CIRCULAR 111/2013 / TT-BTC
- 03/02/2020 10:02
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Hanoi, August 15, 2013 |
CIRCULAR
Pursuant to the Law on Personal income tax No. 04/2007/QH12 dated November 21, 2007;
Pursuant to the Law on the amendments to the Law on Personal income tax No. 26/2012/QH13 dated November 22, 2012;
Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November 29, 2006;
Pursuant to the Law on the amendments to the Law on Tax administration No. 21/2012/QH13 dated November 20, 2012;
Pursuant to the Government's Decree No. 65/2013/ND-CP dated June 27, 2013 elaborating a number of articles of the Law on Personal income tax and the Law on the amendments to the Law on Personal income tax;
Pursuant to the Government's Decree No. 83/2013/ND-CP dated June 22, 2013 elaborating a number of articles of the Law on Tax administration and the Law on the amendments to the Law on Tax administration;
Pursuant to the Government's Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the request of the Director of the General Department of Taxation;
The Minister of Finance guides the implementation of a number of articles of the Law on Personal Income Tax, the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax and Decree No. 65/2013 / ND-CP dated May 27. In June 2013, the Government details 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 as follows:
Chapter 1.
Taxpayers are resident individuals and non-residents as prescribed in Article 2 of the Law on Personal Income Tax, Article 2 of Decree No. 65/2013 / ND-CP dated June 27, 2013 of the Government. details of 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 (hereinafter referred to as Decree No. 65/2013 / ND-CP), with income taxable under Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013 / ND-CP.
Scope of determination of taxable incomes of taxpayers is as follows:
For resident individuals, taxable income is income earned inside and outside the territory of Vietnam, regardless of where the income is paid and received.
For non-resident individuals, taxable income is income earned in Vietnam, irrespective of where the income is paid and received.
1. Resident individual means a person who satisfies one of the following conditions:
a) Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the date of arrival in Vietnam, in which the date of arrival and departure date is counted as one (01) day. . The date of arrival and departure date are based on the certification of the immigration authority on the passport (or passport) of the individual upon arrival and departure from Vietnam. In case of entry and exit on the same day, it is counted as one day of residence.
Individuals present in Vietnam according to the instructions at this point are their presence in the territory of Vietnam.
b) Having a regular residence in Vietnam in either of the following two cases:
b.1) Have a regular residence in accordance with the law on residence:
b.1.1) For Vietnamese citizens: the permanent residence is the place where the individual lives regularly, stably for an indefinite period of time in a certain place and has registered permanent residence in accordance with the law on residence resident.
b.1.2) For foreigners: the permanent residence is the permanent residence indicated in the permanent residence card or the temporary residence when applying for the temporary residence card issued by a competent authority affiliated to the Ministry of Public Security.
b.2) Have a house rented to live in Vietnam in accordance with the law on housing, with a lease contract term of 183 days or more in a tax year, specifically as follows:
b.2.1) Individual who does not have or does not have a regular residence as instructed at Point b.1, Clause 1 of this Article but has a total of 183 days or more in the year to rent a house under the lease contracts. Taxes are also determined as resident individuals, even when renting a house in multiple locations.
b.2.2) Rented house for living includes hotel, guest house, motel, inn, workplace, office office, ... regardless of whether the individual or person Employers hired for employees.
In case an individual has a regular residence in Vietnam as prescribed in this Clause but is actually present in Vietnam for less than 183 days in a tax year but he or she cannot prove that he or she is a resident of any country, That individual is an individual residing in Vietnam.
Proof of being a resident of another country is based on the Residence Certificate. In case an individual belonging to a country or a territory that has signed a tax agreement with Vietnam does not have provisions for issuance of a residence certificate, such individual shall provide a photocopy of the passport to prove the residence period.
2. Non-resident individual means a person who fails to satisfy the conditions specified in Clause 1 of this Article.
3. Taxpayers in some specific cases are determined as follows:
a) For individuals having income from business.
a.1) If there is only one person named in the Certificate of Business registration, the taxpayer is the individual named in the Certificate of Business registration.
a.2) If more than one person is named in the business registration certificate (group of business individuals) and participates in the business, the taxpayer is each member named in the business registration certificate.
a.3) In case there are many people participating in the business in a household but only one person is named in the business registration certificate, the taxpayer is the individual named in the certificate of business registration. joint.
a.4) If an individual or household does business but does not have a business registration certificate (or certificate or license), the taxpayer is an individual doing business. joint.
a.5) For the lease of houses, land, water surface and other assets without business registration, the taxpayer is the individual that owns the house, the right to use land, water surface and property. other. In case many individuals jointly own a house, land use right, water surface or other property, the taxpayer is each individual with the right to own or use.
b) Against individuals with other taxable income.
b.1) If the transfer of real estate is a co-owner, the taxpayer is each individual co-owner of real estate.
b.2) In case the authorized person has the right to transfer real estate or has the same rights as the real estate owner in accordance with the law, the taxpayer is an individual authorizing real estate.
b.3) In case of transfer or assignment of ownership or right to use protected objects in accordance with the Intellectual Property Law or the Law on Technology Transfer in which the assignor or licensee is co-owner. If the owner or co-author of many individuals (many authors), the taxpayer is each individual who has the right to own, the copyright and to enjoy income from the transfer or transfer of the above rights.
b.4) If an individual franchises the commercial franchise according to the Law on Commerce and the subject of the commercial franchise is many individuals participating in the franchise, the taxpayer is each individual who enjoys income from the franchise. trade.
4. Taxpayers under the guidance in Clauses 1 and 2 of this Article include:
a) Individuals of Vietnamese nationality including individuals sent to work, to work or study abroad and earn taxable income.
b) Individuals who do not hold Vietnamese nationality but have taxable income, including: foreigners working in Vietnam, foreigners not present in Vietnam but having taxable income arising in Vietnam.
Under Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013 / ND-CP, incomes subject to personal income tax include:
1. Income from business
Incomes from business are those earned from production and business activities in the following fields:
a) Incomes from the production and trading of goods and services in all fields of business as prescribed by law such as goods production and trading; build; carriage; catering business; business services, including rental services, land use rights, water surface, other assets.
b) Incomes from independent practice of individuals in the fields and trades licensed or certified by law.
c) Incomes from production and business activities of agriculture, forestry, salt production, aquaculture, and fishing that fail to meet the tax exemption conditions specified at Point e, Clause 1, Article 3 of the Circular this.
2. Income from salaries, wages
Income from salaries or wages is the income an employee receives from an employer, including:
a) Salaries, wages and amounts of a wage or remuneration character in monetary or non-monetary forms.
b) Allowances and subsidies, except the following allowances and subsidies:
b.1) Monthly benefits and concessional allowances and lump-sum subsidies in accordance with the law on incentives for people with meritorious services.
b.2) Monthly, lump-sum allowance for people participating in the resistance war, national defense, international duty, volunteer youth who have completed their duties.
b.3) Allowances for national defense and security; subsidies for the armed forces.
b.4) Hazardous and dangerous allowances for industries, occupations or jobs at the workplace with hazardous or dangerous factors.
b.5) Attraction allowance, regional allowance.
b.6) Unexpected difficulty allowance, labor accident or occupational disease benefit, lump-sum allowance for childbirth or adoption, rate of maternity benefits, rate of convalescence and rehabilitation post-pregnancy health benefits, allowances for reduced working capacity, lump-sum pension, monthly survivorship allowance, severance pay, job loss allowance, unemployment benefit and other allowances as prescribed Labor Code and Social Insurance Law.
b.7) Benefits for beneficiaries of social protection in accordance with the law.
b.8) Service allowances for senior leaders.
b.9) Lump-sum allowance for individuals when moving to areas with extremely difficult socio-economic conditions, one-time support for civil servants working on sovereignty of sea and islands according to regulations legal regulations. Lump-sum roaming allowance for foreigners coming to reside in Vietnam, Vietnamese people going to work abroad.
b.10) Allowances for village health workers.
b.11) Industry-specific allowances.
Allowances, subsidies and levels of allowances and subsidies not included in taxable income guided at Point b, Clause 2 of this Article must be specified by competent State agencies.
In case documents guiding allowances, subsidies, allowances and subsidies apply to the State sector, other economic sectors and other business establishments are based on the list of and guidance allowance and subsidy levels for the State sector for subtraction calculation.
In case the received allowance or subsidy is higher than the allowance or subsidy rate as mentioned above, the excess must be included in taxable income.
Particularly, the lump-sum roaming allowance for foreigners coming to reside in Vietnam or Vietnamese going to work abroad is deducted according to the rate stated in the labor contract or collective labor agreement.
c) Remuneration received in the form of: commissions for goods sale agents, brokerage commissions; money for participation in scientific and technical research; money for participation in projects, schemes; royalties in accordance with the law on royalties; money for participation in teaching activities; money for participation in cultural, art, physical training and sports performance; money for advertising services; other service fees, other remuneration.
d) Money received from participation in business associations, business boards of directors, enterprise control boards, project management boards, management boards, associations, professional associations and other organizations.
đ) Monetary or non-monetary benefits other than the employer's salaries or wages that taxpayers are entitled to in any form:
đ.1) Housing, electricity, water and attached services (if any).
In case the individual lives at the head office, the taxable income is based on the house rent or depreciation expense, electricity, water and other services according to the ratio of the area he uses to the area. headquarter.
The house rent paid by the employer on behalf of the employer is included in the taxable income according to the actual amount paid on behalf of, but does not exceed 15% of the total taxable income (not including house rent) at the unit.
đ.2) Life insurance and other non-compulsory insurance premiums, voluntary pension contributions bought by the employer or donated to employees, for insurance products with accumulation of insurance premiums.
đ.3) Membership fees and other charges for services serving individuals upon request such as health care, entertainment, sports, entertainment, aesthetics, specifically as follows:
đ.3.1) Membership fee (such as golf course, tennis court, club activity card, culture, sport, etc.) if the card has individual or group names use. In case the card is used together, without the names of individuals or groups of individuals using it, it will not be included in taxable income.
đ.3.2) Expenditures on other services for individuals in healthcare, entertainment, and aesthetic entertainment ... if the payment contents clearly state the individual's name. In case the service fee payment does not state the name of the beneficiary but is shared with the employee collective, it is not included in the taxable income.
đ.4) The share of expenses for stationery, business trip, telephone, costumes ... is higher than the current level prescribed by the State. The flat expenditure level is not included in taxable income in some cases as follows:
đ.4.1) For cadres, civil servants and people working in administrative and non-business agencies, the Party, unions, associations, and associations: the rate of allocation is applied according to the guidance documents of the Ministry of Finance.
đ.4.2) For employees working in business organizations and representative offices: the applied flat rate is consistent with the determination of income subject to corporate income tax according to the exam guidance documents. Law on corporate income tax.
đ.4.3) For employees working in international organizations, representative offices of foreign organizations: the flat rate of spending shall comply with regulations of international organizations, representative offices of organizations. foreign.
đ.5) Expenditures on vehicles serving the transportation of workers from residence to workplace and vice versa, it is not included in the employee's taxable income; In the case of individual transportation, it must be included in the taxable income of the person being transported.
đ.6) For payments on behalf of employees for training to improve their qualifications and skills in accordance with the employees' professional jobs or the plans of the employing units, not included in the employee's income.
đ.7) Other benefits.
Other benefits that the employer pays to employees such as: expenses on holidays, public holidays; hiring consulting services, tax filing for one or a group of individuals; Expenses for houseworkers such as drivers, cooks, people doing other housework under contracts ...
e) Cash or non-monetary bonuses of any kind, including bonuses in securities, except for the following bonuses:
e.1) Bonuses associated with titles awarded by the State, including bonuses accompanying emulation titles, commendation forms in accordance with the legislation on emulation and commendation, specifically. :
e.1.1) Rewards accompanying emulation titles such as National Emulation Fighter; Emulation soldiers at ministerial level, branch level, central mass organizations, provinces and centrally-run cities; Grassroots emulation soldiers, Advanced workers, Advanced soldiers.
e.1.2) Bonuses associated with the rewards.
e.1.3) Rewards accompanying titles awarded by the State.
e.1.4) Bonuses associated with prizes from associations, organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations of the central and local awarded in accordance with the charter of that organization and in accordance with the provisions of the Law on Emulation and Commendation.
e.1.5) Prize money associated with the Ho Chi Minh Prize and the State Prize.
e.1.6) Bonuses associated with Medals and Badges.
e.1.7) Bonuses accompanied by certificates of merit and certificates of merit.
Competence to issue commendation decisions, bonus levels attached to emulation titles and commendation forms mentioned above must comply with the provisions of the Law on Emulation and Commendation.
e.2) Rewards accompanying national or international awards recognized by the State of Vietnam.
e.3) Rewards for technical innovations, inventions and inventions recognized by competent authorities.
e.4) Bonuses for detecting and reporting illegal acts to competent State agencies.
g) Not included in taxable income for the following:
g.1) The employer's allowance for the medical examination and treatment of fatal diseases for the employee itself and the employee's relatives.
g.1.1) Relatives of the employee in this case include: natural children, legally adopted children, illegitimate children, stepchildren of spouse; wife or husband; natural father, mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; adoptive father, legal adoptive mother.
g.1.2) The level of support not included in taxable income is the amount actually paid according to the hospital fee payment voucher but must not exceed the amount of hospital fees paid by employees and their relatives after deducted the insurance organization's payment amount.
g.1.3) The employer paying the allowance has the responsibility: to keep a copy of the documents of the hospital fee payment certified by the employer (in the case the employee and the employee's relatives pay the rest after the insurance organization pays directly to the medical facility) or a copy of the hospital fee payment voucher; a copy of the employer's certified copy of payment for health insurance (in case the employee and employee's relatives pay the entire hospital fee, the insurance organization pays the employee's insurance and employees' relatives) together with vouchers of payment of support money for the employee and the employee's relatives who have a fatal disease.
g.2) The amount received according to regulations on the use of vehicles in state agencies, public non-business units, Party organizations and unions.
g.3) The money received according to the official housing regime as prescribed by law.
g.4) Amounts received in addition to salaries and wages due to consultation, appraisal and verification of legal documents, resolutions, and political reports; join inspection and supervision groups; receiving voters, receiving citizens; costumes and other work related to the direct service of the operation of the Office of the National Assembly, the Ethnic Council and Committees of the National Assembly, National Assembly delegations; Central Office and Committees of the Party; Office of the City Party Committee, Provincial Party Committee and Committees of the City Party Committee and Provincial Party Committee.
g.5) The mid-shift meal and lunch amount shall be organized by the employer for mid-shift meals, lunch shifts for the employees in the form of cooking, buying meals, and issuing meal tickets.
If the employer does not organize a mid-shift meal or lunch, but pays the money to the employee, it will not be included in the individual's taxable income if the amount is in accordance with the guidance of the Ministry of Labor - Invalids and Society. In case the expense level is higher than the level guided by the Ministry of Labor, War Invalids and Social Affairs, the excess expense must be included in the taxable income of the individual.
The specific spending levels applicable to State enterprises and organizations and units of administrative and non-business agencies, the Party, Unions and Associations must not exceed the guidance of the Ministry of Labor, War Invalids and Social Affairs. For non-state enterprises and other organizations, the expenditure level shall be decided by the head of the unit in agreement with the trade union president, but must not exceed the applicable level for State enterprises.
g.6) Round-trip airfare paid by the employer on behalf of the employer (or payment) to the foreign worker working in Vietnam and the Vietnamese employee working in the country. out on leave once a year.
The basis for determining the air ticket purchase amount is the labor contract and the payment for air tickets from Vietnam to the nationality of the foreigner or the country where the foreign family lives and vice versa; the payment for the flight ticket from the country where the Vietnamese are working, to Vietnam and vice versa.
g.7) Tuition fees for children of foreign workers working in Vietnam and studying in Vietnam, children of Vietnamese workers working abroad studying abroad according to preschool education levels. High school paid by the employer on behalf of the employer.
g.8) Personal income received from sponsoring associations and organizations is not included in income subject to personal income tax if the recipient is a member of the association or the organization; funding is used from the State budget or managed according to the State's regulations; the creation of literary and artistic works, scientific research ... to perform the political tasks of the State or according to the program of activities in accordance with the Charter of the Association or organization.
g.9) Payments that employers pay for the transfer and rotation of foreigners working in Vietnam in accordance with the labor contract, compliance with the labor schedule standards according to international practices of a number of industries such as oil and gas and mining.
The basis of determination is the labor contract and the payment for air tickets from Vietnam to the country where the foreigner resides and vice versa.
Example 1: Mr. X is a foreigner who is transferred by oil and gas contractor Y to work at a drilling rig on Vietnam's continental shelf. According to the labor contract, Mr. X's working cycle at the rig is 28 consecutive days, after which he is entitled to 28 days off. Contractor Y pays Mr. X the fare for the air ticket from abroad to Vietnam and vice versa, the cost of providing helicopters to transport Mr. X from the Vietnamese mainland to the rig and vice versa If Mr. X waits for the helicopter flight to work, the accommodation expenses will not be included in Mr. X's personal income taxable income.
3. Income from capital investment
Incomes from capital investment are personal income received in the form of:
a) Interest received from lending to organizations, enterprises, households, business individuals or groups of business individuals under a loan contract or loan agreement, minus interest on deposits received from organizations credit, foreign bank branch as guided in Item g.1, point g, Clause 1, Article 3 of this Circular.
b) Dividends received from capital contribution to purchase shares.
c) Income received from capital contribution to limited liability companies (including single member limited liability companies), partnerships, cooperatives, joint ventures, business cooperation contracts business and other forms of business in accordance with the Law on Enterprises and the Law on Cooperatives; profits received from capital contribution to establish credit institutions in accordance with the Law on Credit Institutions; Capital contribution to Securities Investment Funds and other investment funds established and operating in accordance with law.
d) The increase in the value of contributed capital received from the dissolution of an enterprise, transformation of the operating model, division, separation, merger or consolidation of the enterprise or upon capital withdrawal.
dd) Incomes received from interests of bonds, treasury bills and other valuable papers issued by domestic organizations, minus income under the instructions in Items g.1 and g.3, point g, Clause 1 , Article 3 of this Circular.
e) Incomes received from capital investment in other forms, including capital contribution in kind, reputation, land use rights, patents or inventions.
g) Income from dividends paid in shares, income from profits recorded in capital gain.
4. Income from capital transfer
Incomes from capital transfer are personal income received, including:
a) Incomes from capital transfer in limited liability companies (including single member limited liability companies), partnerships, business cooperation contracts, cooperatives, credit funds people, economic organizations, other organizations.
b) Incomes from securities transfer, including: income from transferring stocks, rights to buy stocks, bonds, treasury bills, fund certificates and other types of securities in accordance with the Law on Securities; income from transfer of shares of individuals in a joint stock company in accordance with the Law on Enterprises.
c) Incomes from capital transfer in other forms.
