When does 35% personal income tax rate apply to monthly salary in Vietnam?
When is 35% personal income tax rate apply to monthly salary in Vietnam?
Based on Article 14 of Decree 65/2013/ND-CP (amended by Clause 4, Article 6 of Decree 12/2015/ND-CP) and Clause 1, Article 18 of Circular 111/2013/TT-BTC.
The personal income tax rate for Vietnamese residents is applied according to the following progressive tariff:
Tax Bracket | Taxable Income/Year (Million VND) | Taxable Income/Month (Million VND) | Tax Rate (%) |
1 | Up to 60 | Up to 5 | 5 |
2 | Over 60 to 120 | Over 5 to 10 | 10 |
3 | Over 120 to 216 | Over 10 to 18 | 15 |
4 | Over 216 to 384 | Over 18 to 32 | 20 |
5 | Over 384 to 624 | Over 32 to 52 | 25 |
6 | Over 624 to 960 | Over 52 to 80 | 30 |
7 | Over 960 | Over 80 | 35 |
The 35% personal income tax rate applies to individuals with taxable income from salaries and wages, whereby the taxable income exceeds 80 million VND/month and exceeds 960 million VND/year.
Wherein:
- Taxable income:
Taxable Income = Taxable Revenue - Deductions
And
Taxable Revenue = Total Income - Exempted Amounts
When does 35% personal income tax rate apply to monthly salary in Vietnam? (Image from the Internet)
What is the current personal income tax rate in Vietnam?
According to the 2007 Law on Personal Income Tax and related guiding documents. To be specific, the personal income tax rates for 2024 are as follows:
(1) Progressive tariff:
Based on Article 22 of the 2007 Law on Personal Income Tax, the progressive tariff is stipulated as follows:
Tax Bracket | Taxable Income/Year (Million VND) |
Taxable Income/Month (Million VND) |
Tax Rate (%) |
1 | Up to 60 | Up to 5 | 5 |
2 | Over 60 to 120 | Over 5 to 10 | 10 |
3 | Over 120 to 216 | Over 10 to 18 | 15 |
4 | Over 216 to 384 | Over 18 to 32 | 20 |
5 | Over 384 to 624 | Over 32 to 52 | 25 |
6 | Over 624 to 960 | Over 52 to 80 | 30 |
7 | Over 960 | Over 80 | 35 |
The progressive tariff applies to taxable income from business, salaries, and wages:
Under Clause 1, Article 21 of the 2007 Law on Personal Income Tax (amended by Clause 5, Article 1 of the 2012 Amended Law on Personal Income Tax), the taxable income for business activities, salaries, and wages is determined by the total taxable revenue stipulated in Article 10 of the 2007 Law on Personal Income Tax (amended by Clause 4, Article 2 of the 2014 Law Amending Tax Laws) and Article 11, minus the contributions for social insurance, health insurance, unemployment insurance, occupational liability insurance for some compulsory insurance sectors, voluntary retirement funds, and deductions.
(2) Fixed Tax Schedule
Under Article 23 of the 2007 Law on Personal Income Tax (amended by Clause 7, Article 2 of the 2014 Law Amending Tax Laws), the fixed tax schedule is determined as follows:
Taxable Income | Tax Rate (%) |
Income from capital investment | 5 |
Income from royalties, franchise rights | 5 |
Income from prizes | 10 |
Income from inheritance, gifts | 10 |
Income from capital transfer stipulated in Clause 1, Article 13 of the 2007 Law on Personal Income Tax Income from securities transfer stipulated in Clause 1, Article 13 of the 2007 Law on Personal Income Tax |
20 0.1 |
Income from real estate transfer | 2 |
Note: The fixed tax schedule applies to taxable income specified in Clause 2, Article 21 of the 2007 Law on Personal Income Tax, specifically including:
Taxable income concerning capital investment, capital transfer, real estate transfer, prizes, royalties, franchise rights, inheritance, gifts is taxable income as per the 2007 Law on Personal Income Tax.
Vietnam: Which incomes does progressive tariff apply to?
As per Clause 1, Article 22 of the 2007 Law on Personal Income Tax, it is stipulated as follows:
Progressive tariff
- The progressive tariff applies to taxable income stipulated in Clause 1, Article 21 of this Law.
...
Thus, the progressive tariff applies to taxable income from business, salaries, and wages.
Taxable income concerning business activities, salaries, and wages is the total taxable revenue stipulated in Articles 10 and 11 of the 2007 Law on Personal Income Tax, minus contributions to social insurance, health insurance, unemployment insurance, occupational liability insurance for certain compulsory insurance sectors, voluntary retirement funds, and deductions stipulated in Articles 19 and 20 of the 2007 Law on Personal Income Tax.
Note: The provision on determining tax for individual businesses in Clause 1, Article 21 was abolished by Clause 4, Article 6 of the 2014 Law Amending Tax Laws.
- What is the list of approved plant protection chemicals in Vietnam from January 30, 2025? What is the VAT rate for plant protection chemicals in Vietnam?
- Will goods imported and then exported to another country be eligible for VAT refund from July 1, 2025?
- From July 1, 2025, which exported goods and services are entitled to a 0% value-added tax rate in Vietnam?
- Are documentary evidence of cashless payment for goods and services purchased required for VAT deduction in Vietnam from July 1, 2025?
- What are regulations on making and retention of accounting records in Vietnam?
- From July 1, 2025, when is the time for determination of value-added tax for services in Vietnam?
- From July 1, 2025, how to determine taxable prices for promotional goods and services in Vietnam?
- What is December 31? Shall late payment interest be paid after the extension period ends in Vietnam?
- If the residual input VAT on the investment projects is 300 million VND or more, shall it be refundable in Vietnam?
- Vietnam: What are cases in which VAT refund for investment projects is not allowed from July 1, 2025?