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Vietnam Tax Question

Considering opening an Hong Kong  Offshore Company with my wife (Vietnamese) as director and shareholder. I will be the employee doing the work. All of the revenue is made outside of HK and Vietnam. Will she be liable for paying Vietnam taxes on her personal income ( 4,000,000.00 month)? Company revenue?

This may not be the proper place to ask these questions but it may provide an attorney who I can visit.

Regards

If she receives the funds from outside of Viet Nam she shouldn't, as the money was not obtained through a company or any work in Viet Nam. Why don't you just send the money to yourself in Vietnam, it's such a small amount.

If she's a tax resident in Vietnam, then her worldwide income is subject to tax.  It doesn't matter where it was paid, received or earned.  Tax rates vary depending on income classification.  The company may also be subject to tax in Vietnam if it's considered to have a permanent establishment in Vietnam.

ksr2x :

If she's a tax resident in Vietnam, then her worldwide income is subject to tax.  It doesn't matter where it was paid, received or earned.  Tax rates vary depending on income classification.  The company may also be subject to tax in Vietnam if it's considered to have a permanent establishment in Vietnam.

Yes you are correct,
Resident taxpayers are subject to PIT on their worldwide employment income, irrespective of where the income is paid or earned, at progressive rates ranging from five percent to a maximum of 35 percent. Employment income includes salaries, wages, allowances and subsidies, remuneration in all forms, benefits earned for participation in business associations, boards of directors, control boards, management boards and other organizations, premiums, and bonuses in any form except those received from the State.

Receive the funds yourself and not your wife,mind you at 4 million a month I think it's actually under the threshold of tax.

Thanks for your comments. I am assuming (hate to use that phrase) that you may be an attorney.. If my wife draws a small annual salary or none at all and the rest is paid to me as my salary should be good in the eyes of the Vietnam tax authorities?

Regards

Jerry

You are not doing business in Vietnam, therefore its not a problem. Also you are not a VN citizen.

Vietnam Tax

Hope the link works, as it indicates outside (Vietnam ) income sources are required to be reported in most cases.

I have previously met with folks in HCMC about setting up a small business. but the fit was not there, for several reasons.

Looking at different options.

Thanks

You said you want to setup in Hong Kong, need to tell the VN government anything, unless you are a VN citizen registered for tax. I see your profile says you are an American, therefore unless income is earned via a VN registered company,then there is no tax.

Yes I know. The previous threads indicated my wife is Vietnamese and the company (director and sole shareholder) would be placed under her name not mine. There lies my concern.

Regards

And if indeed you are an American your worldwide income is taxable in the USA.

I think the OP really needs to consult a lawyer. This can get very dicey in a hurry. The ends people will go to to avoid paying taxes is unbelievable. Just set the company up properly and pay the taxes where due. And you will owe someone taxes, you can not skirt every country just because you wish to mooch off of countries, drive there roads, use their services etc., but not willing to pay anyone. You will be the first to cry when your business fails because someone did not pay YOU.

Clearly amazed at those who seem to know others business. Intentions based off some question and then  make judgement.

Two things:

Legal side: Strictly legally speaking, your wife is supposed to obtain a license ("offshore investment registration certificate") for her investment in HK as she'll be shareholder. This is basically a measure by the VN govt. to control flow of funds between overseas and Vietnam. Although, almost all VNese with overseas investment don't do this and operate under the radar - knowingly or otherwise.

Tax side: So long as your wife is a VN tax resident, which I believe she would be, she will be subject to personal income tax on her worldwide income, including from HK. If you keep everything in the company and your wife doesn't draw dividends, salary, etc., then she has no taxable income and it's fine. Therefore, I suppose you'll probably consider an arrangement in which instead of your wife drawing out the company's profit, the company will simply pay you xxx salary. This will also cut off the corporate income tax from your company, and you just focus on your personal income tax liability

Saigonlolo,

Thanks for your time and information. It is quite similar to what we have been told through a party my wife has contracted with.

Regards and thanks again!!

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