Easier Access to Foreign Professionals
Vietnam's Ministry of Home Affairs has released a Draft Decree amending Decree 219/2025/ND-CP on foreign employees working in Vietnam. The proposed aims to make Vietnam more accessible to foreign professionals while reducing administrative burdens for employers.
Key highlights include relaxed experience requirements and broader work permit exemptions. The minimum experience requirement for Executive Directors would be reduced from three years to two years, while the one-year requirement for experts in strategic technology sectors would be removed and replaced by reference to Government-issued Strategic Technology Lists.
The Draft Decree would also clarify qualification criteria for experts in education, culture, arts and sports, expand exemption coverage for the education sector, and potentially allow holders of Special Visa Exemption Cards to work in Vietnam without a work permit.
Documentation would be simplified by accepting foreign-issued health certificates, dropping passport legalisation requirements, and clarifying documentary requirements for intra-corporate transferees, educational institutions, foreign students and trainees. These benefits come with new compliance obligations on filing timelines and workplace-change notifications.
As the Draft Decree remains subject to revision, employers should continue monitoring its progress and assess how the changes may affect future foreign recruitment plans.
Contributed by Luther Vietnam
Vietnam Tax Update: Double Taxation of Cross-Border Income
In the tax area, Vietnam's Tax Authority has issued Official Letter 3326, which clarifies the main criteria applied when assessing claims under Double Tax Avoidance Agreements (DTAs).
The guidance focuses on four areas of review: tax residency, beneficial ownership of the income, the nature of the income, and whether the foreign taxpayer has a permanent establishment in Vietnam.
DTAs can provide significant tax relief, but approval from the Vietnamese tax authorities generally depends on both treaty eligibility and procedural readiness. Applicants should be able to demonstrate entitlement under the relevant treaty, comply with local procedures, and provide complete supporting documentation.
The clarification is a welcome step towards greater transparency. However, it also signals that the authorities will continue to review substance and documentation closely. Foreign companies with cross-border income from Vietnam should therefore review their DTA procedures and supporting records before relying on treaty relief.
Contributed by Luther Vietnam
