Decree No. 65/2013/ND-CP detailing certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax.

DECREE

Detailed regulations on certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax

Pursuant to the Law on the Organization of the Government dated December 25, 2001;

Pursuant to the Law on Personal Income Tax dated November 21, 2007; the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax dated November 22, 2012;

At the proposal of the Minister of Finance;

The Government promulgates this Decree providing detailed regulations for implementation of certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax,

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations and guidance for implementation of certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax.

Article 2. Taxpayer

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

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

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

2. A resident individual is one 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 being present in Vietnam under this provision means the presence of that individual on the territory of Vietnam.

b) Having a permanent place of residence in Vietnam according to either of the following situations:

- Having a registered permanent residence address in accordance with the law on residence;

- Renting a house for residence in Vietnam in accordance with the law on housing, with lease contracts lasting 183 days or more during the tax year.

In cases where an individual has a permanent residence in Vietnam as stipulated herein but is actually present in Vietnam for less than 183 days in the tax year and cannot prove that they are a resident of any other country, such individual shall be considered a resident of Vietnam.

3. A non-resident individual is one who does not meet the conditions stipulated 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 production and business activities of goods and services as prescribed by law. Notwithstanding, for income from agricultural, forestry, salt-making, aquaculture, and fishing activities, it only applies to cases where the conditions for tax exemption stipulated in Clause 5 of Article 4 of this Decree are not met.

b) Income from independent professional activities 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 and salaries and other amounts having the nature of wages and salaries received in cash or non-cash forms.

b) Allowances and subsidies, except for the following allowances and subsidies:

- Monthly allowances and one-time subsidies according to the laws on preferential treatment for persons with meritorious service;

- Monthly allowances and one-time subsidies for individuals participating in resistance wars, national defense, international missions, and volunteer youth work who have completed their tasks;

- National defense and security allowances; allowances for armed forces;

- Hazardous and dangerous job allowances for industries, occupations, or jobs at workplaces with hazardous factors;

- Recruitment and regional allowances;

- One-time hardship allowances, work injury allowances, occupational disease allowances, one-time childbirth allowances or adoption allowances, allowances for reduced working capacity, one-time retirement allowances, monthly pensions, termination allowances, unemployment allowances, and other allowances as prescribed by the Labor Code and the Social Insurance Law;

- Allowances for social welfare beneficiaries as prescribed by law;

- Service allowances for high-level leaders;

- One-time relocation allowances for individuals transferred to areas with extremely difficult socio-economic conditions, one-time support for cadres and civil servants engaged in maritime sovereignty work as prescribed by law. One-time relocation allowances for foreigners residing in Vietnam and Vietnamese working abroad;

- Allowances for village and commune health staff;

- Special industry allowances;

Allowances and subsidies excluded from taxable income as stipulated herein must be prescribed by competent state authorities.

c) Honoraria received in various forms such as commission fees, participation fees for projects, royalties, and other commission fees;

d) Money received from participating in business associations, boards of directors, supervisory boards, management councils, associations, professional organizations, and other organizations;

đ) Other monetary or non-monetary benefits outside of wages and salaries provided by employers that the taxpayer enjoys in any form:

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

- Premiums for voluntary pension funds, non-mandatory insurance premiums, and voluntary pension fund contributions purchased or contributed by employers for employees. Before paying insurance premiums or pension payments to individuals, insurance companies and voluntary pension fund management companies are responsible for withholding tax at a rate of 10% on the corresponding premiums and contributions made by employers for employees starting July 1, 2013;

- Membership fees and other service charges for personal needs such as healthcare, entertainment, sports, leisure, and beauty treatments;

- Other benefits as prescribed by law.

e) Monetary or non-monetary bonuses in any form, including stock bonuses, except for the following monetary bonuses:

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

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

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

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

g) The following items are not included in taxable income:

- The support amount provided by the employer for critical illness medical examinations and treatments for the employee themselves and their relatives (father, mother, spouse, children);

- The amount of money received under regulations related to the use of transportation means within state agencies, public service organizations, party organizations, and mass organizations;

- The amount of money received under housing benefits for civil servants as prescribed by law;

- Amounts received outside of wages and remuneration due to participation and service in party, youth, and National Assembly activities or in the drafting of state regulatory legal documents;

- The mid-shift meal allowance provided by the employer to employees not exceeding the limit set by the Ministry of Labor, War Invalids and Social Affairs;

