What is the current salary threshold for paying personal income tax without dependants in Vietnam?

What is the current salary threshold for paying personal income tax when there are no dependants in Vietnam?

According to Clause 2, Article 2 of Circular 111/2013/TT-BTC, amended and supplemented by Clause 1, Article 11 of Circular 92/2015/TT-BTC, the taxable income is specifically defined as follows:

Taxable Income

…

2. Income from wages, salaries

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

a) Wages, salaries, and other payments of a wage or salary nature in monetary or non-monetary forms.

b) Allowances, subsidies, except for the following:

b.1) Monthly preference subsidies and one-time payments in accordance with the laws on preferential treatment for persons with meritorious services.

…

And according to Article 1 of Resolution 954/2020/UBTVQH14, the family circumstance deduction is regulated as follows:

Family Circumstance Deduction

Adjust the family circumstance deduction as stipulated in Clause 1, Article 19 of the Law on Personal Income Tax No. 04/2007/QH12, amended and supplemented by Law No. 26/2012/QH13, as follows:

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

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

Thus, according to the above regulations, an individual without dependants is required to pay personal income tax when having a total income from wages or salaries exceeding 11 million VND/month.

What is the current salary threshold for paying personal income tax without dependants in Vietnam? (Image from the Internet)

Where shall taxpayers submit their tax declaration dossiers in Vietnam?

According to Article 45 of the Law on Tax Administration 2019, specific regulations regarding the place to submit tax declaration dossiers are as follows:

- Taxpayers submit tax declaration dossiers at the tax authority directly managing them.

- In cases where tax declaration dossiers are submitted through a one-stop inter-agency mechanism, the place for submission follows the regulations of that mechanism.

- The place for submitting tax declaration dossiers for exported and imported goods follows the Customs Law.

- The Government of Vietnam regulates the place for submitting tax declaration dossiers in the following cases:

+ Taxpayers with multiple production and business activities;

+ Taxpayers conducting production and business activities in multiple areas; taxpayers with tax obligations arising from taxes declared and paid per occurrence;

+ Taxpayers with tax obligations arising from income related to land, water resource exploration rights, and mineral resources;

+ Taxpayers with tax obligations resulting from individual income tax finalization;

+ Taxpayers who declare tax through electronic transactions and other necessary cases.

What income is currently exempt from personal income tax in Vietnam?

According to Article 4 of the Law on Personal Income Tax 2007, supplemented by Clause 3, Article 2 of the Law amending Tax Laws 2014 and Clause 10 supplemented by Clause 2, Article 1 of the Law on Amendments to Law on Personal Income Tax 2012, specifies income exempt from tax as follows:

- Income from real estate transfer transactions 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; grandparents and grandchildren; siblings.

- Income from the transfer of residential houses, residential land use rights, and assets attached to residential land of individuals in cases where an individual owns only one property.

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

- Income from inherited real estate, gifts as 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; grandparents and grandchildren; siblings.

Income of households and individuals directly engaged in agricultural, forestry production, salt making, and aquaculture activities not processed into other products or only rudimentarily processed.

- Income from the conversion of agricultural land allocated by the State for production purposes.

- Income from interest on deposits at credit institutions, interest from life insurance contracts.

- Income from remittances.

- Night shift or overtime wages paid higher than day shift or regular working hours as per legal provisions.

- Pension paid by the Social Insurance Fund; monthly pension paid by the voluntary pension fund.

- Income from scholarships, including:

+ Scholarships received from the state budget;

+ Scholarships received from domestic and international organizations under their scholarship programs.

- Income from compensation of life insurance, non-life insurance contracts, compensation for labor accidents, state compensation, and other compensations as per legal regulations.

- Income received from charitable funds authorized by competent state agencies to establish or recognize, operating for charitable, humanitarian, non-profit purposes.

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

- Income from salaries and wages of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies on international routes.

- Income of individuals owning, or authorized to use ships; individuals working on ships from providing goods, services directly serving offshore fishing.