5. Income from real estate transfer
Incomes from real estate transfer are those earned from real estate transfer, including:
a) Incomes from transfer of land use rights.
b) Incomes from transfer of land use rights and land-attached assets. Land-attached assets include:
b.1) Houses, including future houses.
b.2) Infrastructure and constructions on land, including future constructions.
b.3) Other assets on land include agricultural, forestry and fishery products (such as plants and animals).
c) Incomes from transfer of home ownership, including future houses.
d) Incomes from transferring the right to lease land or water surface.
dd) Income from real estate capital contribution to establish an enterprise or increase capital for production and business of an enterprise as prescribed by law.
e) Income from the authorization of real estate management that the authorized person has the right to transfer real estate or has the same rights as the owner of real estate in accordance with the law.
g) Other incomes received from real estate transfer in any form.
Regulations on future houses and constructions mentioned in Clause 5 of this Article comply with the law on real estate business.
6. Income from winning prizes
Incomes from winning prizes are sums of money or kind received by individuals in the following forms:
a) Winning lottery prizes paid by lottery companies.
b) Winning prizes in all forms of promotions when participating in the purchase and sale of goods and services according to the provisions of the Commercial Law.
c) Winning prizes in all forms of betting permitted by law.
d) Winning prizes in the casino permitted by law.
dd) Winning prizes in games, contests with prizes and other forms of winning organized by economic organizations, administrative and non-business agencies, unions and other organizations and individuals.
7. Income from copyright
Incomes from copyrights are those received from the assignment or transfer of ownership or right to use objects of intellectual property rights in accordance with the Intellectual Property Law; income from technology transfer under the Technology Transfer Law. As follows:
a) Objects of intellectual property rights comply with Article 3 of the Intellectual Property Law and relevant guiding documents, including:
a.1) Objects of copyright include literary, artistic and scientific works; Objects of rights related to copyrights include: video recording, recording of broadcasts, satellite signals carrying encoded programs.
a.2) Subjects of industrial property rights include inventions, industrial designs, layout designs of semiconductor integrated circuits, business secrets, trademarks, trade names and geographical indications.
a.3) Subjects of rights to plant varieties are propagating materials and harvested materials.
b) Subjects of technology transfer specified in Article 7 of the Law on Technology Transfer include:
b.1) Transfer of technical know-how.
b.2) Transfer of technical knowledge about technology in the form of technology plans, technological processes, technical solutions, formulas, specifications, drawings, technical diagrams, computer programs , data information.
b.3) Transfer of solutions for production rationalization and technology innovation.
Incomes from the transfer or transfer of rights to objects of the above intellectual property rights and technology transfer, including re-assignment.
8. Incomes from franchising
Franchising means a commercial activity whereby the franchisor allows and requires the franchisee to purchase and sell goods and provide services on its own according to the franchisee's conditions in the franchise contract.
Incomes from commercial franchising are the income that individuals receive from the above commercial franchise contracts, including the case of commercial franchising in accordance with the law on commercial franchising.
9. Income from inheritance
Incomes from inheritance are those received by individuals under a will or in accordance with the law on inheritance, specifically as follows:
a) For inheritance as securities, including: stocks, right to buy stocks, bonds, treasury bills, fund certificates and other types of securities in accordance with the Law on Securities; shares of individuals in a joint stock company in accordance with the Law on Enterprises.
b) For inheritance is the capital portion of economic organizations, business establishments, including: contributed capital in limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises and individuals' business establishments; capital in associations, funds are allowed to be established in accordance with the provisions of law or for entire business establishments if they are private enterprises or individuals' business establishments.
c) For inheritance being real estate, including: land use rights; land use rights with assets attached to land; home ownership, including future houses; infrastructure and construction works on land, including future constructions; land lease rights; rights to rent water surface; other income received from inheritance is real estate in any form; subtracting income from inheritance being real estate under the instructions at Point d, Clause 1, Article 3 of this Circular.
d) For inheritance as other assets, the ownership or use right must be registered with state management agencies such as: car; mopeds, motorbikes; ships, including barges, canoes, tugboats and push ships; boats, including yachts; Airplane; hunting rifles, sports guns.
10. Incomes from gifts
Incomes from gifts are those received by individuals from domestic and foreign organizations and individuals, specifically as follows:
a) For gifts being securities, including: stocks, right to buy stocks, bonds, treasury bills, fund certificates and other types of securities in accordance with the Law on Securities; shares of individuals in a joint stock company in accordance with the Law on Enterprises.
b) For gifts being capital in economic organizations, business establishments, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital In private enterprises, individuals' business establishments, capital in associations, funds are allowed to be established under the provisions of law or the whole business establishment if it is a private enterprise, business establishments of personal.
c) For gifts being real estate, including: land use rights; land use rights with assets attached to land; home ownership, including future houses; infrastructure and construction works on land, including future constructions; land lease rights; rights to rent water surface; other income received from inheritance is real estate in any form; subtracting income from gifts being real estate guided at Point d, Clause 1, Article 3 of this Circular.
d) For gifts being other assets, the ownership or use right must be registered with state management agencies such as: car; mopeds, motorbikes; ships, including barges, canoes, tugboats and push ships; boats, including yachts; Airplane; hunting rifles, sports guns.
1. Pursuant to Article 4 of the Law on Personal Income Tax and Article 4 of Decree No. 65/2013 / ND-CP, tax-exempt incomes include:
a) Incomes from real estate transfer (including future houses, future construction works in accordance with the law on real estate trading) between: wife and husband; natural father, mother with natural child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother with grandchildren; maternal grandfather, grandmother and grandchild; siblings together.
In case real estate (including future houses or future constructions in accordance with the law on real estate trading) created by a spouse during the marriage period determined as common property of husband and wife, when the divorce is divided according to agreement or decided by a court, the division of this property is tax exempt.
b) Incomes from the transfer of houses, residential land use rights and assets attached to residential land of an individual in case the transferor has only one house or right to use residential land in Vietnam.
b.1) The person that transfers the house or the right to use residential land that is exempt from tax under the instructions at Point b, Clause 1 of this Article must simultaneously satisfy the following conditions:
b.1.1) Have only the right to own a house or the right to use a residential land plot (including in the case of a house or construction on that parcel) at the time of transfer. as follows:
b.1.1.1) The determination of house ownership, the right to use residential land is based on the certificate of land use rights, ownership of houses and other land-attached assets.
b.1.1.2) In case of transfer of a house with the same ownership or the same land use right, only an individual who does not have the right to own the house or land use right in another place is exempt from tax; individuals who have the same ownership of houses and land use rights and also have the right to own houses and other residential land use rights are not exempt from tax.
b.1.1.3) If husband and wife share the ownership of the house or residential land and are also the sole property of the couple, but the husband or wife still has a house or separate residential land, when transferring the house , residential land shared by husband and wife, husband or wife have no house, or private residential land is exempt from tax; The husband or wife has a house or separate residential land that is not tax exempt.
b.1.2) Have the right to own houses or residential land at least 183 days up to the time of transfer.
The time of determination of house ownership or residential land use right is the date of issuance of the Certificate of land use rights, ownership of houses and other land-attached assets.
b.1.3) Transfer all houses and residential land.
In cases where individuals have the sole right or joint ownership of a house or residential land use right but transfer a part, they are not exempt from tax for such transfer.
b.2) The only house and residential land eligible for tax exemption shall be declared and responsible by the person transferring real estate. If detected incorrectly, they will be subject to retrospective collection of taxes and fines for tax law violations according to the provisions of the law on tax administration.
b.3) Transfer of future houses or construction works that are not eligible for personal income tax exemption under the guidance at Point b, Clause 1 of this Article.
c) Incomes from the land use right value of individuals assigned land by the State without having to pay or reduce the land use levy according to the provisions of law.
In case individuals are entitled to exemption from or reduction of land use levy upon land allocation, if the land area is transferred or the land use levy is exempted or reduced, tax shall be declared and paid on income from real estate transfer as guided in Article 12 of this circular.
d) Incomes from inheritance, gifts being real estate (including houses, future construction works in accordance with the law on real estate trading) between: wife and husband; natural father, mother with natural child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother with grandchildren, maternal grandfather, grandmother and grandchild; siblings together.
dd) Incomes from converting agricultural land to rationalize agricultural production without changing the land use purpose of households or individuals directly engaged in agricultural production, assigned by the State for production.
e) Incomes of households and individuals directly engaged in agricultural production, forestry, salt making, aquaculture or fishing that have not been processed or have been only preliminarily processed. into another product.
Households and individuals directly participating in production activities under the instructions at this point must satisfy the following conditions:
e.1) Having the right to use land, the right to rent land, the right to use water surface, the right to rent the legal water surface for production and directly participate in agricultural, forestry, salt-making and aquaculture labor.
In case of sublease of land or water surface from another organization or individual, a land or water surface lease document is required according to the provisions of law (except for households and individuals contracted to plant and care for a forest. forest management and protection with forestry companies). For fishing activities, there must be a certificate of ownership or a contract to hire a ship or boat used for fishing purposes and directly engaged in fishing activities (except for the above cases of fishing). river in the form of riverbed (fish bottom) and not belonging to the prohibited fishing activities according to the provisions of the law).
e.2) Actual residence in the locality where the agricultural production, forestry, salt making, aquaculture or fishing takes place.
The locality where the agricultural, forestry, salt-making or aquaculture activities take place under this guidance is the district, town, or city under the province (collectively referred to as the district-level administrative unit) or the district bordering the place where production activities take place.
As for fishing activities, it does not depend on the place of residence.
e.3) Agricultural, forestry, salt-making, or aquaculture products that have not yet been processed into other products or have just been preliminarily processed are usually cleaned, dried, or dried. peeled, seeded, cut, salted, refrigerated and other common forms of preservation.
g) Incomes from deposit interests at credit institutions, foreign bank branches, interests from life insurance contracts; interest income on government bonds.
g.1) Tax-exempt deposit interests specified at this Point are personal income received from interests of VND, gold or foreign currency deposits at established credit institutions and foreign bank branches. and operate under the provisions of the Law on Credit Institutions in the forms of demand deposit, time deposit, savings deposit, certificate of deposit, promissory note, treasury bill and other forms of deposit receipt. Principle has to fully refund principal and interest to the sender as agreed.
The basis for determining tax-free income for income from deposit interests is savings book (or savings card), certificates of deposit, promissory notes, bills and other papers on the principle of full refund. have enough principal and interest for the sender as agreed.
g.2) Interest from life insurance contract is the interest an individual receives under the life insurance purchase contract of the insurance enterprises.
The basis for determining tax-free income for income from interest on life insurance contracts is the voucher of interest payment from the life insurance contract.
g.3) Interest on government bonds is the interest an individual receives from the purchase of government bonds issued by the Ministry of Finance.
The bases for determining tax-free incomes from government bond interests are the par value, interest rates and terms on Government bonds.
h) Tax-exempt income from remittances is money that individuals receive from abroad from their relatives being overseas Vietnamese, Vietnamese going to work, working or studying abroad. back to relatives in the country.
The basis for determining tax-exempt income from remittances are papers proving the source of money received from abroad and payment vouchers of the sending organization (if any).
i) Incomes from wages, night work or overtime work are paid higher than wages, wages for day work or overtime work as prescribed by the Labor Code. As follows:
i.1) The higher wages and salaries paid for working at night or overtime are exempt from tax based on wages, actual wages paid for night work, overtime minus (-) from the rate Salary and wages are calculated according to normal working days.
Example 2: Mr. A has an ordinary working day salary of 40,000 VND / hour as prescribed by the Labor Code.
- In case the individual works overtime on weekdays, the individual is paid 60,000 VND / hour, his tax-free income is:
60,000 VND / hour - 40,000 VND / hour = 20,000 VND / hour
- In case the individual works overtime on a holiday or a holiday, and the individual is paid 80,000 VND / hour, his tax-exempt income is:
80,000 VND / hour - 40,000 VND / hour = 40,000 VND / hour
i.2) The income payer must make a list clearly reflecting the night work, overtime, the overtime pay paid to the employee for night work or overtime. This statement is kept at the income payer and presented when requested by the tax authority.
k) Retirement pensions paid by the Social Insurance Fund in accordance with the Law on Social Insurance; pensions are received monthly from the Voluntary Pension Fund.
Individuals living and working in Vietnam are exempt from tax on pensions paid abroad.
m) Incomes from scholarships, including:
m.1) Scholarships received from the State budget include: scholarships from the Ministry of Education and Training, the Department of Education and Training, public schools or other scholarships funded from the State budget. .
m.2) Scholarships received from domestic and foreign organizations (including living expenses) under the study promotion support program of that organization.
The organization that pays the scholarship to the individual mentioned at this point must keep its decisions on scholarships and the scholarship payment documents. In case individuals receive scholarships directly from foreign organizations, the income-receiving individuals must keep documents proving that the received income is scholarships granted by foreign organizations.
n) Incomes from compensation from life insurance, non-life insurance and health insurance policies; compensation for labor accidents; compensation and support money according to the provisions of law on compensation, support and resettlement; compensations to the State and other compensations in accordance with the law on State compensation. As follows:
n.1) Income from compensation for life insurance, non-life insurance and health insurance is money that an individual receives paid for by a life insurance, non-life insurance organization or health insurance. the insured as agreed in the signed insurance contract. The basis for determining this indemnity is the written or indemnity decision of the insurance organization or court and the indemnity payment voucher.
n.2) The income from the compensation for an occupational accident is the money the employee receives from the employer or the social insurance fund due to an accident during his / her participation in work. The basis for determining this compensation is the written or decision on compensation of the employer or the Court and the compensation payment vouchers for occupational accidents.
n.3) Incomes from compensation or assistance in accordance with the law on compensation, support and resettlement are compensation or support money recovered by the State, including incomes from to compensate and support economic organizations when land is recovered according to regulations.
The basis for determining income from compensation or support in accordance with the law on compensation, support and resettlement is a decision of a competent State agency on land recovery and compensation. residence and payment vouchers of compensation.
n.4) Income from State compensation and other compensations in accordance with the law on State compensation are personal amounts of money to be compensated due to improper decisions on sanctioning of administrative violations of persons. has the authority, of the competent State body, to cause damage to the interests of individuals; income from unjust compensation is determined by the competent authority in criminal proceedings. The basis for determining this compensation is a decision of a competent State agency that compels the agency or individual that has made a wrong decision to pay compensation and a payment voucher.
p) Incomes from charitable funds established or recognized by competent State agencies, operating for charity, humanitarian or study promotion purposes, not for the purpose of earning profits.
The charity fund stated at this point is a charity fund established and operating under the provisions of the Government's Decree No. 30/2012 / ND-CP of April 12, 2012 on the organization and operation of the social fund, charity fund.
The basis for determining the income received from tax-exempt charity funds at this point is the written document or decision to give the charity's income and vouchers of money and in-kind payment from the charity.
q) Incomes received from foreign aid for charitable and humanitarian purposes in the form of Government and non-government approved by competent State agencies.
The bases for determining tax-exempt incomes at this Point are documents of competent State agencies approving the receipt of aid.
2. Tax exemption procedures and dossiers for cases of tax exemption specified at Points a, b, c, d, e, Clause 1, this Article comply with guiding documents on tax administration.
According to Article 5 of the Law on Personal Income Tax, Article 5 of Decree No. 65/2013 / ND-CP, taxpayers face difficulties due to natural disasters, fires, accidents or fatal diseases affecting their ability to if paying tax, it may be considered for tax reduction corresponding to the level of damage but not in excess of the payable tax amount. As follows:
1. Determine the tax to be reduced
a) Tax reduction consideration is done according to the tax year. Taxpayers facing difficulties caused by natural disasters, fires, accidents or fatal diseases in a tax year may be considered for reduction of payable tax amounts in that tax year.
b / The payable tax amount used as a basis for tax reduction consideration is the total personal income tax payable by the taxpayer in the tax year, including:
b.1) Personal income tax paid or withheld on income from capital investment, income from capital transfer, income from real estate transfer, income from winning prizes, and income from copies rights, income from commercial franchising, income from inheritance; income from gifts.
b.2) Personal income tax payable on income from business and income from salaries and wages.
c) The basis for determining the extent of damage to be reduced tax is the total actual cost to remedy the damage minus (-) compensation received from the insurance organization (if any) or from the organization, person who caused the accident (if any).
d) The reduced tax is determined as follows:
d.1) If the payable tax amount in the tax year is greater than the damage level, the reduced tax is equal to the damage level.
d.2) If the payable tax amount in the tax year is smaller than the damage level, the reduced tax is equal to the payable tax amount.
2. Procedures and dossiers for tax reduction consideration comply with guiding documents on tax administration.
Article 5. Converting taxable income into VND
1. Taxable income of personal income tax is calculated in Vietnam Dong. In case the taxable income is received in a foreign currency, it must be converted into VND at the average exchange rate on the inter-bank foreign currency market at the time the income is generated.
For a foreign currency without the exchange rate with Vietnam dong, it must be converted via a foreign currency with an exchange rate with Vietnam dong.
2. A non-monetary taxable income received must be converted into Vietnam Dong at the market price of such product or service, or a product or service of the same or equivalent type at the time the income is generated.
1. For resident individuals
a) Annual tax period: applies to income from business and income from salaries and wages.
Where in a calendar year, an individual is present in Vietnam for 183 days or more, the tax period is calculated according to the calendar year.
If an individual is present in Vietnam for less than 183 days in a calendar year but is 183 days or more from the first day of his / her presence in Vietnam, the first tax period is determined as 12 consecutive months from the first day of presence in Vietnam. From the second year, the tax period is based on the calendar year.
Example 3: Mr. B is a foreigner who comes to Vietnam for the first time since April 20, 2014. In 2014 to December 31, 2014, Mr. B has been present in Vietnam for a total of 130 days. In 2015, as of April 19, 2015, Mr. B has been present in Vietnam for a total of 65 days. The first tax period of Mr. B is determined from April 20, 2014 to the end of April 19, 2015. The second tax period is determined from January 1, 2015 to the end of December 31, 2015.
b) Tax period upon each time of income generation: applies to income from capital investment, income from capital transfer, income from real estate transfer, income from winning prizes, and income from copies. rights, income from commercial franchising, income from inheritance, income from gifts.
c) The tax period for each time it arises or for each year, applicable to income from securities transfer.
2. For non-resident individuals
Tax period for non-resident individuals is calculated according to each time income is generated.
In case the non-resident business individual has a fixed place of business such as a store or a stall, the tax period is the same as for resident individuals earning income from business.
