Decree No. 100/2008/ND-CP detailing certain provisions of the Individual Income Tax Law

DECREE

Detailed provisions on certain articles of the Personal Income Tax Law

________________________________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Personal Income Tax dated November 21, 2007;

Pursuant to the Law on Tax Administration dated November 29, 2006;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed provisions on certain articles of the Personal Income Tax Law and regulations concerning registration, tax declaration, and final settlement of personal income tax as stipulated in the Law on Tax Administration.

Article 2. Taxpayers

1. Personal income taxpayers include resident individuals and non-resident individuals with taxable income as specified in Article 3 of the Personal Income Tax Law and Article 3 of this Decree. The scope of determining taxable income for taxpayers is as follows:

a. For resident individuals, taxable income includes income generated both within and outside the territory of Vietnam, regardless of where the income is paid.

b. For non-resident individuals, taxable income includes income generated in Vietnam, regardless of where the income is paid.

2. A resident individual is someone who meets one of the following conditions:

a. Being present in Vietnam for 183 days or more within a calendar year or within 12 consecutive months from the first day of presence in Vietnam;

An individual's presence in Vietnam as provided herein means the physical presence of such individual on the territory of Vietnam.

b. Having a permanent residence registered in Vietnam according to one of the following two cases:

- Registering a place of permanent residence according to the law on residence;

- Renting a house for residence in Vietnam according to the law on housing, with a lease term of 90 days or more within the tax year.

3. A non-resident individual is one who does not meet the conditions specified in Clause 2 of this Article.

Article 3. Taxable Income

Taxable income of individuals includes the following types of income:

1. Income from production and business activities, including:

a. Income from producing and trading goods and services as prescribed by law. Notably, for income from agricultural, forestry, salt-making, aquaculture, and fishing activities, it only applies to cases that do not meet the conditions for tax exemption as stipulated in Clause 5, Article 4 of this Decree.

b. Income from independent professions of individuals holding a license or certificate as prescribed by law.

2. Income from wages and salaries received by workers from employers, including:

a. Wages, salaries, and other amounts having the nature of wages and salaries received in cash or non-cash forms.

b. Allowances and subsidies, except allowances and subsidies prescribed by law on preferential treatment for persons with meritorious service, defense and security allowances, hazardous and dangerous work allowances for jobs in workplaces with hazardous factors, attraction allowances, regional allowances as prescribed by law, sudden hardship subsidies, occupational injury and occupational disease subsidies, one-time childbirth or adoption subsidies, disability allowance, one-time retirement subsidy, monthly pension, termination allowance, unemployment allowance as prescribed by the Labor Code, and other subsidies paid by social insurance, and subsidies for resolving social evils.

Allowances and subsidies not included in taxable income as provided herein must be prescribed by competent state authorities.

c. Honoraria and other remuneration received under various forms such as commission, participation in projects, royalties, and other forms of remuneration.

d. Amounts received from participating in business associations, boards of directors, supervisory boards, management boards, associations, professional organizations, and other organizations.

đ. Other monetary or non-monetary benefits outside wages and salaries provided by employers to taxpayers in any form:

- Housing, electricity, water, and accompanying services (if any);

- Insurance premiums that laws do not require employers to purchase for employees;

- Membership fees and other service charges serving the needs of individuals as requested, such as health care, entertainment, sports, recreation, beauty treatments.

- Other benefits as prescribed by law.

e. All monetary or non-monetary bonuses in any form, including stock awards, except for the following monetary bonuses:

- Bonuses accompanying state-awarded titles, including bonuses accompanying commendations and rewards as prescribed by the law on commendation and reward;

- Bonuses accompanying national and international awards recognized by the Vietnamese government;

- Bonuses for technological improvements, inventions, and innovations recognized by competent state authorities;

- Bonuses for reporting violations of the law to competent state authorities.

3. Income from capital investment, including:

a. Interest on loans;

b. Dividend income;

c. Income from investment capital in other forms, including investment contributions in kind, reputation, land use rights, inventions, and patents; excluding income from government bond interest.