- The round-trip airfare amount paid by the employer on behalf of foreign employees or Vietnamese employees working abroad who return home once a year on leave;

- The tuition fee amount paid by the employer on behalf of the children of foreign employees studying in Vietnam or the children of Vietnamese employees working abroad studying overseas from kindergarten to high school level;

3. Income from capital investment, including:

a) Interest from loans;

b) Dividend income;

c) Income from capital investments in other forms, including cases where capital contributions are made with physical assets, reputation, land use rights, inventions, and patents; except income received from government bond interest;

4. Income from capital transfer, including:

a) Income from transferring shares in economic organizations;

b) Income from transferring securities;

c) Income from transferring capital in other forms;

5. Income from real estate transfers, including:

a) Income from transferring land use rights and attached immovable property, including future construction projects;

b) Income from transferring ownership or usage rights of residential properties, including future residential properties;

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

d) Other income received from real estate transfers in all forms;

Taxable income at this clause includes income from managing real estate on behalf of others when the person managing has the right to transfer real estate or has the rights of a real estate owner as prescribed by law;

6. Income from winnings in cash or in kind, including:

a) Lottery winnings;

b) Promotional winnings in various forms;

c) Winnings from gambling, casinos;

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

7. Income from copyright, including:

a) Income from transferring or granting the right to use intellectual property objects: Copyright and related rights; industrial property rights; rights to plant varieties;

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

8. Income from commercial franchising as prescribed by the Commercial Law;

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

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

Article 4. Exempted Income

1. Income from real estate transfers (including houses and future construction projects according to laws on real estate business) between: Spouses; biological parents and biological children; adoptive parents and adopted children; father-in-law/mother-in-law and daughter-in-law/son-in-law; paternal/maternal grandparents and grandchildren; paternal/maternal uncles/aunts and siblings;

2. Income from transferring residential properties, land use rights, and attached immovable property of individuals in cases where the transferrer only owns one residential property or land use right in Vietnam;

Individuals transferring a single residential property or land use right in Vietnam as stipulated in this Clause must meet the following conditions:

a) At the time of transfer, the individual only has ownership or usage rights to one house or one plot of land (including cases where there is a house or construction project attached to the plot of land);

b) The period during which the individual has ownership or usage rights to the house or land until the time of transfer must be at least 183 days;

c) The transferred residential property or land use right must be transferred entirely;

Determination of ownership or usage rights to the residential property or land use right is based on the certificate of ownership or usage rights. Individuals transferring residential property or land use right have the responsibility to declare and bear legal responsibility for the accuracy of the declaration. In case the competent authority discovers incorrect declarations, tax exemption will not be granted and they will be subject to legal penalties;

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

4. Income from inheriting or receiving gifts of real estate (including houses and future construction projects according to laws on real estate business) between: Spouses; biological parents and biological children; adoptive parents and adopted children; father-in-law/mother-in-law and daughter-in-law/son-in-law; paternal/maternal grandparents and grandchildren; paternal/maternal uncles/aunts and siblings;

5. Income from direct participation in agricultural, forestry, salt-making, aquaculture, and fishing activities without further processing into other products or only through simple processing by households and individuals;

Households and individuals directly participating in the production activities stipulated in this Clause must satisfy the following conditions:

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

b) Actually residing in the locality where agricultural production, forestry, salt-making, and aquaculture activities take place, as provided for by the law on residence.

6. Income from the conversion of agricultural land allocated by the State for production to households and individuals.

7. Income from interest on deposits at banks and credit institutions, and income from interest on life insurance contracts.

8. Remittances from overseas relatives.

9. The portion of wages and salaries paid for night work and overtime work that is higher than the wages and salaries for daytime work and regular hours, as prescribed by law.

10. Pension payments made by the Social Insurance Fund according to the Law on Social Insurance, and monthly pension payments received from the Voluntary Pension Fund. Individuals living and working in Vietnam are exempt from tax on pensions received from abroad.

11. Income from scholarships, including:

a) Scholarships received from the state budget;

b) Scholarships received from domestic and foreign organizations (including living expenses) under their scholarship support programs.

12. Compensation payments from life insurance, non-life insurance, health insurance, work injury compensation, state compensations, and other compensations as prescribed by law.

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

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 prescribe procedures and documents for determining the income subject to tax exemption as stipulated herein.

Article 5. Tax Reduction

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

2. The Ministry of Finance shall prescribe procedures, documents, and the process of considering tax reduction for individual income tax as stipulated herein.