TAX BASE FOR A RESIDENCE INDIVIDUAL
Article 7.- Tax bases for taxable incomes from business, salaries and wages
Tax bases for incomes from business and incomes from salaries and wages are taxed income and tax rate, specifically as follows:
1. Taxed income is determined by taxable income as guided in Article 8 of this Circular minus (-) the following deductions:
a) Family deductions under the guidance in Clause 1, Article 9 of this Circular.
b) Insurance premiums and voluntary retirement funds under the guidance in Clause 2, Article 9 of this Circular.
c) Charity, humanitarian and study promotion contributions under the guidance in Clause 3, Article 9 of this Circular.
2. Tax rate
Personal income tax rates for incomes from business, salaries and wages are applied according to the Partial Progressive Tariff specified in Article 22 of the Law
| Tax Bracket | Taxed income / year (million VND) | Taxed income / year (million VND) | Tax (%) |
| 1 | Up to 60 | Up to 5 | 5 |
|
2 |
Over 60 to 120 |
Over 5 to 10 | 10 |
| 3 |
Over 120 to 216 |
Over 10 to 18 | 15 |
| 4 |
Over 216 and 384 |
Over 18 to 32 | 20 |
| 5 |
Over 384 to 624 |
Over 32 to 52 | 25 |
| 6 | Over 624 to 960 | Over 52 to 80 | 30 |
| 7 | Up to 960 | Up to 80 | 35 |
3. Tax calculation method
Personal income tax on incomes from business, salaries and wages is the total tax calculated by each income level. The tax amount calculated for each income level is equal to the taxed income of the income level multiplied (×) by the corresponding tax rate of that income level.
For convenience of the calculation, the simplified method can be applied according to Appendix No. 01 / PL-TNCN enclosed herewith.
Example 4: Ms C earns 40 million VND from salaries and wages in a month and pays 7% of social insurance, 1.5% of health insurance on her salary. Mrs. C raises 2 children under 18 years old. During the month, Ms. C does not contribute to charity, humanitarian or study promotion. Ms C's personal income tax temporarily paid in the month is calculated as follows:
- Taxable income of Ms C is 40 million VND.
- Ms. C is entitled to the following deductions:
+ Personal deduction: 9 million VND
+ Family deduction for 02 dependents (2 children):
3.6 million VND × 2 = 7.2 million VND
+ Social insurance, health insurance:
40 million VND × (7% + 1.5%) = 3.4 million VND
Total deductions:
9 million VND + 7.2 million VND + 3.4 million VND = 19.6 million VND
- Her taxed income is:
40 million VND - 19.6 million VND = 20.4 million VND
- Tax payable:
Option 1: The payable tax amount is calculated by each level of the Partial Progressive Tariff:
+ Level 1: assessable income up to 5 million VND, 5% tax:
VND 5 million × 5% = VND 0.25 million
+ Level 2: assessable income from over 5 million VND to 10 million VND, 10% tax:
(VND 10 million - VND 5 million) × 10% = VND 0.5 million
+ Level 3: assessable income from over 10 million VND to 18 million VND, 15% tax:
(18 million VND - 10 million VND) × 15% = 1.2 million VND
+ Level 4: assessable income from over 18 million VND to 32 million VND, 20% tax:
(20.4 million VND - 18 million VND) × 20% = 0.48 million VND
- The total tax amount payable by Ms C in the month is:
0.25 million VND + 0.5 million VND + 1.2 million VND + 0.48 million VND = 2.43 million VND
Option 2: Tax payable is calculated according to the simplified method:
Taxed income in the month of 20.4 million VND is taxed income of level 4. The payable personal income tax amount is as follows:
20.4 million VND × 20% - 1.65 million VND = 2.43 million VND
4. Convert tax-exclusive income into taxable income
In case organizations and individuals pay income from salaries or wages to employees as guided in Clause 2, Article 2 of this Circular excluding tax, they must convert tax-exclusive incomes into calculated incomes. tax according to Appendix No. 02 / PL-TNCN enclosed herewith to determine taxable income. As follows:
a) The income converted to taxable income is the actual income received plus (+) the benefits paid by the employer on behalf of the employee (if any) minus (-) the reduction minus. If the rent is included in the replacement payments, the rent included in the converted income is equal to the actual payment but must not exceed 15% of the total taxable income at the unit (not including the rent). .
Formula to determine income as a basis for conversion:
Income as a = Real income received + Payments on behalf of - Deductions
basis for conversion
Inside:
- Actual income is the tax-exclusive salary, wages the employee receives every month.
- Repayments are monetary or non-monetary benefits paid to employees by the employer under the guidance at Point dd, Clause 2, Article 2 of this Circular.
- The deductions include: family deductions; deduction of insurance premiums, voluntary retirement funds; reduce charitable, humanitarian and study promotion contributions under the guidance in Article 9 of this Circular.
Example 5: In 2014, according to the labor contract signed between Mr. D and Company X, Mr. D is paid a monthly salary of 31.5 million VND, in addition to the salary Mr. D is paid by company X instead of the membership fee. sports club 1 million / month. Mr. D must pay compulsory insurance of 1.5 million / month. Company X is responsible for paying personal income tax according to regulations on behalf of Mr. D. During the year, Mr. D only calculates family deduction for himself, has no dependents and does not make charitable or humanitarian contributions, study promotion.
Mr. D's personal income tax payable on a monthly basis is as follows:
- The converted income is:
31.5 million VND + 1 million VND - (9 million VND + 1.5 million VND) = 22 million VND
- Assessable income (determined according to Appendix No. 02 / PL-TNCN) is:
(22 million VND - 1.65 million VND) / 0.8 = 25.4375 million VND
- Mr. D's personal income tax payable (apply the simplified tax calculation method according to Appendix 01 / PL-TNCN) is:
25.4375 million VND × 20% - 1.65 million VND = 3.4375 million VND
Example 6: Suppose that Mr. D in example 5 above is still paid by company X in lieu of the house rent of VND 6 million VND / month. Mr. D's personal income tax payable on a monthly basis is as follows:
Step 1: Determine the rent paid on behalf of the convertible income
- Converted income (exclusive of house rent):
31.5 million VND + 1 million VND - (9 million VND + 1.5 million VND) = 22 million VND
- Assessable income (determined according to Appendix No. 02 / PL-TNCN) is:
(22 million VND - 1.65 million VND) / 0.8 = 25.4375 million VND
- Taxable income (excluding house rent):
25.4375 million VND + 9 million VND + 1.5 million VND = 35.9375 million VND / month
- 15% of total taxable income (excluding house rent):
35.9375 million VND × 15% = 5,390 million VND / month
So the rent included in the converted income is 5,390 million VND / month
Step 2: Determine taxable income
- Income as a basis for converting into taxable income:
31.5 million VND + 1 million VND + 5,390 million VND - (9 million VND + 1.5 million VND) = 27.39 million VND / month
- Assessable income (converted according to Appendix No. 02 / PL-TNCN):
(27.39 million VND - 3.25 million VND) / 0.75 = 32.187 million VND / month
- Personal income tax payable:
32,187 million VND × 25% - 3.25 million VND = 4.97 million VND / month
- Mr. D's monthly taxable income is:
31.5 million VND + 1 million VND + 5,390 million VND + 4.97 million VND = 42,687 million VND / month
Or determined by:
32,187 million VND + 9 million VND + 1.5 million VND = 42,687 million VND / month.
b) In case the individual is subject to tax finalization according to regulations, the taxable income of the year is the total taxable income of each month determined on the basis of converted taxable income. In case an individual has a tax-exclusive income from multiple income-paying organizations, the taxable income of the year is the total taxable income of each month at the income-paying organization in the year.
Example 7: Suppose that Mr. D in example 6 above, in addition to his income at company X, from January 2014 to May 2014, he also has a contract to receive income at company Y of VND 12 million VND / month. Company Y also pays personal income tax on behalf of Mr. D.
Finalization of Mr. D's personal income tax in 2014 is as follows:
- In company X, his annual taxable income is:
42,687 million VND x 12 months = 512,244 million VND
- At company Y:
+ Monthly assessable income (converted according to Appendix No. 02 / PL-TNCN):
(12 million VND - 0.75 million VND) / 0.85 = 13.235 million VND
+ Taxable income for the year at company Y:
13,235 million VND x 5 months = 66,175 million VND
- Mr. D's total taxable income in 2014:
512,244 million VND + 66, 175 million VND = 578,419 million VND
- Monthly assessable income:
(578,419 million VND: 12 months) - (9 million VND + 1.5 million VND) = 37,702 million VND
- Personal income tax payable in the year:
(37,702 million VND × 25% - 3.25 million VND) × 12 months = 74,105 million VND.
5. Tax bases for incomes from lottery agency activities, insurance agents or multi-level sales are taxed income and personal income tax withholding rate. As follows:
a) Taxable income is taxable income from lottery agency activities, insurance agency activities, multi-level sales including agent commissions, bonuses of any kind, grants and other amounts that individuals receive from lottery companies, insurance businesses, and multi-level marketing businesses.
b) Time of determination of a taxable income is the time when the Lottery company, an insurance enterprise or a multi-level marketing business pay income to an individual.
c) Personal income tax withholding rate:
c.1) The Lottery Company shall withhold personal income tax as a proportion of the monthly taxable income of the individual as follows:
Unit: 1,000 VND
| Taxed income / month | Deduction rate |
| Up to 9000 | 0% |
| Over 9000 | 5% |
c.2) The insurance enterprise and multi-level marketing business shall withhold personal income tax according to the ratio of the individual's monthly taxable income as follows:
Unit: 1,000 VND
| Taxed income / month | Deduction rate |
| Up to 9,000 | 0% |
| Over 9,000 to 20,000 |
5% |
| Over 20,000 | 10% |
6. Tax bases for accrued money for purchase of optional insurance, accrued money for paying the voluntary retirement fund are the accrued premium for buying life insurance, other non-compulsory insurance, accumulated payment Voluntary pension fund contributions, purchased or contributed by the employer to employees and a deductible rate of 10%.
Before paying insurance, pensions to individuals, insurance enterprises, and voluntary pension fund management companies are responsible for withholding tax at the rate of 10% on accrued premiums and accrued contributions. Contribute to the voluntary pension fund in proportion to the amount the employer bought or contributed to the employee from July 1, 2013.
Insurance enterprises and voluntary pension fund management companies are responsible for monitoring the portion of life insurance premiums, other non-compulsory insurance premiums, and accumulated contributions to voluntary pension funds by employers. purchasing or making contributions to employees as a basis for personal income tax.
Article 8. Determination of taxable income from business, salaries and wages
1. Determination of taxable income from business
Taxable income from business is determined by the revenue minus reasonable expenses directly related to the generation of taxable income in the tax period.
Taxable income from business in each specific case is determined as follows:
a) For the business person who has not followed the law on accounting, invoices and vouchers.
a.1) For the business person that does not follow the invoice and voucher accounting regime, whose revenue, expenses and taxable income cannot be determined (hereinafter referred to as the business person paying tax by the direction legal).
a.1.1) If the business person pays flat tax, the taxable income is determined as follows:
Taxable income = Flat revenue in the tax period x Fixed rate of taxable income
in the tax period
Inside:
- The flat revenue is determined according to the business individual's declaration documents, the tax agency's database, the results of the investigation of actual revenue of the tax agency and the consultation of the Tax Advisory Council. wards.
- The fixed rate of taxable income is determined according to the instructions at Point a.4, Clause 1 of this Article.
a.1.2) For the businessperson that pays flat tax and uses invoices.
a.1.2.1) If the businessperson pays flat tax using invoice book, if the revenue on invoice is higher than the flat revenue in the quarter, in addition to the tax payment based on the flat revenue, it must also pay additional personal income tax for the revenue on the invoice is higher than the flat revenue.
a.1.2.2) If the business person that pays flat tax uses invoices sold by the tax authority by number, then declare and pay personal income tax at the rate of 10% of the taxable income. tax of each incurred.
The taxable income of each generation is determined as follows:
Taxable income = Revenue for calculating x Fixed rate of taxable income
each time it arises taxable income each time it arises
Inside:
- The turnover for calculating taxable income each time is generated is determined according to contracts and sale and purchase vouchers.
- The fixed rate of taxable income is determined according to the instructions at Point a.4, Clause 1 of this Article.
a.1.2.3) If the business person that pays flat tax and uses invoice book and claims a refund of personal income tax, the taxable turnover of the year is determined as follows:
- If the revenue on invoices for the whole year is lower than the flat revenue, the taxable revenue of the year is the flat revenue.
- If the revenue on invoices for the whole year is higher than the flat revenue, the taxable revenue of the year is the revenue on invoices.
a.2) If the business person can only account the revenue and cannot account expenses, the taxable income is determined as follo
Taxable income = Turnover for calculating x Fixed rate of taxable + Other taxable income
in the tax period taxable income in the tax period income in the tax period
Inside:
- Turnover for calculating taxable income in a tax period is determined according to the instructions at Point b.1, Clause 1 of this Article.
- The fixed rate of taxable income is determined according to the instructions at Point a.4, Clause 1 of this Article.
- Other taxable incomes are those earned in the course of business, including: fines for contract breaches; fines for late payment; bank interest in the payment process; interest on sales with deferred payment or installment payment; interest from the sale of fixed assets; sales of scrap, rejects and other taxable income.
a.3) For the mobile business (shipment) and non-business individuals having activities of selling goods or providing services, an invoice is required to deliver to the customer.
Mobile business individuals (shipment) and non-business individuals having activities of selling goods or providing services need to have invoices to hand over to customers to declare and pay personal income tax at the rate of 10 % calculated on the taxable income of each occurrence.
Taxable income of each generation is determined similar to that of a businessperson paying flat tax using invoices sold by tax authorities by number according to instructions in Item a.1.2.2. , point a, clause 1, this Article.
a.4) Proportion of taxable income
Ratio of assessable taxable income to turnover applicable to business individuals who have not followed the law on accounting, invoices and documents; mobile business individuals and non-business individuals as follows:
| Work | Fixed taxable income rate (%) |
| Distributing and supplying goods | 7 |
| Construction services and construction do not include materials | 30 |
| Production, transportation, services associated with goods, construction including raw materials | 15 |
| Other business activities | 12 |
For individuals conducting multiple business lines, the ratio of the main business activity will apply. In case an individual actually operates in many lines of business and cannot identify the main business line, the ratio of "Other business activities" shall apply.
b) For a business person that fully complies with the invoice and voucher accounting, the taxable income is determined as follows:
Taxable income = Turnover for calculating - Reasonable expenses + Other taxable income
in the tax period taxable income in the tax period are deducted in the tax period in the tax period
b.1) Turnover for calculating taxable income in the tax period
Turnover for calculating taxable income from business is the total proceeds from sales of goods, processing costs, commissions, supply of goods and services arising in the tax period, including subsidies and surcharges. and additional payments to which the business person is entitled, regardless of whether the money has been collected or not, is determined according to the accounting books.
b.1.1) Time of revenue determination to calculate taxable income is as follows:
b.1.1.1) For goods sale, it is the time of transferring the right to own or use the goods or the time of making the sale invoice.
b.1.1.2) For service provision, it is the time when the provision of services is completed or the time the service invoice is issued. For activities of leasing houses, land use rights, water surface and other assets, it is the effective date of the lease contract.
In case the time of making an invoice is before the time of transferring the ownership of goods (or completed services), the time of determining revenue is calculated according to the time of making the invoice or vice versa.
b.1.2) The revenue used to calculate taxable income in some cases is determined as follows:
b.1.2.1) For goods sold on installment payment determined by the selling price of goods paid in lump sum, excluding interest on installment.
b.1.2.2) For goods and services sold on deferred payment, it is the one-off payment of goods or services, excluding late payment interest.
In case the payment under the installment or deferred sale contract lasts for many tax periods according to turnover is the amount receivable from the buyer in the tax period excluding interest on installment or deferred payment from time to time. term specified in the contract.
Costs shall be determined when determining taxable incomes on goods sold on installment or deferred payment according to the principle that expenses must be consistent with turnover.
b.1.2.3) For goods and services made by a business person for exchange, donation, gift, equipment or bonus to employees, the revenue is determined according to the selling price of goods or services. cases of the same or equivalent type on the market at the time of exchanging, presenting, gifting, equipping or rewarding the employee.
b.1.2.4) For goods and services made by a business person to serve the individual's production and business process, the revenue is the cost of the production of the goods that service.
b.1.2.5) For goods processing, the revenue is the total proceeds from the processing including wages, fuel, power, auxiliary materials and other expenses serving goods processing.
b.1.2.6) For agent receipt, consignment for sale at the prescribed price of the individual conducting agent delivery, consignment to enjoy the commission, the revenue is the commission enjoyed under the agency contract, signed send goods.
b.1.2.7) For asset lease, revenue is determined under the contract regardless of whether the money has been received or not.
Where the lessee pays the rent for many years in advance, the revenue for calculating taxable income shall be distributed over the number of years paid in advance or determined by the revenue of lump-sum payment.
b.1.2.8) For construction and installation activities, it is the value of the work, the value of the work item or the value of the work volume tested and accepted. In case of construction and installation exclusive of raw materials, machinery and equipment, the taxable turnover is the amount earned from construction and installation activities excluding the value of raw materials, machinery and equipment.
In case of construction and installation involving raw materials, machinery and equipment, the taxable turnover is the amount of money from construction and installation activities including the value of raw materials, machinery and equipment.
b.1.2.9) For transport is the total revenue from transporting passengers, luggage and goods generated in the tax period.
b.2) Reasonable expenses are deducted
Reasonable deductible expenses are actually incurred expenses, directly related to the individual's production and business activities and have sufficient invoices and vouchers as prescribed by law. As follows:
b.2.1) Salary, wages, allowances, allowances, remuneration and other costs paid to the employee under the labor contract, service contract or collective labor agreement under regulations of the Labor Code.
Wages and wages do not include salaries and wages of individuals who are head of business or members named in business registration certificates of business groups.
The clothes paid to employees must not exceed 5,000,000 VND / person / year. In case of paying outfits both in cash and in kind to the employee, the maximum amount to be included in deductible expenses when determining taxable income does not exceed 5,000,000 VND / person / year. For business lines of particular nature, such expenses shall comply with regulations of the Ministry of Finance.
b.2.2) Expenses for raw materials, materials, fuel, energy, and goods actually used in the production and trading of goods and services related to the generation of revenue and taxable income in the period is calculated according to the reasonable consumption rate, the actual out-of-stock price shall be determined by business households and individuals and take responsibility before law.
Where some of the raw materials, materials, fuels and goods have been approved by the State, the consumption norms set by the State shall apply.
Any loss of materials, assets, capital or goods shall not be included in the value of such loss as reasonable expenses, except for losses caused by natural disasters, fires, epidemics and force majeure. Other resistance is not compensated.
Materials and goods for both personal consumption and business use, shall only be included in the cost of the part used in business.
b.2.3) Expenses for depreciation, maintenance and maintenance of fixed assets used for the production and trading of goods and services. As follows:
b.2.3.1) Fixed assets depreciated and included in reasonable expenses must meet the following conditions:
Fixed assets are used for production and business.