4. Income from transfer of capital, including:

a. Income from transferring equity interests in economic organizations;

b. Income from transferring securities;

c. Income from transferring capital in other forms;

5. Income from transferring real estate, including:

a. Income from transferring land use rights and attached assets;

b. Income from transferring ownership or usage rights of housing;

c. Income from transferring land lease rights and water surface lease rights;

d. Other income received from transferring real estate.

6. Income from winnings in money or in-kind prizes, including:

a. Lottery winnings;

b. Promotional prize winnings in various forms;

c. Winnings from gambling and casino games;

d. Winnings from games, contests with prizes, and other forms of winnings.

7. Income from copyright, including:

a. Income from transferring and licensing the use of intellectual property objects: copyrights and related rights; industrial property rights; plant variety rights;

b. Income from technology transfer: technical secrets, technical knowledge, production rationalization solutions, technological innovation;

8. Income from trademark franchising as prescribed by the Trade Law.

9. Income from inheritance consisting of securities, shares in economic organizations, business establishments, real estate, and other assets that must be registered for ownership or use.

10. Income from gifts consisting of securities, shares in economic organizations, business establishments, real estate, and other assets that must be registered for ownership or use.

Article 4. Exempted Income

1. Income from the transfer of real estate between spouses; between parents and their biological children; between adoptive parents and adopted children; between fathers-in-law and daughters-in-law; between mothers-in-law and sons-in-law; between grandfathers and grandsons; between grandmothers and granddaughters; and between full siblings.

2. Income from the transfer of housing, land use rights, and property attached to land by individuals when the transferring party only has one house and one residential land use right in Vietnam.

3. Income from the value of land use rights granted by the State without payment or with reduced land use fees as provided by law.

4. Income from inheritance and gifts of real estate between spouses; between parents and their biological children; between adoptive parents and adopted children; between fathers-in-law and daughters-in-law; between mothers-in-law and sons-in-law; between grandfathers and grandsons; between grandmothers and granddaughters; and between full siblings.

5. Income from agricultural, forestry, salt-making, aquaculture, and fishing activities not processed into other products or only processed through simple preparation by households and individuals directly participating in such production activities.

Households and individuals directly participating in the production activities specified in this clause must satisfy the following conditions:

a. Having legitimate land use rights and water surface usage rights for production and directly participating in labor for agricultural, forestry, salt-making, and aquaculture activities. For fishing activities, they must have ownership or usage rights to fishing vessels, boats, and equipment, and directly participate in fishing.

b. Residing at the location where agricultural, forestry, salt-making, and aquaculture activities take place according to the law on residence.

6. Income from the conversion of agricultural production by households and individuals assigned by the State for production purposes.

7. Income from bank deposit interest, financial institution deposit interest, and life insurance contract interest income.

8. Remittances from overseas relatives.

9. The portion of wages and salaries paid at higher rates for night work and overtime work compared to daytime wages and regular working hours' wages as prescribed by law.

10. Pension payments made by the Social Insurance Fund according to the Law on Social Insurance. Individuals residing in Vietnam are exempt from tax on pensions received from abroad.

11. Scholarship income, including:

a. Scholarships received from the state budget;

b. Scholarships received from domestic and foreign organizations under their scholarship support programs.

12. Income from life insurance and non-life insurance contract settlements, work injury compensation, state compensation, and other compensations as prescribed by law.

13. Income received from charitable funds established or recognized by competent state authorities and operating for charitable and humanitarian purposes without profit motives.

14. Income received from foreign aid for charitable and humanitarian purposes in the form of government and non-governmental assistance approved by competent state authorities.

The Ministry of Finance shall specify procedures and documentation for determining tax-exempt income as stipulated in this Article.

Article 5. Tax reduction

1. Taxpayers experiencing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes may be eligible for tax reduction corresponding to the extent of damage but not exceeding the amount of tax owed.

2. The Ministry of Finance shall specify procedures, documentation, and the process for reviewing individual income tax reductions as stipulated in this Article.

