Calculate the impact on Vietnamese housing (rent / rent) allowance, cash payment / direct contract (corporate contract), or income tax

In Vietnam, many companies make direct contracts with condominium owners for resident expatriates (in other words, have them issue VAT invoices and red invoices).

This is because the company contracts with the owner rather than paying the rent in cash to the employee, and as a result, the personal income tax of the employee can be reduced.

The point here is when the residence is directly contracted and provided to the resident.Up to 15% of total salaryIn addition, it is not necessary to include it in the calculation of personal income tax and add the excess to the income.

With this tool, you can compare whether you should pay cash or make a direct contract.

Example: Impact of allowance payment / contract method on income tax

Example of calculation tool initial setting
Employee salary 80 million VND 400,000 yen
Rent subsidy 30 million VND about 150,000 yen
Income for calculating income tax
Cash payment 110 million VND 550,000 yen
Direct contract 92 million VND 460,000 yen
Assuming that the income tax rate is 30% on a real basis
If you have been paid cash and paid the rent from there
⇒ 5.4 million VND 27,000 yen I have to pay an extra income tax. .. ..
(11000-9200) * 30% = 5.4 million VND
The loss of 27,000 yen is monthly, so if you operate the business without worrying about it as it is
The annual loss is 324,000 yen.

This would be 3.24 million yen if 10 expatriates were dispatched.

From the beginningIf you have a direct contract, the profit will increase by 3.24 million yenI was doing it.

⇒Reference of real burden rate (calculation tool for social insurance and payroll)


Please consult an expert for accurate figures.

We also handle tax calculation and tax filing.

Feel free toTo AACS,Please contact me.

Also, real estate in VietnamTo Suzuki Property VietnamPlease contact us.


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* This is a simple calculation system, and we are not responsible for the calculation results.

Please be sure to consult the accounting office for details.