- Fixed assets must have full invoices, documents and other legal papers proving that the fixed asset belongs to the business individual.
Fixed assets must be managed, monitored and recorded in the accounting books of business individuals according to the current accounting and management regime.
Particularly, depreciation for fixed assets being passenger cars with 9 seats or less is not included in the reasonable expense.
b.2.3.2) The rate of depreciation of fixed assets is calculated into reasonable expenses according to regulations on management, use and depreciation of fixed assets.
b.2.3.3) Fixed assets which have been fully depreciated but still used for production and business are not amortized.
For fixed assets both used for business purposes and for other purposes, the depreciation cost is included in the reasonable cost corresponding to the level of using the asset for business.
b.2.4) Interest expenses on loans for goods and service production and business directly related to the generation of revenue and taxable income.
The loan interest rate is the real interest rate based on the loan contract of credit institutions, foreign bank branches or economic organizations. In case of borrowing from entities other than credit institutions, foreign bank branches or economic organizations, interest payment expenses are based on loan contracts but the maximum amount must not exceed 1.5 times. the basic interest rate announced by the State Bank of Vietnam at the time of borrowing.
The above loan interest expenses do not include loan interests to contribute capital to establish business establishments' establishments.
b.2.5) Administrative expenses, including:
b.2.5.1) Electricity, water, telephone, stationery, audit, legal services, design, property insurance, money Technical services and other services purchased from outside.
b.2.5.2) Expenses for non-fixed assets such as purchase and use of technical documents, patents, technology transfer licenses, trade marks are allocated add gradually to business costs.
b.2.5.3) Rent of fixed assets operating under the lease. In case of paying the rental of fixed assets in lump sum for many years, the rent shall be gradually distributed into production and business costs according to the number of years of using the fixed asset.
b.2.5.4) Expenses for other services purchased from outside or outsourced to directly serve the production and trading of goods and services with vouchers and invoices according to regulations.
b.2.5.5) Expenditures on consumption of goods and services, including costs of preservation, packaging, transportation, loading and unloading, warehouse rental, product and goods warranty.
b.2.6) Taxes, fees and charges, payable land rent relating to the production and trading of goods and services in accordance with the law (except personal income tax, tax deducted input value and other taxes, fees, charges and revenues not included in the expenses as prescribed by relevant law), including:
b.2.6.1) License tax, export tax, import tax, excise tax, royalties tax, agricultural land use tax, non-agricultural land use tax, environmental protection tax, money land rent, water surface rent.
b.2.6.2) Value added tax that is required by law to be included in expenses.
b.2.6.3) Charges and fees that business establishments actually remit into the State budget in accordance with the law on fees and charges.
b.2.7) Allowances for workers on business trips (excluding travel and accommodation) up to twice the prescribed level under the guidance of the Ministry of Finance for civil servants and public employees government.
Travel expenses and accommodation rental for business travelers, if they have all legal invoices and documents as prescribed, shall be included in deductible expenses when determining taxable income. In case the business individual has a package of travel and accommodation expenses for the employee, they shall be included in deductible expenses for expenses for travel and accommodation according to the Finance Ministry's regulations for public employees State function.
b.2.8) Other expenses directly related to the generation of revenue and taxable income with vouchers and invoices according to the prescribed regime.
b.3) Other taxable income
Other taxable incomes are those earned in the course of business, including: fines for contract breach; fines for late payment; bank interest in the payment process; interest on sales with deferred payment or installment payment; interest from the sale of fixed assets; sales of scrap, rejects and other taxable income.
c) For groups of business individuals
In case more than one person is named in the same business registration certificate, even in the case of house lease or space lease, with many persons named in the certificate of land use right, house and property ownership other land-attached (collectively referred to as group of business individuals), after having determined the taxable income from business under the instructions at Points a and b, Clause 1 of this Article, the taxable income of each Individuals are divided in one of the following ways:
c.1) According to the proportion of capital contribution of each individual stated in the business registration certificate.
c.2) By agreement between individuals.
c.3) According to the average income per capita in case the Business Registration Certificate does not determine the capital contribution ratio or there is no agreement on the division of income among individuals.
On the basis of taxable income of each individual engaged in business determined according to the above division principles, each individual may calculate deductions under the guidance in Article 9 of this Circular to determine revenue. Taxable entry and personal income tax payable separately for each individual.
2. Taxable income from salaries and wages
a) Taxable income from salaries or wages is determined by the total amount of salaries, salaries, remuneration, and other incomes of salary or wage nature received by the taxpayer in the period. tax according to the instructions in Clause 2, Article 2 of this Circular.
b) Time of determination of taxable income.
Time of determination of a taxable income with respect to income from salaries or wages is the time when an organization or individual pays income to a taxpayer.
Particularly, the time of determination of a taxable income for the cumulative purchase premium of insurance products under the guidance at Point dd.2, Clause 2, Article 2 of this Circular is the time when the insurer or management company. The intellectual fund voluntarily pays the insurance premium.
3. A taxable income for an individual who both has income from business and income from wages or salaries is the total taxable income from business and taxable income from salaries and wages.
The deductions guided in this Article are the amounts deducted from the individual's taxable income before determining taxable income from salaries, wages or business. As follows:
1. Reduction based on family circumstances
Under the provisions of Article 19 of the Law on Personal Income Tax; Clause 4, Article 1 of the Law amending and supplementing a number of articles of the Law on personal income tax; Article 12 of Decree No. 65/2013 / ND-CP, the family circumstances reduction is made as follows:
a) Family deduction is the amount deducted from the taxable income before tax calculation for income from business, income from salaries and wages of taxpayers being resident individuals.
In case the resident individual has both income from business and income from salaries or wages, a one-time family deduction shall be calculated from the total income from business and wages or wages.
b) Level of family deduction
b.1) For a taxpayer, it is 9 million VND / month, 108 million VND / year.
b.2) For each dependent, it is 3.6 million VND / month.
c) Principles of calculating family circumstances
c.1) Personal deduction for the taxpayer:
c.1.1) If a taxpayer has multiple sources of income from wages, salaries, or business, the taxpayer chooses to calculate family deduction for himself at one place at a time (fully monthly).
c.1.2) Foreigners being individuals residing in Vietnam are entitled to family deduction for themselves from January or from month to Vietnam in case the individual is present in Vietnam for the first time until month terminate the labor contract and leave Vietnam in the tax year (fully calculated monthly).
Example 8: Mr. E is a foreigner who comes to work in Vietnam continuously from March 1, 2014. On November 15, 2014, Mr. E terminates the labor contract and returns home. From March 1, 2014 to his home country, Mr. E has been present in Vietnam for over 183 days. Thus, in 2014, Mr. E is a resident individual and is entitled to a personal deduction from January to the end of November 2014.
Example 9: Mrs. G is a foreigner who comes to Vietnam for the first time on September 21, 2013. On June 15, 2014, Ms. G terminated her labor contract and left Vietnam. During the period from September 21, 2013 to June 15, 2014, Ms. G was present in Vietnam for 187 days. Thus, in the first tax year (from September 21, 2013 to September 20, 2014), Ms. G is considered a resident of Vietnam and is entitled to a family deduction for herself from September 2013 to the end of June 2014.
c.1.3) If a personal tax year has not deducted for himself or reduced for himself for less than 12 months, a full 12 months deduction may be made when making tax finalization according to regulations.
c.2) Family deductions for dependents
c.2.1) A taxpayer is entitled to family allowances for dependents if the taxpayer has registered tax and is issued a tax identification number.
c.2.2) When a taxpayer registers family deduction for a dependent, he or she will be assigned a tax identification number by the tax authority to the dependent and may temporarily calculate family deduction in the year from the date of registration. Dependents who have registered for family circumstance-based reduction before the effective date of this Circular may continue to enjoy family family deduction until a tax identification number is granted.
c.2.3) If the taxpayer has not yet calculated family allowances for his dependents in the tax year, the dependent deduction is calculated from the month when the nurturing obligation arises when the taxpayer performs tax finalization. and registered for family deduction for dependents. For other dependents as guided in Item d.4, point d, Clause 1 of this Article, the deadline for registration of family deduction is December 31 of the tax year, past the above time limit, Family deductions are not counted for that tax year.
c.2.4) Each dependent is entitled to one deduction only for one taxpayer in the tax year. In cases where many taxpayers have the same nurturing dependents, the taxpayer will negotiate by themselves to apply for family deduction for a taxpayer.
d) Dependents include:
d.1) Children: natural, legally adopted, illegitimate children, stepchildren, stepchildren, specifically:
d.1.1) Children under 18 years old (calculated by month).
Example 10: A child of Mr. H born on July 25, 2014 is counted as a dependent from July 2014.
d.1.2) Children 18 years of age or older are disabled and incapable of working.
d.1.3) Children who are studying in Vietnam or abroad at university, college, professional high school, vocational training, including children 18 years of age or older who are studying in general education (including during waiting time for university examination results from June to September of grade 12) have no income or have a monthly average income of the year from all income sources not exceeding 1,000,000 VND.
d.2) The taxpayer's spouse satisfies the conditions specified at Point dd, Clause 1 of this Article.
d.3) Natural father and mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; Legal adoptive parents and adoptive parents of taxpayers that satisfy the conditions specified at Point dd, Clause 1 of this Article.
d.4) The helpless other individuals that the taxpayer are directly nurturing and who satisfy the conditions specified at Point dd, Clause 1 of this Article include:
d.4.1) Siblings, siblings and younger siblings of the taxpayer.
d.4.2) Grandfather, grandmother; grandfather grandmother; aunt, uncle, uncle of the taxpayer.
d.4.3) The taxpayer's nephews include: children of biological brothers, sisters and brothers.
d.4.4) Other person who must be directly nurtured in accordance with the law.
đ) An individual counted as a dependent according to details d.2, d.3, d.4, point d, clause 1 of this Article must meet the following conditions:
đ.1) The person of working age must satisfy the following conditions:
đ.1.1) The person is disabled and incapable of working.
đ.1.2) Have no income or have a monthly average income from all sources not exceeding 1,000,000 VND.
đ.2) The person outside the working age must have no income or have an average monthly income of the year from all income sources not exceeding 1,000,000 VND.
e) Persons with disabilities, incapable of working as instructed in Item dd.1.1, Point dd, Clause 1 of this Article are those governed by the law on persons with disabilities, and sick people do not have working capacity (such as AIDS, cancer, chronic kidney failure, ...).
g) Documents proving dependents
g.1) For children:
g.1.1) Children under 18 years of age: Documents to prove are a photocopy of the birth certificate and a photocopy of the identity card (if any).
g.1.2) Children aged 18 years and over are disabled, incapable of working, documents to prove include:
g.1.2.1) Copy of birth certificate and ID card photocopy (if any).
g.1.2.2) Photocopy of Certificate of disability in accordance with the law on People with disabilities.
g.1.3) The child is studying at the educational levels as instructed in Item d.1.3, Point d, Clause 1 of this Article, and the supporting documents include:
g.1.3.1) Copy of the Birth Certificate.
g.1.3.2) A photocopy of the Student ID card or affidavit certified by the school or other document proving that he / she is attending a university, college, professional high school, high school or school job.
g.1.4) In case of an adopted child, an illegitimate child or stepchild, in addition to the papers mentioned above, the documents proving the relationship are required, such as a copy of the decision. decision on recognition of adoption, decision on recognition of fathers, mothers and children of competent state agencies ...
g.2) As for spouse, supporting documents include:
- A copy of the identity card.
- A copy of the household registration book (proving the husband and wife relationship) or a copy of the Marriage Certificate.
In case the spouse is of working age, in addition to the papers mentioned in the dossier, there should be additional documents proving that the dependents are incapable of working, such as a copy of the Certificate of disability as prescribed by Disability law for persons with disabilities who cannot work, photocopies of medical records for people with incapable diseases (such as AIDS, cancer, chronic kidney failure, ..) .
g.3) For natural father, natural mother, father-in-law, mother-in-law (or father-in-law, mother-in-law), step-father, step-mother, legal adoptive father, and lawful adoptive mother, a dossier of proof includes:
- A copy of the identity card.
- Legal papers to determine the dependents' relationship with the taxpayer such as a copy of the household registration book (if they have the same household registration book), birth certificate, decision recognizing the recognition of a parent or child competent State agency.
If the person is of working age, in addition to the above papers, the dossier proving that he / she is disabled or incapable of working is required, such as a copy of the Certificate of disability as prescribed by law. Disability law for people with disabilities who cannot work, medical records for people with incapable diseases (such as AIDS, cancer, chronic kidney failure, ..).
Example 10: A child of Mr. H born on July 25, 2014 is counted as a dependent from July 2014.
d.1.2) Children 18 years of age or older are disabled and incapable of working.
d.1.3) Children who are studying in Vietnam or abroad at university, college, professional high school, vocational training, including children 18 years of age or older who are studying in general education (including during waiting time for university examination results from June to September of grade 12) have no income or have a monthly average income of the year from all income sources not exceeding 1,000,000 VND.
d.2) The taxpayer's spouse satisfies the conditions specified at Point dd, Clause 1 of this Article.
d.3) Natural father and mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; Legal adoptive parents and adoptive parents of taxpayers that satisfy the conditions specified at Point dd, Clause 1 of this Article.
d.4) The helpless other individuals that the taxpayer are directly nurturing and who satisfy the conditions specified at Point dd, Clause 1 of this Article include:
d.4.1) Siblings, siblings and younger siblings of the taxpayer.
d.4.2) Grandfather, grandmother; grandfather grandmother; aunt, uncle, uncle of the taxpayer.
d.4.3) The taxpayer's nephews include: children of biological brothers, sisters and brothers.
d.4.4) Other person who must be directly nurtured in accordance with the law.
dd) An individual counted as a dependent according to details d.2, d.3, d.4, point d, clause 1 of this Article must meet the following conditions:
dd.1) The person of working age must satisfy the following conditions:
dd.1.1) The person is disabled and incapable of working.
dd.1.2) Have no income or have a monthly average income from all sources not exceeding 1,000,000 VND.
dd.2) The person outside the working age must have no income or have an average monthly income of the year from all income sources not exceeding 1,000,000 VND.
e) Persons with disabilities, incapable of working as instructed in Item dd.1.1, Point dd, Clause 1 of this Article are those governed by the law on persons with disabilities, and sick people do not have working capacity (such as AIDS, cancer, chronic kidney failure, ...).
g) Documents proving dependents
g.1) For children:
g.1.1) Children under 18 years of age: Documents to prove are a photocopy of the birth certificate and a photocopy of the identity card (if any).
g.1.2) Children aged 18 years and over are disabled, incapable of working, documents to prove include:
g.1.2.1) Copy of birth certificate and ID card photocopy (if any).
g.1.2.2) Photocopy of Certificate of disability in accordance with the law on People with disabilities.
g.1.3) The child is studying at the educational levels as instructed in Item d.1.3, Point d, Clause 1 of this Article, and the supporting documents include:
g.1.3.1) Copy of the Birth Certificate.
g.1.3.2) A photocopy of the Student ID card or affidavit certified by the school or other document proving that he / she is attending a university, college, professional high school, high school or school job.
g.1.4) In case of an adopted child, an illegitimate child or stepchild, in addition to the papers mentioned above, the documents proving the relationship are required, such as a copy of the decision. decision on recognition of adoption, decision on recognition of fathers, mothers and children of competent state agencies ...
g.2) As for spouse, supporting documents include:
- A copy of the identity card.
- A copy of the household registration book (proving the husband and wife relationship) or a copy of the Marriage Certificate.
In case the spouse is of working age, in addition to the papers mentioned in the dossier, there should be additional documents proving that the dependents are incapable of working, such as a copy of the Certificate of disability as prescribed by Disability law for persons with disabilities who cannot work, photocopies of medical records for people with incapable diseases (such as AIDS, cancer, chronic kidney failure, ..) .
g.3) For natural father, natural mother, father-in-law, mother-in-law (or father-in-law, mother-in-law), step-father, step-mother, legal adoptive father, and lawful adoptive mother, a dossier of proof includes:
- A copy of the identity card.
- Legal papers to determine the dependents' relationship with the taxpayer such as a copy of the household registration book (if they have the same household registration book), birth certificate, decision recognizing the recognition of a parent or child competent State agency.
If the person is of working age, in addition to the above papers, the dossier proving that he / she is disabled or incapable of working is required, such as a copy of the Certificate of disability as prescribed Disability law for people with disabilities who cannot work, medical records for people with incapable diseases (such as AIDS, cancer, chronic kidney failure, ..). g.4) For other individuals as guided in Item d.4, point d, Clause 1 of this Article, the supporting documents include:
g.4.1) A photocopy of the identity card or birth certificate.
g.4.2) Legal papers to determine nurturing responsibility in accordance with the law.
In case the dependents are of working age, in addition to the above papers, the dossier proving the inability to work is required, such as a copy of the Certificate of disability in accordance with the law on People with disabilities for people with disabilities who are incapable of working, copies of medical records for people with incapable diseases (such as AIDS, cancer, chronic kidney failure, ...).
The legal papers specified in Item g.4.2, Point g, Clause 1, this Article are any legal papers that determine a taxpayer's relationship with a dependent such as:
- Copies of papers determining nurturing obligations as prescribed by law (if any).
- A copy of household registration book (if there is the same household registration book).
Copy of dependent's temporary residence registration (if not in the same household registration book).
- A taxpayer's self-declaration, made according to the form enclosed with a written guidance on tax administration, certified by the People's Committee of the commune where the taxpayer resides, that his or her dependents are living with.
- A taxpayer's self-declaration, made according to the form enclosed with a written guidance on tax administration, certified by the People's Committee of the commune where the dependent is residing that the dependent is currently residing in the locality. Phuong and no one to take care of (if not living with).
g.5) The resident who is a foreigner, if there is no dossier as instructed for each specific case above, there must be similar legal documents to prove his dependents.
g.6) For taxpayers working in economic organizations, administrative and non-business agencies with a parent, wife (or husband), children and other persons counted as dependents If declared in the taxpayer's resume, the documents proving the dependent comply with the instructions in details g.1, g.2, g.3, g.4, g.5, point g, clause 1, This or just the dependent registration declaration form issued together with the tax administration instruction document certified by the head of the unit on the left of the declaration.
The head of the unit is only responsible for the following contents: full name of the dependent, year of birth and relationship with the taxpayer; For other contents, the taxpayer will declare and be responsible.
h) Declaration of deduction for dependents
h.1) Taxpayers with income from business, wages or wages of 9 million VND / month or less are not required to declare dependents.
h.2) The taxpayer whose income from business, salary or wage is over 09 million VND / month in order to receive family allowances for dependents shall declare as follows:
h.2.1) For taxpayers earning income from wages or salaries
h.2.1.1) Registration of dependents
h.2.1.1.1) First registration of dependents:
Taxpayers with income from salaries or wages register their dependents according to the form issued together with guiding documents on tax administration and submit two (02) copies to the income payers. just calculate deductions for dependents.