Chapter II
BASIS FOR TAXATION OF CERTAIN TYPES OF INCOME INCOMEOF RESIDENTS

Section 1

INCOME FROM BUSINESSAND INCOME FROM WAGES AND SALARIES

Article 6. Taxable income from business income and wages and salaries

1. Taxable income from business income and wages and salaries is determined by deducting the following items from the taxable income from business and wages and salaries as prescribed in Articles 7 and 11 of this Decree:

a) Contributions to social insurance, medical insurance, unemployment insurance, and occupational liability insurance for certain industries and professions required to participate in mandatory insurance, and the Voluntary Pension Fund.

The maximum amount deductible from taxable income under this Clause for contributions to the Voluntary Pension Fund is one million Vietnamese dong per month (twelve million Vietnamese dong per year), as guided by the Ministry of Finance;

In cases where residents of Vietnam work abroad and have business income or wage and salary income that has been subject to mandatory insurance contributions in accordance with the regulations of the country where such insurance contributions are made, such as social insurance, medical insurance, unemployment insurance, and occupational liability insurance for certain industries and professions required to participate in mandatory insurance, these insurance premiums may be deducted from the taxable income when calculating taxable income from business and wages and salaries.

b) Personal deductions as prescribed in Article 12 of this Decree;

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

2. For individuals who have both taxable business income and taxable wage and salary income, the taxable income is the total of taxable business income plus taxable wage and salary income minus the deductions 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 taxable income revenue as defined in Article 8 of this Decree.

Article 8. Revenue for calculating taxable income from business operations

1. Revenue for calculating taxable income from business operations includes all proceeds from sales, processing fees, commissions, supply of goods and services generated during the tax period.

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

2. Revenue for calculating taxable income in certain cases is specifically defined as follows:

a) Revenue from goods sold on installment basis is determined based on the price of goods paid in full without including late interest.

b) Revenue from goods or services used for exchange or gift is determined based on the selling price of similar products, goods, or services at the time of exchange or gift.

c) Revenue from processing activities is the amount collected 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. In case the lessee pays rent in advance for multiple years, the revenue for calculating taxable income can be allocated over the prepayment period or calculated as a lump sum payment.

đ) Revenue for calculating taxable income in other cases shall be prescribed by the Ministry of Finance.

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

1. Reasonable expenses as stipulated herein must be actual expenditures incurred in connection with production and business activities of individuals, supported by invoices and certificates in accordance with the law.

2. Deductible reasonable expenses include:

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

Reasonable expenses do not include wages and salaries of the individual who is the head of a household business.

b) Costs of raw materials, materials, fuels, energy, and goods actually used in producing and trading goods and services that generate 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 trading goods and services. The depreciation rate of fixed assets is determined based on the value of the fixed asset and the depreciation period as prescribed by the Ministry of Finance.

d) Interest expenses on loans directly related to the generation of revenue and taxable income.

đ) Management costs.

e) Taxes, fees, and charges, and land rental payments related to production, trading, and service activities as prescribed by law, excluding personal income tax and other taxes, fees, charges, and revenues not deductible under the law.

g) Other costs related to generating income.

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

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

1. For individual businesses that have not complied with legal provisions on accounting, invoices, and vouchers, and cannot determine revenue, expenses, and taxable income, the competent tax authority shall fix revenue and the ratio of taxable income to determine the appropriate taxable income according to each production and business sector.

2. For individual businesses that can only record revenue but cannot record expenses, the taxable income is determined according to the provisions of Article 8 of this Decree. The taxable income is determined at the rate fixed by the tax authority.

3. The Ministry of Finance shall provide detailed regulations on fixing revenue and the rate of taxable income based on revenue.

Article 11. Taxable income from salaries and wages

1. Taxable income from salaries and wages is determined according to the provisions of Clause 2, Article 3 of this Decree.

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

Article 12. Personal deductions

Resident individuals with income from salaries and wages, and business income are entitled to personal deductions from taxable income before calculating tax as follows:

1. Personal deduction amount:

a) The deduction amount for taxpayers is 9 million VND/month (108 million VND/year);

b) The deduction amount for each dependent person whom the taxpayer has the obligation to support is 3.6 million VND/month starting from the month the obligation arises.

