What is the PIT rate applicable to income from copyright in Vietnam?

What is the PIT rate applicable to income from copyright in Vietnam?

Under Article 23 of the PIT Law 2007, amended by Clause 7, Article 2 of the Law on Amendments to Tax Laws 2014, the whole income tariff shall apply to income subject to PIT.

The whole income tariff is as follows:

Thus, the PIT rate for income from copyright according to the whole income tariff is 5%.

What is the PIT rate applicable to income from copyright in Vietnam? (Image from the Internet)

What does income from copyright subject to PIT in Vietnam include?

Pursuant to Clause 7, Article 2 of Circular 111/2013/TT-BTC, taxable incomes from copyright are incomes from the transfer of ownership, rights to use the subjects of intellectual property rights as stipulated in the Intellectual Property Law 2005; incomes from technology transfer as stipulated in the Technology Transfer Law 2017. To be specific:

- The subjects of intellectual property rights are specified in Article 3 of the Intellectual Property Law 2005 and relevant guiding documents:

+ Subjects of copyright include literary, artistic, and scientific works; subjects of rights relevant to copyright include: video recordings, sound recordings of broadcasted programs, program-carrying satellite signals.

+ Subjects of industrial property rights include inventions, industrial designs, integrated circuit designs, business secrets, makes, trade marks, and geographical indications.

+ Subjects of rights to plant varieties being propagating materials and harvested materials.

- Subjects of technology transfers according to Article 7 of the Technology Transfer Law 2017:

+ Transfer of technical know-hows.

+ Transfer of technological knowledge in the form of technological plans, technological processes, technical solutions, formulae, specifications, drawings, technical diagrams, computer programs, information.

+ Transfer of solutions for rationalizing production and technological innovation.

Incomes from transfer of aforesaid subjects of intellectual property rights and technology transfers include re-transfer.

What is the determination of income from copyright in Vietnam?

Pursuant to Article 16 of the PIT Law 2007:

Taxable incomes from copyright

1. A taxable income from copyright is an income in excess of VND 10 million earned by a taxpayer when assigning or licensing an intellectual property object or transferring a technology under a contract.

2. Time of determination of a taxable income from copyright is the time when an organization or individual pays income to a taxpayer.

Thus, taxable income from copyright is an income in excess of VND 10 million earned by a taxpayer when assigning or licensing an intellectual property object or transferring a technology under a contract.

What is the PIT period for income from copyright in Vietnam?

Pursuant to Article 7 of the PIT Law 2007 , amended by Clause 3, Article 1 of the Law on Amendments to PIT Law 2012 on tax period:

Tax period

1 For residents, tax period is specified as follows:

a/ Annual tax period, which is applicable to incomes from business, salaries and wages.

b/ Tax period upon each time of income generation, which is applicable to incomes from capital investment; incomes from capital transfer, except for incomes from securities transfer; incomes from real estate transfer; incomes from prizes; incomes from copyright; incomes from commercial franchising; incomes from inheritances; and gifts.

c/ Tax period upon each transfer or annual tax period, which is applicable to Incomes from transfer of securities.

.2 For non-residents, the tax period counted upon each time of income generation is applicable to all their taxable incomes.

Thus, the tax period for PIT from copyright is as follows:

- For residents: the tax period applies each time of income generation;

- For non-residents: the tax period counted upon each time of income generation applies to all their taxable incomes.

* According to Clause 2, Article 2 of the PIT Law 2007 , a resident is someone who meets one of the following conditions:

- Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;

- Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a term rent contract.

A non-resident is someone who does not meet the conditions of a resident individual.