Chapter II

BASIS FOR CALCULATING TAX ON CERTAIN TYPES OF INCOME OF RESIDENTS

Section 1

INCOME FROM BUSINESS AND WAGES AND SALARIES

Article 6. Taxable income for business income and salary/wage income

1. Taxable income for business income and salary/wage income is determined by deducting the following items from the taxable income from business operations and salary/wages as specified in Articles 7 and 11 of this Decree:

a. Mandatory social insurance contributions as prescribed by law, including social insurance, health insurance, and occupational liability insurance for certain industries and professions required to participate in mandatory insurance.

b. Personal deductions as stipulated in Article 12 of this Decree.

c. Contributions to charitable funds, humanitarian funds, and educational funds as provided for in Article 13 of this Decree.

2. For individuals with both taxable income from business operations and salary/wages, the taxable income is calculated by adding the taxable income from business operations to the taxable income from salary/wages and then deducting the amounts specified in points a, b, and c of Clause 1 of this Article.

Article 7. Taxable income from business operations

Taxable income from business operations is determined by deducting reasonable expenses as specified in Article 9 of this Decree from the gross revenue subject to tax as defined in Article 8 of this Decree.

Article 8. Gross revenue subject to tax from business operations

1. Gross revenue subject to tax from business operations includes all proceeds from sales, processing fees, commissions, supply of goods and services generated during the tax period.

The time of determining revenue is the time when ownership of goods is transferred, service provision is completed, or the invoice for sale or supply of services is issued, regardless of whether payment has been received or not.

2. In certain cases, gross revenue subject to tax is specifically defined as follows:

a. Revenue from goods sold on installment basis is determined based on the price of goods paid in full at once, excluding late payment interest.

b. Revenue from goods or services exchanged or given as gifts is determined based on the selling price of similar products, goods, or services at the time of exchange or gift-giving.

c. Revenue from processing activities is the money received from such activities, including labor costs, fuel, power, auxiliary materials, and other costs serving the processing of goods.

d. Revenue from leasing activities is the amount paid by the lessee according to the lease agreement. If the lessee pays rent in advance for multiple years, the revenue for calculating taxable income can be allocated over the number of years paid in advance or determined based on a lump sum payment.

đ. Revenue for taxable income calculation in other cases shall be specified by the Ministry of Finance.

Article 9. Reasonable expenses related to generating taxable income from business operations

1. Reasonable expenses as stipulated in this Article must be actual expenditures incurred and supported by valid invoices and receipts as prescribed by law.

2. Deductible reasonable expenses include:

a. Wages, salaries, allowances, remuneration, and other costs paid to employees.

The wages and salaries of individual business owners are not included in deductible reasonable expenses.

b. Costs of raw materials, materials, fuels, energy, and goods actually used in production and business activities related to generating revenue and taxable income during the period, calculated based on reasonable consumption rates and actual prices from inventory self-determined and legally responsible by households and individuals engaged in business.

c. Depreciation, maintenance, and repair costs of fixed assets used in production and business activities. The depreciation rate of fixed assets is determined based on their value and the depreciation period as prescribed by the Ministry of Finance.

d. Interest expenses on loans directly related to generating revenue and taxable income.

đ. Management costs.

e. Taxes, fees, and land rental payments required by law for production, business, and service activities.

g. Other costs related to generating income.

The Ministry of Finance will specify other deductible reasonable expenses when calculating taxable income.

Article 10. Taxable income and taxable income of individual businesses that have not complied with laws on accounting, invoices, and vouchers

1. For individual businesses that have not complied with the provisions of the law on accounting, invoices, and vouchers, and cannot determine their revenue, expenses, and taxable income, the competent tax authority shall estimate the revenue and the rate of taxable income to determine the taxable income appropriate for each industry and business activity.

2. Based on the estimated taxable income as stipulated in Clause 1 of this Article, the tax authority shall determine the lump-sum tax rate according to the principles, procedures, and formalities prescribed in Article 38 of the Law on Tax Administration.

Article 11. Taxable income from salaries and wages

1. The taxable income from salaries and wages shall be determined in accordance with the provisions of Clause 2, Article 3 of this Decree.

2. The time point for determining the taxable income from salaries and wages is the time when the employer pays the salaries and wages to the taxpayer or the time when the taxpayer receives the income.