Income-paying organizations and individuals keep one (01) registration and submit one (01) registration to the tax agency directly managing them at the same time as the personal income tax return for that tax period. in accordance with the law on tax administration.
Particularly for individuals directly declaring tax with tax agencies, individuals shall submit one (01) registration of dependents according to the form issued together with guiding documents on tax administration to the tax agency directly managing the group. Income payers are at the same time filing personal income tax returns for that tax period in accordance with the Law on Tax Administration.
h.2.1.1.2) Registration when dependents change:
When there are changes (increase, decrease) in the dependents, the taxpayer shall make additional declaration of information about the change of the dependent in the form issued together with the instruction on tax administration and submit it to the organization. income payers or tax authorities for taxpayers that are required to declare tax directly with tax authorities.
h.2.1.2) Location and deadline for submission of documents proving dependents:
- The location for filing a dependent claim is where the taxpayer submits the registration of dependents.
The income payer is responsible for keeping records of the dependents and presenting them when the tax authority does tax inspection.
- Deadline for submission of dependent documents: within three (03) months from the date of submission of declaration for dependent registration (including the case of registration for change of dependents).
Past the above filing deadline, if taxpayers fail to submit documents proving their dependents will not be deducted for their dependents and must adjust the payable tax amount.
h.2.2) For taxpayers with income from business
h.2.2.1) Registration of dependents
h.2.2.1.1) The business person pays tax by the method of declaration and registration of dependents according to the form issued with the instruction on tax administration and submits it to the tax authority directly managing it together with the declaration temporary tax payment. When there are changes (increase, decrease) in the dependents, the taxpayer shall make additional declaration of information about the change of the dependent in the form enclosed with the instruction on tax administration and submit it to the duty tax agency.
h.2.2.1.2) The business person that pays flat tax shall declare family circumstances for dependents according to the flat tax return.
h.2.2.2) Deadline for submission of a dependent document: within three (03) months from the date of declaration of family circumstances (including cases of increase or decrease of dependents or recent menstruation joint).
h.2.2.3) Past the above deadline, if the taxpayer fails to submit the documents proving that the dependent will not be deducted for the dependents and must adjust the payable tax amount. For businesspeople paying flat tax, they must adjust the presumptive tax rate.
i) Taxpayers only have to register and submit supporting documents for each dependent only once during the period of family deduction calculation. In case taxpayers change their workplace or business place, they will register and submit documents proving their dependents like the first registration of their dependents according to the instructions in Item h.2.1.1.1, point h, Clause 1, this Article.
2. Deductions for insurance premiums, Voluntary pension fund
a) Insurance premiums include: social insurance, health insurance, unemployment insurance, and occupational liability insurance for a number of occupations requiring compulsory insurance.
b) Voluntary pension fund contributions
The level of contribution to the voluntary pension fund is deducted from the actual taxable income, but must not exceed one (01) million VND / month (12 million VND / year) for the employees participating in the products. voluntary retirement products under the guidance of the Ministry of Finance, including the case of joining multiple funds. The basis for determining deductible income is a photocopy of payment (or fee payment) receipt issued by the voluntary retirement fund.
Example 11: Mr. Y contributes to the Voluntary Pension Fund through entering into an insurance contract with insurance companies or enterprises that are allowed to provide voluntary retirement products. If these voluntary retirement products comply with the regulations of the Ministry of Finance and are approved by the Ministry of Finance, Mr. Y will be deducted from his taxable income as follows:
- Assuming that the contribution to the employee's voluntary pension fund is 800,000 VND / month, equivalent to 9,600,000 VND / year, the deduction from the taxable income is 9,600,000 VND / year.
- Assuming the contribution to the voluntary pension fund is 2,000,000 VND / month, equivalent to 24,000,000 VND / year, the contribution to the voluntary pension fund of the employee will be deducted is 12,000,000 VND. /year.
c) Foreigners being individuals residing in Vietnam, Vietnamese being resident individuals but working abroad earning incomes from business, salaries or wages abroad have participated in paying amounts. Compulsory insurance according to the regulations of the country where the individual resides or works similarly to the provisions of Vietnamese law such as social insurance, health insurance, unemployment insurance, liability insurance For compulsory occupation and other compulsory insurances (if any), such insurance premiums may be deducted from taxable income from business, salary or wages when calculating personal income tax.
Foreigners and Vietnamese individuals paying the above insurance premiums abroad will be temporarily deducted from their income for tax deduction in the year (if any) and calculated according to the official number if individuals make tax finalization according to regulations. If there is no document to temporarily deduct during the year, a lump-sum deduction will be made upon tax finalization.
d) Insurance contributions and contributions to the Voluntary Pension Fund of a year are deducted from the taxable income of that year.
dd) Documents proving that the above deducted insurance is a photocopy of the receipt of the insurance organization or the income paying organization's confirmation of the deductible, paid insurance amount (school income payers to pay instead).
3. Deductions for charitable, humanitarian and study promotion contributions
a) Charity, humanitarian and study promotion contributions are deducted from taxable incomes from business incomes, pre-tax salaries or wages of resident taxpayers, including:
a.1) Contribution to organizations and facilities that care for and nurture children in extremely difficult circumstances, the disabled, the elderly without support.
Establishment organizations to take care of children in difficult circumstances and people with disabilities must be established and operate in accordance with Decree No. 68/2008 / ND-CP dated May 30, 2008 of the Government. Government regulations on conditions and procedures for the establishment, organization, operation and dissolution of social protection establishments; Decree No. 81/2012 / ND-CP dated October 8, 2012 of the Government amending and supplementing Decree 68/2008 / ND-CP dated May 30, 2008 of the Government stipulating conditions and procedures for the establishment, organization, operation and dissolution of social protection establishments and the Government's Decree No. 109/2002 / ND-CP of December 27, 2002 amending and supplementing a number of articles of Decree No. 195 / CP dated December 31, 1994 of the Government detailing and guiding the implementation of a number of articles of the Labor Code regarding working time and rest time.
Documents to prove contributions to organizations and facilities that care for and nurture children in extremely difficult circumstances, disabled people, and helpless elderly are legal receipts of the organization's legal collection. department.
a.2) Contributions to charity funds, humanitarian funds and study promotion funds that are established and operated in accordance with the Government's Decree No. 30/2012 / ND-CP dated April 12, 2012 organization and operation of social funds, charity funds, activities for charity, humanitarian, study promotion, non-profit purposes and regulations in other documents related to management. , using funding sources.
Documents proving charitable, humanitarian or study promotion contributions are legal receipts issued by organizations, central or provincial funds.
b) Charity, humanitarian and student encouragement contributions earned in a year shall be deducted from the taxable income of that tax year, if the deduction is not fully deducted, it shall not be deducted from the taxable income of the tax year. next. The maximum deduction level must not exceed the taxed income from salaries, wages and business income of the tax year in which the humanitarian donation or study promotion arises.
Article 10. Tax bases for incomes from capital investment
Tax bases for incomes from capital investment are taxed income and tax rate.
1. Taxed income
Taxed income from capital investment is taxable income that an individual receives under the guidance in Clause 3, Article 2 of this Circular.
2. The tax rate for income from capital investment is applied according to the Full Tariff at the rate of 5%.
3. Time of determination of taxed income
Time of determination of a taxed income with respect to an income from capital investment is the time when an organization or individual pays income to a taxpayer.
Particularly, the time of determination of taxed income in some cases is as follows:
a) For income from the added value of capital contribution as guided at Point d, Clause 3, Article 2 of this Circular, the time of determination of income from capital investment is the time when an individual actually receives income when enterprise dissolution, operating model transformation, division, separation, merger or consolidation of enterprises or upon capital withdrawal.
b) For income from profits recorded in capital increase as guided at Point g, Clause 3, Article 2 of this Circular, the time of determination of income from capital investment is the time when individuals transfer capital or withdraw capital.
c) For income from dividends paid in shares as guided at Point g, Clause 3, Article 2 of this Circular, the time of determination of income from capital investment is the time when an individual transfers shares.
d) In case an individual receives income from overseas capital investment in any form, the time of determination of taxable income is the time when he or she receives the income.
4. Tax calculation method
Personal income tax payable = Taxable income x Tax rate of 5%
Article 11.- Tax bases for incomes from capital transfer
1. For income from transferring contributed capital
Tax bases for incomes from the transfer of contributed capital amounts are taxed income and tax rate.
a) Taxed income: assessable income from the transfer of contributed capital is determined by the transfer price minus the purchase price of the capital transfer and reasonable expenses related to the generation of income from capital transfer. .
In case the enterprise does the accounting in foreign currency, the individual transfers the contributed capital in foreign currency, the transfer price and the purchase price of the transferred capital amount shall be determined in the foreign currency. In case the enterprise does the accounting in Vietnam dong, the individual transfers the contributed capital in foreign currency, the transfer price must be determined in Vietnam dong at the average exchange rate on the inter-bank foreign currency market due to State Bank of Vietnam announced at the time of transfer.
a.1) Transfer price
Transfer price is a sum of money an individual receives under a capital transfer contract.
If the transfer contract does not specify the payment price or the payment price stated in the contract is incompatible with the market price, the tax agency may fix the transfer price in accordance with the law on tax administration.
a.2) Purchase price
The purchase price of a capital transfer is the value of the contributed capital amount at the time of capital transfer.
Value of capital contribution at the time of transfer includes: value of capital contribution to establish an enterprise, value of capital contribution of additional contributions, value of capital from redemption, value of capital from recorded profits capital increase. As follows:
a.2.1) For the capital contribution to establish an enterprise, it is the value of the capital contribution at the time of capital contribution. The value of capital contribution is determined on the basis of accounting books, invoices and vouchers.
a.2.2) For additional capital contribution, it is the value of the additional capital contribution at the time of additional capital contribution. The value of the additional capital contribution is determined on the basis of accounting books, invoices and vouchers.
a.2.3) For capital repurchased, it is the value of such capital at the time of purchase. The purchase price is determined according to the capital contribution redemption contract. In case the contract for repurchase of contributed capital does not have a settlement price or the payment price stated in the contract is not consistent with the market price, the tax agency may fix the purchase price in accordance with the law on tax administration.
a.2.4) For the capital portion from the profit recorded to increase capital, it is the value of the profit recorded to increase capital.
a.3) Relevant expenses deducted when determining taxable income of capital transfer are actually reasonable costs incurred in connection with the generation of income from capital transfer, with invoices. Valid documents as prescribed, specifically as follows:
a.3.1) Costs for carrying out necessary legal procedures for the assignment.
a.3.2) Fees and charges paid by the assignor to the budget when carrying out the transfer procedure.
a.3.3) Other expenses directly related to the capital transfer.
b) Tax rate
The personal income tax rate for income from capital transfer is subject to the Full Tariff at 20%.
c) Time of determination of taxable income
Time of determination of a taxed income is the time when a capital transfer contract takes effect. Particularly for cases of capital contribution with stakes, the time of determining taxed income from capital transfer is the time when individuals transfer capital or withdraw capital.
d) Tax calculation method
Personal income tax payable = Taxable income × 20% tax
2. For income from securities transfer
Tax bases for securities transfer activities are taxed income and tax rate.
a) Taxed income
Taxed income from securities transfer is determined to be equal to the securities selling price minus the buying price and reasonable expenses related to the transfer.
a.1) The selling price of securities is determined as follows:
a.1.1) For securities of a public company traded on the Stock Exchange, the securities sale price is the executed price at the Stock Exchange. Execution price means the securities price determined from the result of order matching or the price formed from put-through transactions at the Stock Exchange.
a.1.2) For securities of a public company that are not traded on the Stock Exchange but only transfer ownership through the system of the Securities Depository Center, the selling price is the recorded price on a securities transfer contract.
a.1.3) For securities not falling into the above cases, the selling price is the actual transfer price stated in the transfer contract or the book-based price of the unit having the transferred securities at the most recent time. before the time of transfer.
If the transfer contract does not specify the selling price or the selling price stated in the contract is not consistent with the market price, the tax authority may fix the selling price in accordance with the law on tax administration.
a.2) The securities purchase price is determined as follows:
a.2.1) For securities of a public company traded on the Stock Exchange, the securities purchase price is the executed price at the Stock Exchange. Execution price means the securities price determined from the result of order matching or the price formed from put-through transactions at the Stock Exchange.
a.2.2) For securities of a public company that are not traded on the Stock Exchange but only transfer ownership through the system of the Securities Depository Center, the purchase price is the recorded price. on the securities transfer contract.
a.2.3) For securities purchased through auction, the securities purchase price is the price stated on the notice of the share auction winning result of the share auction organization and the money order.
a.2.4) For securities not falling into the above cases, the purchase price is the actual purchase price stated in the transfer contract or the book-based price of the unit having the transferred securities at the most recent time. before the time of purchase.
If the transfer contract does not specify the purchase price or the purchase price stated in the contract is incompatible with the market price, the tax authority may fix the purchase price in accordance with the law on tax administration.
a.3) Reasonable expenses that are deductible when determining taxable income from securities transfer are actual expenses incurred from securities transfer activities with invoices and documents according to regulations. Determinations include:
a.3.1) Costs for carrying out necessary legal procedures for the assignment.
a.3.2) Fees and charges payable by the assignor when completing the transfer procedure.
a.3.3) Fee for securities depository service according to the regulations of the Ministry of Finance and receipts of the securities company.
a.3.4) The investment trust fee, the securities investment portfolio management fee is based on the receipts of the trustee.
a.3.5) Securities brokerage fee when transferring.
a.3.6) Fees for investment advisory services and information provision.
a.3.7) Fee for transfer, fee for transfer of ownership through the Securities Depository Center (if any).
a.3.8) Other expenses with supporting documents.
b) Tax rate and tax calculation method
b.1) When applying the tax rate of 20%
b.1.1) Application principles
Securities transferors who pay tax at the rate of 20% are individuals who have registered tax, have a tax code at the time of completing tax finalization procedures and have determined taxable income of each type of securities. guided at Point a, Clause 2, Article 11 of this Circular.
Particularly, the purchase price of securities is determined by the total average buying price of each class of securities sold in the period as follows:
|
Average buying price of each type of securities sold |
= |
Cost price at the beginning of the period Number of stocks in stock at the beginning of the period |
+ |
Costs incurred in the period Number of securities arising in the period |
x |
Number of securities sold |
b.1.2) Tax calculation method
|
Personal income tax payable |
= |
Taxable income |
x |
20% tax |
When settling tax, individuals applying the tax rate of 20% may deduct the temporarily paid tax amount at the rate of 0.1% in the tax year.
b.2) If the tax rate is 0.1%
Individuals transferring securities must temporarily pay tax at the rate of 0.1% on the securities transfer price for each time, even if the tax rate of 20% is applied.
Tax calculation method:
|
Personal income tax payable |
= |
Securities transfer price for each time |
x |
Tax rate 0.1% |
c) Time of determination of taxable income
Time of determination of a taxed income from securities transfer is determined as follows:
c.1) For securities of a public company that are traded on the Stock Exchange, it is the time when the taxpayer receives income from securities transfer.
c.2) For securities of a public company that are not traded on the Stock Exchange, but only carry over the ownership transfer system of the Securities Depository Center, it is the time of transfer of ownership Securities ownership at the Securities Depository Center.
c.3) For securities other than those mentioned above, it is the time when the securities transfer contract takes effect.
c.4) In case of capital contribution by securities but tax is not paid when making capital contribution, the time of determination of income from securities transfer due to capital contribution is the time when the individual transfers capital or withdraws capital.
d) For the case of receiving dividends in shares.
In case of receiving dividends in shares, individuals are not required to pay personal income tax when receiving stocks. When transferring these shares, individuals must pay personal income tax on income from capital investment and income from securities transfer, specifically as follows:
d.1) The basis for determining the personal income tax payable on the income from capital investment is the dividend value recorded in the accounting books or the actual number of shares received multiplied (×) by par value. of the security and the personal income tax rate on income from capital investment.
In case the transfer price of shares received instead of dividend is lower than its par value, personal income tax on capital investment is calculated at the market price at the time of transfer.
After receiving dividends in shares, if an individual transfers shares of the same type, he / she shall declare and pay personal income tax on the dividend received in shares until the number of shares received instead of the dividend is expired.
d.2) The basis for determining the personal income tax payable on income from securities transfer is determined under the instructions at Point b, Clause 2 of this Article.
Example 12: Mr. K is a shareholder of joint-stock company X (listed on the Stock Exchange). In 2011, Mr. K received 5,000 shares (CP) to pay for the dividend of Company X (par value of shares is 10,000 dong). In February 2014, Mr. K transferred 2,000 shares of Company X at the price of 30,000 VND / share. In August 2014, Mr. K transferred 7,000 shares at the price of 20,000 VND / share.
When transferring, Mr. K must pay personal income tax on the income from capital investment and the income from securities transfer, specifically as follows:
* For the transfer in February 2014
- Personal income tax on income from capital investment:
(2,000 shares × 10,000 VND) × 5% = 1,000,000 VND
- Personal income tax (temporary payment) on income from securities transfer:
(2,000 shares × 30,000 VND) × 0.1% = 60,000 VND
* For the transfer in August 2014
- Personal income tax on income from capital investment:
(3,000 shares × 10,000 VND) × 5% = 1,500,000 VND
- Personal income tax (temporary payment) on income from securities transfer:
(7,000 shares × 20,000 VND) × 0.1% = 140,000 VND
Article 12.- Tax bases for incomes from real estate transfer
Tax bases for incomes from real estate transfer are taxed income and tax rate.
1. Taxed income
a) Taxed income from the transfer of land use rights without construction on land is determined to be equal to the transfer price minus (-) the cost price and relevant reasonable expenses.
a.1) Transfer price
Land use right transfer prices are actual prices stated in transfer contracts at the time of transfer.