In case the Standing Committee of the National Assembly adjusts the personal deduction amount according to the provisions of Clause 4, Article 1 of the Law amending and supplementing certain articles of the Individual Income Tax Law, it shall be implemented according to the amount specified by the Standing Committee of the National Assembly to apply for the next tax period.

2. Each dependent person may only be deducted once from one taxpayer in the tax year. If multiple taxpayers share the responsibility for supporting one dependent person, they must agree among themselves to declare the personal deduction for one taxpayer.

3. The criteria and basis for determining dependent persons whom the taxpayer has the obligation to support as stipulated in Clause 1 of this Article are as follows:

a) Children (including biological children, legally adopted children, children of the wife, children of the husband) under 18 years old;

b) Children (including biological children, legally adopted children, children of the wife, children of the husband) aged 18 or older who are disabled and unable to work;

c) Children (including biological children, legally adopted children, children of the wife, children of the husband) currently studying at university, college, vocational high school, or vocational training, including children aged 18 or older still attending secondary school without income or with income not exceeding the income level specified in Clause 4 of this Article;

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

- Spouse of the taxpayer;

- Biological father, biological mother, stepfather, stepmother, legally adopted parents, father-in-law, mother-in-law (or father-in-law, mother-in-law) of the taxpayer;

- Other individuals without a place to rely on whom 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 1,000,000 VND in the year.

5. The taxpayer shall declare the number of dependents along with valid documentation and bear legal responsibility 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 provided in this Article.

Article 13. Deduction for charitable and humanitarian contributions

1. Resident individuals with business income or salary and wage income shall be entitled to deduct charitable and humanitarian contributions from taxable income, including:

a) Contributions to organizations and facilities caring for and nurturing children in particularly difficult circumstances, disabled persons, 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 shall be deducted from the taxable income of that year and may not be carried forward to offset against the taxable income of the subsequent tax year.

Article 14. Graduated Tax Rate

1. The graduated tax rate applies to taxable income from business operations and salary and wage income.

2. The graduated tax rate is defined as follows:

Section 2
INCOME FROM CAPITAL TRANSFER

Article 15. Taxable Income from Transfer of Capital Contribution

1. Taxable income from the transfer of capital contribution is determined by subtracting the purchase price of the transferred capital 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 transferred capital contribution is the value of the capital contribution at the time of transfer, which is determined by the initial value of the capital contribution plus any additional contributions or purchases.

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

a) Fees for necessary legal procedures for the transfer;

b) Taxes and fees paid by the transferor 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 is determined by subtracting the purchase price and related transfer expenses from the selling price.

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

a) For securities traded on the Stock Exchange, it is the actual transfer price at the Stock Exchange;

b) For securities not covered by Point a of this Clause, it is the actual transfer price recorded in the transfer contract or the price recorded in the accounting books of the entity holding the transferred securities at the time of transfer.

3. The purchase price of securities is determined as follows:

a) For securities traded on the Stock Exchange, it is the actual purchase price at the Stock Exchange;

b) For securities not covered by Point a of this Clause, it is the actual purchase price recorded in the receipt contract or the price recorded in the accounting books of the entity holding the transferred securities at the time of purchase.

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

a) Various fees related to the transfer and receipt of securities;

b) Entrusted security fees;

c) Other expenses.

Article 17. Tax Rate

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

2. The tax rate for income from the transfer of securities is 20% on the annual taxable income applicable to taxpayers who have documents and can determine their taxable income as stipulated in Article 16 of this Decree. For other cases not mentioned above, a tax rate of 0.1% on the transaction price of securities per transfer shall be applied.

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 land use rights.

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

a) The transfer price is the actual price recorded in the transfer contract at the time of transfer;

b) In cases where the actual price cannot be determined or the price recorded in the transfer contract is lower than the land price set by the provincial People's Committee at the time of transfer, the transfer price will be determined based on the Land Price Table established by the provincial People's Committee.

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

a) For land with a state-granted origin involving payment of land use fees, it is based on the receipt of land use fee payments;

b) For land transferred from organizations or individuals, it is based on the price recorded in the transfer contract at the time of receiving the land use rights (when purchasing);

c) For land acquired through auction, it is the winning bid price;

d) For land with origins not covered by Points a, b, and c of this Clause, it is based on the financial obligation fulfillment documents when obtaining the Land Use Certificate to determine the cost basis.