Article 12. Personal deductions

Individual residents who have income from salaries and wages, and income from business operations are entitled to personal deductions from their taxable income before calculating taxes as follows:

1. The amount of personal deduction:

a. The personal deduction for the taxpayer is 48 million VND per year;

b. The deduction for each dependent person whom the taxpayer has the obligation to support is 1.6 million VND per month starting from the month the obligation to support arises.

2. Each dependent person can only be deducted once from one taxpayer's income during the tax year. In cases where taxpayers share a dependent person to support, they must agree among themselves to register the personal deduction for one taxpayer.

3. The criteria and basis for determining dependents are as follows:

a. Children under 18 years old;

b. Children over 18 years old who are disabled and unable to work;

c. Children currently studying at universities, colleges, vocational schools, or vocational training centers without income or with income not exceeding the level specified in Clause 4 of this Article;

d. Individuals outside the working age or within the working age as defined by law but who are disabled, unable to work, without income or with income not exceeding the level specified in Clause 4 of this Article, including:

- The taxpayer’s spouse;

- The taxpayer’s father, mother, father-in-law, or mother-in-law;

- Other individuals without support who the taxpayer must directly support.

4. The income level used as the basis for determining dependents eligible for personal deductions is the average monthly income from all sources not exceeding 500,000 VND.

5. The taxpayer must declare the number of dependents along with valid documentation and bear full responsibility under the law for the accuracy of the declaration.

6. The Ministry of Finance shall specify the procedures and documents for declaring dependents eligible for personal deductions as stipulated in this Article.

Article 13. Deductions for charitable and humanitarian contributions

1. Individual residents who have income from business operations and income from salaries and wages are entitled to deduct charitable and humanitarian contributions from their taxable income, including:

a. Contributions to organizations and facilities caring for and supporting children in particularly difficult circumstances, people with disabilities, and elderly people without support;

b. Contributions to charitable funds, humanitarian funds, and educational funds.

2. Organizations, facilities, and funds specified in points a and b of Clause 1 of this Article must be established or recognized by competent state authorities and operate for charitable, humanitarian, and educational purposes, not for commercial purposes.

3. Charitable and humanitarian contributions arising in a given year may be deducted from the taxable income of that year and cannot be carried forward to the next tax year.

Article 14. Graduated Tax Rate

1. The graduated tax rate applies to taxable income from business operations, salaries, and wages.

2. The progressive tax rate table is defined as follows:

 

 

 

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Article 15. Taxable Income from Transfer of Capital Contributions

1. Taxable income from the transfer of capital contributions is determined by subtracting the purchase price of the capital contribution and related reasonable expenses from the transfer price.

2. The transfer price is the amount received by the individual according to the capital transfer contract.

3. The purchase price of the capital contribution is determined based on its value at the time of contribution or its value at the time of purchase.

4. Reasonable expenses related to generating income from the transfer of capital include actual expenses with valid documentation and invoices, including:

a. Costs for necessary legal procedures for the transfer;

b. Fees and taxes paid by the transferring party to the state budget as prescribed by law.

c. Other expenses.

Article 16. Taxable Income from Transfer of Securities

1. Taxable income from the transfer of securities, including the transfer of rights to purchase shares, is determined by subtracting the purchase price and related expenses from the sale price.

2. The sale price of securities is determined as follows:

a. The sale price of listed securities is the actual transfer price at the Stock Exchange or Securities Trading Center;

b. The sale price of securities of public companies not listed but registered for trading at the Securities Trading Center is the actual transfer price at the Securities Trading Center;

c. The sale price of securities of entities not covered by points a and b above is the price recorded in the transfer contract or the price recorded in the accounting books of the entity holding the securities at the time of sale.

3. The purchase price is determined as follows:

a. The purchase price of listed securities is the actual purchase price at the Stock Exchange or Securities Trading Center;

b. The purchase price of securities of public companies not listed but registered for trading at the Securities Trading Center is the actual purchase price at the Securities Trading Center;

c. The purchase price of securities of entities not covered by points a and b above is the price recorded in the transfer contract or the price recorded in the accounting books of the entity holding the securities at the time of purchase.

4. Expenses related to the transfer of securities include actual expenses with valid documentation and invoices, including:

a. Fees for receiving and transferring securities;

b. Securities custody fees;

c. Securities agency fees;

d. Other expenses.

