Why is this? |
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snollygoster
Joined: 04 Jun 2009
Posts: 478
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| Posted: Thu Oct 07, 2010 1:50 am Post subject: Tax |
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| Your employer obviously has not done the right thing either through ignorance or neglect. |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Thu Oct 07, 2010 2:21 am Post subject: |
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Your first 180 days are taxed at 20%. In your case, you've been here 360 days, but just started working. I don't know if those first 180 should be working days or what.
You don't get a residency card (and thus "residence") w/out a WP or getting married, even though you've been here 180 days.
Do you have residence? A work permit? You've been here a year, but not having actual "residence" may cause some confusion. |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Thu Oct 07, 2010 2:31 am Post subject: |
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| CThomas wrote: |
Your first 180 days are taxed at 20%. In your case, you've been here 360 days, but just started working. I don't know if those first 180 should be working days or what.
You don't get a residency card (and thus "residence") w/out a WP or getting married, even though you've been here 180 days.
Do you have residence? A work permit? You've been here a year, but not having actual "residence" may cause some confusion. |
ps, I don't know if that was helpful or confusing :S It's just sort of a gray area. I like to be "as knowledgeable as" my employer on these matters and don't consider HR to be a "black box" but isntead a partner in facilitating things. So, if your employer is ignorant, which they may be, knowing the rules may help clarify it for them. |
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garo
Joined: 26 Sep 2009
Posts: 13
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| Posted: Thu Oct 07, 2010 4:53 am Post subject: |
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| CThomas wrote: |
| Do you have residence? |
No.
No, it's being processed somewhere at another organization.
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| You've been here a year, but not having actual "residence" may cause some confusion. |
I know people who've been here for year, and they don't have a residence. What does residence mean?
Most of us are here on visas. |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Thu Oct 07, 2010 6:14 am Post subject: |
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| Well, the thing about residence is the whole question. After you get a WP, you can apply for temporary residence. With this, you go get it for 2 or 3 years, then go pay $10 every 3 months. This is official "residence." I'm not sure what the tax laws mean when they say "after 180 days the tax payer is resident and pays less tax" exactly, as you get your tax ID number when you get your "residence" as described above, just after the WP. |
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spycatcher reincarnated
Joined: 19 May 2005
Posts: 236
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| Posted: Thu Oct 07, 2010 6:33 am Post subject: |
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Being a tax resident is different from having Temporary or Permanent Residency.
I believe that having Temporary or Permanent Residency automatically qualifies you as a tax resident, but one should not confuse the two.
Here is PWC's 2010 tax book:
http://www.pwc.com/vn/en/publications/vn-pocket-tax-book2010.jhtml
NB: there was a change in the definition of being a tax resident a few weeks back. Maybe this can be found on one of the websites of the big 4.
No, you do not have to go and pay 10 usd every 3 months if you have TR or PR. I think you are confusing this with the 5 year visa exemption.
Last edited by spycatcher reincarnated on Thu Oct 07, 2010 8:38 am; edited 1 time in total |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Thu Oct 07, 2010 8:29 am Post subject: |
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| spycatcher reincarnated wrote: |
Being a tax resident is different form having Temporary or Permanent Residency.
I believe that having Temporary or Permanent Residency automatically qualifies you as a tax resident, but one should not confuse the two.
Here is PWC's 2010 tax book:
http://www.pwc.com/vn/en/publications/vn-pocket-tax-book2010.jhtml
NB: there was a change in the definition of being a tax resident a few weeks back. Maybe this can be found on one of the websites of the big 4.
No, you do not have to go and pay 10 usd every 3 months if you have TR or PR. I think you are confusing this with the 5 year visa exemption. |
Yes, I am confusing the terminology. Thanks for the clarification on all counts. |
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