Is income from the value of land use rights of individuals who are allocated land by the State exempt from personal income tax in Vietnam?

Is income from the value of land use rights of individuals who are allocated land by the State exempt from personal income tax in Vietnam?

Pursuant to Clause 3, Article 4 of the Law on Personal Income Tax 2007, supplemented by Clause 3, Article 2 of the Law on Amendments to Tax Laws 2014, specific regulations on income exempt from tax are provided as follows:

Income Exempt from Tax

1. Income from real estate transfer between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughter-in-law; parents-in-law and their son-in-law; paternal grandparents and their grandchildren; maternal grandparents and their grandchildren; siblings.

2. Income from the transfer of residential houses, homestead land use rights, and assets attached to homestead land of individuals in cases where the individual has only one residential house or homestead land.

3. Income from the value of land use rights of individuals allocated land by the State.

4. Income from inheritances or gifts being real estate received between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughter-in-law; parents-in-law and their son-in-law; paternal grandparents and their grandchildren; maternal grandparents and their grandchildren; siblings.

5. Income of households and individuals directly engaged in agricultural production, forestry, salt making, aquaculture, or fishing that has not been processed into other products or has only undergone basic processing.

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Thus, based on the above regulations, income from the value of land use rights of individuals allocated land by the State is exempt from personal income tax.

Is income from the value of land use rights of individuals who are allocated land by the State exempt from personal income tax in Vietnam? (Image from the Internet)

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

According to Article 7 of the Law on Personal Income Tax 2007, amended by Clause 3, Article 1 of the Amended Law on Personal Income Tax 2012, the regulation on the tax period is as follows:

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

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

+ The tax period by occurrence applies to income from investment; income from capital transfers, except for income from securities transfers; income from real estate transfers; winnings; royalties; franchising; inheritances; gifts;

+ The tax period by occurrence or by year for income from securities transfers.

- The tax period for non-resident individuals is calculated by occurrence for all taxable income.

What income is exempt from personal income tax in Vietnam?

According to Article 4 of the Law on Personal Income Tax 2007, supplemented by Clause 3, Article 2 of the Law on Amendments to Tax Laws 2014 and amended by Clause 2, Article 1 of the Amended Law on Personal Income Tax 2012, it is stipulated which personal income is exempt from personal income tax as follows:

- Income from real estate transfers between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughter-in-law; parents-in-law and their son-in-law; paternal grandparents and their grandchildren; maternal grandparents and their grandchildren; siblings.

- Income from the transfer of residential houses, homestead land use rights, and assets attached to homestead land of individuals in cases where the individual has only one residential house or homestead land.

- Income from the value of land use rights of individuals allocated land by the State.

- Income from inheritances or gifts being real estate received between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughter-in-law; parents-in-law and their son-in-law; paternal grandparents and their grandchildren; maternal grandparents and their grandchildren; siblings.

- Income of households and individuals directly engaged in agricultural production, forestry, salt making, aquaculture, or fishing that has not been processed into other products or has only undergone basic processing.

- Income from the conversion of agricultural land allocated by the State for production by households and individuals.

- Interest income from deposits at credit institutions, interest from life insurance contracts.

- Income from remittances.

- Part of the overtime or night wages that exceed the daytime working wages and within working hours as prescribed by law.

- Pensions paid by the Social Insurance Fund; pensions paid monthly by voluntary retirement funds.

- Income from scholarships, including:

+ Scholarships from the state budget;

+ Scholarships from domestic and foreign organizations under the organization's scholarship support programs.

- Income from compensation for life insurance or non-life insurance contracts, compensation for occupational accidents, state compensation, and other compensations under legal provisions.

- Income received from charitable funds established or recognized by competent state agencies and operating for charitable, humanitarian purposes, not for profit.

- Income received from foreign aid for charitable, humanitarian purposes in government and non-governmental forms approved by competent state agencies.

- Income from wages, salaries of Vietnamese seafarers working for foreign shipping lines or Vietnamese shipping lines operating internationally.

- Income of individuals who are ship owners, individuals having the right to use ships, and individuals working on ships from selling goods, providing services directly serving offshore fishing and catching.