Income from Loan Interest: What is the Tax Rate?
Point a Clause 3 Article 3 of the 2007 Law on Personal Income Tax states that loan interest is considered income from capital investment, which is taxable income.
Article 27 of this Law also stipulates that tax on income from capital investment:
Tax on income from capital investment of non-resident individuals is determined by the total amount received by the non-resident individual from capital investments in organizations or individuals in Vietnam multiplied by a tax rate of 5%.
Therefore, for income from loan interest, you are subject to a 5% tax rate.
Sincerely!
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