11:27:53 AM | 15/9/2008
The government of Vietnam has issued the decree No.100/2008/ND-CP on implementing the Law on Personal Income Tax and regulating tax registration, declaration and payment.
The decree regulates 10 kinds of taxable incomes, including incomes from salaries and wages, business and production, capital investment, transfer of capital and real estate, lottery winnings, copyright, franchise activities, inheritance and gifts which are securities, capital or assets that must be registered.
There are 14 kinds of personal incomes exempted from tax, such as income from real estate transferred between a husband and wife, blood relationships, interest on deposits at credit institutions, compensations from life insurance contracts, scholarships, and retirement pensions.
The tax payers, who are hit by natural disasters, fire and fatal diseases, will receive a tax reduction equivalent to the severity of damages.
The decree also regulates a tax regime for income from businesses, salary and wages. The lowest tariff is 5 per cent imposed on incomes of VND4 million-VND5 million a month, and the highest is 35 per cent levied on monthly incomes of more than VND80 million.
All residents and nonresidents in Vietnam are subject to personal income tax. The minimum monthly taxable income will be VND4 million for both Vietnamese and foreigners.
A deduction of VND1.6 million will be given to each dependant, who is children under 18, unemployed spouses, the elderly and unemployed parents. Deductions can only be calculated once for each dependant.
Nguyen Huy Truong, head of the Personal Income Tax Department, said about 15 million people will be given tax codes when the decree will take effect from January 1, 2009. (Vietnam Economic Times, VNS)
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