In case the actual transfer price is unidentifiable or the price stated in the transfer contract is lower than the land price prescribed by the People's Committee of the province at the time of transfer, the transfer price will be determined according to the land price list. Provincial People's Committee regulations.
a.2) Cost price:
Cost price of land use right transfer in some specific cases is determined as follows:
a.2.1) For land allocated by the State with the collection of land use fees, the cost price is based on the receipts of the State's land use levy.
a.2.2) If the land is allocated by the State without payment or reduction of land use levy in accordance with the law, the cost price of the transferred land is determined according to the price set by the People's Committee of the province. regulations at the time of land allocation.
a.2.3) If the land is transferred from an organization or individual, the cost price is based on the price stated in the transfer contract at the time of transfer of land use right.
a.2.4) In case of land use right transfer auction, cost price is the amount payable according to the winning price.
a.2.5) For land origin not falling into the above cases, the cost price shall be based on documents proving the fulfillment of financial obligations to the State when it is granted the Certificate of land use rights or ownership. house and other assets attached to land to determine cost price.
a.3) Relevant reasonable costs
Relevant reasonable expenses deducted when determining income from the transfer of land use rights are actual costs incurred in connection with the transfer activities with documents and invoices under prescribed regulations, including:
a.3.1) Types of fees and charges as prescribed by law related to the grant of land use rights that the transferor has paid to the State budget.
a.3.2) Expenses for land improvement and ground leveling (if any).
a.3.3) Other expenses directly related to the transfer of land use rights such as expenses for carrying out legal procedures for the transfer, expenses for hire measurement.
b) Taxed income from the transfer of land use rights associated with constructions on land, including future constructions, is determined to be equal to the transfer price minus (-) the cost price and other expenses. reasonably related.
b.1) Transfer price
Transfer price is the actual price stated in the transfer contract at the time of transfer.
In case the contract does not state the transfer price or the transfer price stated in the contract is lower than the price set by the People's Committee of the province, the transfer price is determined according to the land price list, house registration fee calculation price issued by the Commission. Provincial People's Committee at the time of transfer.
If the People's Committee of the province has no regulations on house registration fee calculation prices, the transfer price shall be based on the Construction Ministry's regulations on house classification, basic construction standards and norms and prices. actual residual value works on land.
For future construction works, it is determined on the basis of the capital contribution ratio to the total contract value multiplied (×) by the construction work registration fee calculation price issued by the provincial-level People's Committee. regulations. If the People's Committee of the province has not yet regulated the unit price, the rate of work construction investment announced by the Ministry of Construction, currently applicable at the time of transfer, shall apply.
b.2) Cost price
Cost prices are determined on the basis of prices stated in transfer contracts at the time of purchase. In cases where the real estate is not derived from the transfer, the cost price shall be based on documents proving the fulfillment of financial obligations to the State at the time of being granted the certificate of land use rights or land use rights. own houses and other land-attached assets.
b.3) Relevant reasonable costs
Relevant reasonable expenses deductible when determining income from land use right transfer are actual expenses incurred in connection with transfer activities, with legal invoices and documents, including:
b.3.1) The fees and charges as prescribed by law related to the grant of land use rights of the transferor have paid to the State budget.
b.3.2) Expenses for land reclamation and ground leveling.
b.3.3) Expenses for the construction, renovation, upgrading, and repair of infrastructure and architectural works on the land.
b.3.4) Other expenses directly related to the transfer of real estate such as: expenses for carrying out legal procedures for the transfer, expenses for hire measurement.
c) Taxed income from transferring ownership of houses, including future houses.
Taxed income from the transfer of home ownership is determined to be equal to the selling price minus (-) the purchase price and related reasonable expenses.
c.1) Selling price
Selling price is the actual transfer price determined according to the market price and recorded in the transfer contract.
If the house transfer price stated in the transfer contract is lower than the house registration fee calculation price prescribed by the provincial-level People's Committee at the time of transfer or the transfer price is not specified in the transfer contract, the transfer price is determined according to the registration fee calculation price determined by the provincial-level People's Committee.
c.2) Purchase price
The purchase price is determined based on the price stated in the purchase contract. For a house not derived from the receipt of transfer or acquisition, based on documents proving the fulfillment of financial obligations to the State at the time of being granted the certificate of land use right or house ownership and other assets attached to land.
c.3) Relevant reasonable costs
Relevant reasonable deductible expenses are actual expenses incurred from transfer activities with legal invoices and documents, including:
c.3.1) Charges and fees prescribed by law related to the grant of the right to use the transferor's house paid to the budget.
c.3.2) Costs for home repair, renovation and upgrading.
c.3.3) Other expenses directly related to the transfer.
d) Assessable income from transferring the right to lease land or water surface
Taxed income from the transfer of the right to lease land or water surface is determined to be equal to the sublease price minus (-) the rent and related expenses.
d.1) Sublease price
The sublease price is determined by the actual price stated in the contract at the time of transferring the right to rent land or water surface.
In case the sublease unit price on the contract is lower than the price set by the People's Committee of the province or city at the time of sublease, the sublease price is determined according to the lease price table issued by the People's Committee of the province city regulation.
d.2) Rent
The rental is determined based on the lease contract.
d.3) Relevant reasonable costs
Relevant reasonable deductible expenses are actual expenses arising from the transfer of the right to have lawful invoices and documents, including:
d.3.1) Types of fees and charges as prescribed by law related to the right to rent land or water surface to which the transferor has paid to the State budget;
d.3.2) Expenses for land and water surface improvement;
d.3.3) Other expenses directly related to the transfer of the right to lease land or water surface.
2) Tax rate
The tax rate on real estate transfer is 25% of taxable income.
In case the taxpayer fails to determine or has no documents to determine the prime cost or purchase price or rental price and legal documents for determining related expenses as a basis for determining taxed income, tax rate is applied. 2% of the transfer price or sale price or sublease price.
3. Time of determination of taxed income
Time of determination of a taxed income from real estate transfer is the time when an individual carries out the real estate transfer procedures in accordance with law.
4. Tax calculation method
a) If the assessable income is determined, the personal income tax on the income from real estate transfer is determined as follows:
|
Personal income tax payable |
= |
Taxable income |
x |
Tax rate 25% |
b) In case the taxpayer fails to determine or has no documents to determine the cost price or purchase price or rental price and relevant documents of real estate transfer as a basis for income determination For tax calculation, personal income tax is determined as follows:
|
Personal income tax payable |
= |
Transfer price |
x |
Tax rate of 2% |
c) Where the transfer of real estate is co-ownership, the tax liability is determined separately for each taxpayer according to the real estate ownership ratio. Bases for determining the ownership rate are legal documents such as initial capital contribution agreement, will or division decision of the court, ... In case there are no legal documents, the tax obligations of each Taxpayers are determined according to the average rate.
Article 13. Tax bases for income from copyright
Tax bases for incomes from royalties are taxed income and tax rate.
1. Taxed income
Taxed income from royalties is the income in excess of 10 million VND under the transfer contract, regardless of the number of payments or the number of times the taxpayer receives the money when transferring or transferring the use right. objects of intellectual property rights, technology transfer.
In case the same object of intellectual property rights or technology is transferred but the license or licensing contract is performed in many contracts with the same user, the assessable income is the income. in excess of 10 million VND on total licensing contracts
If the subject of an assignment or transfer of rights is a co-owner, taxed income shall be divided among each owner. The distribution rate is based on the certificate of ownership or use right issued by a competent State agency.
2. The personal income tax rate for income from copyright is applied in the Full Tariff at the rate of 5%.
3. Time of determination of taxed income
Time of determination of a taxed income from royalties is the time of paying royalties.
4. Tax calculation method
|
Personal income tax payable |
= |
Taxable income |
x |
Tax rate 5% |
Article 14. Tax bases for income from commercial franchising
Tax bases for incomes from franchises are taxed income and tax rate.
1. Taxed income
Taxed income from commercial franchising is the income in excess of 10 million VND under the commercial franchise contract, regardless of the number of payments or the number of times the taxpayer receives the money.
In the case of the same object of the commercial right but the transfer is carried out into multiple contracts, the assessable income is the excess of 10 million VND of the total commercial franchise contracts.
2. Tax rate
The personal income tax rate for income from franchising is 5%.
3. Time of determination of taxed income
Time of determination of a taxed income from a commercial franchise is the time of payment of the commercial franchise money between the franchisee and the franchisor.
4. Tax calculation method
|
Personal income tax payable |
= |
Taxable income |
x |
Tax rate of 5%. |
Article 15.- Tax bases for income from winning prizes
Tax bases for income from winning prizes are taxed income and tax rate.
1. Taxed income
Taxed income from winning prizes is the prize value in excess of 10 million VND received by the taxpayer for each time of winning, regardless of the number of times the prize is received.
In case of a prize but there are many winners, the assessable income is divided among each winner. Winners must present legal evidence to support them. In case there is no legal basis to prove, the winning income is calculated for an individual. In case an individual wins many prizes in a game, his assessable income is calculated on the total value of prizes.
Taxed income for some prize-winning games is as follows:
a) For lottery winnings, it is the whole prize value in excess of 10 million VND per one (01) lottery ticket received in a lottery draw without deduction of any expenses.
b) For promotion prizes in kind, the value of the promotional product in excess of 10 million VND is converted into money at the market price at the time of receiving the prize, without subtracting any expenses.
c) For winners in forms of betting, betting, casino, winning in games at places with prizes:
c.1) For prizes in all forms of betting, bet is the total prize value in excess of10 million VND received by the participant without subtracting any expenses.
c.2) For prizes in casinos, winnings in games at prized entertainment spots are the value in excess of VND 10 million that the individual receives from winning in a game, As follows:
c.2.1) The income from winning a prize is the difference between the amount cashed out by the player minus the amount cashed in by the player in a game.
In case the income from winning prizes is a foreign currency, it must be converted into Vietnam dong at the foreign currency rate announced by the State Bank and effective at the time the income is generated.
c.2.2) Determination of the amount of cash received and the amount of cash spent in a game is as follows:
c.2.2.1) For conventional currency games (chips, intermediary chips and chips according to the Financial Management Regulation for prize-winning game business of the Ministry of Finance):
c.2.2.1.1) The amount of cash the player receives (cash out) in a game is the total value of the times a player exchanges chips / chips for cash during a game.
c.2.2.1.2) The amount of cash spent (cash in) in a game is the total value of the times a player exchanges cash for chips / chips during a game.
The basis for determining the amount of cash received and the amount of cash spent in a game is the bill of exchange for guests (in the form attached to the Financial Management Regulation for the prize-winning game business of the Ministry Finance) and invoices and documents in accordance with the current accounting law.
Example 13: From the moment of entry to the moment of leaving the prize-winning entertainment spot, he made 3 cash exchanges for chips, the total value of all 3 times was 500 USD and made 2 times of exchanging VND Chip for cash, the total value of both exchanges is 700 USD. Based on the times of money exchange, the income from winning prizes and Mr. A's taxed income is determined as follows:
- Income from winning prizes = 700 USD - 500 USD = 200 USD.
- Assessable income = 200 USD × USD / VND exchange rate - 10 million VND
c.2.2.2) For forms of playing with cash machines:
c.2.2.2.1) The amount of cash the player receives in a game is the total amount of money withdrawn from the machine (Cash out) at the end of a game minus the accumulated prizes (if any).
c.2.2.2.2) The amount of cash spent in a game is the total value of the cash in / cash in the game during a game.
Particularly for the form of winning prizes from the accumulated prizes (jackpot), periodical prizes for lucky customers and other similar forms, the income from winning prizes is the total value of the prize without subtracting any one. any other expenses.
Example 14: Mr. N plays directly with a slot machine using cash. In a game Mr. N has made 2 deposits (Key in), the total value of the recharge times (Key in) is 300 USD. At the end of the game, Mr. N withdraws the remaining amount from the machine (Cash out), the total amount of cash remaining (Cash out) is 1,500 USD. In that game, Mr. N also won an additional prize from the accumulated prize (jackpot) of 1,000 USD (The value of the jackpot prize has been accumulated in the amount of Cash out). Based on the deposited amount and withdrawn amount, Mr. N's income from the prize winning and taxable income includes the following 02 items:
- Mr. B's winning income from the accumulated prize (jackpot) is the total value of the accumulated prize (jackpot):
+ Income from winning prizes = 1000 USD
+ Assessable income = 1000 USD × USD / VND exchange rate - 10 million VND.
- The income earned by Mr. B from winning prizes from the slot machine game is:
+ Income from winning prizes:
= 1500 USD - 1000 USD - 300 USD = 200 USD.
+ Assessable income:
= 200 USD × USD / VND exchange rate - 10 million VND.
c.2.3) If the organization that pays the prize-winning electronic game or the casino cannot determine the taxable income of the winning individual to withhold tax under the instructions at Point c.2, Clause 1 of this Article, Pay taxes on behalf of the winners according to a set rate on the total amount returned to the player (cash out). Organizations that pay prizes for prize-winning electronic games and casino, if paying personal income tax at a fixed rate, must register with the tax authority and adjust the payout structure for guests as after-tax income for listing. publicity at entertainment spots with prizes. The set tax rate is to comply with the separate guidance of the Ministry of Finance.
c.2.4) "A game" is determined as follows:
- For conventional currency play, the game starts when the player enters the Rewards Points and ends when the player exits the Rewards Points.
- In the form of playing with cash machines, the game starts when the player deposits money on the machine (Key in / Cash in) and ends when the player withdraws money from the machine (Cash out). .
- For winning prizes from jackpot prizes, periodical prizes for lucky customers and other similar forms each win is considered a separate game.
d) For prizes from prized games or contests, it is calculated according to each time the prize is received. The prize value is the entire bonus amount in excess of VND 10 million that the player receives without subtracting any expenses.
2. The personal income tax rate for income from winning prizes is subject to the Full Tariff at the rate of 10%.
3. Time of determination of taxed income
Time of determination of a taxed income with respect to an income from a prize is the time when an organization or individual pays a prize to the winner.
4. Tax calculation method:
|
Personal income tax payable |
= |
Taxable income |
x |
Tax rate of 10% |
Article 16.- Bases for calculating tax on inheritance or gifts
Tax bases for incomes from inheritance or gifts are taxed income and tax rate.
1. Taxed income
Taxed income from inheritance or gifts is the value of inherited property or gifts in excess of 10 million VND each time. The value of inheritance or gift is determined in each case, specifically as follows:
a) For inheritance or gifts being securities: the value of inherited assets is the value of securities at the time of registration of ownership transfer, specifically as follows:
a.1) For securities traded on the Stock Exchange: value of securities is based on the reference price on the Stock Exchange at the time of registration of securities ownership.
a.2) For securities that do not fall into the above cases: the value of securities is based on the book value of the company issuing such securities at the latest time before the time of registration of ownership stock ownership.
b) For inheritance or gifts being contributed capital in economic organizations or business establishments: income for tax calculation is the value of contributed capital determined on the basis of book value of public company at the nearest time before the time of registration of the ownership of contributed capital.
c) For inherited property or gifts being real estate: the value of immovable property is determined as follows:
c.1) For real estate that is the value of land use rights, the value of land use right is determined based on the land price list set by the provincial People's Committee at the time the person completes the procedure. registration of real estate use rights.
c.2) For real estate being houses and architectural works on land, the real estate value is determined according to the regulations of the competent State management agency on house value classification; regulations on capital construction standards and norms promulgated by competent State management agencies; the residual value of the house or architectural work at the time of registering for ownership.
If it cannot be determined according to the above provisions, registration fee calculation prices set by the provincial-level People's Committees shall be based on.
d) For inheritance or gifts being other assets subject to registration of ownership or use rights with State management agencies: the value of the property is determined on the basis of the price list for calculation of registration fee due to Provincial-level People's Committees shall stipulate at the time individuals carry out the procedures for registration of ownership and right to use inherited property or gifts.
2. Tax rate: The personal income tax rate applicable to inheritance and gifts is subject to the Full Tax Tariff at the rate of 10%.
3. Time of determination of taxed income
Time of determination of a taxed income from an inheritance or a gift is the time when an individual completes the procedures for registration of ownership or use right of an inheritance or a gift.
4. How to calculate payable tax amount
|
Personal income tax payable |
= |
Taxable income |
x |
Tax rate of 10% |
TAX BASE FOR A NON-RESIDED INDIVIDUAL
Article 17. For income from business
Personal income tax on income from business of non-resident individuals is determined by the turnover from production and business activities (×) at the tax rate.
1. Turnover:
Turnover from business activities of non-resident individuals is determined as revenue as a basis for tax calculation from business activities of resident individuals under the guidance in Clause 1, Article 8 of this Circular.
2. Tax rate
Personal income tax rates for incomes from business activities of non-resident individuals are prescribed for each production and business field and industry as follows:
a) 1% for goods trading.
b) 5% for the service business.
c) 2% for production, construction, transportation and other business activities.
In cases where a non-resident individual has revenue from many different production and business sectors or lines but cannot separate the turnover of each field or industry, the personal income tax rate is applied according to the highest tax rate for sectors, industries actually operating on the entire revenue.
Article 18.- With respect to income from salaries and wages
1. Personal income tax on incomes from salaries and wages of non-resident individuals is determined by taxable incomes from salaries and wages (×) at the tax rate of 20%.
2. Taxable incomes from salaries and wages of non-resident individuals are determined as incomes subject to personal income tax from salaries and wages of resident individuals under the guidance in Clause 2 of Article. 8 of this Circular.
Determination of taxable personal income tax income from salaries and wages in Vietnam in case a non-resident individual works in Vietnam and abroad at the same time but cannot separate the income generated in Vietnam. Men follow the following formula:
a) For foreigners not present in Vietnam:
|
Total income generated in Vietnam |
= |
Number of working days for the job in Vietnam Total number of working days in the year |
x |
Income from wages, wages worldwide (before taxes) |
+ |
Other taxable income (before tax) arises in Vietnam |
In which: The total number of working days in a year is calculated according to the regulations in the Labor Code of Vietnam.
b) For foreigners present in Vietnam:
|
Total income generated in Vietnam |
= |
Number of days present in Vietnam 365 days |
x |
Income from wages, wages worldwide (before taxes) |
+ |
Other taxable income (before tax) arises in Vietnam |
Other taxable income (before tax) arising in Vietnam at Points a and b above are other monetary or non-monetary benefits that the employee is entitled to in addition to the salary or wages earned by the employer. paid or paid on behalf of the employee.
Article 19. With respect to income from capital investment
Personal income tax on income from capital investment of non-resident individuals is determined by the total taxable income received by non-residents from capital investment in organizations and individuals in Vietnam. multiply (×) by the 5% tax rate.
Taxed income, time of determination of a personal income taxable income from capital investment of a non-resident is determined like that of a taxable income and the time of determination of a taxed income of personal income from capital investment of resident individuals as guided in Clause 1, Clause 3, Article 10 of this Circular.
Article 20. With respect to income from capital transfer
1. Personal income tax on income from capital transfer of non-resident individuals is determined by the total amount of money that non-resident individuals receive from the transfer of capital portions at Vietnamese organizations and individuals. Male multiplied (×) by the tax rate of 0.1%, regardless of whether the transfer is made in Vietnam or abroad.
The total amount of money that a non-resident receives from the transfer of capital at Vietnamese organizations and individuals is the capital transfer price without subtracting any expenses, including cost price.
2. Transfer price for each specific case is determined as follows:
a. In case of transfer of contributed capital amount, the transfer price is determined as for resident individuals under the guidance at Point a.1, Clause 1, Article 11 of this Circular.
b. In case of securities transfer, the transfer price is determined as for resident individuals under the instructions at Point a.1, Clause 2, Article 11 of this Circular.
