What are the guidance documents for the Latest Law on Personal Income Tax 2024 of Vietnam?

What is the latest Law on Personal Income Tax in Vietnam for 2024?

The latest Law on Personal Income Tax for 2024 is the 2007 Law on Personal Income Tax, amended by the following documents:

- 2012 Amended Law on Personal Income Tax.

- 2014 Amendment to Laws on Taxation.

- Resolution 954/2020/UBTVQH14 on adjusting the family circumstance deduction of personal income tax.

- Land Law 2024.

What are the guidance documents for the latest Law on Personal Income Tax 2024 of Vietnam ? (Image from the Internet)

What are the guidance documents for the Latest Law on Personal Income Tax 2024 of Vietnam?

The guidance documents for the latest Law on Personal Income Tax 2024 include:

- Directive 22/2008/CT-TTg on the implementation of the Law on Personal Income Tax.

- Circular 20/2010/TT-BTC guiding administrative procedures on personal income tax.

- Decree 65/2013/ND-CP guiding the Law on Personal Income Tax and the Amended Law on Personal Income Tax.

- Circular 111/2013/TT-BTC guiding the Law on Personal Income Tax and Decree 65/2013/ND-CP.

- Decree 91/2014/ND-CP amending decrees regulating tax.

- Circular 119/2014/TT-BTC amending Circular 156/2013/TT-BTC, Circular 111/2013/TT-BTC, 219/2013/TT-BTC, 08/2013/TT-BTC, 85/2011/TT-BTC, 39/2014/TT-BTC and 78/2014/TT-BTC to reform and simplify administrative procedures regarding tax.

- Circular 151/2014/TT-BTC guiding the implementation of Decree 91/2014/ND-CP amending and supplementing a number of articles of the decree regulating tax.

- Decree 12/2015/ND-CP guiding the Law amending and supplementing some articles of the Laws on Taxation and amending and supplementing a number of articles of the decrees regulating tax.

- Circular 92/2015/TT-BTC guiding the implementation of VAT and personal income tax for resident individuals engaged in business activities; guiding the implementation of some amendments and supplements on personal income tax as stipulated in the Law on Amendments and Supplements to some Articles of the Laws on Taxation 71/2014/QH13 and Decree 12/2015/ND-CP detailing the implementation of the Law on Amendments and Supplements to some Articles of the Laws on Taxation and amending and supplementing some articles of decrees on tax.

Who must pay personal income tax in Vietnam?

According to Article 2 of the 2007 Law on Personal Income Tax, personal income tax payers are residents with taxable income specified in Article 3 of the 2007 Law on Personal Income Tax arising both inside and outside Vietnam, and non-residents with taxable income specified in Article 3 of the 2007 Law on Personal Income Tax arising within the territory of Vietnam.

In detail:

- Resident individuals are those who meet one of the following conditions:

+ Being present in Vietnam for 183 days or more within a calendar year or for twelve consecutive months from the first day of presence in Vietnam;

+ Having a regular place of residence in Vietnam, including a registered permanent residence or a rental house in Vietnam in accordance with a term contract.

- Non-resident individuals are those who do not meet the conditions of resident individuals.

Which incomes are exempt from personal income tax in Vietnam?

According to Clause 1, Article 3 of Circular 111/2013/TT-BTC, amended and supplemented by Article 12 of Circular 92/2015/TT-BTC, the categories of income exempt from personal income tax are as follows:

- Income from the transfer of real estate between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughters-in-law; parents-in-law and their sons-in-law; grandparents and their grandchildren; and siblings.

- Income from the transfer of residential houses, homestead land use rights, and assets attached thereto in cases where the individual only has one residential house, homestead land.

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

- Income from inheritance or gifts of real estate between husband and wife; biological parents and their children; adoptive parents and their adopted children; parents-in-law and their daughters-in-law; parents-in-law and their sons-in-law; grandparents and their grandchildren; and siblings.

- Income of households or individuals directly engaged in agricultural, forestry, salt-making, aquaculture, and fisheries activities that have not been processed into other products or have only undergone simple preliminary processing.

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

- Interest income from deposits at credit institutions, interest income from life insurance contracts.

- Remittances income.

- The part of night shift or overtime salary paid higher than that of day shift or working hours as stipulated by law.

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

- Income from scholarships, including:

+ Scholarships received from the State budget;

+ Scholarships received from domestic and foreign organizations under their reward programs.

- Income from life insurance and non-life insurance contract compensation, work accident compensation, State compensation, and other compensations as stipulated by law.

- Income from charitable funds that are approved or recognized by the competent state authority, operating for charitable, humanitarian, non-profit purposes.

- Income from foreign aid provided for charitable, humanitarian purposes in the form of government and non-governmental organizations as approved by the competent state authority.

- Income from wages and salaries of Vietnamese sailors working for foreign shipping companies or Vietnamese shipping companies involved in international transportation.

- Income of ship owners, individuals with the right to use ships and individuals working on ships from supplying goods and services directly serving offshore fishing and catching activities.