What wages are tax exempt?

(NLDO) - The latest draft of the Law on Personal Income Tax (amended) proposes many types of income to be exempt from tax.

People transact at a tax office in Ho Chi Minh City.

The Ministry of Finance has just submitted to the Ministry of Justice for appraisal a draft amendment to the Law on Personal Income Tax, with many notable new points to reduce the tax burden on employees and related subjects.

One of the important proposals is to exempt income from taxes on wages, overtime or night work, if the wages are higher than those for working during regular working hours.

For example, if a worker earns VND100,000/hour during the day but is paid VND120,000/hour for overtime at night, the difference of VND20,000/hour will be exempt from personal income tax. This regulation is intended to encourage workers to work overtime while also reducing the financial burden on workers.

In addition, the draft also proposes tax exemption for many other types of income, including: income from transfers, inheritances, and gifts of real estate between relatives such as husband and wife; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; and siblings.

Income from agricultural , forestry and fishery production of households and individuals, including unprocessed or pre-processed crops, forest products, livestock, aquaculture and fishing; salt production.

Income from the environment and green finance, including the first transfer of emission reduction certificates, carbon credits; interest from green bonds; income from the first transfer of green bonds...

After being appraised by the Ministry of Justice, the draft amendment to the Personal Income Tax Law will continue to be submitted to the National Assembly for consideration and approval in the coming time.

Source: https://nld.com.vn/thu-nhap-nao-duoc-mien-thue-196250906122303467.htm