3. Time of determination of taxed income:
a) For income from capital transfer of a non-resident, it is the time when the capital transfer contract takes effect.
b) Income from securities transfer of non-resident individuals shall be determined as resident individuals as guided at Point c, Clause 2, Article 11 of this Circular.
Article 21. For income from real estate transfer
1. Personal income tax on income from real estate transfer in Vietnam of a non-resident is determined to be equal to the real estate transfer price multiplied (×) by the tax rate of 2%.
The price of real estate transfer of a non-resident is the total amount that the individual receives from the transfer of real estate without subtracting any expenses including cost price.
2. The price of real estate transfer of a non-resident in each specific case is determined as the price of real estate transfer of a resident under the instructions at Points a.1, b.1, c.1, d.1, clause 1, Article 12 of this Circular.
3. Time of determination of an income from real estate transfer is the time when a non-resident individual carries out procedures for real estate transfer in accordance with law.
Article 22. For income from copyright, franchising
1. Tax on income from royalties
a) Tax on income from copyright of non-resident individuals is determined by the income in excess of 10 million VND under each contract on licensing, licensing of intellectual property objects or licensing. technology in Vietnam multiplied by the 5% tax rate.
Incomes from copyrights are determined according to Clause 1, Article 13 of this Circular.
b) Time of determination of income from copyright is the time when an organization or individual pays income from transferring copyright to a taxpayer who is a non-resident.
2. Tax on income from franchising
a) Tax on income from commercial franchising of a non-resident is determined by the income in excess of 10 million VND under each commercial franchise contract in Vietnam multiplied by the tax rate of 5%.
Incomes from commercial franchising are determined under the instructions in Clause 1, Article 14 of this Circular.
b) Time of determination of a assessable income from a commercial franchise is the time when the commercial franchise proceeds between the franchisee and the franchisor.
Article 23. With respect to income from winning prizes, inheritance or gifts
1. Personal income tax on income from winning prizes, inheritance or gifts of non-resident individuals is determined by the taxed income guided in Clause 2 of this Article multiplied (×) by the tax rate. 10%.
2. Taxed income
a) Taxed income from winning a prize of a non-resident is the prize value in excess of VND 10 million upon each time of winning in Vietnam.
Incomes from winning prizes of non-resident individuals are determined as resident individuals under the guidance in Clause 1, Article 15 of this Circular.
b) A taxable income from an inheritance or a gift from a non-resident is the inheritance or gift value in excess of 10 million VND upon each time the income is earned in Vietnam.
Incomes from inheritance or gifts of non-resident individuals are determined as for resident individuals under the guidance in Clause 1, Article 16 of this Circular.
3. Time of determination of taxed income
a) For income from winning prizes: Time of determination of taxable income is the time when an organization or individual in Vietnam pays a bonus to a non-resident.
b) For income from inheritance: Time of determination of a taxable income is the time when an individual completes the procedures for registration of property ownership or right to use property in Vietnam.
c) For incomes from gifts: time of determination of taxable income is the time when individuals carry out procedures for registration of property ownership or right to use property in Vietnam.
TAX REGISTRATION, TAX DEDUCTION, TAX DECLARATION, TAX SETTLEMENT, TAX REFUND
1. Subject to tax registration
According to Article 27 of Decree No. 65/2013 / ND-CP, subjects must register personal income tax include:
a) Income-paying organizations and individuals include:
a.1) Business organizations and individuals, including branches, dependent units, affiliated units with separate accounting and have separate legal status.
a.2) State administrative agencies at all levels.
a.3) Political organizations, socio-political organizations, socio-professional organizations.
a.4) Non-business units.
a.5) International organizations and foreign organizations.
a.6) Project management units, representative offices of foreign organizations.
a.7) Other income-paying organizations and individuals.
b) Individuals earning taxable personal income, including:
b.1) Individuals earning income from production and business, including independent practitioners; agricultural production individuals and households are not subject to personal income tax exemption. Individuals having income from production and business shall register personal income tax at the same time with other taxes.
b.2) Individuals earning income from salaries and wages, including foreign individuals working for foreign contractors, foreign subcontractors in Vietnam.
b.3) Real estate transferor.
b.4) Individual with other taxable income (if required).
c. Dependents receive family circumstances reduction.
In cases of tax registration mentioned at Points a, b and c, Clause 1 of this Article, if tax has been registered and tax identification numbers are issued, new registration is not required. Individuals who have more than one income subject to personal income tax shall register for tax only once. Tax codes are used together to file taxes on all income.
2. Tax registration dossiers
Tax registration procedures and dossiers comply with guiding documents on tax administration.
3. Places to submit tax registration dossiers
a) The locations for submitting tax registration dossiers comply with guiding documents on tax administration.
b) Places to submit tax registration dossiers in some specific cases:
b.1) Individuals with taxable income from salaries or wages shall submit tax registration dossiers to the income-paying organization or individual or the tax agency directly managing the income-paying organization or individual. Income-paying organizations and individuals shall have to synthesize individual tax registration declarations and submit them to tax offices directly managing them.
b.2) Individuals with multiple sources of income: from business, salaries, wages, and other taxable incomes may choose the location to submit tax registration dossiers at the tax-paying agency or unit. enter or at the Tax Department where you do business.
b.3) Individuals with other taxable income can apply for tax registration at any tax authority.
4. Tax registration in some specific cases:
a) For groups of business individuals, the representative of the group of business individuals shall make tax registration under the guidance of business individuals in order to be granted tax identification numbers for themselves. The tax identification number of the representative of the group of business individuals is used to declare and pay value-added tax, excise tax, license tax, ... for the whole group and personal income tax. for the agent himself. Other capital contributors in the group are required to apply for tax registration in order to obtain their own tax identification numbers as for business individuals.
b) If a person transferring real estate does not have a tax code, the tax authority will automatically issue a tax code to that person based on personal information in the real estate transfer dossier.
c) If the individual is a dependent and the taxpayer declares family circumstance-based deduction, if the tax code is not available, the tax authority will automatically issue a tax code to the dependent based on the dependent's information. in the application for family circumstance-based reduction (according to the form enclosed with the guiding documents on tax administration) of the taxpayer.
Article 25. Tax withholding and tax withholding vouchers
1. Tax deduction
Tax withholding means that income-paying organizations and individuals subtract payable tax amounts from taxpayers' incomes before paying incomes, specifically as follows:
a) Income of non-resident individuals
Organizations and individuals that pay taxable incomes to non-residents shall withhold personal income tax before paying income. The tax amount to be deducted is determined according to the instructions in Chapter III (from Article 17 to Article 23) of this Circular.
b) Incomes from salaries and wages
b.1) For resident individuals who sign labor contracts for three (03) months or more, the income-paying organizations and individuals shall withhold tax according to the partially progressive tariff, including individual cases. sign a contract for three (03) months or more in many places.
b.2) If the resident individual signs the labor contract for three (03) months or more but takes leave before the end of the labor contract, the income payer still applies tax deduction according to the Partial progressive tax schedule.
b.3) For a foreigner working in Vietnam, the organization or individual pays income based on the taxpayer's time working in Vietnam as stated in the contract or written assignment. working in Vietnam to temporarily withhold tax according to the progressive partial schedule (for individuals who have worked in Vietnam from 183 days in a tax year) or according to the Full Tax Schedule (for individuals with a period of time). working time in Vietnam less than 183 days in a tax year).
b.4) The insurance enterprise and the voluntary pension fund management company are responsible for withholding personal income tax on accrued money for buying optional insurance, accumulated money paying the voluntary pension fund according to guided in Clause 6, Article 7 of this Circular.
b.5) The tax amount to be deducted for income from salaries and wages of resident individuals is determined according to the instructions in Article 7 of this Circular; of non-resident individuals are determined according to Article 18 of this Circular.
c) Income from insurance agency, lottery agency, multi-level marketing
Lottery companies, insurance companies, and multi-level marketing businesses that pay income to individuals acting as lottery agents, insurance agents, participating in multi-level marketing networks are responsible for withholding personal income tax. individuals before paying personal income. The deductible tax amount is determined according to the instructions in Clause 5, Article 7 of this Circular.
d) Incomes from capital investment
Organizations and individuals paying income from capital investment as guided in Clause 3, Article 2 of this Circular shall withhold personal income tax before paying income to individuals, unless individuals declare tax themselves. as guided in Clause 9, Article 26 of this Circular. The deductible tax amount is determined according to Article 10 of this Circular.
đ) Income from securities transfer
In all cases of securities transfer, tax of 0.1% of the transfer price must be withheld before payment is made to the transferor. Specifically, the tax deduction is as follows:
đ.1) For securities traded on the Stock Exchange:
đ.1.1) The securities company, the commercial bank where the individual opens the securities depository account is responsible for withholding personal income tax at the rate of 0.1% on the transfer price before paying the personal. The deducted tax amount is determined as guided at Point b.2, Clause 2, Article 11 of this Circular.
đ.1.2) The fund management company where the person entrusting to manage the securities portfolio is responsible for withholding personal income tax at the rate of 0.1% on the transfer price of securities of the entrusting individual. The company's securities portfolio according to the company's allocation sheet to depository banks in which the company opens its custody accounts.
đ.2) For securities transferred without going through the transaction system of the Stock Exchange:
đ.2.1) For securities of a public company that has registered for concentrated securities at the Securities Depository Center:
Securities companies and commercial banks where individuals open securities depository accounts shall withhold personal income tax at the rate of 0.1% on the transfer price before carrying out procedures for transferring securities ownership in China. Securities Depository Center.
đ.2.2) For securities of a joint stock company that is not a public company but the securities issuer authorizes a securities company to manage the list of shareholders:
Securities company authorized to manage the list of shareholders withholding personal income tax at the rate of 0.1% on the transfer price before carrying out the procedures for transferring securities ownership.
Individuals transferring securities must present transfer contracts with securities companies when doing procedures for transferring securities ownership.
(e) Incomes from capital transfer of non-resident individuals
The organizations or individuals that receive the transfer of contributed capital from non-resident individuals shall deduct personal income tax at the rate of 0.1% on the transfer price of contributed capital.
g) Incomes from winning prizes
The prize-paying organization is responsible for withholding personal income tax before paying the prize to the winning individual. The deductible tax amount is determined according to Article 15 of this Circular.
h) Incomes from copyrights, franchises
The organizations and individuals that pay income from copyright or commercial franchising shall withhold personal income tax before paying income to individuals. The withheld tax amount is determined by the amount of income in excess of 10 million VND under each transfer contract multiplied (×) by the tax rate of 5%. In case the contract of great value is paid in many installments, the first payment, the income-paying organization or individual subtracts 10 million VND from the payment value, the remaining amount must be multiplied by the tax rate of 5% for deduction. tax. Income tax will be deducted from the following payments on the total payment amount each time.
i) Withholding tax in some other cases
Organizations and individuals that pay wages, remuneration and other payments to resident individuals who do not sign labor contracts (under the guidance at Points c, d, Clause 2, Article 2 of this Circular) or sign contracts The labor contract of less than three (03) months with a total income payment of two million (2,000,000) VND / time or more must withhold tax at the rate of 10% of the income before paying to the individual.
In case an individual has only income subject to tax withholding according to the above rate but estimated that his total taxable income, after subtracting family circumstances, has not reached the taxable level, he / she will collect tax. enter as a commitment (according to the form issued together with the guiding documents on tax administration) and send it to the income-paying organization to serve as a temporary basis for personal income tax not yet deducted.
Based on commitments of income recipients, the income-paying organization does not withhold tax. At the end of the tax year, the income paying organization must still synthesize the list and the income of individuals that have not reached the level of tax deduction (in the form issued with the instruction on tax administration) and submit it to the agency. tax office. Individuals making commitments are responsible for their commitments. In case of detecting fraud, they will be handled in accordance with the Law on Tax Administration.
Individuals making commitments under the guidance at this point must register tax and have tax code at the time of commitment.
2. Withholding vouchers
a) Organizations and individuals that pay tax withheld incomes under the guidance in Clause 1 of this Article must issue tax withholding vouchers at the request of the deducted individuals. In case individuals authorize tax finalization, deduction documents are not issued.
b) Issuance of a deduction voucher in some specific cases as follows:
b.1) For the individual who does not sign a labor contract or signs a labor contract of less than three (03) months: the individual has the right to request the income-paying organization or individual to issue a deduction document for each deduction. withholding or issuing a withholding voucher for multiple withholds in a tax period.
Example 15: Mr. Q signs a service contract with company X to take care of ornamental plants on the company's premises once a month from September 2013 to April 2014. Mr. Q's income is paid by the Company each month with the amount of 03 million dong. Thus, in this case, Mr. Q can request the Company to issue a monthly deduction slip or a document reflecting the deducted tax amount from September to December 2013 and a document for the period from January to April 2014.
b.2) For the individual who signs the labor contract from three (03) months or more: the income-paying organization or individual shall only issue to the individual one withholding voucher in a tax period.
Example 16: Mr. R signs a long-term labor contract (from September 2013 to the end of August 2014) with company Y. In this case, if Mr. R is subject to direct tax finalization with Tax authorities and require the Company to issue withholding documents, the Company will issue 01 document reflecting the deducted tax amount from September to the end of December 2013 and 01 document for the period from January. to the end of August 2014.
Article 26. Tax declaration and tax finalization
Organizations and individuals paying personal income taxable incomes and individuals earning incomes liable to personal income tax shall make tax declaration and tax finalization according to instructions on procedures and dossiers in documents. guidance on tax administration. Tax declaration principles in some specific cases:
1. Tax declaration for organizations and individuals that pay personal income taxable incomes.
a) The income payer with personal income tax shall declare tax monthly or quarterly. If the income-paying organizations or individuals do not withhold personal income tax in a month or quarter, they are not required to declare tax.
b) The monthly or quarterly tax declaration is determined once from the first month there is a tax withholding and applies to the whole tax year, specifically as follows:
b.1) The income payer with the withholding tax amount in the month of at least one type of personal income tax return of 50 million VND or more shall make monthly tax declaration, except the group income paying organizations and individuals subject to value added tax declaration quarterly.
b.2) The income payer that is not required to declare tax on a monthly basis according to the above guidance shall declare tax quarterly.
c) The organization or individual paying the income subject to personal income tax, irrespective of whether or not it has withholding tax, is responsible for declaring the personal income tax finalization and tax finalization. enter individuals on behalf of authorized individuals.
2. Tax declaration for resident individuals earning incomes from salaries, wages or business
a) Resident individuals earning incomes from salaries or money shall declare tax directly with tax authorities, including:
a.1) Resident individuals earning incomes from salaries and wages paid by international organizations, embassies and consulates in Vietnam but who have not yet deducted tax shall declare tax directly with the quarterly tariff.
a.2) Resident individuals earning incomes from salaries and wages paid by foreign organizations and individuals shall declare tax directly to the tax office on a quarterly basis.
b) Resident individuals and groups of individuals that have income from business tax declaration directly with tax authorities include:
b.1) The business person that pays tax according to the declaration method is the individual, the group of businesspeople that fully complies with the accounting, invoices and documents, and the individual, group of businesspeople. turnover can only be accounted for revenue, not expenses for implementing quarterly tax declaration.
b.2) The businessperson that pays flat tax is a business person, a group of businesspeople that fails to comply with the law on accounting, invoices and documents, and is not sure. determine turnover, expenses and taxable income and make tax declaration annually.
b.3) The mobile business person (shipment) declares personal income tax every time it arises.
b.4) The business person that uses invoices retailed by the tax authority shall declare personal income tax on each revenue generated on the invoice.
b.5) Individuals that are not doing business but having activities to sell goods or provide services need to have invoices to hand over to customers to declare personal income tax upon each occurrence.
b.6) Individuals, groups of individuals that earn income from house lease, land use right, water surface, or other property shall declare tax quarterly or when it arises.
c) Resident individuals earning incomes from wages, salaries or business shall declare tax finalization if they have additional tax or have overpaid tax and request tax refund or tax offset in the declaration period. subsequent tax, except for the following cases:
c.1) The individual whose payable tax amount is smaller than the temporarily paid tax amount does not claim for tax refund or offset tax in the next period.
c.2) The individual or household has only one source of income from business and has paid flat tax.
c.3) The individual or household that only has income from the lease of the house or land use right has paid tax according to the declaration at the place where the house or land use right is leased.
c.4) Individuals having income from salaries or wages and signing labor contracts for three (03) months or more in an organization and having additional current income in other places on average monthly in the year does not exceed If 10 million VND has been deducted at source by the income payer at the rate of 10%, if there is no request, the tax will not be finalized for this income.
c.5) The individual having income from salaries or wages signs a labor contract of three (03) months or more in a unit that has additional income from house lease or land use right lease with business The average monthly income in the year is not more than 20 million VND, and has paid tax at the place where the house is for rent or has the right to use the leased land if there is no request, the tax shall not be finalized for this income.
d) Individuals earning incomes from salaries or wages authorize organizations or individuals to pay tax finalization on behalf of the following cases:
d.1) The individual who only has income from salaries or wages signs a labor contract from three (03) months or more in a unit and is actually working in the unit at the time of authorization for settlement, including the case of not working full 12 months in a year.
d.2) The individual having income from salaries or wages signs labor contracts for three (03) months or more and has other income as guided in Item c.4 and c.5, point c, Clause 2, This Article.
đ) The income payer shall only make tax finalization on behalf of the individual for the income from salaries and wages that individuals receive from the income paying organizations or individuals.
e) The principles of tax declaration and tax finalization in some cases are as follows:
e.1) If the resident individual has income generated abroad, the personal income tax has been calculated and paid according to the foreign regulations, the tax paid abroad may be deducted. The deducted tax amount must not exceed the payable tax amount calculated according to Vietnam's tax table and distributed to the income generated abroad. The allocation rate is determined by the ratio between the income generated abroad and the total taxable income.
e.2) Resident that earns income from business, salary or wages in the first calendar year is less than 183 days, but within 12 months. continuously from the first day of presence in Vietnam for 183 days or more.
- The first tax year: make and submit the tax finalization dossier by the 90th day from the 12 consecutive month's date.
- From the second tax year: make and submit the tax finalization dossier by the 90th day from the end of the calendar year. The payable tax amount in the second tax year is determined as follows:
| The tax amount to be paid in the second tax year |
= |
The payable tax amount of the second tax year | - |
Deductible duplicated tax |
Trong đó:
| The payable tax amount of the second tax year |
= |
Taxed income of the second tax year |
x |
Personal income tax rates are according to the Schedule of Partial Progression |
| Deductible duplicated tax |
= |
Tax payable in the first tax year
12 |
x |
Number of months overlapping |
Example 17: Mr. S is a foreigner who comes to Vietnam for the first time to work under a contract with a term from June 1, 2014 to May 31, 2016. In 2014, Mr. S was present in Vietnam for 80 days and earned an income of 134 million VND from salaries and wages. In 2015, Mr. S was present in Vietnam from January 1, 2015 to the end of May 31, 2015 for 110 days and earned an income from salaries and wages of 106 million VND; From June 1, 2015 to December 31, 2015, Mr. S has been present in Vietnam for 105 days and earns an income of 122 million VNDfrom salaries and wages. Mr. S does not apply for family allowances for his dependents and does not incur contributions to insurance, charity, humanitarian or study promotion.
