Are incomes from YouTube taxable in Vietnam? Do individuals with an income from VND 1,000,000 from YouTube have to pay taxes in Vietnam?

Are incomes from YouTube taxable in Vietnam?

Based on Article 2 of Circular 219/2013/TT-BTC, the regulations on taxable subjects are as follows:

Taxable Subjects

Taxable subjects for value-added tax (VAT) are goods and services used for production, business, and consumption in Vietnam (including goods and services purchased from organizations and individuals abroad) except for non-taxable subjects as guided in Article 4 of this Circular.

Based on Article 2 of Circular 119/2014/TT-BTC, which amends and supplements paragraphs 1, 2, 3, and 4 of Article 1 of Circular 111/2013/TT-BTC, the regulations are as follows:

Tax Payers

Tax payers are resident individuals and non-resident individuals in accordance with Article 2 of the Personal Income Tax Law, Article 2 of Decree 65/2013/ND-CP dated June 27, 2013, of the Government of Vietnam detailing a number of articles of the Personal Income Tax Law and the Law amending and supplementing a number of articles of the Personal Income Tax Law (hereinafter referred to as Decree 65/2013/ND-CP), having taxable income as stipulated in Article 3 of the Personal Income Tax Law and Article 3 of Decree 65/2013/ND-CP.

The scope of determining taxable income for tax payers is as follows:

For resident individuals, taxable income is income arising inside and outside the Vietnamese territory, regardless of the place of payment;

According to Article 2 of Circular 40/2021/TT-BTC, the provisions are as follows:

Applicable Subjects

1. Business households and business individuals are resident individuals engaged in manufacturing or trading goods and services across all fields and industries according to the provisions of the law, including some of the following cases:

a) Independently practicing in fields and professions licensed or certified for practice in accordance with the law;

b) Acting as agents selling at the correct price for lottery agents, insurance agents, and multi-level sales agents concluding direct contracts with lottery enterprises, insurers, and multi-level sales enterprises;

c) Doing business in cooperation with organizations;

d) Manufacturing or doing business in agriculture, forestry, salt production, aquaculture, and fishing not meeting conditions for tax exemption under the VAT and personal income tax laws;

dd) Engaging in e-commerce, including cases where individuals earn income from digital information content products and services as regulated by the e-commerce laws.

According to legal provisions, products, goods, services, and digital information content consumed in Vietnam are subject to value-added tax.

For individuals residing in Vietnam, taxable personal income is the income that arises inside and outside the Vietnamese territory, irrespective of the place of income payment.

Individuals earning income from YouTube (income from digital information content products and services) must declare and pay value-added tax and personal income tax.

Are incomes from YouTube taxable in Vietnam? Do individuals with an income from VND 1,000,000 from YouTube have to pay taxes in Vietnam? (Image from the Internet)

Do individuals with an income from VND 1,000,000 from YouTube have to pay taxes in Vietnam?

Based on Article 4 of Circular 40/2021/TT-BTC, the regulations on the tax calculation principle are as follows:

Tax Calculation Principles

1. The principle of tax calculation for business households and business individuals is implemented according to the current legal provisions on VAT, personal income tax, and related normative legal documents.

2. Business households and business individuals with a revenue from manufacturing or trading activities within the calendar year of 100 million VND or less fall under the category of not having to pay VAT and not having to pay personal income tax according to the legal provisions on VAT and personal income tax. Business households and individuals must accurately, truthfully, and fully declare taxes and submit tax documents on time; they are legally responsible for the accuracy, truthfulness, and completeness of the tax documents as prescribed.

3. For business households and individuals in the form of a group of individuals or households, the revenue level of up to 100 million VND/year to determine that individuals are not liable to pay VAT, and personal income tax is decided for one (01) sole representative of the group of individuals or households in the tax year.

According to the above provisions, individuals with income from YouTube of one hundred million VND or more must pay personal income tax and value-added tax.

What are the regulations on the tax period in Vietnam?

Based on Article 7 of the Tax Administration Law 2019, the regulations on the tax period are as follows:

- The annual tax period applies to income from business; income from wages and salaries.

- The tax period for each income occurrence applies to income from capital investment; income from capital transfer, excluding income from securities transfer; income from real estate transfer; income from winnings; income from royalties; income from franchising; inheritance income; gift income.

- The tax period for each transfer or annually pertains to income from securities transfer. If individuals prefer an annual tax period, they must register at the beginning of the year with the tax authority.

- The tax period for non-resident individuals is determined for each income occurrence, applying to all taxable income.