Summary of types of income subject to personal income tax in Vietnam

Summary of types of income subject to personal income tax in Vietnam (Internet image)

1. Summary of types of income subject to personal income tax in Vietnam

Incomes liable to personal income tax include the following kinds of income, except for incomes eligible for tax exemption:

(1) Incomes from business activities, including:

- Incomes from goods production or trading or service provision;

- Incomes from independent professional activities of individuals possessing practice licenses or certificates in accordance with law.

(2) Incomes from salaries and wages, including:

- Salaries, wages and amounts of similar nature;

- Allowances, subsidies, except for amounts:

+ Those paid under legal provisions on preferential treatment of persons with meritorious services;

+ Defense or security allowances;

+ Hazard or danger allowances for persons working in branches, occupations or jobs at places where exist hazardous or dangerous elements;

+ Allowances for attraction of laborers to work in certain branches or in certain regions specified by law;

+ Allowances for sudden difficulties, allowances for laborers having labor accident or suffering from occupational disease, lump-sum maternity or child adoption allowances;

+ Allowances for working capacity loss, lump-sum retirement allowances, monthly survivorship allowances and other allowances as prescribed by law on social insurance;

+ Severance and job-loss allowances specified in the Labor Code;

+ Subsidies of social relief nature and other allowances, subsidies without nature of salaries, wages as prescribed by the Government.

(3) Incomes from capital investment, including:

- Interests;

- Dividends;

- Incomes from capital investment in other forms, except for government bond interests.

(4) Incomes from capital transfer, including:

- Incomes from transfer of capital holdings in economic organizations;

- Incomes from transfer of securities;

- Incomes from transfer of capital in other forms.

(5) Incomes from transfer of real estate, including:

- Incomes from transfer of rights to use land and assets attached to land;

- Incomes from transfer of right to own or use residential houses;

- Incomes from transfer of right to lease land or water surface;

- Other incomes earned from transfer of real estate under any form.

(6) Incomes from won prizes, including:

- Lottery winnings;

- Sales promotion winnings;

- Betting or casino winnings;

- Winnings in prized games and contests and other forms of winning.

(7) Incomes from copyright, including:

- Incomes from assignment or licensing of intellectual property objects;

- Incomes from technology transfer.

(8) Incomes from commercial franchising.

(9) Incomes from inheritances that are securities, capital holdings in economic organizations or business establishments, real estate and other assets subject to ownership or use registration.

(10) Incomes from gifts that are securities, capital holdings in economic organizations or business establishments, real estate and other assets subject to ownership or use registration.

2. Persons paying personal income tax

 Personal income taxpayers include residents who earn taxable incomes inside and outside the Vietnamese territory and non-residents who earn taxable incomes inside the Vietnamese territory.

Legal basis: Article 2, Article 3 of the Law on Personal Income Tax 2007 (amended by 2012, 2014)

Diem My

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