In 2023, what is the applicable personal income tariff in 2023 in Vietnam? Are there changes to the tariff?- asked Mr. Tien Linh (An Giang)
Article table of contents
Hanoi-Vietnam: Applicable personal income tariff in 2023 (Image from the Internet)
Regarding this matter, LawNet responds as follows:
Applicable personal income tariff in 2023 is divided into partially progressive tariff and whole income tariff:
1. Partially progressive tariff in 2023
According to Article 22 of the Law on Personal Income Tax 2007, the partially progressive tariff applies to taxable income stipulated in Clause 1, Article 21 of the Law on Personal Income Tax 2007 (amended in 2012), including:
Taxable income from business activities, salaries, and wages is the total taxable income stipulated in Articles 10 and 11 of the Law on Personal Income Tax.
(Excluding contributions for social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions, voluntary pension funds, and deductions stipulated in Articles 19 and 20 of the Law on Personal Income Tax.)
The partially progressive tariff is regulated as follows:
|
Tax grade |
Taxed income per year (VND million) |
Taxed income per month (VND million) |
Tax rate (%) |
|
1 |
Up to 60 |
Up to 5 |
5 |
|
2 |
Between over 60 and 120 |
Between over 5 and 10 |
10 |
|
3 |
Between over 120 and 216 |
Between over 10 and 18 |
15 |
|
4 |
Between over 216 and 384 |
Between over 18 and 32 |
20 |
|
5 |
Between over 384 and 624 |
Between over 32 and 52 |
25 |
|
6 |
Between over 624 and 960 |
Between over 52 and 80 |
30 |
|
7 |
Over 960 |
Over 80 |
35 |
2. Whole income tariff in 2023
Article 23 of the Law on Personal Income Tax stipulates that the whole income tariff applies to taxable income specified in Clause 2, Article 21 of the Law on Personal Income Tax, including:
Taxable income from capital investment, capital transfers, real estate transfers, prizes, royalties, franchising, inheritance, and gifts is the taxable income specified in Articles 12, 13, 14, 15, 16, 17, and 18 of the Law on Personal Income Tax.
The whole income tariff is regulated by the Law on amendments to tax Laws 2014:
|
Assessable income |
Tax rate (%) |
|
a) Income from capital investment |
5 |
|
b) Income from royalties, franchise |
5 |
|
c) Income from prize-winning |
10 |
|
d) Income from inheritance, gifts |
10 |
|
dd) Income from capital transfer prescribed in Clause 1 of this Law Income from securities transfer prescribed in Clause 1 Article 13 of this Law |
20 0.1 |
|
e) Income from real estate transfer |
2 |
3. Residents' Application of personal income tariff
Clause 2, Article 2 of the Law on Personal Income Tax 2007 stipulates that residents apply personal income tariff if they meet one of the following conditions:
- Present in Vietnam for 183 days or more in a calendar year or within 12 consecutive months from the first day of presence in Vietnam;
- Have a permanent residence in Vietnam, including a registered permanent residence or a leased house in Vietnam under a lease contract of a specified term.
4. Responsibilities of Taxpayers Who Are Residents
Article 24 of the Law on Personal Income Tax 2007 (amended in 2014) stipulates the responsibilities of Income payers and the responsibilities of taxpayers who are residents as follows:
- Responsibilities for declaration, deduction, payment, and finalization of taxes are stipulated as follows:
+ Income payers have the responsibility to declare, deduct, pay taxes to the state budget, and finalize taxes for taxable income paid to taxpayers;
+ Individuals with taxable income have the responsibility to declare, pay taxes to the state budget, and finalize taxes according to the law.
- Income payers have the responsibility to provide information on the income and dependents of taxpayers under their management according to legal regulations.
Nhu Mai
- Key word:
- personal income tariff
- Vietnam