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

a) Fees and charges according to laws related to granting land use rights;

b) Land improvement costs and site leveling (if any);

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

Article 19. Taxable Income from the Transfer of Real Estate, which includes land use rights attached to construction works on the land, including future construction projects

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 in the transfer contract at the time of transfer;

b) In cases where the transfer price is not recorded in the contract or the recorded transfer price is lower than the price set by the provincial People's Committee, the transfer price is determined as follows:

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

- The value of the house, infrastructure, and buildings attached to the land is determined based on the property tax assessment price set by the provincial People's Committee. If the provincial People's Committee does not have a regulation on the property tax assessment price, it is based on the classification of houses, standards, and construction norms issued by the Ministry of Construction, and the actual remaining value of the construction project on the land.

For future construction projects, it is determined based on the proportion of investment in the total contract value multiplied (x) by the property tax assessment price of the construction project set by the provincial People's Committee. If the provincial People's Committee has not established a unit price, the current published investment cost for construction projects by the Ministry of Construction at the time of transfer shall be applied.

3. The cost basis is determined based on the price recorded in the transfer contract at the time of purchase. For real estate without an origin from a transfer, it is based on the financial obligation fulfillment documents with the State at the time of obtaining the Certificate of Ownership and Right to Use Real Estate.

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

a) Fees and charges according to laws related to granting land use rights;

b) Land improvement costs and site leveling;

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

d) Other expenses directly related to the transfer.

Article 20. Taxable income from transferring 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 value and recorded on the transfer contract.

In cases where the transfer price recorded on the transfer contract is lower than the property tax rate price set by the Provincial People's Committee at the time of transfer, or if the transfer contract does not record the transfer price, the transfer price shall be determined based on the property tax rate price set by the Provincial People's Committee. For future housing transfers, the transfer price is determined by multiplying (x) the proportion of capital contribution to the total contract value with the property tax rate price set by the Provincial People's Committee.

3. The purchase price is determined based on the price recorded on the purchase contract. For housing without a source from transfer or purchase, it is based on the financial obligation implementation documents with the State at the time of receiving the Certificate of Ownership and Use Rights for Housing.

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

a) Various fees and taxes as prescribed by law related to granting ownership rights of housing;

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

c) Other direct costs related to the transfer of housing.

Article 21. Taxable income from transferring land lease and water surface lease rights

1. Taxable income from transferring land lease and water surface lease rights is determined by subtracting (-) the rental price and related costs from the rental price.

2. The rental price is determined based on the actual price recorded on the rental contract.

In cases where the rental price on the contract is lower than the price set by the Provincial People's Committee at the time of re-rental, the rental price is determined based on the price list set by the Provincial People's Committee.

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

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

a) Various fees and taxes as prescribed related to land lease and water surface lease rights;

b) Costs for improving land and water surfaces;

c) Other direct costs related to re-rental.

Article 22. Tax Rate

1. The tax rate for income from transferring real estate is 25% on taxable income.

2. In cases where the taxpayer cannot determine or does not have documents to determine the cost basis and legitimate receipts to determine related costs as the basis for determining taxable income, a tax rate of 2% on the transfer price shall be applied.

Section 4
INCOME FROM INHERITANCE AND GIFTS

Article 23. Taxable income from inheritance and gifts

1. Taxable income from inheritance and gifts is the portion of the value of inherited assets and gifts, including: Real estate, other assets requiring registration of ownership and use rights, including securities, shares in economic organizations and business establishments exceeding 10 million VND received by the taxpayer each time such income arises.

2. Determination of taxable income for inherited and gifted assets must ensure consistency with market value at the time of income generation, including:

a) For securities as inherited or gifted assets:

- Taxable income is determined based on the reference price at the Stock Exchange on the day of inheritance or gift receipt or the nearest previous day;

- For securities not traded at the Stock Exchange, taxable income is determined based on the value recorded in the accounting books of the company holding the securities on the day of inheritance or gift receipt or the nearest previous day.

b) For shares in economic organizations and business establishments: Based on the value of the shares recorded in the books of the organization or establishment at the time 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 set by the Provincial People's Committee at the time of inheritance or gift receipt;

- The value of the house, infrastructure, and buildings attached to the land is determined according to the property tax rate price set by the Provincial People's Committee. If the Provincial People's Committee does not set a property tax rate price, it is based on the classification standards and construction norms set by the Ministry of Construction; the remaining actual value of the structures on the land.

d) For other assets: Based on the property tax rate price of that asset or similar assets (if available).

