Is income from livestream selling subject to personal income tax in Vietnam?

Is income from livestream selling subject to personal income tax in Vietnam?

Based on Article 2 of the Law on Personal Income Tax 2007 defining taxable entities as follows:

Taxable entities

1. Taxable personal income taxpayers are resident individuals with taxable income as stipulated in Article 3 of this Law arising both within and outside the territory of Vietnam and non-resident individuals with taxable income set forth in Article 3 of this Law arising within the territory of Vietnam.

2. A resident individual is someone who meets one of the following criteria:

a) Present in Vietnam for 183 days or more in a calendar year or within 12 consecutive months from the first day of presence in Vietnam;

b) Holds a regular residence in Vietnam, including a registered permanent residence or a rented house for residence in Vietnam under a lease agreement.

3. A non-resident individual is someone who does not satisfy the conditions specified in paragraph 2 of this Article.

Moreover, based on points c, d, paragraph 2 of Article 2 of Circular 111/2013/TT-BTC, it specifically stipulates taxable income as follows:

Taxable income categories

As per the provisions of Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:

...

2. Income from wages, salaries

Income from wages, salaries are earnings that an employee receives from an employer, including:

...

c) Remuneration received in forms such as: commissions from selling goods as an agent, brokerage commissions; fees for participating in scientific and technical research projects; project involvement; royalties as regulated by the law on royalties; fees for participating in teaching activities; performance in cultural, artistic, sports activities; advertising services; other services and remuneration.

d) The money received from involvement in business associations, board of directors of enterprises, supervisory board of enterprises, project management boards, management boards, associations, professional associations, and other organizations.

...

Livestream selling is one form of product advertising and selling. The person livestreaming will receive an amount (commission, advertising service fees, etc.) paid by the owner or trader of the goods.

Thus, according to the above regulations, income from livestream selling is still categorized as income from wages or salaries. Therefore, individuals livestreaming sales are required to pay personal income tax if their income is taxable.

Is income from livestream selling subject to personal income tax in Vietnam? (Image from Internet)

What are regulations on the personal income tax period in Vietnam?

According to Article 7 of the Law on Personal Income Tax 2007, as amended by paragraph 3 of Article 1 of the Law on Amendments to Law on Personal Income Tax 2012, the personal income tax period is regulated as follows:

- The tax period for resident individuals is regulated as follows:

+ The annual tax period applies to income from business; income from wages, salaries;

+ The tax period by 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 winning; copyright income; franchise income; inheritance income; gift income;

+ The tax period by each securities transfer or annually for income from securities transfer.

- The tax period for non-resident individuals is calculated per income occurrence applicable to all taxable income.

When shall individuals receive a personal income tax refund in Vietnam?

Pursuant to paragraph 2 of Article 8 of the Law on Personal Income Tax 2007 regulating tax refunds as follows:

Tax management and tax refund

1. The procedure of taxpayer registration, tax declaration, deduction, payment, finalization, refund, handling of tax law violations, and other tax management measures shall comply with the provisions of tax management law.

2. Individuals are eligible for tax refunds in the following cases:

a) The paid tax amount is larger than the tax payable;

b) Individuals who have paid tax but whose taxable income does not reach the level subject to tax;

c) Other cases as decided by the competent state authority.

From the above regulation, it can be seen that individuals are eligible for a personal income tax refund when they meet the following scenarios:

- The paid tax amount is larger than the tax payable;

- Individuals who have paid tax but whose taxable income does not reach the level subject to tax;

- Other cases as decided by the competent state authority.

Additionally, note that personal income tax refunds only apply to individuals who have registered and possess a tax identification number at the time of submitting the tax finalization dossier (paragraph 1, Article 28 of Circular 111/2013/TT-BTC).