Is the seniority allowance for prosecutors subject to personal income tax in Vietnam?

Is the seniority allowance for prosecutors subject to personal income tax in Vietnam?

Based on sub-clause b.11 point b clause 2 Article 2 of Circular 111/2013/TT-BTC, which regulates allowances that are not subject to personal income tax, the provision is as follows:

Taxable Income

According to the provisions in Article 3 of the Personal Income Tax Law and Article 3 of Decree 65/2013/ND-CP, taxable personal income includes:

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2. Income from salaries and wages

Income from salaries and wages is income received by employees from employers, including:

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b) Allowances and subsidies, excluding the following allowances and subsidies:

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b.11) Professional-specific allowances.

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Simultaneously, as per the regulation in Section 10 of the Comprehensive List of Allowances and Subsidies issued by competent state authorities, used as a basis to determine taxable personal income from salaries and wages, issued with Official Dispatch 1381/TCT-TNCN in 2014 of the General Department of Taxation guiding the specific allowances in sectors, which includes the seniority allowance for Prosecutors.

Thus, the seniority allowance for Prosecutors is not subject to personal income tax.

Is the seniority allowance for prosecutors subject to personal income tax in Vietnam? (Image from Internet)

What are regulations on taxable personal income in Vietnam?

Based on Article 3 of the Personal Income Tax Law 2007 (amended by clause 1 Article 2 of the Law amending and supplementing some articles of the Laws on Taxation 2014, clause 1 Article 1, and clause 2 Article 2 of the Law amending and supplementing some articles of the Personal Income Tax Law 2012), taxable personal income is defined as follows:

- Income from business, including:

+ Income from production and business activities of goods and services;

+ Income from independent personal practices with a license or practicing certificate as prescribed by law.

- Income from salaries and wages, including:

+ Salaries, wages, and amounts with the nature of salaries and wages;

+ Allowances and subsidies, except for the following: allowances and subsidies as per the law on privileges for persons with contributions; defense and security allowances; toxic and hazardous allowances in sectors, occupations, or jobs in working places having toxic or hazardous factors; attraction and regional allowances as per the law; sudden hardship assistance, labor accident, occupational disease assistance, one-time childbirth or adoption assistance, impairment aid, one-time retirement benefit, monthly survivor's benefits, and other allowances as per the social insurance law; severance allowance, unemployment benefit as per the Labor Code; social protection and other allowances not with the nature of salaries and wages as prescribed by the Government.

- Income from capital investment, including:

+ Loan interest;

+ Dividend shares;

+ Income from capital investment in other forms, except for interest income from Government bonds.

- Income from capital transfers, including:

+ Income from transferring capital in economic organizations;

+ Income from securities transfer;

+ Income from capital transfer in other forms.

- Income from real estate transfer, including:

+ Income from transferring land use rights and assets attached to land;

+ Income from transferring home ownership or use rights;

+ Income from transferring land lease rights, surface water lease rights;

+ Other income received from real estate transfer in any form.

- Income from winning prizes, including:

+ Lottery prizes;

+ Prizes from promotional activities;

+ Prizes from betting activities;

+ Prizes from reward-based games, contests, and other forms of prizes.

- Income from royalties, including:

+ Income from transferring or giving usage rights of intellectual property subjects;

+ Income from technology transfer.

- Income from franchise.

- Income from inheritance being securities, capital portions in economic organizations, business establishments, real estate, and other assets required to register ownership or use rights.

- Income from gifts being securities, capital portions in economic organizations, business establishments, real estate, and other assets required to register ownership or use rights.

Where is the place of personal income tax collection in Vietnam?

Based on clause 1 Article 56 of the Tax Administration Law 2019, the place for paying personal income tax is regulated as follows:

- At the State Treasury;

- At the tax management agency where the tax return is received;

- Through organizations authorized by the tax management agency to collect tax;

- Through commercial banks, other credit institutions, and service organizations as prescribed by law.