From July 1, 2013, the National Assembly has raised the family circumstance deduction to 9 million VND/day. On November 22, 2012, the National Assembly promulgated the Law amending and supplementing a number of articles of the 2012 Law on Personal Income Tax.
Article table of contents
According to the provisions of the Amended Personal Income Tax Law 2012, the family circumstance-based deduction for taxpayers is raised to 9 million VND per month, equivalent to 108 million VND per year (the previous level was 4 million VND per month, 48 million VND per year). The deduction for each dependent is 3.6 million VND per month (the previous level was 1.6 million VND per month). However, in case the Consumer Price Index (CPI) fluctuates by over 20% compared to July 1, 2012, or the most recent adjustment of the family circumstance-based deduction, the Government of Vietnam shall submit to the Standing Committee of the National Assembly for adjustment of the family circumstance-based deduction in response to price fluctuations to be applied for the next tax period.
Illustrative image (source: internet)
In addition, the Law also stipulates that taxable personal income from salaries and wages includes: salaries, wages, and wage-related items; allowances, and subsidies. Other income items, such as bonuses; remuneration under various forms; earnings from participation in business associations, boards of directors, supervisory boards, management boards, and other organizations; and other benefits received in cash or non-cash by the taxpayer are not considered income from salaries and wages as stipulated in the Personal Income Tax Law No. 04/2007/QH12.
Moreover, the Law also amends some contents such as: transferring real estate in the form of usage authorization still requires tax payment. Individuals with income from securities transfer can register their tax period by year at any time of the year...
This Law takes effect from July 1, 2013.
Source: HPVN law
