Personal Income Tax Reduced for Workers in Economic Zones
On September 5, 2014, the Ministry of Finance issued Circular 128/2014/TT-BTC on instructions for personal income tax deduction for individuals working in economic zones. Accordingly, personal income tax is slashed by 50 percent on all individuals in economic zones.
The circular specifies labourers qualified for the tax exemptions. These include residents and non-residents directly employed in the economic zones, including those who sign employment contracts with economic zone management boards and state management agencies in the economic zones, as well as organisations and individuals with business establishments in the economic zones who actually work there.
Circular 128/2014/TT-BTC comes into effect from October 20, 2014, replacing Circular 176/2009/TT-BTC dated September 9, 2009.
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