Is the amount received under public service housing policies considered taxable personal income in Vietnam?

Is the amount received under public service housing policies considered taxable personal income in Vietnam?

Pursuant to point g, clause 2, Article 2 of Circular 111/2013/TT-BTC, supplemented by clause 5 of Article 11 of Circular 92/2015/TT-BTC, the specific provisions are as follows:

Taxable Income

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2. Income from salary, wages

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g) The following amounts are not included in taxable income:

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g.2) Amounts received according to regulations on the use of transportation within State agencies, public service providers, Communist Party organizations, and mass organizations.

g.3) Amounts received under public service housing policies as prescribed by law.

g.4) Other amounts beyond salary and wages received for participating in providing opinions, appraisal, verification of legal documents, Resolutions, political reports; participating in inspection and monitoring teams; meeting with voters, receiving citizens; uniforms and other direct activities related to the operations of the National Assembly Office, Ethnic Council, and National Assembly Committees, deputations of the National Assembly; Central Office and Party Committees; City Party Committees, Provincial Party Committees, and their Committees.

g.5) Mid-shift meals, lunch organized by employers for employees through various forms such as cooking, buying meals, providing meal vouchers.

In cases where the employer does not organize meals but gives money to employees, it is not included in the individual's taxable income if the amount is consistent with the guidance of the Ministry of Labor - Invalids and Social Affairs. If the expenditure exceeds the guidance of the Ministry of Labor - Invalids and Social Affairs, the excess must be included in the individual's taxable income.

The specific expenditure applied to State enterprises and organizations, units under administrative agencies, the Communist Party, mass organizations, Associations must not exceed the guidance of the Ministry of Labor - Invalids and Social Affairs. For non-state enterprises and other organizations, the expenditure is determined by the unit's head in agreement with the union's president but must not exceed the application level for state enterprises.

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Thus, according to the above provision, the amount received under public service housing policies is not included in taxable personal income.

Is the amount received under public service housing policies considered taxable personal income in Vietnam? (Image from the Internet)

What salary level requires paying personal income tax if there are no dependants in Vietnam?

According to clause 2, Article 2 of Circular 111/2013/TT-BTC, amended and supplemented by clause 1, Article 11 of Circular 92/2015/TT-BTC, specifying taxable income as follows:

Taxable Income

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2. Income from salary, wages

Income from salary, wages is the income received by an employee from the employer, including:

a) Salaries, wages and payments of a nature similar to salaries and wages in cash or not in cash.

b) Allowances and subsidies, except for the following allowances and subsidies:

b.1) Monthly preferential allowances and one-time subsidies as prescribed by law regarding preferential treatment to people with meritorious services.

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And according to Article 1 of Resolution 954/2020/UBTVQH14 regarding personal deduction levels as follows:

Personal deduction levels

Adjust the personal deduction levels stipulated in clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12, as amended and supplemented by Law No. 26/2012/QH13, as follows:

1. Deduction level for taxpayers is 11 million VND/month (132 million VND/year);

2. Deduction level for each dependant is 4.4 million VND/month.

Thus, according to the above provisions, an individual without dependants must pay personal income tax if the total income from salary and wages exceeds 11 million VND/month.

Where is the place to submit the individual income tax returns in Vietnam?

According to Article 45 of the Tax Administration Law 2019, specific provisions on places to submit tax returns are as follows:

- Taxpayers must submit tax returns at the tax authority that directly manages them.

- In cases where tax returns are submitted under the one-stop-shop mechanism, the submission location follows the provisions of that mechanism.

- Locations for submitting tax returns for exported or imported goods follow the Customs Law provisions.

- The Government of Vietnam stipulates locations for submitting tax returns in the following cases:

+ Taxpayers with multiple production and business activities;

+ Taxpayers conducting production and business activities in multiple locations; taxpayers having tax obligations for types of taxes declared and paid per occurrence;

+ Taxpayers with tax obligations related to land revenues; water and mineral resource exploitation rights;

+ Taxpayers with final settlement tax obligations for personal income tax;

+ Taxpayers declaring taxes through electronic transactions and in other necessary cases.