Article 24. Time for Determining Taxable Income

1. The time for determining taxable income from inheritance is the time when the individual completes the registration procedures for ownership and use rights of inherited assets.

2. The time for determining taxable income from gifts is the time when the individual completes the registration procedures for ownership and use rights of the gifted assets received.

Article 25. Tax Rate

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

Section 5
INCOME FROM LOTTERY PRIZES

Article 26. Taxable Income from Lottery Prizes and Time for Determining Taxable Income

Taxable income from lottery prizes and the time for determining taxable income from lottery prizes shall be governed by Article 15 of the Personal Income Tax Law. The awarding organization is responsible for withholding personal income tax from the prize winner before paying the prize to the individual. In cases where the awarding organization of electronic game prizes or casino cannot determine the taxable income of the prize winner for withholding tax, it shall pay the tax on behalf of the prize winner at the prescribed rate based on the total amount returned to the individual.

Based on the provisions of the Tax Management Law, the Ministry of Finance shall specify the prescribed rate based on the total amount returned to the individual as stipulated herein.

Chapter III
PERSONAL INCOME TAX MANAGEMENT POLICY

Article 27. Tax Registration and Issuance of Tax Identification Number

1. Individuals with taxable income must register for tax to obtain a tax identification number for themselves and each dependent entitled to the family allowance deduction.

2. Organizations and individuals paying taxable income must register for tax to obtain a tax identification number. In cases where organizations and individuals paying income have already been issued a tax identification number prior to the effective date of this Decree, they may continue to use that number.

Article 28. Withholding Tax

1. Withholding tax is the act of organizations and individuals paying income calculating and deducting the tax payable from the income of the taxpayer before paying the income.

2. Types of income subject to withholding tax:

a) Income of non-resident individuals, including cases where they are not present in Vietnam;

b) Income from salaries, wages, remuneration, including remuneration from brokerage activities;

c) Income of individuals from insurance agency, lottery agency, multi-level marketing sales activities;

d) Income from capital investment;

đ) Income from the transfer of capital by non-resident individuals, transfer of securities;

e) Income from lottery prizes;

g) Income from copyright;

h) Income from franchise.

3. The Ministry of Finance shall specify in detail the cases, rates, and methods of withholding personal income tax as provided in this Article.

Article 29. 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 by resident individuals;

d) Income from inheritance and gifts received by individuals.

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

Article 30. Declaration, Payment, and Settlement of Personal Income Tax

Organizations and individuals paying income who are required to withhold tax and individuals with taxable income as provided by the Personal Income Tax Law and the Law Amending and Supplementing Certain Articles of the Personal Income Tax Law shall be responsible for declaring, paying, and settling personal income tax as follows:

1. Monthly declaration and payment of tax applies to organizations and individuals paying income that withhold tax on the types of income specified in Clause 2 of Article 28 of this Decree, where the total monthly personal income tax withheld according to each type of declaration reaches 50 million dong or more, except for those who declare and pay value-added tax quarterly.

2. Quarterly declaration and payment of tax applies to:

a) Organizations and individuals paying income that withhold tax on the types of income specified in Clause 2 of Article 28 of this Decree but are not subject to monthly declaration and payment of tax as provided in Clause 1 of this Article;

b) Individual and groups of individuals engaged in business;

c) Income from salaries and wages paid from abroad or by international organizations, embassies, and consulates in Vietnam without withholding tax.

3. Declaration and payment of tax on a per-occurrence basis applies to:

a) Income from the transfer of real estate;

b) Income from the transfer of capital by resident individuals;

c) Income from inheritance and gifts;

d) Income generated from the production and business operations of goods and services by individuals and groups of individuals engaged in business, which are issued individual invoices by the tax authority;

đ) Income generated outside Vietnam by resident individuals, excluding income from salaries and wages;

e) Income generated in Vietnam but received outside Vietnam by non-resident individuals, excluding income from salaries and wages.

4. Annual declaration and payment of tax: Applies to individuals and groups of individuals engaged in business who pay tax as provided in Clause 1 of Article 10 of this Decree.

5. Declaration and Settlement of Tax

Organizations and individuals paying income; resident individuals with income from salaries and wages, from business; resident individuals transferring securities and paying tax at a rate of 20% on income shall be responsible for declaring and settling annual tax, except for the following cases:

a) Individuals whose tax payable is less than the tax temporarily paid quarterly and do not request a refund or offset against the next period;

b) Individuals and households engaged solely in business income declared and paid according to Clause 1 of Article 10 of this Decree;

c) Individuals and families with only rental income from property or land use rights declared and paid at the place where the property or land use rights are rented;

d) Individuals with regular income from salaries and wages at one unit and additional occasional income from other places averaging no more than 10 million dong per month during the year, which has been deducted at source by the unit if there is no need to settle tax for this portion of income.

