May personal income taxpayers purchase social housing in Vietnam?

Who is personal income taxpayer in Vietnam?

According to Article 2 of the Personal Income Tax Law 2007, the definition of an personal income taxpayer is as follows:

- A resident individual with taxable income arising within and outside the territory of Vietnam

- A non-resident individual with taxable income arising within the territory of Vietnam.

Additionally, resident and non-resident individuals are defined as follows:

- A resident individual is someone who meets one of the following conditions:

+ 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;

+ Has a permanent residence in Vietnam, including a registered permanent residence or a leased house with a term for residence in Vietnam according to a lease agreement.

- A non-resident individual is someone who does not meet the conditions specified in Clause 2, Article 2 of the Personal Income Tax Law 2007.

May personal income taxpayers purchase social housing in Vietnam?

Based on Article 76 of the Housing Law 2023, the subject eligible for social housing policy includes:

Subjects eligible for social housing support

1. Persons with contributions to the revolution, relatives of martyrs eligible for housing improvement support under the Ordinance on Preferences for Persons with Contributions to the Revolution.

2. Poor and near-poor households in rural areas.

3. Poor and near-poor households in rural areas frequently affected by natural disasters and climate change.

4. Poor and near-poor households in urban areas.

5. Low-income individuals in urban areas.

6. Workers, employees working at enterprises, cooperatives, unions of cooperatives in and outside industrial parks.

7. Officers, professional servicemen, non-commissioned officers in the People's Armed Forces, police workers, officials, defense workers currently serving; persons doing cipher work, persons working in other cipher organizations receiving salaries from the state budget.

8. Officials and public employees as defined by the law on officials and public employees.

9. Individuals who have returned official residences under Clause 4, Article 125 of this Law, except in cases where official residences are reclaimed for violations of this Law.

10. Households and individuals whose land is reclaimed and houses demolished under the law but have not been compensated by the State with a house or homestead land.

11. Pupils, students of universities, institutes, colleges, vocational schools, specialized schools as prescribed by law; students of public boarding ethnic schools.

12. Enterprises, cooperatives, unions of cooperatives in industrial zones.

Additionally, according to Clause 1, Article 30 of Decree 100/2024/ND-CP, income conditions for purchasing social housing for some subjects are defined as follows:

Income Conditions

1. For the subjects specified in Clauses 5, 6, and 8 of Article 76 of the Housing Law, the income conditions are as follows:

a) For single applicants, the actual monthly income must not exceed 15 million VND according to the salary and wage table confirmed by the agency, unit, or enterprise where the individual works.

For married applicants as per the law, the total actual monthly income of the applicant and their spouse must not exceed 30 million VND according to the salary and wage table confirmed by the agency, unit, or enterprise where the individual works.

b) The income condition determination period is one consecutive year from the time the subjects defined in this clause submit valid applications to the investor to register for the purchase or lease-purchase of social housing.

...

Furthermore, pursuant to Article 1 of Resolution 954/2020/UBTVQH14, the family circumstance deduction level is regulated as follows:

Family Deduction Level

Adjust the family deduction level 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. The deduction level for taxpayers is 11 million VND/month (132 million VND/year);

2. The deduction level for each dependent is 4.4 million VND/month.

Thus, personal income taxpayers who are low-income in urban areas; workers and employees working at enterprises, cooperatives, unions of cooperatives in and outside industrial parks; officials and public employees as per the law on officials and public employees with total income not yet deducted for family circumstances and exemptions from 11 million VND to not over 15 million VND may be eligible to purchase social housing (if further meeting conditions specified in point a, Clause 1, Article 78 of the Housing Law 2023).

May personal income taxpayers purchase social housing in Vietnam? (Image from the Internet)

Where is personal income tax to be submitted in Vietnam?

Pursuant to Clause 1, Article 56 of the Tax Administration Law 2019, the locations for submitting personal income tax are as follows:

- At the State Treasury;

- At the tax administration agency where the tax declaration dossier is received;

- Through an organization authorized by the tax administration agency to collect tax;

- Through commercial banks, other credit institutions, and service organizations according to legal provisions.