Article 17. Tax Rates

1. The tax rate on income from the transfer of capital contributions is 20% on the taxable income of each transfer.

2. The tax rate on income from the transfer of securities is 20% on annual taxable income, applicable only to taxpayers who comply with legal regulations on accounting, invoices, and documentation, accurately determine the taxable income as stipulated in Article 16 of this Decree, and consistently register with the Tax Authority from December of the previous year.

For other cases, a tax rate of 0.1% on the transfer price of securities per transaction shall be applied.

Đối với các trường hợp khác ngoài trường hợp nêu trên, áp dụng thuế suất 0,1% trên giá chuyển nhượng chứng khoán từng lần.

Section 3

INCOME FROM THE TRANSFER OF REAL ESTATE

Article 18. Taxable income from the transfer of land use rights

1. Taxable income is determined by subtracting (-) the cost basis and related reasonable expenses from the transfer price of the land use rights.

2. The transfer price of the land use rights is determined as follows:

a. The transfer price is the actual price recorded on the land use rights transfer contract at the time of transfer.

b. In cases where the actual price cannot be determined or the price recorded on the land use rights transfer contract is lower than the land price stipulated by the provincial People's Committee at the time of transfer, the transfer price shall be determined based on the Land Price Table stipulated by the provincial People's Committee.

3. The cost basis for transferring land use rights in certain specific cases is determined as follows:

a. For state-granted land with payment for land use rights or lease fees, it is based on the receipts for land use rights payments and lease fees issued by the State.

b. For land received from organizations or individuals, it is based on the contract and legitimate payment receipts when receiving the land use rights or lease rights (when purchasing).

c. For land use rights obtained through auction, it is the winning bid price.

4. Reasonable expenses related to the transfer of land use rights include actual expenses incurred and supported by legitimate invoices and receipts, including:

a. Fees and charges as prescribed by law related to granting land use rights;

b. Costs for land improvement and site leveling (if applicable);

c. Other costs directly related to the transfer of land use rights.

Article 19. Taxable income from the transfer of land use rights attached to construction works on land

1. Taxable income is determined by subtracting (-) the cost basis and related reasonable expenses from the transfer price.

2. The transfer price is specifically determined as follows:

a. The transfer price is the actual price recorded on the land use rights transfer contract at the time of transfer.

b. In cases where the actual price cannot be determined, the transfer price is determined as follows:

- The value of the transferred land is determined based on the Land Price Table stipulated by the provincial People's Committee at the time of transfer;

- The value of buildings, infrastructure, and architectural works attached to the land is determined based on the classification standards of the Ministry of Construction, basic construction norms, and the actual remaining value of the works on the land.

3. The cost basis is determined based on the purchase price recorded on the purchase contract at the time of purchase.

4. Related reasonable expenses include actual expenses incurred and supported by legitimate invoices and receipts, including:

a. Fees and charges as prescribed by law related to granting land use rights;

b. Costs for land improvement and site leveling;

c. Costs for repairing and improving construction works on the land;

d. Other costs directly related to the transfer.

Article 20. Taxable income from the transfer of ownership and use rights of housing

1. Taxable income is determined by subtracting (-) the purchase price and related reasonable expenses from the selling price.

2. The selling price is the actual transfer price, determined according to market prices and recorded on the transfer contract.

3. The purchase price is determined based on the purchase price recorded on the purchase contract.

4. Related expenses include actual expenses incurred and supported by legitimate invoices and receipts, including:

a. Fees and charges as prescribed by law related to granting ownership of housing;

b. Costs for repairing, improving, and upgrading housing;

c. Other costs directly related to the transfer of housing.

Article 21. Taxable income from the transfer of land lease rights and water surface lease rights

1. Taxable income from the transfer of land lease rights and water surface lease rights is determined by the rental price for re-leasing minus (-) the original lease price and related expenses.

2. The rental price for re-leasing is determined based on the actual price recorded in the contract.

In cases where the unit price for re-leasing in the contract is lower than the price set by the Provincial People's Committee at the time of re-leasing, the rental price for re-leasing shall be determined according to the price list established by the Provincial People's Committee.

