What are principles for determining personal deduction levels in Vietnam?

What are principles for determining personal deduction levels in Vietnam? What income is exempt from personal income tax in Vietnam?

What are principles for determining personal deduction levels in Vietnam?

According to Clause 2, Article 19 of the Law on Personal Income Tax 2007, specific regulations on family deduction are as follows:

Family Deduction

...

  1. Determining the level of family deduction for dependents is based on the principle that each dependent can only be claimed once by one taxpayer.

...

Thus, based on the above regulations, the principle for determining the level of family deduction for dependents is that each dependent can only be claimed once by a single taxpayer.

What principles must be followed in determining family deduction levels for dependents?

What are principles for determining personal deduction levels in Vietnam? (Image from Internet)

What income is exempt from personal income tax in Vietnam?

According to Article 4 of the Law on Personal Income Tax 2007, as supplemented by Clause 3, Article 2 of the Law on Amendments to Tax Legislations 2014, and amended by Clause 2, Article 1 of the Amended Law on Personal Income Tax 2012, the following personal incomes are exempt from personal income tax:

- Transfers of real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and between siblings.

- Transfers of residential houses, rights to use homestead land, and assets attached to homestead land in cases where individuals own only one residential house or one piece of homestead land.

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

- Inheritances and gifts of real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and between siblings.

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

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

- Interest from deposits at credit institutions and from life insurance contracts.

- Remittances from overseas.

- The portion of wages for night shifts or overtime that is higher than regular day work or legal working hours.

- Retirement pensions paid by the Social Insurance Fund and voluntary pension funds paid monthly.

- Income from scholarships, including:

+ Scholarships from the government budget;

+ Scholarships from domestic and foreign organizations under their scholarship support programs.

- Income from compensation for life and non-life insurance contracts, workers' accident compensations, state compensation, and other compensations as prescribed by law.

- Income received from charitable funds permitted or recognized by state authorities as operating for charitable, humanitarian, or non-profit purposes.

- Income from foreign donations for charitable, humanitarian purposes in the form of governmental and non-governmental aid approved by competent state authorities.

- Income from wages and salaries received by Vietnamese sailors working for foreign or international shipping companies.

- Income of shipowners, individuals with the right to use ships, and individuals working on vessels from providing goods and services directly serving offshore fishing and exploitation activities.

What is the personal income tax calculation period in Vietnam?

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

- The tax calculation period for resident individuals is defined as follows:

+ An annual tax period applies to income from business activities and wages/salaries;

+ A tax period for each income occurrence applies to income from capital investment; income from capital transfers, except income from securities transfers; real estate transfers; winnings; royalties; franchises; inheritances; and gifts;

+ A tax period for each transfer occurrence or annually for income from securities transfers.

- The tax calculation period for non-resident individuals is applied to each occurrence of taxable income.

Related Posts
LawNet
Vietnam: Is there a period according to the form 20DK on dependant registration under Circular 105?
LawNet
What is the latest form for authorization letter for dependant registration in Vietnam in 2024?
LawNet
What does the dependant registration for personal exemption include as guided by the General Department of Taxation of Vietnam?
LawNet
Are the documents proving dependants for personal exemption authenticated in Vietnam?
LawNet
How old is the child considered a dependant in Vietnam? What are the conditions for being considered a dependant in 2024?
LawNet
Vietnam: Who shall be considered a dependant when his average monthly income from all sources does not exceed 1,000,000 VND?
LawNet
Is a TIN required for dependants to be eligible for personal exemption in Vietnam?
LawNet
Shall a person receiving pension be registered as a dependant for personal exemption purposes in Vietnam?
LawNet
What is the deadline for registering personal deductions for siblings as dependants of PIT taxpayers in Vietnam in 2024?
LawNet
Do PIT taxpayers need to re-register dependants when changing workplaces in Vietnam?
Lượt xem: 93

Đăng ký tài khoản Lawnet

Đơn vị chủ quản: Công ty THƯ VIỆN PHÁP LUẬT.
Chịu trách nhiệm chính: Ông Bùi Tường Vũ - Số điện thoại liên hệ: 028 3935 2079
P.702A , Centre Point, 106 Nguyễn Văn Trỗi, P.8, Q. Phú Nhuận, TP. HCM;