According to the proposal on adjusting six kinds of tax before reporting to the Prime Minister for consideration and submission to the National Assembly in 2018, Ministry of Finance proposes to amend and supplement the Law on Personal Income Tax with two tax calculation options basing on wages and salaries. Specifically, under option 1, Ministry of Finance proposed to reduce the number of tax rates to 5 levels instead of the current 7 levels. However, the tax rate in level 2 shall be increased from 10% to 15% while level 3 is from 20% to 25% and level 4 from 28% to 30%. Option 1 With this plan, according to calculations of Ministry of Finance, budget revenue will decrease by VND 1.300 billion. Accordingly, individuals who are currently paying taxes at level 2 or above will benefit. Specifically, individuals with a taxable income of VND 10 million / month will receive a reduction of VND 250,000 / month while those with VND 30 million / month can save VND 850,000 / month. Under Option 2, the tax level shall be reduced to 5. Level 3 to 6 reduce to only two level, so those in this level will have to pay more taxes. Option 2 Accordingly, a taxable income of VND15 million / month will have to pay an additional amount of VND 250,000 / month. Individuals with a taxable income of VND 30 million / month will pay VND 400,000 / month more while those with VND 50 million…
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Illustration photo Answer (General Department of Taxation): Regulations for taxpayers: Under Point b, Item 1, Article 6, Chapter II of the Government’s Decree 147/2004/NĐ-CP, dated on July 23, 2004, regular taxable income shall be the total income sourced in Việt Nam and overseas.Point b, Item 1, Article 2 of the Government’s Decree 100/2008/NĐ-CP, dated on September 8, 2008 stipulates that, for non-resident individuals, their taxable incomes are earnings in Việt Nam, regardless of where the incomes are paid. Hence, prior to December 31, 2008, chief representatives not residing but earning incomes in Việt Nam have to pay income tax on…... [read more]
The new personal income tax threshold has increased to VND9 million per month from VND4 million. In addition, the deduction for each dependent has been raised to VND3.6 million from VND1.6 million.— File Photo Tran Quang, Junior Associate, Indochine CounselLaw No 26/2012/QH13 that took affect from 1 July and its guiding legal instruments issued in 2013 such as Decree No 65/2013/ND-CP and Circular No 111/2013/TT-BTC (Circular 111) amend and supplement a number of new policies on personal income tax in Viet Nam. The new personal income tax threshold has increased to VND9 million per month from VND4 million. In addition,…... [read more]
The National Assembly of Vietnam November 20 approved laws on personal income, securities trading taxes and the GDP growth target of more than 8.5 per cent next year, state media reported on November 21. Vietnam will start to apply the same personal income tax for the Vietnamese’s and foreigners from January 1, 2009, under which those earners of a minimum income of VND5 million ($310) a month will pay a 5 per cent tax, Young People newspaper reported. Minister of Finance Vu Van Ninh said in an interview with local press that by adopting this move, Vietnam is expected to collect VND13…... [read more]
At the conference dialogue between the Korean Ministry of Finance and Businesses on policies and administrative procedures of customs tax recently, the majority opinion of Korean businesses is related to the personal income tax.Laws on Personal Income Tax of Vietnam provides that taxpayers can be exempted based on family condition, VND 4 million for the taxpayer and VND 1.6 million for each dependent. Korean businesses supposed that exemption is not practical and does not reflect the actual costs of living. Most foreigners working in Vietnam must pay taxes. This is not to mention rent paid by companies, which is not…... [read more]
The information was released at a press briefing held in Hanoi on March 8 to announce the draft law on personal income tax.According to the draft law, the proposed deduction is for individual taxpayers of less than VND6 million per month, much higher than those of less than VND4million as stipulated in the current Law on Personal Income Tax.The deduction for each dependent of the taxpayer will be VND2.4 million per month instead of the present VND1.6 million, says the draft.The MoF also proposes removing the highest tax rate of 35 percent and maintain other rates as mentioned in the…... [read more]
(Cinet) - From some information posted on Spain newspaper, as planned, some football teams in the national championship of Spain, namely La Liga and the first prize, namely Segunda will make a strike to oppose against a plan of increasing individual income tax for foreign footballers on April 02 and 03. One of the most important reasons that help La Liga recruits many foreign football stars due to the lowest income tax among many countries organizing the championship prize in Europe. Recently, the Spain’s Government has drafted a new law regulating about increasing individual income tax for foreign labours from…... [read more]
Eligible foreign experts are those who directly engage in foreign NGO aid programmes and projects approved by Vietnam’s authorised agencies. They must hold foreign passports and have contracts with foreign NGOs, the projects’ managerial agencies, or the providers of the NGO aid. Their contracts with foreign NGOs must be enclosed with confirmations of the NGOs’ aid providers. Tax-exempt income is that which comes from directly implementing foreign NGO aid programmes and projects. Meanwhile, Vietnamese citizens entitled to the exemption must be employed by Vietnam-based representative agencies of international organisations under the UN system. The tax-exempt income is salaries and wages paid by the representative…... [read more]
The exemptions, recently approved by the Prime Minister, will take effect on May 1. Eligible foreign experts are those who directly engage in foreign NGOaid programmes and projects approved by Vietnam’s authorised agencies. They must hold foreign passports and have contracts with foreign NGOs,the projects’ managerial agencies, or the providers of the NGO aid.Their contracts with foreign NGOs must be enclosed with confirmations ofthe NGOs’ aid providers. Tax-exempt income is that which comes from directly implementing foreign NGO aid programmes and projects. Meanwhile, Vietnamese citizens entitled to the exemption must beemployed by Vietnam-based representative agencies of internationalorganisations under the UN…... [read more]
The exemptions, approved by the Prime Minister, took effect on May 1, 2016.Vietnamese citizens entitled to the exemption must be employed by Vietnam-based representative agencies of international organisations under the UN system.The tax-exempt income is salaries and wages paid by the representative agencies.Part-time Vietnamese employees are not subject to the personal income tax exemption.According to the General Department of Taxation, 280 Vietnamese people are working at 18 representative agencies of international organisations under the UN system in Vietnam.... [read more]
>> Finance Ministry proposes personal income tax changes >> NA official: No resolution on personal tax exemption The National Assembly has turned down a proposal by the Ministry of Finance for changes in the personal income tax law this year. No changes in personal income tax law this year The NA’s National Financial Supervisory Commision puts off enforcement of the changes until 2012. These changes in the regulations would have included tax reductions and heightened the threshold for tax exemptions.The proposal recommended that exemptions should be given to those who make from VND5 million (USD239,234) per month for individuals, and…... [read more]
