Shall savings interest be subject to personal trực tiếp bóng đá k+ in Vietnam?
Shall savings interest be subject topersonal trực tiếp bóng đá k+ in Vietnam?
The Ministry of Finance has just compiled comments from ministries, central authorities, and local authorities... contributing to the draft of the amended Personal trực tiếp bóng đá k+ Law.
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Proposal Submission for Building the Personal trực tiếp bóng đá k+ Law Project (Amended)...Download
Draft Personal trực tiếp bóng đá k+ Law...Download
In its comments on the draft, the People's Committee of Can Tho City suggested that the drafting unit should research and expand the tax base. This locality proposed that only small-scale savings interest should be tax-exempt, while significant savings interest should be subject to personal trực tiếp bóng đá k+.
However, Ninh Thuan Province argued that interest on savings deposits, government bonds, and long-term investments should be tax-exempt to encourage savings and economic development.
In response to these proposals, the Ministry of Finance stated that it is studying the expansion of the tax base and limiting the integration of social policies into tax policies, following the direction ofNghị quyết 07-NQ/TW năm 2016. The Ministry is also referencing international experiences, such as Thailand and China, which tax bank deposit interest, while some other countries allow tax deductions on mortgage interest.
Based on Clause 1, Article 3 ofCircular 111/2013/TT-BTCregulations on tax-exempt incomes are as follows:
Tax-Exempt trực tiếp bóng đá k+ Items
- As stipulated in Article 4 of the Personal trực tiếp bóng đá k+ Law, Article 4 of Decree No. 65/2013/ND-CP, tax-exempt incomes include:
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g) trực tiếp bóng đá k+ from interest on deposits at credit institutions, foreign bank branches, interest from life insurance contracts; trực tiếp bóng đá k+ from interest on bonds issued by the Government of Vietnam.
g.1) Tax-exempt deposit interest as stipulated in this point is the individual's trực tiếp bóng đá k+ received from interest on deposits in Vietnam Dong, gold, foreign currency at credit institutions, and foreign bank branches established and operating according to the Law on Credit Institutions in forms of non-term deposits, term deposits, savings deposits, certificate of deposits, promissory notes, treasury bills, and other forms of receiving deposits on the principle of full repayment of principal, interest to the depositor under agreement.
The basis for determining tax-exempt trực tiếp bóng đá k+ for interest on deposits is the savings book (or savings card), certificate of deposit, promissory note, treasury bill, and other documents according to the principle of full repayment of principal, interest to the depositor under agreement.
g.2) Interest from life insurance contracts is the interest individual receives under a life insurance purchase contract from insurers.
The basis for determining tax-exempt trực tiếp bóng đá k+ against interest from life insurance contracts is the payment document from the life insurance contract.
g.3) Interest from Government of Vietnam bonds is the interest individuals receive from purchasing bonds issued by the Ministry of Finance.
The basis for determining tax-exempt trực tiếp bóng đá k+ for interest from Government of Vietnam bonds is the par value, interest rate, and term on the Government bond.
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According to the current regulations, individuals receiving interest from deposits at credit institutions are tax-exempt from personal trực tiếp bóng đá k+. Only income from deposit interest of enterprises is subject to corporate trực tiếp bóng đá k+.
The proposal to tax savings interest is stillunder considerationand no official decision has been made. According to the Ministry of Finance, adjusting exemptions needs thorough research to align with policies, practices, and global tax reform trends.
Note: The information is for reference purposes only!
Shall savings interest be subject to personal trực tiếp bóng đá k+ in Vietnam?(Image from the Internet)
What income is subject to personal trực tiếp bóng đá k+ in Vietnam?
Based on Article 3 ofPersonal trực tiếp bóng đá k+ Law 2007(amended by Clause 1, Article 1 ofLaw on Amendments to the Personal trực tiếp bóng đá k+ Law 2012and Article 2 ofLuật sửa đổi các Luật về trực tiếp bóng đá) the taxable trực tiếp bóng đá k+ categories are as follows:
(1) trực tiếp bóng đá k+ from Business:
- trực tiếp bóng đá k+ from production, trading of goods, services;
- trực tiếp bóng đá k+ from independent practice of individuals holding a license or practicing certificate as per law.
trực tiếp bóng đá k+ from business as stated above does not include trực tiếp bóng đá k+ of individuals with an annual revenue of VND 100 million or less.