The personal income tax amount payable by Mr. S is determined as follows:
+ If calculated according to 2014, Mr. S is a non-resident individual, but for 12 consecutive months from June 1, 2014 to the end of May 31, 2015, the total time that Mr. S is present in Vietnam. is 190 days (80 days + 110 days). Therefore, Mr. S is a resident of Vietnam.
+ The first tax year (from June 1, 2014 to May 31, 2015):
- Total taxable income in the first tax year:
134 million VND+ 106 million VND= 240 million VND
- Family deduction: 9 million VNDx 12 = 108 million VND
- Assessable income: 240 million VND - 108 million VND = 132 million VND
- Personal income tax payable in the first tax year: 60 million VND × 5% + (120 million VND - 60 million VND) × 10% + (132 million VND - 120 million VND) × 15% = 10.8 million VND copper
+ The second tax year (from January 1, 2015 to the end of December 31, 2015): Mr. S is present in Vietnam for 215 days (110 days + 105 days) as a resident in Vietnam.
- Taxable income earned in 2015:
106 million VND + 122 million VND = 228 million VND
- Family deduction: 9 million VNDx 12 = 108 million VND
- Assessable income in 2015:
228 million VND - 108 million VND = 120 million VND
- Personal income tax payable in 2015:
(60 million VND × 5%) + (120 million VND - 60 million VND) × 10% = 9 million VND
+ Tax settlement 2015 has 5 months coinciding with the first year tax finalization (from January 2015 to May 2015)
- Deductible duplicated tax:
(10.8 million VND/ 12 months) x 5 months = 4.5 million VND.
- The personal income tax payable in 2015 is:
9 million VND - 4.5 million VND = 4.5 million VND
e.3) The resident that is a foreigner terminates the contract to work in Vietnam to make tax finalization with the tax authority before leaving.
e.4) For individuals that lease houses, land use rights, water surface and other assets, make personal income tax finalization, except for cases where tax finalization is not required according to the instructions at Point c.3 and c.5, Clause 2, this Article, specifically as follows:
e.4.1) If the individual declares tax quarterly or the tax is declared each time, for contracts with a term of one year or less, the tax settlement shall be made as for the business person that pays tax according to the declaration method.
e.4.2) In case the individual declares tax every time incurred for a contract with payment term of more than one year and receives money in advance for one lease term, he / she chooses one of two forms of settlement. tax is as follows: if the tax is finalized in the first year, the turnover is determined according to the lump-sum turnover and family deduction calculation for one year, the following years will not be recalculated; If the settlement is made annually, then temporarily declare the revenue from the lump-sum payment and calculate the family allowances of the first year and the following years, reallocate the property lease revenue and calculate the family circumstance-based deduction according to the actual arising.
e.5) Individuals earning income from insurance agents, lottery agents, and multi-level marketing shall directly settle tax with the tax authority if required.
e.6) Individuals earning incomes from salaries, wages or business but eligible for tax reduction due to natural disaster, fire, accident or fatal disease shall directly make tax finalization with the tax agency.
e.7) Business individuals and groups of individuals that are non-residents but have a fixed place of business in the territory of Vietnam shall make tax declaration and tax finalization as for business individuals and groups. is a resident.
3. Declaring tax on income from real estate transfer
a) Individuals earning incomes from real estate transfer shall declare tax every time it arises, including those who are eligible for tax exemption. Tax declaration in some specific cases is as follows:
a.1) In case an individual has land use rights or house ownership but offers mortgage or loan guarantee or makes payment at a credit institution or foreign bank branch; At the end of the debt payment time limit, if the individual is incapable of repaying the debt, the credit institution or foreign bank branch shall carry out the procedures for the sale and sale of that real estate and at the same time declare and pay personal income tax. individuals on behalf of individuals before making payments of personal debts.
a.2) In case an individual has land use rights or house ownership but mortgage it to borrow capital or make payment with another organization or individual, he / she now transfers all (or a part) of the real estate. In order to pay off debts, individuals with land use rights or house ownership must declare tax and pay personal income tax, or organizations or individuals that carry out transfer procedures instead must declare and pay personal income tax. on behalf of individuals before debt settlement.
a.3) If the real estate is transferred by an individual to another organization or individual under the judgment execution decision of the court, the transferor must declare and pay tax or the organization or individual organizing the auction. The price must declare tax, pay personal income tax on behalf of the transferor. Particularly for real estate confiscated and auctioned by a competent State agency and remitted to the State budget in accordance with law, personal income tax is not required.
a.4) In case of exchange of houses and land among individuals who are not in the case of conversion of agricultural land for production and eligible for personal income tax exemption under the guidance at Point dd, Clause 1, Article 3 of this Circular, each individual converting house or land must declare tax and pay personal income tax.
a.5) In case of making a substitute declaration for personal income tax declaration for real estate transfer activities, the organization or individual that makes a substitute declaration shall add "Declaration" in the preceding part of the phrase "Taxpayer or Legal representative of taxpayer ”at the same time the person declares, clearly stating full name. If the organization declares, after signing, the organization's seal must be stamped. On the tax calculation dossier, the tax receipt must still correctly show that the taxpayer is the individual transferring real estate.
b) Real estate management agencies only carry out procedures for transfer of the right to own or use real estate upon having vouchers of personal income tax payment or confirmation of tax authorities about income from the transfer. real estate subject to tax exemption or temporarily tax-free.
4. Declaring tax on income from capital transfer (except securities transfer)
a) Resident individuals transferring contributed capital shall declare tax upon each transfer, irrespective of whether or not they generate income.
b) The non-resident having income from the transfer of contributed capital in Vietnam is not required to declare tax directly to the tax authority but the transferee shall withhold tax under the instructions at Point e, Clause 1, Article 25 of this Circular and tax declaration each time it arises.
c) If the enterprise carries out the procedures to change the list of capital contributors in case of capital transfer without documents proving that the person transferring capital has fulfilled tax obligations, the enterprise where the capital transferor is responsible for tax declaration, tax payment on behalf of individuals.
In case the enterprise where the individual transfers capital to pay tax on behalf of the individual, the enterprise shall make declaration on behalf of the personal income tax declaration dossier. If the enterprise makes a substitute declaration, write "Declaration" in the front part of the phrase "The taxpayer or the legal representative of the taxpayer" and the person who declares, clearly states full name and stamp of the enterprise. In the tax calculation dossier, the tax receipt must still show that the taxpayer is the individual transferring contributed capital (in the case of transferring capital of a resident) or the person receiving the capital transfer (in case of transfer. capital assignment of non-resident individuals).
5. Declaring tax for individuals having income from securities transfer
a) The individual transferring securities of a public company trading at the Stock Exchange is not required to declare directly to the tax authority but the securities company, the commercial bank where the individual opens depository account, The fund management company where the individual entrusts the management of the investment portfolio shall declare tax under the guidance in Clause 1, Article 26 of this Circular.
b) Individuals transferring securities without using the trading system on the Stock Exchange:
b.1) The person that transfers securities of a public company that has registered its concentrated securities at the Securities Depository Center is not required to declare directly to the tax authority but the securities company or the commercial bank where the opening a securities depository account withholding tax and making tax declaration under the instructions in Clause 1, Article 26 of this Circular.
b.2) The individual transferring securities of the joint stock company is not a public company but the securities issuer authorizes the securities company to manage the list of shareholders without having to declare directly to the tax authority. Securities company is authorized to manage the list of shareholders withholding tax and tax declaration according to the instructions in Clause 1, Article 26 of this Circular.
c) Individuals transferring securities other than those mentioned in Points a, b, Clause 5 of this Article shall declare tax every time they arise.
d) If the enterprise performs the procedures to change the list of shareholders in case of securities transfer without documents proving that the individual transferring securities has fulfilled tax obligations, the enterprise where the person transfers securities is responsible for tax declaration, tax payment on behalf of individuals.
In case the enterprise where the person transfers securities, declares tax on behalf of the individual, the enterprise shall make declaration on behalf of the personal income tax declaration. If the enterprise makes a substitute declaration, write "Declaration" in the front part of the phrase "The taxpayer or the legal representative of the taxpayer" and the person who declares, clearly states full name and stamp of the enterprise. On the tax calculation dossier, the tax receipt must still correctly show that the taxpayer is the individual transferring securities.
dd) At the end of the year, if the individual transferring securities requests tax finalization, he / she shall make tax finalization declaration directly with the tax office.
6. Declaring tax on income from inheritance or gifts
a) Individuals earning incomes from inheritance or gifts shall declare tax every time they arise, even in cases of tax exemption.
b) State management agencies and related organizations only carry out procedures for transferring ownership, right to use real estate, securities, contributed capital and other assets subject to registration of ownership. or the right to use for the recipient to inherit or receive gifts upon having tax payment vouchers or certified by tax authorities about the income from inheritance, gifts being tax-exempt real estate.
7. Tax declaration for resident individuals earning income abroad
Resident individuals with incomes generated abroad shall declare tax every time they arise, and resident individuals with incomes from overseas salaries or wages shall declare tax quarterly.
8. Tax declaration for non-resident individuals having income generated in Vietnam but receiving income abroad
a) Non-resident individuals who earn income in Vietnam but receive abroad shall declare tax every time it is incurred. Particularly, non-resident individuals who earn income from salaries or wages in Vietnam but receive overseas tax return quarterly.
b) Non-resident individuals earning income from real estate or capital transfer (including securities transfer) arising in Vietnam but receiving income abroad shall declare tax every time they arise. guided in Clause 3, Clause 4, and Clause 5 of this Article.
9. Declaring tax on income from capital investment in case of receiving stock dividends or increasing capital interest.
Individuals receiving stock dividends or capital gains recorded dividends must not declare and pay tax on capital investment upon receipt. When transferring capital, withdrawing capital or dissolving an enterprise, individuals declare and pay personal income tax on income from capital transfer and income from capital investment.
10. Declaration of tax on income from capital transfer, securities transfer, real estate transfer in case of capital contribution with capital contribution, contribution of capital by securities, contribution of capital with real estate.
Individuals contributing capital with capital contributions, securities, or real estate have not had to declare and pay tax from the transfer when making capital contribution. When transferring capital, withdrawing capital or dissolving the enterprise, individuals declare and pay tax on income from capital transfer or real estate transfer upon capital contribution and income from capital transfer or real estate transfer upon transfer. concessions.
11. Declaring tax on salary, wages for income from bonus shares.
When receiving the bonus in shares from the employer, the individual does not have to pay tax from the salary or wages. When an individual transfers bonus shares, he / she shall declare tax on income from stock transfer and income from salaries or wages.
Article 27. Responsibilities of a Vietnamese organization signing a contract to purchase services from a foreign contractor not operating in Vietnam
Organizations established and operating under Vietnamese law (hereinafter referred to as Vietnamese party) that sign a contract to purchase services from a foreign contractor and that contractor signs a labor contract with a foreigner. In Vietnam, the Vietnamese party shall notify the foreign contractor of the foreign workers' obligation to pay personal income tax and the responsibility to provide information about the foreign worker, including : list, nationality, passport number, working time, work undertaken, income for the Vietnamese party to provide to the tax authority by the Vietnamese party at least 07 days before the date of the arrest by the foreign individual. first working in Vietnam.
1. Personal income tax refund applies to individuals who have registered and had tax identification numbers at the time of filing tax finalization dossiers.
2. For individuals who have authorized tax settlement for income-paying organizations or individuals to conduct settlement on behalf of such individuals, their tax refunds shall be effected through income-paying organizations or individuals. Income-paying organizations and individuals shall offset the overpaid and underpaid tax amounts of individuals. After the clearing, if the overpaid tax remains, it shall be offset against the next period or refunded if there is a request for refund.
3. For individuals that are required to declare directly with tax offices, they may choose to refund or offset in the following period at the same tax office.
4. In cases where individuals have personal income tax refunds but are late in submitting tax finalization declarations according to regulations, a fine will not be imposed on administrative violations of tax finalization declaring overdue time.
Article 29. Effect of implementation
1. This Circular takes effect from October 1, 2013.
The contents of personal income tax policies specified in the Law amending and supplementing a number of articles of the Law on personal income tax and Decree No. 65/2013 / ND-CP come into force from the time the Law or Decree takes effect. takes effect (July 1, 2013).
Annulment of guidance on personal income tax in Circular No. 84/2008 / TT-BTC dated September 30, 2008, 10/2009 / TT-BTC dated January 21, 2009, 42/2009 / TT-BTC March 9, 2009, 62/2009 / TT-BTC dated March 27, 2009, 161/2009 / TT-BTC dated August 12, 2009, 164/2009 / TT-BTC dated August 13, 2009, 02 / 2010 / TT-BTC dated 11/01/2010, 12/2011 / TT-BTC dated January 26, 2011, 78/2011 / TT-BTC dated June 8, 2011, 113/2011 / TT-BTC dated 04 / 8/2011 by the Ministry of Finance.
2. To annul personal income tax guidance contents promulgated by the Finance Ministry before the effective date of this Circular, which are inconsistent with the guidance in this Circular.
Article 30. Responsibility for implementation
1. Other matters related to tax administration not guided in this Circular comply with the Law on Tax Administration and its guiding documents.
2. Shortcomings and problems related to personal income tax arising before July 1, 2013 shall be continued in accordance with the guiding documents effective at the same time.
3. The application of the fixed rate of taxable income to business individuals under the guidance in Article 8 of this Circular shall be uniform from January 1, 2014.
4. For house floor sale and purchase contracts, capital contribution contracts to have the right to buy floors, houses and apartments signed before the effective date of Decree No. 71/2010 / ND-CP of June 23 / 2010 of the Government detailing and guiding the implementation of the Law on Housing, now that the investor agrees to the individual transferor, then declare and pay tax as guided with the transfer of houses to be formed in the future.
5. For the case of a land user who received a transfer before January 1, 2009, now submits a valid application for a Certificate of land use rights, ownership of houses and other land-attached assets. Approved State agencies shall collect only one (01) time of personal income tax from the last transfer, the previous transfers shall not retrospectively collect tax.
From January 1, 2009, implementing the Law on Personal Income Tax, individuals transferring real estate with notarized contracts or contracts with only handwritten papers must pay personal income tax for each time.
6. Individuals enjoying personal income tax preferences before the effective date of the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax may continue enjoying personal income tax preferences multiply by the remaining incentive time.
7. In cases where the Socialist Republic of Vietnam is a signatory to an international treaty that has provisions on personal income tax different from the guidance in this Circular, the provisions of such international treaties shall prevail. .
In the course of implementation, if any problems arise, organizations and individuals are requested to promptly report them to the Ministry of Finance (the General Department of Taxation) for study and settlement./.
Recipients:
- Central Office and Committees of the Party;
- Prime Minister, Deputy Prime Ministers;
- Office of the Secretary-General, President, National Assembly;
- Ethnic Council and Committees of National Assembly;
- Ministries, ministerial-level agencies, government-attached agencies;
- People's Procuratorate of the Supreme;
- Supreme People's Court;
- State audit;
- Central Committee of Vietnam Fatherland Front;
- Office of Central Steering Committee for anti-corruption;
- Central Offices of Unions;
- People's Councils, People's Committees, DOFs, Tax Departments,
Customs Departments of centrally-affiliated cities and provinces;
- Announcement;
- Department of Document Inspection (Ministry of Justice);
- Government website;
- Website of Ministry of Finance, Website of General Department of Taxation;
- Units under the Ministry;
- Save: VT, TCT (VT, TNCN) .Thang
KT. MINISTER
DEPUTY
Do Hoang Anh Tuan
Addendum: 01 / PL-TNCN
(Issued together with Circular No. 111/2013 / TT-BTC dated August 15, 2013 of the Ministry of Finance)
Appendix
STRUCTION BOARD
TAX CALCULATION METHOD BY PARTICULAR TAX SCHEDULE
(for income from salaries, wages, business)
The progressive tax calculation method for each part is concretized according to the summary tax calculation table as follows:
| Tier | Taxed income / month | Tax | Calculate the tax payable | |
| Method 1 | Method 2 | |||
| 1 | Up to 5 million VND (million VND) | 5% | 0 million VND + 5% of assessable income |
5% of assessable income |
| 2 | Over 5 million VND to 10 million VND |
10% | 0.25 million VND + 10% of assessable income in excess of 5 million VND |
10% of assessable income - 0.25 million VND |
| 3 | From over 10 million VND to 18 million VND |
15% | 0.75 million VND + 15% of assessable income in excess of 10 million VND | 15% of assessable income - 0.75 million VND |
| 4 | From over 18 million VND to 32 million VND |
20% | 1.95 million VND + 20% of assessable income in excess of 18 million VND | 20% of assessable income - 1.65 million VND |
| 5 | From over 32 million VND to 52 million VND | 25% | 4.75 million VND + 25% of assessable income in excess of 32 million VND | 25% of assessable income - 3.25 million VND |
| 6 | From over 52 million VND to 80 million VND | 30% | 9.75 million VND + 30% of assessable income in excess of 52 million VND | 30% of assessable income - 5.85 million VND |
| 7 | Over 80 million VND | 35% | 18.15 million VND + 35% of assessable income in excess of 80 million VND | 35% of assessable income - 9.85 million VND |
Addendum: 02 / PL-TNCN
(Issued together with Circular No. 111/2013 / TT-BTC dated August 15, 2013 of the Ministry of Finance)
Appendix
CHANGE TABLE
INCOME TAX DOES NOT INCLUDE TAXED INCOME
(for income from salaries, wages)
| N0. |
Earnings as a basis for converting / month (abbreviated as TNQĐ) |
Taxable income |
| 1 | Up to 4.75 million VND (million VND) | Converted income / 0.95 |
| 2 | From over 4.75 million VND to 9.25 million VND | (Converted income - 0.25 million VND) / 0.9 |
| 3 | From over 9.25 million VND to 16.05 million VND | (Converted income - 0.75 million VND) / 0.85 |
| 4 | From over 16.05 million VND to 27.25 million VND |
(Converted income - 1.65 million VND) / 0.8 |
| 5 | From over 27.25 million VND to 42.25 million VND | (Converted income - 3.25 million VND) / 0.75 |
| 6 | From over 42.25 million VND to 61.85 million VND | (Converted income - 5.85 million VND) / 0.7 |
| 7 | Over 61.85 million VND | (Converted income - 9.85 million VND) / 0.65 |
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