WHO HAVE TO PAY PIT IN VIETNAM

 Resident: is person who satisfies one of the following conditions:

 Being in Vietnam from 183 days or more in a calendar year or in 12 consecutive months since his/her first arrival date in
Vietnam
 Having permanent residence in VN, including having permanent registration place or leased apartment from 90 days or more
under a termed contract
Non-resident is person who dissatisfied one of above conditions.
WHY PEOPLE HAVE TO PAY PIT:
 Help implementing the social equality, strengthening revenue control, narrowing down the disparity in income levels between
residents, ensuring the stable development of economy
 Showing specific obligations of citizens to the country
 Improve the domestic income density to stabilize the state budget
TAXABLE INCOME: has been take effect since 1-1-2009
1. Income from business: are determined by revenue less deductible expense in connection with taxable income for the concerned
period
2. Income in the forms of salaries, wages
3. Income from capital investments such as interest in bank and dividends
4. Income from capital transfer in any form
5. Gains from sale of real estates: are determined by each transferring price less purchasing price and related expenses
6. Income in the forms of reward, royalty, franchise transfer and inherited income, presents exceeding VND10 million on each
time of arising
EXEMPTION INCOME: 14 items
1. Income from real estate transfers between the family members
2. Income from real estates transfer, accommodation estate owning right and property connected closely with accommodation
estate in case that individual has just only one house, accommodation immovable property
3. Income from the value of individual accommodation estate owning right which is entrusted by the Government
4. Inherited income, present are real estates between family members
5. Income of the resident/individual who directly take part in producing raw material in forest, agriculture and sea product
6. Income from farming land of resident/individual which is given by the Government for producing
7. Income from time deposit interest from credit institutions
8. Income from overseas national currency exchange
9. Wages for night shift, overtime with amount exceed day shift wages, daytime stipulated by regulations
10. Pension which be paid by social insurance fund
11. Income from scholarship involves:
• From national budget
• From domestic or foreign organization
12. Income from compensation for life insurance contract, laboring accidents and other compensation in accordance with laws
13. Income from charity fund of government facility allowed for establishment or accepted, operating only for charity purpose
14. Income from foreigner aid for charity purpose, humanity under the form of government or non-government that is approved by
competent State's organ
ALLOWANCE FOR TAXPAYER AND DEPENDANTS
 Dependent relief is amount in which deducted from taxable income before tax calculation in respect to income from business,
salary and wages, including 2 portions: a. Relief in respect to taxpayer is VND 4 million/month (VND 48 mill/annual); b. Relief in respect to
dependent person is VND 1.6mil/month. (Note: Each dependent person is deducted once time for sole tax payer)
 Allowance in respect of charities, donation contribution: the amount of charities; donation to authorized; recognized
organizations, offices, fund by competent government body for non-profit purpose are deducted from income before calculating PIT in
respect of income from business, salaries, wages of resident taxpayers
 Taxpayers who have difficulties due to natural calamity, fire or normal accident, dangerous diseases, what affect the taxpaying
competence can be considered for a reduction. However it cannot be exceed the amount of tax
BENEFIT OF USING TAX AGENT
 Achieve business objectives by reducing tax risks and meeting your compliance obligations
 Improve business and operating efficiency through tax efficiency and understand and manage the total tax contribution your
business makes to governments
 Have an automatic extension of time to file income tax returns
 Allow their agent immediate access to their tax information, by providing signed approval.
AGREEMENTS FOR AVOIDANCE OF DOUBLE TAXATION
The purpose of Agreement is not tax the same income of investors in different countries. Taxes apply to the Agreement is the direct tax revenue,
such as corporate income tax, personal income tax... Contents of this agreement also mentioned how the right of tax determination is divided
between two countries or the right is entirely devoted to one country (if tax exemption is apply) When the right is delimited in two countries, the
taxpaying will be based on the law of each country
Level Monthly taxable income Tax rate (%)
1 To VND 5mil 5
2 Over 5 to 10 10
3 >10 to 18 15
4 >18 to 32 20 No Items Amount
5 >32 to 52 25 1 Total income: [14] = [15] + [16]. In which 14
6 >52 to 80 30 a Income from wages and salaries 15
7 >80 35 b Income from business: 16
2 Allowances: [17]=[18]+[19]+[20] 17
a For the tax payer: 18=4mil x12months 18
b For dependant(s): [19]=(No of 19
dependant) x1,6mil x 12months
c Donation to charity 20
d Social insurance, health insurance…
3 Total taxable income: [21]=[14]-[17] 21
4 Income tax liability: 22
[22]=[21] x Tax rate (progressive)
5 Total temporary tax liabilities pre-paid: 23
[22] = [24]+[25]. In which:
a Deducted from income from wages and 24
salaries: (10%wages)
b Deducted from income from business 25
6 Total tax payer: [26]=[22]-[23] 26