What are details of the latest Law on Personal Income Tax 2024 and its guiding documents in Vietnam?

What are details of the latest Law on Personal Income Tax 2024 and its guiding documents in Vietnam?

On November 21, 2007, the National Assembly promulgated the Law on Personal Income Tax 2007, which stipulates about taxpayers, taxable income, tax-exempt income, tax reduction, and the basis for calculating personal income tax.

The Law on Personal Income Tax 2007 includes 35 Articles in 4 Chapters and took effect from January 1, 2009.

Thus, the latest Law on Personal Income Tax of 2024 is the Law on Personal Income Tax 2007 and will be used until a replacement document is issued.

Currently, as of October 09, 2024, the Law on Personal Income Tax 2007 has 9 guiding documents still in effect and will continue to be updated (if any):

[1] Circular 92/2015/TT-BTC guides the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; provides guidance on certain amended and supplemented contents regarding personal income tax stipulated in Law No. 71/2014/QH13 amending and supplementing certain articles of the tax laws and Decree 12/2015/ND-CP detailing the implementation of the law amending and supplementing certain articles of the tax laws and amendments to certain articles of tax decrees.

[2] Decree 91/2014/ND-CP amends decrees regulating taxation.

[3] Decree 12/2015/ND-CP guides the law amending and supplementing certain articles of the tax laws and amends certain articles of tax decrees.

[4] Circular 151/2014/TT-BTC guides the implementation of Decree 91/2014/ND-CP amending and supplementing certain articles of tax decrees.

[5] Circular 119/2014/TT-BTC amends Circulars 156/2013/TT-BTC, 111/2013/TT-BTC, 219/2013/TT-BTC, 08/2013/TT-BTC, 85/2011/TT-BTC, 39/2014/TT-BTC, and 78/2014/TT-BTC to reform and simplify administrative tax procedures.

[6] Circular 111/2013/TT-BTC guides the Law on Personal Income Tax and Decree 65/2013/ND-CP.

[7] Decree 65/2013/ND-CP guides the Law on Personal Income Tax and the law amending and supplementing some articles of the Law on Personal Income Tax.

[8] Circular 20/2010/TT-BTC guides administrative procedures regarding personal income tax issued by the Ministry of Finance.

[9] Directive 22/2008/CT-TTg implements the Law on Personal Income Tax.

What are details of the latest Law on Personal Income Tax 2024 and its guiding documents in Vietnam? (Image from the Internet)

Who have to pay personal income tax in Vietnam?

Based on Article 2 of the Law on Personal Income Tax 2007 which stipulates taxpayers:

Article 2. Taxpayers

1. Personal income taxpayers are resident individuals with taxable income as defined in Article 3 of this Law arising both inside and outside the territory of Vietnam and non-resident individuals with taxable income as defined in Article 3 of this Law arising within the territory of Vietnam.

2. Residents are individuals who meet one of the following conditions:

a) Being present in Vietnam for 183 days or more within a calendar year or for 12 consecutive months from the first day of presence in Vietnam;

b) Having a regular place of residence in Vietnam, including having a registered permanent residence or a rented house for living in Vietnam under a lease contract of a defined term.

3. Non-residents are individuals who do not meet the conditions stipulated in Clause 2 of this Article.

According to the above regulation in Vietnam, individuals subject to personal income tax are resident individuals with taxable income arising both inside and outside the territory of Vietnam, and non-resident individuals with taxable income arising within the territory of Vietnam.

A resident individual subject to personal income tax is someone who satisfies one of the following conditions:

- Being present in Vietnam for 183 days or more within a calendar year or for 12 consecutive months from the first day of presence in Vietnam

- Having a regular residence in Vietnam, including having a registered permanent residence or a rented house for living in Vietnam under a lease contract of a defined term

Non-residents are individuals who do not meet the conditions of a resident individual.

In which cases can individuals receive a personal income tax refund in Vietnam?

Based on Article 8 of the Law on Personal Income Tax 2007 which regulates tax administration and tax refund:

Article 8. Tax administration and tax refund

1. The registration, declaration, tax deduction, tax payment, tax finalization, tax refund, handling of legal tax violations, and tax management measures are conducted according to the law on tax management.

2. Individuals are entitled to tax refunds in the following cases:

a) The amount of tax paid is greater than the tax payable;

b) Individuals who have paid tax but have taxable income not reaching the tax threshold;

c) Other cases as decided by a competent state agency.

Thus, individuals are entitled to personal income tax refunds in the following cases:

- The amount of tax paid is greater than the tax payable

- Individuals who have paid tax but have taxable income not reaching the tax threshold

- Other cases as decided by a competent state agency.