đ) An individual who has income from wages and salaries and also has additional income from renting out houses or leasing land use rights with average monthly revenue not exceeding twenty million dong for the year already paid tax at the location where the rented house or leased land is located shall be exempted from finalizing tax on this portion of income if there is no need to do so.

6. An individual may authorize the entity paying income to finalize tax on their behalf in cases where the individual only has one source of income from wages and salaries generated at one entity or other income sources apart from wages and salaries generated at the entity, provided that such other income complies with the provisions set forth in Points d and đ of Clause 5 of this Article.

7. The tax declaration, payment, and finalization procedures for the cases mentioned in Clauses 1, 2, 3, 4, and 5 of this Article shall be carried out in accordance with the laws governing tax administration.

Article 31. Obligations to Deduct Tax, Declare Tax, and Disclose Information of Entities Paying Income, Entities Where Individuals Transfer Capital, Depositary Organizations, Securities Issuers, and Vietnamese Entities Contracting Services from Foreign Contractors Not Operating in Vietnam

1. Organizations and individuals have the obligation to deduct tax when paying income to individuals as follows:

a) For income from wages and salaries of individuals under labor contracts: Each month, organizations and individuals paying income shall deduct tax for each individual based on the taxable income of the month and the progressive tax rate table; temporarily reduce personal allowances according to the taxpayer's declaration to calculate the tax payable for the month, implement tax deduction, and bear no legal responsibility for the temporary reduction of personal allowances. Organizations and individuals paying income shall declare and pay taxes to the state budget in accordance with Clauses 1 and 2 of Article 30 of this Decree and the regulations of the laws on tax administration.

b) For other fees and payments to individuals without labor contracts: Organizations and individuals paying income shall temporarily deduct tax at a rate of 10% of the income paid to the individual. Individuals with income subject to temporary tax deduction as stipulated in this Clause are not required to declare tax monthly.

The Ministry of Finance shall specify the specific level of income serving as the basis for tax deduction and temporary tax deduction at the rates prescribed in this Point.

2. Securities companies and commercial banks where individuals deposit securities, and organizations issuing securities shall be responsible for deducting tax on the transfer of securities at a rate of 0.1% of the selling price of the securities each time, including cases where tax is paid at a rate of 20% on income from the transfer of securities as prescribed in Clause 2 of Article 17 of this Decree.

3. Enterprises where individuals have transferred shares shall require individuals to provide proof of having fulfilled their tax obligations on the transferred capital before processing the change in the list of shareholders or the shareholder register. In cases where enterprises process changes in the list of shareholders or the shareholder register due to the transfer of capital without proof that the transferring individuals have fulfilled their tax obligations, the enterprise where the capital was transferred shall be responsible for paying tax on behalf of these individuals.

4. Organizations established and operating under Vietnamese law (hereinafter referred to as the Vietnamese party) which enter into service purchase contracts with foreign contractors who have signed labor contracts with foreigners working in Vietnam shall be responsible for informing the foreign contractor about the obligation to pay personal income tax for foreign workers and about the responsibility to provide information about foreign workers, including: List, nationality, passport number, working period, job responsibilities, income provided to the Vietnamese party, which the Vietnamese party must submit to the tax authority no later than seven days prior to the start date of work for the foreign individual in Vietnam.

Article 32. Refund of Tax

Individuals are entitled to a tax refund in cases prescribed in Clause 2, Article 8 of the Law on Personal Income Tax dated November 21, 2007, and who request such a refund.

The procedures and documents for tax refunds shall be carried out in accordance with the laws on tax administration.

Chapter IV
IMPLEMENTING PROVISIONS

Article 33. Effective Date

1. This Decree takes effect from July 1, 2013.

2. This Decree replaces Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain provisions of the Law on Personal Income Tax and Point 2 of Decree No. 106/2010/NĐ-CP dated October 28, 2010 of the Government amending and supplementing certain provisions of Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing certain provisions of the Law on Tax Administration and Decree No. 100/2008/NĐ-CP.

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 under central cities, and related organizations and individuals are responsible for implementing this Decree./.