Incomes exempt from personal income tax in Vietnam

by DungTran

Incomes exempt from personal income tax in Vietnam. By the deadline for paying personal income tax (PIT), taxable income earners must finalize tax. Different from Value Added Tax (VAT) in Viet Nam, not all income is taxable. Here are PIT-exempt payments that everyone should know to protect their interests. Let us learn about this topic with LSX law firm as follow:

According to Article 4 of the Law on Personal Income Tax 2007; (added in the Law amending and supplementing several articles of the Law on Taxation 2014); 16 incomes are exempt from PIT, including:

Incomes exempt from personal income tax: Income derived from real estate

– Firstly, income from real estate transfer between Husband and wife; biological father, a natural mother with natural child; siblings together…

– Secondly, income from the transfer of houses, residential land use rights; and properties attached to residential land of individuals in case the transferor has only one place or residential land use right in Vietnam.

– Thirdly, incomes from the value of land use rights of individuals allocated land by the State without payment; or have land use levy reduction as prescribed by law.

– In addition, income from the conversion of agricultural land to rationalize agricultural production; but without changing the land use purposes of households and individuals directly engaged in agricultural production; assigned by the State for production.

Incomes exempt from personal income tax: Income from interest, salary, wages

– Income from interest on deposits at credit institutions; foreign bank branches, interests from life insurance contracts, income from government bond interest.

– Moreover, the pension paid by social insurance.

– Additionally, income from the part of a salary, wages for night work, overtime work is paid higher than the salary; wages for day work, working hours according to the provisions of the Labor Code.

– Besides, incomes from salaries and wages of Vietnamese seafarers received by working for foreign shipping lines; or Vietnamese shipping lines for international transport.

Incomes exempt from personal income tax: Income from inheritance, gifts

Incomes from inheritances and gifts being real estate between people who have a blood relationship; nurture or a relationship arising from marriage, such as Husband and wife; biological father, a natural mother with natural child; siblings together…

Income received from charity funds, aid

– Incomes received from charity funds, which are permitted to be established or recognized by competent State agencies; operating for charity, humanitarian, or study promotion purposes, not for profit-making purposes.

– Income received from foreign aid sources for charity and humanitarian purposes in the form of Government and non-Government approved by competent State agencies.

Group of other incomes

– Firstly, incomes of households and individuals directly engaged in agricultural production, forestry, salt making, aquaculture; and fishing that have not yet been processed or are only preliminarily processed; and have not yet been processed into finished other products.

– Secondly, tax-exempt income from remittances is money; received from abroad by a Vietnamese relative residing abroad; Vietnamese people who go to work, work, or study abroad send money back to their relatives in the country.

– Thirdly, income from scholarships.

– Moreover, income from indemnification of life insurance, non-life insurance, health insurance; compensation for labor accidents; compensation, support according to the provisions of the law on balance, support, and resettlement; payments to the State and other expenses prescribed by law.

Besides, incomes of individuals being ship owners, individuals have the right to use ships; and individuals working onboard ships are derived from providing goods and services directly serving offshore fishing activities. LSX Law firm is pleased to help you with Procedures for tax exemption and reduction of personal income tax.

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Finally, hope this article about Incomes exempt from personal income tax in Vietnam is helpful for you!

In case you have any questions, don’t hesitate to get in touch with Lawyer X for quick and best legal services: +84846175333 or email: hoangson@lsx.vn.

Related questions

What is personal income tax?

Currently, there is no exact and specific definition of personal income tax (PIT). However, based on the provisions of the law recorded in the Law on Personal Income Tax, Decrees and Circulars guiding:
PIT is a direct tax, calculated on the income of the taxpayer after deducting tax-free income and deductions for family circumstances.

What does royalty income include?

Income from royalties, including:
– Incomes from the transfer or transfer of the right to use objects of intellectual property rights;
– Income from technology transfer.

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