These exemptions include:. Additionally, other benefits can be treated as non-taxable income if certain conditions are met. The newly introduced Resolution also has provision for dependents.
In addition, spouses or parents of taxpayers who are unable to work or have low income are also qualified dependents. Only one person can claim the reduction for each dependent. The dependent allowance is not automatically granted, and the taxpayer needs to register the qualifying dependent and provide the supporting documents to the tax authority. Personal income tax deduction for dependents that are children require the following documents to qualify:.
Foreign invested enterprises FIEs have to conduct PIT finalization on behalf of their employees at the beginning of the year for taxable incomes arising from the previous year. If an employee has more than one source of income and wishes to conduct tax finalization on their own, FIEs can issue a certificate of deduction at the request of the employee. The taxpayer pays PIT to the state treasury in one of two ways: cash or bank transfer.
The taxpayer can pay cash directly to the state treasury to receive the voucher from state officials. Otherwise, they can transfer money to a tax office bank account at the state treasury. The deadline for tax payment is the same as tax finalization, meaning no later than 90 days from the end of the calendar year.
If the taxable income is received in a foreign currency, it must be converted into Vietnamese dong at the average trading exchange rate on the inter-bank foreign currency market published by the State Bank of Vietnam on the date when the income arose.
Note: This article was first published in April , and has been updated to include the latest developments. Tax residents are subject to Vietnamese PIT on their worldwide taxable income, wherever it is paid or received.
Employment income is taxed on a progressive tax rates basis. Non-employment income is taxed at a variety of different rates. However, this will need to be considered in light of the provisions of any double taxation agreement DTA that might apply. Get the latest KPMG thought leadership directly to your individual personalized dashboard.
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We want to make sure you're kept up to date. Please take a moment to review these changes. You will not receive KPMG subscription messages until you agree to the new policy. Ignore and log out. Related content. Tax returns and compliance When are tax returns due? That is, what is the tax return due date? For employment income, the 20th of the following month for monthly tax declarations, the 30th of the first month of the following quarter for the quarterly tax declarations and ….
If someone leaves Vietnam during the year, a finalization return will be due within 45 days of the departure date. For business income, the finalization due date depends on the type of business income. For income from real property transfer and from capital assignment, at the same time as conducting the relevant procedures of transfer or assignment.
For income from transfer of securities, generally withholding tax is applicable at the time of receiving the income. For income from in heritance and gifts, at the time of receiving the income. What is the tax year-end? Subsequent tax years are calendar years.
What are the compliance requirements for tax returns in Vietnam? Employment income Tax declaration and payment is carried out on a withholding basis. Income paying bodies are required to withhold tax at source and then pay to the relevant tax authority within the statutory deadlines mentioned previously.
For other income, individuals are required to handle their tax declaration at the time mentioned previously. Each payment from VND2,, to individual sale agents or individual service providers is subject to 10 percent withholding tax.
In case they provide a commitment indicating they have income less than the personal and dependent relief; no withholding tax is required. Tax rates What are the current income tax rates for residents and non-residents in Vietnam?
Employment income Tax residents of Vietnam: The following unified progressive tax rates are applicable to Vietnamese and foreign nationals. Taxable income Tax rate Income from supply and distribution of goods 0. Other non-employment income Taxable income Tax rates Resident Non-resident Income from capital investment including interest from loans and dividends 5. Residence rules For the purposes of taxation, how is an individual defined as a resident of Vietnam?
The foreign individual was physically present in Vietnam for days or more during a calendar year or 12 consecutive months from the initial date of arrival in Vietnam.
Having a permanent residential place in Vietnam. In the case of a Vietnamese citizen, a residential location for which permanent residence has been registered means the specific place where such citizen lives and earns their living on a regular and stable basis and not only for a term, and for which such citizen has conducted registration pursuant to the Law on Residence.
In the case of a foreigner, a residential location for which permanent residence has been registered the registered place recorded in the resident card or temporary resident card issued by the authority under the Ministry of Public Security. Is there a de minimus number of days rule when it comes to residency start and end date? Termination of residence Are there any tax compliance requirements when leaving Vietnam? What if the assignee comes back for a trip after residency has terminated? Communication between immigration and taxation authorities Do the immigration authorities in Vietnam provide information to the local taxation authorities regarding when a person enters or leaves Vietnam?
Economic employer approach Do the taxation authorities in Vietnam adopt the economic employer approach 1 to interpreting Article 15 of the Organisation for Economic Co-operation and Development OECD treaty? Home Refunds. Using a Mobile Device?
What You Will Need fa-check. Social security number or ITIN. Your filing status.
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