Personal Income Tax

Policies name Personal Income Tax
Legislation type Other document
Issue organization Vietnam Government
Field, industry Tax - Cost - Fees
Content

(For reference only)

I. Scope of application:

1. Scope of determining the taxable income of the taxpayer as follows:

a) For resident individuals, taxable income is the income arising in Vietnam and abroad, irrespective of whether they pay income;

b) For non-resident individuals, taxable income is income earned in Vietnam, irrespective of whether they pay income.

2. Residents who meet one of the following conditions:

a) Have been in Vietnam for 183 days or more in a calendar year or in 12 consecutive months since the first day in Vietnam;

Individuals who have been in Vietnam under the provisions of this point is the presence of such individuals in the territory of Vietnam.

b) permanent residence in Vietnam as one of the two following cases:

- With permanent registration in accordance with the law on residence;

- There are houses to rent in Vietnam in accordance with the law on housing, with the term of the lease contract for 183 days or more during the taxable year.

Where an individual has permanent residence in Vietnam, but the reality is present in Vietnam for less than 183 days during the tax year that individuals do not prove to be a resident of the other country, the individual objects that populate residing in Vietnam.

 

II. Taxable income:

The taxable income of individuals, including the following types of income:

1. Income from production and business, including:

a) Income from production and trading of goods and services in accordance with law. As for income from agricultural production, forestry, salt, farming, fishing only apply to cases not eligible for tax exemption under the regulations.

b) Income from independent professional practice of individual license or certificate to practice as prescribed by law.

2. Income from salaries or wages that the employee receives from the employer, including:

a) Salaries, wages and wage-related payments, remuneration received under the form of cash or non-cash.

b) allowances, allowances, other allowances and subsidies follows:

- Subsidies, monthly allowances and subsidies once prescribed by law for persons with public preferences;

- Monthly allowance, allowance once for participants resistance, protect the country, international missions, youth have completed the task;

- Earnings defense and security; subsidies for the armed forces;

- Earnings toxic, dangerous to the lines or work in workplaces where toxic elements, dangerous;

- Allowance for attraction, regional allowances;

- Subsidies unexpected difficulties, grants occupational accidents, occupational diseases, subsidies once childbirth or adoption, subsidized by the decline in the ability of labor, pensions once, money monthly allowance, severance allowance, unemployment assistance, unemployment benefits and other benefits under the provisions of the Labor Code and the Law on Social Insurance;

- Subsidies for the objects of social protection in accordance with law;

- Allowance service for senior leaders;

- Allowance for individuals once when transferred to areas with socio-economic conditions extremely difficult, support for staff time and public affairs of sovereign island under the provisions of law. Subsidies roaming once for foreigners residing in Vietnam, the Vietnam go to work abroad;

- Allowance for medical personnel villages;

- The special allowance trades;

c) Remuneration received in various forms such as brokerage commissions, money participate topic, project, royalties and commissions, other remuneration;

d) Cash received from participating business associations, board, supervisory board, management councils, associations, professional societies, and other organizations;

e) benefits in cash or by money outside the salary or wages by the employer to pay the taxpayer is entitled to any form:

- Cost of housing, water, electricity and ancillary services (if any);

- The amount of charge accumulated buy life insurance, other optional insurance, money accumulated retirement contributions voluntarily, by the employer to purchase or contribution for employees. Before paying insurance, pensions for individuals, insurers, fund management company voluntary pension shall withhold tax at the rate of 10% for the amount of charge accumulation, accumulate money contribution to the fund in proportion to the employer to buy or contribute to workers from July 1, 2013;

- Membership fees and expenses for other services cater to individuals upon request, such as health care, entertainment, sports, recreation, aesthetics;

- The other benefits as prescribed by law.

e) The cash bonus or cash in all forms, including stock bonus, except for the following bonuses:

- Bonus attached to the title was conferred, including bonuses attached to the title of emulation and commendation forms prescribed by law for emulation;

- Bonus with National Award, an international award by the State Vietnam admit;

- Bonuses for technical innovation, patents, inventions state agencies have recognized competence;

