Guidance on Salary Payment in Vietnam for Foreign Employees under the Intra‑Company Transfer (ICT) Arrangement

Pursuant to Official Letter No. 10861/BNV‑CVL dated 19 November 2025 issued by the Ministry of Home Affairs

Notes for Enterprises

Enterprises are required to carefully review and accurately determine the applicable working arrangement of foreign employees prior to carrying out procedures for the issuance of a Work Permit (“WP”).

     1. Intra‑Company Transfer (ICT) Arrangement

Where the intra‑company transfer arrangement is applied, the enterprise in Vietnam shall not enter into a labor contract with the foreign employee and shall not make any salary payments to such employee in Vietnam.

From a Corporate Income Tax (“CIT”) perspective, any salary expense paid by the enterprise to a foreign employee working under the ICT arrangement may be deemed inconsistent with applicable labor regulations and, as a result, may not be treated as a deductible expense when determining taxable CIT income.

      2. Cases Where Salary Is Paid in Vietnam

In circumstances where salary payments are made in Vietnam to a foreign employee, the enterprise must fully comply with the following legal obligations:

•  Execute a labor contract with the foreign employee in accordance with Vietnamese labor laws;
• Carry out procedures for the issuance of a Work Permit under the labor‑contract arrangement;
• Ensure full participation in all mandatory insurance under applicable laws and regulations.