What kinds of allowances and subsidies from salaries and wages are subject to personal income tax in Vietnam?
What kinds of allowances and subsidies from salaries and wages are subject to personal income tax in Vietnam?
According to Article 3 of the Law on Personal Income Tax 2007 as amended by Clause 1 and Clause 2 of Article 2 of the Law amending Tax Laws 2014 and Clause 1 of Article 1 of the Law amending Law on Personal Income Tax 2012 specifying taxable income in Vietnam:
Article 3. Taxable income
Personal income tax includes the following types of income, except for income exempt from tax as stipulated in Article 4 of this Law:
1. Income from business activities, including:
a) Income from manufacturing, trading goods and services;
b) Income from independent professional activities of individuals with permits or practice certificates as required by law.
Income from business activities stipulated in this Clause does not include income of individual businesses with annual revenue of 100 million VND or less.
2. Income from wages and salaries, including:
a) Wages, salaries and allowances with a nature of wages and salaries;
b) Allowances, subsidies, excluding: allowances and subsidies as stipulated by law for people with meritorious services; national defense and security allowances; hazardous and dangerous allowances for certain industries, professions or jobs in places with hazardous and dangerous elements; attraction allowances, regional allowances as stipulated by law; emergency hardship allowances, labor accident subsidies, occupational disease subsidies, one-time subsidies for childbirth or adoption, subsidies for reduced labor capacity, one-time retirement subsidies, monthly survival pensions, and other subsidies as stipulated by the law on social insurance; termination and unemployment allowances as stipulated by the Labor Code; social protection allowances and other allowances and subsidies not of the nature of wages and salaries as stipulated by the Government of Vietnam.
[...]
Thus, allowances and subsidies from wages and salaries exempt from personal income tax include:
- Allowances and subsidies as stipulated by law for people with meritorious services
- National defense and security allowances; hazardous and dangerous allowances for certain industries, professions or jobs in places with hazardous and dangerous elements
- Attraction allowances, regional allowances as stipulated by law
- Emergency hardship allowances, labor accident subsidies, occupational disease subsidies, one-time subsidies for childbirth or adoption, subsidies for reduced labor capacity, one-time retirement subsidies, monthly survival pensions, and other subsidies as stipulated by the law on social insurance
- Termination and unemployment allowances as stipulated
- Social protection allowances and other allowances and subsidies not of the nature of wages and salaries as stipulated by the Government of Vietnam
What kinds of allowances and subsidies from salaries and wages are subject to personal income tax in Vietnam? (Image from Internet)
What is the time limit for first-time taxpayer registration for individuals incurring personal income tax obligations in Vietnam?
According to Clause 2 of Article 33 of the Law on Tax Administration 2019 specifying the time limit for first-time taxpayer registration in Vietnam:
Article 33. Time limit for first-time taxpayer registration
[...]
2. Where taxpayers directly register with the tax authority, the first-time taxpayer registration deadline is 10 working days from the following dates:
a) The date of issuance of the business registration certificate, permit of establishment and operation, investment registration certificate, establishment decision;
b) The date of commencement of business activities for organizations not subject to business registration or for business households and individuals required to register for business but have not been issued a business registration certificate;
c) The date of arising the responsibility for tax deduction and tax payment on behalf of; the organization paying on behalf of an individual under contract, business cooperation agreement;
d) The date of signing the contract for foreign contractors and sub-contractors declaring tax directly with the tax authority; the date of signing the foreign oil and gas contract;
dd) The date personal income tax obligations arise;
e) The date the tax refund request arises;
g) The date other obligations to the state budget arise.
[...]
Thus, the first-time taxpayer registration deadline for individuals incurring personal income tax obligations is 10 working days from the date of arising personal income tax obligations.
What is included in the application for first-time taxpayer registration for individuals directly registering with the tax authority in Vietnam?
According to Clause 3 of Article 31 of the Law on Tax Administration 2019 specifying the application for first-time taxpayer registration for individuals directly registering with the tax authority in Vietnam:
- Taxpayer registration form or tax declaration form
- Copy of identity card, copy of citizen identification card, or copy of passport
- Other related documents.
