Vietnam: What day is March 14, 2024? Are gifts given on March 14 subject to PIT? What is the PIT rate imposed on income from the receipt of gifts?
What day is March 14, 2024?
March 14 is White Valentine's Day (also known in English as White Valentine's Day). The holiday originated in Japan and is the date boys and girls review their feelings and exchange gifts.
Currently, White Valentine's Day (March 14) is considered the "response day" for the previous Red Valentine's Day (February 14). On this day, couples who love each other will give gifts to each other to show their sincere feelings, which is also a response to their partner's love. Especially, this is an opportunity for men to show the most affection to the girl they love.
(The above content is for reference only)
Are gifts given on March 14 subject to PIT in Vietnam?
Under the provisions of Clause 10, Article 2, Circular 111/2013/TT-BTC on income from the receipt of gifts as follows:
Taxable incomes
According to Article 3 of the Law on Personal income tax and Article 3 of the Decree No. 65/2013/ND-CP , the incomes subject to personal income tax (hereinafter referred to as taxable incomes) include:
...
10. Incomes from receipt of gifts
Incomes from receipt of gifts are incomes the person receives from organizations and individuals at home and overseas. To be specific:
a) Gifts being securities: shares, call options on shares, bonds, treasury bills, fund certificates, and other securities according to the Law on Securities; shares of the person in the joint-stock company according to the Law on Enterprises.
b) Gifts being capital in economic organizations and businesses: capital contribution to limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises and businesses of the person; capital in associations and funds established within the law, or the entire business if the private enterprise or business is under the ownership of the person.
c) Gift being real estate: rights to use land, rights to use land and property thereon; ownership of houses, including future houses, infrastructure and constructions on land, including off-the-plan constructions; rights to rent land or water surface; other incomes from inheritance being real estate in any shape or form, except for incomes from the gifts being real estate mentioned in Point d Clause 1 Article 3 of this Circular.
d) The ownership and use rights of gifts being other assets (cars, motorbikes, ships, barges, speedboats, towboats, yachts, airplanes, hunting guns, sporting guns) must be registered with state agencies.
Thus, gifts given on March 14 are subject to PIT in Vietnam in the following cases:
- Gifts being securities: shares, call options on shares, bonds, treasury bills, fund certificates, and other securities according to the Law on Securities; shares of the person in the joint-stock company according to the Law on Enterprises.
- Gifts being capital in economic organizations and businesses: capital contribution to limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises and businesses of the person; capital in associations and funds established within the law, or the entire business if the private enterprise or business is under the ownership of the person.
- Gift being real estate: rights to use land, rights to use land and property thereon; ownership of houses, including future houses, infrastructure and constructions on land, including off-the-plan constructions; rights to rent land or water surface; other incomes from inheritance being real estate in any shape or form, except for incomes from the gifts being real estate mentioned in Point d Clause 1 Article 3 of Circular 111/2013/TT-BTC.
- The ownership and use rights of gifts being other assets (cars, motorbikes, ships, barges, speedboats, towboats, yachts, airplanes, hunting guns, sporting guns) must be registered with state agencies.
In 2024, what is the PIT rate imposed on income from the receipt of gifts in Vietnam?
Under Clause 2, Article 23 of the Personal Income Tax Law 2007 (amended by Clause 7, Article 2 of the Law on Amendments to Tax Laws 2014), the schedule for PIT rates in 2024 is as follows:
Assessable income | Tax rate (%) |
a) Incomes from capital investment | 5 |
b) Incomes from copyright, franchising | 5 |
c) Incomes from winning prizes | 10 |
d) Incomes from inheritance, receipt of gifts | 10 |
dd) Incomes from capital transfer specified in Clause 1, Article 13 of this Law Incomes from securities transfer specified in Clause 1, Article 13 of this Law | 20 0,1 |
e) Incomes from real estate transfer | 2 |
Thus, the PIT rate imposed on incomes from gifts given on March 14 subject to PIT will be 10%.
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