From July 1st, overtime pay will be exempt from personal income tax - Photo: NGOC PHUONG
It is estimated that only incomes exceeding 28.6 million VND are subject to personal income tax.
This is one of the new features of the amended Personal Income Tax Law, which came into effect on July 1st.
Regarding income from salaries and wages, the law also stipulates that, starting this year, taxpayers will be entitled to an additional personal deduction for medical and education /training expenses. The specific deduction amount will be determined by the Government in a decree guiding certain provisions of the law.
According to the Ministry of Finance 's proposal, the maximum deduction is 24 million VND/year for education and training expenses and 23 million VND/year for medical examination and treatment expenses.
If this proposal is approved, in addition to the personal allowance of VND 15.5 million/month for the taxpayer and VND 6.2 million/month for each dependent, taxpayers with income from salaries and wages will receive an additional deduction of up to approximately VND 47 million/year for these two expenses.
The Ministry of Finance estimates that employees with one dependent only have to pay personal income tax if their income exceeds 28.6 million VND per month.
More income streams are now tax-exempt.
In addition to the above regulations, the law also stipulates 20 more types of income that are tax-exempt from July 1st.
Accordingly, income from the transfer, inheritance, or gift of real estate between spouses; biological parents and their children; adoptive parents and their adopted children; paternal grandparents and their grandchildren; maternal grandparents and their grandchildren; and siblings is exempt from personal income tax.
Income from the transfer of housing, land use rights, and assets attached to residential land by individuals who own only one house and one plot of land in Vietnam continues to be exempt from personal income tax as currently stipulated.
Other tax-exempt income includes the value of land use rights granted to individuals by the State; income of households and individuals directly engaged in agricultural, forestry, and fishery production, and unprocessed salt production.
In addition, income from interest on government bonds, interest on local government bonds, interest on deposits at credit institutions, interest from life insurance contracts; income from remittances; and income from salaries and wages when performing scientific , technological and innovative tasks are also exempt from tax.
The law also exempts income from copyright of scientific, technological, and innovative projects from tax when the results of these projects are commercialized in accordance with the laws on science, technology, and innovation, and the laws on intellectual property.
Other tax-exempt individuals include: individual investors, experts with income from innovative startup projects, founders of innovative startup businesses; individual investors contributing capital to venture capital funds; foreign experts working on programs and projects funded by non-refundable ODA funds, programs and projects of foreign non-governmental organizations in Vietnam; Vietnamese individuals working at representative offices of international organizations belonging to the United Nations system in Vietnam; and individuals participating in United Nations peacekeeping forces.
In addition, the income after corporate income tax of individuals who are owners of private businesses and owners of single-member limited liability companies is also exempt from personal income tax.
Source: https://tuoitre.vn/tu-1-7-thu-nhap-lam-them-gio-duoc-mien-thue-100260629130010782.htm
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