Upcoming: Many People Will Be Exempt from Personal Income Tax on Salaries and Wages

In the near future, many people will be exempt from personal income tax on wages and remuneration (Illustrative image)

To be specific, according to Article 79 of the Law on Tax Administration 2019, the tax administration agency will implement tax exemption for the following cases:

- Households and individuals subject to non-agricultural land use tax with an annual payable tax amount of 50,000 VND or less. (This regulation was previously stipulated in Article 61 of the Law on Tax Administration 2006, amended by Clause 1 Article 3 of Law No. 106/2016/QH13).

- Individuals with an annual payable tax amount arising after the final settlement of personal income tax on wages and remuneration of 50,000 VND or less. (This is a new regulation added in the Law on Tax Administration 2019).

From July 1, 2020, individuals with an annual payable tax amount arising after the final settlement of personal income tax on wages and remuneration of 50,000 VND or less will be exempt from personal income tax.

Note:

- In cases of tax exemption for households and individuals subject to non-agricultural land use tax with an annual payable tax amount of 50,000 VND or less, the tax authority will base on the tax book to announce the list of households and individuals eligible for tax exemption.

- In cases of tax exemption for individuals with an annual payable tax amount arising after the final settlement of personal income tax on wages and remuneration of 50,000 VND or less, the taxpayer shall self-determine the exempted tax amount based on the personal income tax finalization declaration.

Nguyen Trinh

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