The Ordinance Amending Certain Articles of the Ordinance on Income Tax for High-Income Individuals stipulates the taxable income threshold and the progressive tax rate schedule applicable to Vietnamese citizens, foreign residents in Vietnam, and Vietnamese citizens working abroad. The purpose is to adjust tax rates in line with economic and social conditions.
Scope of application
Vietnamese citizens, foreign residents in Vietnam, and Vietnamese citizens working or employed abroad with high income
Key points
- Vietnamese individuals with an average monthly income exceeding 2,000,000 VND are subject to taxation (Article 9).
- Foreign residents in Vietnam with an average monthly income exceeding 8,000,000 VND are subject to taxation (Article 9).
- The progressive tax rate schedule applies to foreign individuals and Vietnamese citizens working abroad, with six brackets each having different levels of income and tax rates (Clause 2, Article 10).
- A foreign individual is considered a resident in Vietnam if they stay in Vietnam for 183 days or more in a year (Article 9).
- The tax rate for individuals with an average monthly income exceeding 120,000,000 VND is 50% (Clause 2, Article 10).
🌐 Social impact of this document
- Individuals and businesses with high income will be taxed according to the new schedule, increasing their financial burden.
- The State increases revenue from taxes to invest in various sectors of the economy.
❓ Frequently asked questions
What is the taxable income threshold?
Vietnamese citizens: over 2,000,000 VND/month; foreign residents in Vietnam and Vietnamese citizens working abroad: over 8,000,000 VND/month.
When is a foreign individual considered a non-resident?
When staying in Vietnam for less than 183 days in a year.
Full text
ORDINANCE
Amending certain Articles of the Ordinance on Income Tax for High-Income Individuals
Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992;
This Ordinance amends certain Articles of the Ordinance on Income Tax for High-Income Individuals dated May 19, 1994, which has been amended according to the Ordinance Amending Certain Articles of the Ordinance on Income Tax for High-Income Individuals dated February 6, 1997.
Article 1
This Ordinance amends certain Articles of the Ordinance on Income Tax for High-Income Individuals as follows:
1. Article 9 is amended as follows:
"Article 9
Regular income subject to tax as stipulated in Clause 1 of Article 2 of this Ordinance is the total amount of money received by each individual on average per month throughout the year exceeding VND 2,000,000 (two million dong) for Vietnamese citizens and other individuals residing in Vietnam; exceeding VND 8,000,000 (eight million dong) for foreigners residing in Vietnam and Vietnamese citizens working or serving abroad. For foreigners considered non-residents in Vietnam, regular income subject to tax is the total income earned from work in Vietnam.
Foreigners are considered residents in Vietnam if they stay in Vietnam for 183 days or more within 12 months from the date of entry into Vietnam; they are considered non-residents if they stay in Vietnam for less than 183 days."
2. Clause 2 of Article 10 is amended as follows:
"2. For foreigners residing in Vietnam and Vietnamese citizens working or serving abroad:
PROGRESSIVE RATE TAX TABLE
Unit of measurement: 1,000 VND
|
Bracket |
Average monthly income per person |
Tax Rate (%) |
|
1 |
Over 8,000 up to 20,000 |
0 |
|
2 |
Over 8,000 up to 20,000 |
10 |
|
3 |
Over 20,000 up to 50,000 |
20 |
|
4 |
Over 50,000 up to 80,000 |
30 |
|
5 |
Over 80,000 to 120,000 |
40 |
|
6 |
Over 120,000 |
50 |
Article 2
This Ordinance takes effect from July 1, 1999.
Previous regulations contrary to this Ordinance are abolished.
Article 3
The Government shall provide detailed regulations and guidance for the implementation of this Ordinance.
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