Does Bank Interest Income Subject to Tax?

17:05, 11/07/2024

My newly established company has deposited money at a bank. I have a question regarding whether the interest income that my company earns from periodic bank deposits is subject to tax. (AnDuongxxx@gmail.com).

Dear Sir/Madam,

Regarding your inquiry, Thu Ky Luat has some feedback as follows:

The interest income that an enterprise receives from periodic bank deposits is also considered income for the individual or organization; however, this amount is not subject to tax.

According to Clause 1, Article 5 of Circular 219/2013/TT-BTC, the cases that are not required to declare and pay value-added tax include:

"1. Organizations and individuals receiving compensation in cash (including compensation for land and assets on land when land is recovered by decision of a competent State agency), rewards, support money, emission rights transfer money, and other financial income...."

Pursuant to the aforementioned regulation, income from bank deposit interest of an enterprise is financial income and is not an activity that generates added value. Therefore, it is not required to declare and pay value-added tax.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem

- This translation is generated by OpenAI's GPT-4o model;
- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn