Are incomes from interests on deposits at banks liable to personal income tax in Vietnam?
Are incomes from interests on deposits at banks liable to personal income tax in Vietnam? Do I have to pay personal income tax when there are compensations for labor accidents in Vietnam?
Hello, let me ask you, I am 50 years old this year, I have worked all my life, so I have accumulated some money and I have deposited this money in the bank to earn interest every month to live day by day. Yesterday I heard from my neighbors that if I have income, I have to pay personal income tax to the state. Can you tell me if this is correct or not? Please advise, thanks for the help.
Are incomes from interests on deposits at banks liable to personal income tax in Vietnam?
In Article 4 of the Law on Personal Income Tax 2007, there are provisions on tax-exempt incomes as follows:
1. Incomes from transfer of real estate between spouses; parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law; grandparents and their grandchildren; or among blood siblings.
2. Incomes from transfer of residential houses, rights to use residential land and assets attached to residential land received by individuals who have only one residential house or land plot each.
3. Incomes from the value of land use rights of individuals who are allocated land by the State.
4. Incomes from receipt of inheritances or gifts that are real estate between spouses, parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law; grandparents and their grandchildren; or among blood siblings.
5. Incomes of households and individuals directly engaged in agricultural or forest production, salt making, aquaculture, fishing and trading of aquatic resources not yet processed into other products or preliminarily processed aquatic products.
6. Incomes from conversion of agricultural land allocated by the State to households and individuals for production.
7. Incomes from interests on deposits at credit institutions or interests from life insurance policies.
8. Incomes from foreign exchange remittances.
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According to this Article, the interests on deposits from a bank (credit institution) will not be subject to personal income tax in Vietnam.
Do I have to pay personal income tax when there are compensations for labor accidents in Vietnam?
In Article 4 of the Law on Personal Income Tax 2007, there are provisions on tax-exempt incomes as follows:
10. Retirement pensions paid by the Social Insurance.
11. Incomes from scholarships, including:
a/ Scholarships granted from the state budget;
b/ Scholarships granted by domestic and foreign organizations under their study promotion programs.
12. Incomes from indemnities paid under life insurance policies, non-life insurance policies, compensations for labor accidents, compensations paid by the State and other compensations as provided for by law.
13. Incomes received from charity funds licensed or recognized by competent state agencies and operating for charity, humanitarian or non-profit purposes.
14. Incomes received from governmental or non-governmental foreign aid for charity or humanitarian purposes approved by competent state agencies.
According to this Article, the incomes from compensations for labor accidents will not be subject to personal income tax in Vietnam.
Best Regards!