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New rules broaden eligible income tax deductions
The Finance Ministry has issued a circular that further clarifies and broadens eligible deductions for income as defined by the Personal Income Tax Law.
These include deductions for dependants, capital investment, securities bonuses and income earned from the lease of dwellings and other property.
The document, Circular 62, issued on March 26, 2009 supplements Circular 84 of September 2008.
Its list of eligible deductions now includes step parents provided the tax payer has a copy of the appropriate birth certificates; a marriage certificate or other related documents.
Dependants include both paternal and maternal grandparents as well as uncles and aunts, nephews and nieces and other members of the tax payer’s family he or she does not "directly raise".
They do not have to be on the household register but their status must be verified by the People’s Committee where they live.
The provisions of Circular 84 that allowed deductions for family members only if they were not of working wage; didn’t have an average income of less than VND500,000 (US$30) or were disabled no longer applies provided the tax payer can show the dependants live with him or her and are on the same household register.
Circular 62 states clearly that dividends or bonuses from securities are not liable for income tax.
But proceeds from the sale or transfer of the securities are liable to the tax.
The tax is calculated from the dividend or the number of securities multiplied by their nominated value.
If the dividends are paid in transferred securities or bonuses lower than their nominated value, the personal income tax payable will be calculated from their market price.
If the values are higher than the nominated value, the tax payable will be 0.1 per cent or 20 per cent of the difference between the true value and the nominated value or the value written in the accounts.
Any additional income, including airfares paid by an employer for the tax payer to take leave is deemed income.
Tuition fees paid by employers for the children of foreign workers in Viet Nam are not personal-income-tax deductible
Up to 15 percent of the rents paid by employers for their employees are deemed income.
vietnamnet, viet nam news
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