What is the interest on Government bonds of Vietnam? What is the basis for determining tax-exempt income from interest on Government bonds of Vietnam?

What is the interest on Government bonds of Vietnam?

Pursuant to point g, clause 1, Article 3 of Circular 111/2013/TT-BTC, it is stipulated as follows:

Income exempt from tax

...

g) Income from interest on deposits at credit institutions, foreign bank branches, interest from life insurance contracts; income from interest on Government bonds of Vietnam.

g.1) The interest on deposits exempt from tax as prescribed at this point is the individual’s income received from interest on deposits in Vietnamese Dong, gold, foreign currency at credit institutions, foreign bank branches established and operating under the Law on Credit Institutions in forms such as demand deposits, fixed deposits, savings, certificates of deposit, promissory notes, treasury bills, and other forms of deposits with the principle of fully refunding principal and interest to the depositor as per agreement.

The basis for determining tax-exempt income from interest on deposits is the savings account (or savings card), deposit certificate, promissory note, treasury bill, and other papers with the principle of fully refunding principal and interest to the depositor as per agreement.

g.2) Interest from life insurance contracts is the interest that individuals receive according to the life insurance purchase contract of insurers.

The basis for determining tax-exempt income from interest from life insurance contracts is the interest payment document from the life insurance contract.

g.3) interest on Government bonds of Vietnam is the interest that individuals receive from purchasing interest on Government bonds of Vietnam issued by the Ministry of Finance.

The basis for determining tax-exempt income from interest on Government bonds of Vietnam is the face value, interest rate, and term on the Government bonds.

...

Thus, according to regulations, the interest on Government bonds of Vietnam is the interest that individuals receive from purchasing interest on Government bonds of Vietnam issued by the Ministry of Finance.

What is the interest on Government bonds of Vietnam? What is the basis for determining tax-exempt income from interest on Government bonds of Vietnam? (Image from the Internet)

What is the basis for determining tax-exempt income from interest on Government bonds of Vietnam?

Pursuant to point g, clause 1, Article 3 of Circular 111/2013/TT-BTC, it is stipulated as follows:

Income exempt from tax

...

g) Income from interest on deposits at credit institutions, foreign bank branches, interest from life insurance contracts; income from interest on Government bonds of Vietnam.

...

g.3) interest on Government bonds of Vietnam is the interest that individuals receive from purchasing interest on Government bonds of Vietnam issued by the Ministry of Finance.

The basis for determining tax-exempt income from interest on Government bonds of Vietnam is the face value, interest rate, and term on the Government bonds.

...

Thus, the basis for determining tax-exempt income from interest on Government bonds of Vietnam is the face value, interest rate, and term on the Government bonds.

What are the 16 types of income currently exempt from personal income tax in Vietnam?

According to Article 4 of the Law on Personal Income Tax 2007 (amended by clause 3, Article 2 of the Law Amending the Laws on Taxation 2014 and further amended by clause 2, Article 1 of the Amended Law on Personal Income Tax 2012), the 16 types of income currently exempt from PIT include:

(1) Income from the transfer 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; siblings.

(2) Income from the transfer of a house, residential land use rights, and assets attached to residential land of an individual in cases where the individual only has one house, residential land.

(3) Income from the value of land use rights of individuals who have been allocated land by the State.

(4) Income from inheritance, gifts being 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; siblings.

(5) Income of households, individuals directly engaged in agricultural, forestry production, salt production, aquaculture, fishing that have not been processed into other products or only through preliminary processing.

(6) Income from the conversion of agricultural land allocated by the State for production of households and individuals.

(7) Income from interest on deposits at credit institutions, interest from life insurance contracts.

(8) Income from remittances.

(9) Night shift wages, overtime wages paid higher than daytime wages, in-hours wages as prescribed by law.

(10) Retirement pensions paid by the Social Insurance Fund; retirement pensions paid by voluntary pension funds on a monthly basis.

(11) Income from scholarships, including:

- Scholarships from the state budget;

- Scholarships from domestic and foreign organizations under the organization's educational support programs.

(12) Income from compensation for life insurance, non-life insurance contracts, compensation for labor accidents, state compensation payments and other compensations as prescribed by law.

(13) Income received from charitable funds established or recognized by competent state agencies for charitable, humanitarian purposes, not for profit.

(14) Income received from foreign donations for charitable, humanitarian purposes under governmental and non-governmental forms approved by competent state agencies.

(15) Income from salary, wages of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

(16) Income of individuals who are ship owners, individuals having right to use ships, and individuals working on ships from activities providing goods, services directly serving offshore fishing.