Uni 02-07-2013 – Guidance of amendment and addition to Law on PIT

Government newly issued Decree No. 65/2013/ NĐ-CP replacing Decree No. 100/2008/NĐ-CP in guidance of some articles of Law on PIT. Some articles are amended and added as follows:

• Having a rented house for dwelling in Vietnam under the law on housing, under a rent contract with a term of 183 days or more in a tax year
• In case an individual has a place of permanent residence in Vietnam as prescribed in this point but he/she actually presents in Vietnam less than 183 days in tax year and he/she fail to prove that he/she is resident person of other country, so he/she will be considered as resident person in Vietnam.
• Not count in taxable incomes for the following amounts: the support amounts of the employers for the employees and the employees’ relatives (parents, spouses, and children) so as to pay for medical examination and treatment involving dangerous diseases, shift meals for employees , the round-trip flight tickets paid on behalf (or paid) by the employers for employees being foreigners, Study charges for children of foreign employees to study in Vietnam at the education grade from early childhood education to upper secondary education.
• Level of reduction for a taxpayer himself/herself is VND 9 million /month (which is VND 108 million/year); level of reduction for each dependant of a taxpayer is VND 3.6 million/month. The income level serving as a basis for identification of dependants to be counted for reduction based on family circumstances is an average monthly income of VND 1,000,000.
• Individuals having taxable incomes shall make tax registration with tax offices in order to be granted tax identification numbers for themselves and for each dependant person from whom they enjoy reduction based on family circumstances.
• Monthly tax declaration and tax payment are applicable to organizations and individuals paying the incomes and implemented tax withholding for incomes and total monthly withheld personal income tax amount under each type of declaration is VND 50 million or more, except for case subject to the quarterly tax declaration and tax payment.

(To clearly understand the added and amended articles, please refer to the whole Decree No. 65/2013/NĐ-CP)