What are the criteria for identifying low income earners in Vietnam in 2025? Which income amount is taxable in Vietnam ?

What are the criteria for identifying low income earners in Vietnam in 2025?

Based on point d, clause 2, Article 3 of Decree 07/2021/ND-CP amended and supplemented by clause 3, Article 1 of Decree 30/2025/ND-CP prescribed as follows:

Multidimensional poverty standards for the period 2022 - 2025

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2. Standards for poor households, near-poor households, and households with an average standard of living for the period 2022 - 2025

a) Standard for poor households

- Rural areas: Households with an average monthly income per capita of 1,500,000 VND or less and lacking 3 or more basic social service deprivation indices.

- Urban areas: Households with an average monthly income per capita of 2,000,000 VND or less and lacking 3 or more basic social service deprivation indices.

b) Standard for near-poor households

- Rural areas: Households with an average monthly income per capita of 1,500,000 VND or less and lacking less than 3 basic social service deprivation indices.

- Urban areas: Households with an average monthly income per capita of 2,000,000 VND or less and lacking less than 3 basic social service deprivation indices.

c) Standard for households with an average standard of living

- Rural areas: Households with an average monthly income per capita from 1,500,000 VND to 2,250,000 VND.

- Urban areas: Households with an average monthly income per capita from 2,000,000 VND to 3,000,000 VND.

d) Criteria for identifying low income earners under the National Sustainable Poverty Reduction Program for the period 2021 - 2025

low income earners are those in households (excluding those in poor or near-poor households):

- Rural areas: with an average monthly income per capita of 2,250,000 VND or less.

- Urban areas: with an average monthly income per capita of 3,000,000 VND or less.

đ) The standards for poor households, near-poor households, households with an average standard of living, and the criteria for identifying low income earners under the National Sustainable Poverty Reduction Program for the period 2021 - 2025 stipulated in clause 2 of this Article serve as the basis for measuring and monitoring income and basic social service deprivation levels of citizens. They form the basis for determining targets to implement poverty reduction policies, social welfare, and other socio-economic policies for the period 2022 - 2025.

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Thus, the criteria for identifying low income earners under the National Sustainable Poverty Reduction Program for the period 2021 - 2025 are as follows:

- Rural areas: with an average monthly income per capita of 2,250,000 VND or less.- Urban areas: with an average monthly income per capita of 3,000,000 VND or less.

What are the criteria for identifying low income earners in Vietnam in 2025? Which income amount is taxable in Vietnam ? (Image from Internet)

Which income amount is taxable in Vietnam?

Based on clause 1, Article 19 of the Personal Income Tax Law 2007 amended by Article 1 of Resolution 954/2020/UBTVQH14 regarding family circumstance deductions as follows:

Family Circumstance Deduction

1. Family circumstance deduction is the amount deducted from taxable income before tax calculation for taxable income from business, salary, wages of individual taxpayers. Family circumstance deduction consists of the following two parts:

a) The deduction level for the taxpayer is 11 million VND/month (132 million VND/year);

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

2. Determining family circumstance deductions for dependents follows the principle that each dependent is only deducted once for one taxpayer.

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According to the above regulations, the family circumstance deduction for resident individual taxpayers is as follows:

- The deduction for the taxpayer is 11 million VND/month (132 million VND/year).- The deduction for each dependent is 4.4 million VND/month.

Therefore, individuals without dependents must pay PIT when their total income from salary or wages exceeds 11 million VND/month.

Note:

Income from salary and wages is considered after subtracting the following:

- Insurance contributions, voluntary pension fund contributions, charity, educational promotion, humanitarian contributions.- Tax-exempt income.- Non-taxable income such as some allowances, subsidies, lunch money, etc.

What are cases where individuales are eligible for PIT refund in Vietnam?

Based on clause 2, Article 8 of the Personal Income Tax Law 2007 prescribed as follows:

Tax Management and Refund

1. Taxpayer registration, declaration, deduction, payment, finalization, refund, handling tax law violations, and tax management measures are conducted according to tax management law provisions.

2. Individuals are eligible for a tax refund in the following cases:

a) Paid tax amount exceeds payable tax amount;

b) Individuals have paid tax but have taxable income not reaching the taxable threshold;

c) Other cases as decided by competent state authorities.

Thus, individuals are eligible for a PIT refund in the following cases:

- Paid tax amount exceeds the payable tax amount;- Individuals have paid tax but have taxable income not reaching the taxable threshold;- Other cases as decided by competent state authorities.