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Severance pay

reg2000

Help!

Sadly my time in VN is coming to an end due to constricting budgets.

I have been offered two months' severance pay, calculated with tax deduction.

I have been done, however, that this should be non-taxable.

Does anyone have experience with this?

I would appreciate any advice.

My thanks

Richard

See also

The tax system in VietnamPersonal Income Tax refundTaxes for expats in VietnamCan anyone recomend an experienced CPA that deals with US expat taxesGetting an IRS tax number (ITIN) for new Vietnamese spouseIncome TaxRemote working
Teacher Mark

Be glad that you're actually getting severance!  The laws are so slanted in the flavor of the employer that they could just tell you that you're terminated; gather up your personal effects and get the he!! off of the property (first-hand experience)!  I've only heard of one foreigner that felt that they were wrongly terminated; took it to "the people" and won the case.

In this case you're talking about money that the government, a.k.a. "the people", has apparently claimed, so it's gone baby gone, IMHO.

You could actually find yourself having to pay taxes in your home country as well, dependant on the law of your land.  The US, for example, will hit it's citizens up regardless, if they touch US soil for more than 30 days in a year, or more than once in that year, if I'm not mistaken.  I knew a guy that got dinged twice and it was for a substantial amount of cash.  Needless to say - he was livid!

Teacher Mark

I stand corrected, insofaras the actual law in concerned, if what I've found is still actually the law and if it's something that's actually enforced: 



But...:



You need to speak with a professional, though that could lead to a scenario wherin you lose it all, or even worse - lose it all and have a remaining balance due for the legal work.

You may also want to check with the tax man and see if they've actually paid the tax, or if they're being economical with the truth and pocketing the cash...