(2) trực tiếp bóng đá k+ from Salaries or Wages:
- Salaries, wages, and payments of a salary-related nature;
- Allowances, supports except for allowances and supports as per the laws on preferential treatment for revolutionary contributors, national defense, security, hazardous and dangerous allowances in high-risk occupations or work environments, attraction allowances, area allowances as per law, sudden hardship supports, work accident or occupational disease supports, one-time childbirth or adoption benefits, one-time retirement benefits, monthly survivor benefits, and job-loss or unemployment benefits as per the Labor Code, other benefits paid by Social Insurance, and social problem solution allowances;
- Compensation received in different forms;
- Payment for joining business associations, board of directors, control boards, management boards, and organizations;
- Other benefits received by the taxpayer in cash or in kind;
- Bonuses excluding bonuses accompanied by State conferred titles, national and international awards, technical improvements, inventions recognized by State authorities, bonuses for detecting and reporting legal violations to competent state authorities.
(3) trực tiếp bóng đá k+ from Capital Investment:
- Loan interest;
- Dividend trực tiếp bóng đá k+;
- trực tiếp bóng đá k+ from other forms of capital investment except for trực tiếp bóng đá k+ from interest on Government of Vietnam bonds.
(4) trực tiếp bóng đá k+ from Capital Transfer:
- trực tiếp bóng đá k+ from transferring portions of capital in economic organizations;
- trực tiếp bóng đá k+ from transferring securities;
- trực tiếp bóng đá k+ from other forms of capital transfer.
(5) trực tiếp bóng đá k+ from Real Estate Transfer:
- trực tiếp bóng đá k+ from transferring ownership or usage of land and assets attached to the land;
- trực tiếp bóng đá k+ from transferring ownership or usage rights of a house;
- trực tiếp bóng đá k+ from transferring lease rights of land, water surfaces;
- Other trực tiếp bóng đá k+ earned from real estate transfers.
(6) trực tiếp bóng đá k+ from Winning Prizes:
- Lottery winnings;
- Prize winnings from promotional activities;
- Winnings from betting activities;
- Winnings from games, contests with prizes and other prize-won activities.
(7) trực tiếp bóng đá k+ from Copyrights:
- trực tiếp bóng đá k+ from transferring, transferring rights to use intellectual property rights;
- trực tiếp bóng đá k+ from technology transfer.
(8) trực tiếp bóng đá k+ from Franchising
(9) trực tiếp bóng đá k+ from Inheritance:
Is securities, capital portions in economic organizations, business establishments, real estate, and other assets registered for ownership or usage rights.
(10) trực tiếp bóng đá k+ from Gifts:
Is securities, capital portions in economic organizations, business establishments, real estate, and other assets registered for ownership or usage rights.
How to determinethe personal trực tiếp bóng đá k+ period in Vietnam?
According to Article 7 of thePersonal trực tiếp bóng đá k+ Law 2007(amended by Clause 3, Article 1 ofLaw on Amendments to the Personal trực tiếp bóng đá k+ Law 2012), the personal trực tiếp bóng đá k+ period is determined as follows:
(1) Tax period for resident individuals is prescribed as follows:
- The tax period on an annual basis applies to trực tiếp bóng đá k+ from business; trực tiếp bóng đá k+ from salaries, wages;
- The tax period for each trực tiếp bóng đá k+ generation applies to trực tiếp bóng đá k+ from capital investment; trực tiếp bóng đá k+ from capital transfer, except for trực tiếp bóng đá k+ from securities transfer; real estate transfer trực tiếp bóng đá k+; prize-winning trực tiếp bóng đá k+; royalties trực tiếp bóng đá k+; franchising trực tiếp bóng đá k+; inheritance trực tiếp bóng đá k+; gift trực tiếp bóng đá k+;
- The tax period for each securities transfer or annually applies to trực tiếp bóng đá k+ from securities transfers.
(2) The tax period for non-resident individuals is calculated for each occasion of trực tiếp bóng đá k+ generation for all taxable trực tiếp bóng đá k+.