- Bonuses for detecting, declaring violations of law with state agencies having jurisdiction.

g) Not included in the taxable income for the following:

- The support of employers for health care coverage for themselves poor workers and relatives (father, mother, wife / husband, children) of employees;

- Funds received under the regime relating to the use of vehicles in state agencies, units of public service, party organizations and unions;

- Funds received under the regime of the public service in accordance with law;

- Amounts received in addition to salary or wages due to participation in service activities parties, trade unions, the National Assembly or the construction of legal documents of the State;

- Amount shift meals by the employer to the employee expenses do not exceed limits prescribed by the Ministry of Labour - Invalids and Social Affairs.

- The amount roundtrip airfare from the employer paying households (or paid) for the foreign laborers, workers who work in Vietnam in foreign countries allowed once a year;

- The amount of tuition for the children of foreign workers learned in Vietnam, the Vietnam's workers are working abroad to study in foreign countries by level from preschool to high school by user pay household labor.

3. Income from capital investments, including:

a) The interest loans;

b) Income shares;

c) Income from capital investment in other forms, including cases of capital contribution in kind, reputation, land use rights, inventions, patents; excluding interest income received from government bonds.

4. Income from capital transfer, including:

a) Income from transfer of capital in economic organizations;

b) Income from transfer of securities;

c) Income from transfer of capital in other forms.

5. Income from transfer of real estate, including:

a) Income from transfer of land use rights and assets attached to land, including buildings formed in the future;

b) Income from transfer of ownership or use of housing, including housing formed in the future;

c) Income from transfer of land rent, lease water rights;

d) other income received from transfer of property of any kind;

Taxable income in this paragraph includes income from the authorized management of real estate that is authorized to transfer property rights or rights as property owners in accordance with the law .

6. Income from winnings in cash or in kind, including:

a) Lottery prizes;

b) g promotional worms in forms;

c) prizes in the form of betting, casino;

d) prizes in games, contests and other forms of winning.

7. Income from royalties, including:

a) Income from transfer or the right to use the objects of intellectual property rights: copyright and rights related to copyright; industrial property rights; plant variety rights;

b) Income from transfer of technology: Technical know-how, technical knowledge, solutions streamline production and technological innovation.

8. Income from the franchise under the provisions of the Commercial Law.

9. Income from securities inheritance, capital in economic organizations, businesses, real estate and other assets owned or register to register.

10. Income from securities received as gifts, the capital of the economic organizations, businesses, real estate and other assets owned or register to register.

 

III. Income tax exemption:

1. Income from transfer of property (including housing construction in the future form prescribed by law for the real estate business) between: wife and husband; father, mother and their children; adoptive father, adoptive parents and adopted children; husband, father, mother and daughter in law; father-in-law, mother-in-law and wife with children; grandfather, grandmother with grandchildren; grandfather, grandmother with grandchildren; brother, sisters together.

2. Income from transfer of housing, land use rights and assets attached to the land by individuals in cases where the transfer of only one house, land use rights in Vietnam.

3. Income from the value of the land use rights of individuals that are not allocated to pay or reduction of land use fees as prescribed by law.

4. Income from inheritance or gift is property (including housing construction in the future form prescribed by law for the real estate business) between: wife and husband; father, mother and their children; adoptive father, adoptive parents and adopted children; husband, father, mother and daughter in law; father-in-law, mother-in-law and wife with children; grandfather, grandmother with grandchildren; grandfather, grandmother with grandchildren; brother, sisters together.

5. The income of households and individuals directly involved in production agriculture, forestry, salt, farming, fishing has not been processed into other products or preliminarily processed normal.

6. Income from conversion of agricultural land of households and individuals that are allocated to production.

7. Income from interest on deposits in banks, credit institutions, interest income from life insurance contracts.

8. Income from remittances.

9. The salaries and wages night work, overtime is paid more than the salary or wages working day, as in the time prescribed by law.

10. pension by social insurance funds to pay under the provisions of the Law on Social Insurance, pensions received monthly from voluntary pension fund. Individuals living and working in Vietnam are exempt from tax for foreign pensions paid.

