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In the draft Decree detailing some provisions of the Law on Personal Income Tax, the Ministry of Finance has adjusted several income levels to be used as a basis for provisional tax deductions, including incidental income.
Specifically, organizations and individuals paying salaries, wages, fees, or other payments to resident individuals who do not have a contract or have a labor contract of less than 3 months, and whose income is 3 million VND or more per payment, must deduct tax, declare tax on behalf of the individual, and pay tax on behalf of the individual at a rate of 10% on the income before paying the income to the individual. This rate has increased by 1 million VND compared to the current regulation of 2 million VND per payment.
Individuals who have additional income from salaries and wages elsewhere, where the average monthly income for the year does not exceed 15 million VND, and the paying organization or individual has already deducted 10% of this income as provisional personal income tax, are not required to file a tax return for this income if they do not wish to do so (raising the current threshold of 10 million VND to 15 million VND).
In addition, the draft Decree also stipulates that income from the transfer of securities will be taxed at 0.1% on the transfer price of each transaction, as per current regulations.
Regarding securities transfers, income-paying organizations must deduct tax, declare and pay the deducted tax at a rate of 0.1% on the transfer price, and specify the procedures for tax deduction, tax declaration, and tax payment in certain specific cases. These provisions essentially inherit existing regulations.
In addition, personal income tax on income from real estate transfers remains unchanged, determined by multiplying the transfer price by a tax rate of 2%.
The time for determining taxable income is the time when the transfer contract becomes effective according to the law or the time of registration of the right to use or own the real estate.
In the case of transferring real estate, specifically land use rights, where the transfer contract does not specify the land price, or the land price stated in the contract is lower than the price calculated according to the land price table and land price adjustment coefficient, the land transfer price shall be the land price according to the land price table and land price adjustment coefficient (if any) applicable at the time of transfer, as stipulated by land law.