3. The lease price is determined based on the lease contract.

4. Related expenses include actual expenditures with valid receipts and invoices, including:

a. Various fees and charges related to land lease and water surface lease rights as prescribed;

b. Land improvement costs and water surface improvement costs;

c. Other expenses directly related to re-leasing.

Article 22. Tax Rate

1. The tax rate for income from the transfer of real estate is 25% of taxable income.

2. In cases where the cost basis and related expenses cannot be determined to calculate taxable income, a tax rate of 2% on the transfer price will be applied.

Section 4

INCOME FROM INHERITANCE AND GIFTS

Article 23. Taxable income from inheritance and gifts

1. Taxable income from inheritance and gifts includes the value of inherited assets and gifts, including: real estate, other assets that require registration of ownership or usage rights, including securities, equity in economic organizations and businesses exceeding 10 million VND received by the taxpayer each time such income arises.

2. Determining taxable income for inherited and gifted assets must be consistent with market prices at the time of income generation, specifically as follows:

a. For securities:

- For listed securities: based on the reference price on the Stock Exchange or Securities Trading Center on the day of inheritance or gift receipt or the nearest previous day;

- For securities of public companies not listed but registered for trading on the Securities Trading Center: based on the reference price at the Securities Trading Center on the day of inheritance or gift receipt or the nearest previous day;

- For securities of companies not falling under the above categories: based on the value recorded in the company's accounting books on the day of inheritance or gift receipt or the nearest previous day.

b. For equity in economic organizations and businesses: based on the value of the equity recorded in the organization's or business's accounting books on the day of inheritance or gift receipt or the nearest previous day.

c. For real estate:

- The value of the land is determined based on the Land Price List established by the Provincial People's Committee at the time of inheritance or gift receipt;

- The value of buildings, infrastructure, and architectural structures attached to the land is determined according to the classification of buildings and construction standards and norms set by the Ministry of Construction, and the remaining actual value of the structures on the land.

d. For other assets: based on the stamp duty valuation of the asset or similar assets (if available).

Article 24. Time for Determining Income Subject to Tax

1. The time for determining income subject to tax from inheritance is the time when the taxpayer receives the inheritance as prescribed by law.

2. The time for determining income subject to tax from gifts is the time when the organization or individual gives the gift to the taxpayer or the time when the taxpayer receives the gift.

Article 25. Tax Rate

The tax rate on income from inheritance and gifts is 10% of the taxable income.

Chapter III

PROVISIONS ON THE MANAGEMENT OF PERSONAL INCOME TAX

Article 26. Tax Registration, Issuance of Tax Identification Number

1. Individuals with taxable income shall register for tax to obtain a tax identification number from the Tax Authority.

2. Organizations and individuals paying taxable income shall register for tax to obtain a tax identification number from the Tax Authority. In cases where organizations and individuals paying income have already been issued a tax identification number before this Decree takes effect, they may continue to use that number.

Article 27. Withholding Tax

1. Withholding tax is the process whereby organizations and individuals paying income calculate and deduct the amount of tax due from the income of the taxpayer before payment.

2. Types of income subject to withholding tax:

a. Income of non-resident individuals, including those not present in Vietnam;

b. Income from salaries and wages.

c. Income from capital investment;

d. Income from transfer of capital, securities;

đ. Income from lottery winnings;

e. Income from copyright;

g. Income from franchising.

3. The Ministry of Finance shall specify the cases of withholding tax and the method of calculating personal income tax withholding as provided in this Article.

Article 28. Cases Not Subject to Withholding Tax

1. Withholding tax shall not be applied to:

a. Business income of resident individuals;

b. Income from the transfer of real estate;

c. Income from the transfer of capital contributions of individuals;

d. Income from inheritance and gifts received by individuals;

2. For the cases specified in Clause 1 of this Article, taxpayers shall directly declare and pay taxes to the Tax Authority.