11. Income from scholarship.

12. Indemnification life insurance, non-life insurance, health insurance, compensation for occupational accidents, the state compensation and other compensation as prescribed by law.

13. Income received from charitable funds are state agencies competent to permit the establishment or recognition, activities for the purpose of charity, humanitarian, non-profit purpose.

14. Income received from foreign aid for charitable purposes, humane form of government and non-government agencies competent government approval.

 

IV. Income tax on business income, income from salaries, wages

1. Taxable income from business income, income from salaries, wages are determined by the taxable income from the business, from salary or wages prescribed minus (-) the following: The contributions for social insurance, health insurance, unemployment insurance, professional liability insurance for certain lines of insurance must be mandatory, voluntary pension funds ; The marital deduction; Contributions to Charitable Fund, Fund Humanitarian Fund encouragement.

2. Taxable income for individuals who earn taxable income from business activities and have taxable income from salaries and wages are taxable gross income from the business plus (+) taxable income from salaries and wages minus (-) of such paragraph.

 

V. Progressive tariff

1. Statement of progressive taxation applicable to taxable income from business, income from salaries and wages.

2. progressive tariff is defined as follows:

Tax bracket

Income tax calculation / year (million)

Income tax calculation / month (million)

Tax rate (%)

1

Up to 60

5

5

2

60 to 120

On 5 to 10

10

3

120 to 216

Over 10 to 18

15

4

On the 216 to 384

On 18 and 32

20

5

On the 384 to 624

On 32 to 52

25

6

On the 624 to 960

On 52 to 80

30

7

On 960

On 80

35

 

VI. Tax registration, tax code

1. Personal income tax under the tax register to the tax authorities of the tax code for themselves and for each dependent family allowances.

2. Organizations and individuals pay income tax to the registration tax is the tax authorities of the tax code. Where organizations and individuals have been paying income tax code before the date of this Decree takes effect shall continue to use that code.

VII. Declaration and payment of taxes and settlement of personal income tax

Organizations and individuals pay income tax withheld and individuals with taxable income under the provisions of the Personal Income Tax Law and the Law amending and supplementing a number of articles of the Law on Personal Income Tax shall be for implementing the declaration and payment of taxes, tax settlement as follows:

1. The declaration and payment of taxes per month applies to organizations and individuals pay income tax withheld for the total revenues from personal income tax was deducted monthly by type declarations 50 million or more, unless the object declaration and payment of value added tax on a quarterly basis.

2. Tax declaration and payment of quarterly tax applies to:

a) Organizations and individuals pay income tax withheld for income;

b) Individuals or groups of individuals and business;

c) Income from wages and salaries are paid from foreign or international organizations, embassies, consulates in Vietnam but not yet paid out tax-deductible.

3. The declaration and payment of tax on each occasion arises applies to:

a) Income from transfer of property;

b) Income from capital transfer of personal residence;

c) Income from inheritance or gift;

d) Income arising from the production and trading of goods and services by individuals, groups and individuals trading agencies retail tax bill;

e) Income arising in foreign resident individuals, except for income from salaries and wages;

e) Income arising in Vietnam but in foreign income received by non-resident individuals, except for income from salaries and wages.

4. Declaration and payment of taxes in years: Apply for individuals, groups and individuals pay tax as prescribed.

5. Declaration of tax settlement

Organizations and individuals pay income; resident individuals having income from salaries, wages, from business; resident individual securities transfer tax paid at the rate of 20% on income tax liability finalization year.

6. Individual units authorized for payment of income tax settlement instead of in individual cases there is only one source of income from salaries and wages incurred in a unit apart from salary or wages incurred in units and individuals also have other income.

Related documents:

Personal Income Tax Law No. 04/2007 / QH12 dated 21/11/2007;

           Law's chores to amend some articles of the Law on Personal Income Tax No. 26/2012 / QH13 dated 22/11/2012; .

Decree No. 65/2013 / ND-CP of the Government dated 27/06/2013 detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax ;

Circular No. 111/2013 / TT-BTC guiding the implementation of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax and Decree No. 65/2013 / ND-CP.