Which incomes of Vietnamese residents are subject to personal income tax declared annually?

Which incomes of Vietnamese residents are subject to personal income tax declared annually?

Based on Article 7 of the 2007 Personal Income Tax Law (amended by Clause 3, Article 1 of the 2012 Amended Personal Income Tax Law), it is stipulated:

Tax Assessment Period

1. The tax assessment period for residents is regulated as follows:

a) The tax assessment period by year applies to income from business; income from salary, wages;

b) The tax assessment period per income occurrence applies to income from capital investment; income from securities transfer, except for income from securities transfer; income from real estate transfer; income from winnings; income from royalties; income from franchising; income from inheritance; income from gifts;

c) The tax assessment period per securities transfer or annually for income from securities transfers.

2. The tax assessment period for non-residents is determined by each income occurrence applicable to all taxable income.

The personal income tax assessment period by year applies to income from business and income from salary, wages.

Which incomes of Vietnamese residents are subject to personal income tax declared annually? (Image from the Internet)

What income from business is subject to personal income tax in Vietnam?

Based on Clause 1, Article 2 of the 2007 Personal Income Tax Law as amended by Clause 1, Article 2 of the 2014 Law Amending Tax Laws, it is stipulated:

Taxable Income

Taxable personal income includes the following types of income, except for income exempted under Article 4 of this Law:

1. Income from business, including:

a) Income from the production and business of goods and services;

b) Income from independent professional activities of individuals who have a license or practice certificate in accordance with the law.

Income from business mentioned in this clause does not include income of business individuals with an annual revenue of 100 million VND or less.

The following business income will be subject to personal income tax:

- Income from the production and business of goods and services;

- Income from independent professional activities of individuals who have a license or practice certificate according to the legal regulations.

The above-mentioned business income does not include income of business individuals with an annual revenue of 100 million VND or less.

What income from salaries and wages is subject to personal income tax in Vietnam?

Based on Clause 1, Article 2 of the 2007 Personal Income Tax Law amended by Clause 1, Article 1 of the 2012 Amended Personal Income Tax Law, it is stipulated as follows:

- Salaries, wages, and other monetary items similar to salaries and wages;

- Allowances, subsidies, except for allowances and subsidies such as:

+ Allowances and subsidies prescribed by the law regarding preferential treatment for individuals with meritorious services; national defense, security allowances;

+ Hazardous and hazardous work allowances for occupations or jobs in work environments with hazardous elements;

+ Attraction allowances and regional allowances as prescribed by law;

+ Unexpected hardship allowance, labor accident allowance, occupational disease allowance, one-time allowance when giving birth or adopting a child, allowance due to reduced working capacity, one-time pension allowance, monthly survivor benefits, and other allowances as prescribed by social insurance laws;

+ Severance allowance, unemployment support as stipulated by the Labor Code; social protection allowances and other allowances and subsidies that do not have the nature of salaries, wages as prescribed by the Government of Vietnam;

+ Remuneration in various forms;

+ Money received from participating in business associations, boards of directors, supervisory boards, management councils, and other organizations;

+ Other benefits received by the taxpayer in money or not in money;

+ Bonuses, except bonuses associated with titles awarded by the State, bonuses associated with national or international awards, bonuses for technical improvements, inventions, discoveries as recognized by competent state agencies, bonuses for detecting and reporting legal violations to competent state agencies.

Note:

Overtime pay for working at night or extra hours that exceeds the regular day-time or legal prescribed working hours wage, as well as income from salaries and wages of Vietnamese crew members working for foreign shipping lines or Vietnamese shipping lines with international operations, will be exempt from tax.