Article 29. Declaration of Personal Income Tax

1. Declaration of tax by organizations and individuals paying income subject to withholding tax as stipulated in Article 27 of this Decree shall be carried out as follows:

a. Monthly declaration applies to income subject to withholding tax as stipulated in Clause 2 of Article 27 of this Decree; in cases where the total monthly withholding tax is less than five million dong, the organization or individual paying income shall declare and pay the tax quarterly;

b. Annual declaration:

Organizations and individuals paying income shall declare annual settlement of tax on taxable income, the amount of tax withheld, and other deductions (if any).

2. Declaration of tax by individual taxpayers:

a. Self-employed individuals and independent practitioners shall declare quarterly;

b. Individuals shall declare each occurrence of income from the transfer of capital (excluding securities); income from the transfer of real estate, income from inheritance, and income from gifts;

c. Individuals shall declare annual settlement of tax on income from salaries and wages, business income (in cases complying with legal provisions on accounting, invoices, and receipts, and declaring and paying taxes), and income from the transfer of securities at a tax rate of 20%.

3. The Ministry of Finance shall provide detailed guidance on the declaration and annual settlement of tax as provided in this Article.

Article 30. Obligation to Withhold and Declare Tax of Employers When Paying Income from Wages and Salaries to Individuals

Employers who have the obligation to withhold tax must deduct the tax payable from wages and salaries due to employees, declare the tax, and pay the withheld tax to the state budget, specifically as follows:

1. For income from wages and salaries under labor contracts, employers shall be responsible for withholding tax for each employee based on the monthly taxable income, the provisional deduction for dependents, and the progressive tax rate table. Employees are not required to declare tax monthly.

Monthly, employers shall provisionally deduct the dependent allowance according to the annual declaration form of the taxpayer to calculate the tax payable for the month, implement the withholding and payment of tax to the state budget, and are not liable under the law for this provisional deduction of the dependent allowance.

2. For other payments such as fees and allowances to individuals without labor contracts, organizations and individuals paying the income shall temporarily withhold tax at a rate of 10% of the income for individuals with a tax identification number. In cases where individuals do not have a tax identification number, the withholding rate is 20%. Individuals receiving income subject to temporary withholding as stipulated in this clause are not required to declare tax monthly.

The Ministry of Finance shall specify the level of income serving as the basis for temporary withholding at the rates prescribed in this clause.

Article 31. Declaration of Tax for Individuals with Business Income

1. Individuals engaged in business operations shall comply with the provisions of the law on accounting, invoices, and vouchers:

a. Quarterly, they shall declare tax and temporarily pay personal income tax based on the provisional business results of the quarter. The quarterly provisional tax amount is determined based on the taxable income already reduced by the dependent deduction for the taxpayer and their dependents, and the progressive tax rate table;

b. They shall declare final settlement tax for the year and bear responsibility under the law for the accuracy and truthfulness of the declared data.

2. The determination of taxpayers as individuals engaged in business in certain cases is specified as follows:

a. Where only one person is registered in the business registration, the taxpayer is determined to be the person named in the business registration;

b. Where multiple persons are named in the business registration and participate in business activities, the taxpayers are determined to be each member named in the business registration;

c. Where multiple members of a household participate in business activities, the taxpayer is determined to be the person named in the business registration. Other members of the family aged 15 years or older are considered employees, while those under 15 years old are considered dependents.

3. The Ministry of Finance shall specify the procedures for declaring tax as provided in this Article.

Article 32. Refund of Tax

1. Individuals are entitled to a tax refund in the following cases:

a. The amount of tax paid exceeds the tax payable;

b. The actual amount of the dependent deduction specified in Article 12 of this Decree is greater than the provisional deduction;

c. Charitable and humanitarian contributions specified in Article 13 of this Decree have not been deducted when calculating tax.

2. The Ministry of Finance shall specify the procedures and documents for tax refunds as provided in this Article.

Chapter IV

IMPLEMENTING PROVISIONS

Article 33. Effective Date

1. This Decree takes effect from January 1, 2009.

2. The provisions on the management of personal income tax in Chapter III of this Decree replace the provisions on the management of tax for high-income earners in Decree No. 85/2007/NĐ-CP dated May 25, 2007, of the Government detailing the implementation of certain articles of the Law on Tax Administration.

Article 34. Implementation Organization

1. The Ministry of Finance shall provide guidance on the implementation of this Decree.                     

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.