16 incomes are exempt from personal income tax in 2021

From 2021 in Vietnam, 16 incomes are exempt from personal income tax.

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Legal grounds:

Article 4 of the Law on Personal Income Tax 2007

Clause 2 Article 1 of the Law on personal income tax amended in 2012

Clause 3 Article 2 of the Law on Tax amendments 2014

Article 4 of Decree 65/2013 / ND-CP

  1. Incomes from real estate transfer (including future houses and constructions in accordance with the law on real estate trading) between: Wife and husband; natural father, mother with natural child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother with grandchildren; maternal grandfather, grandmother and grandchild; brothers and sisters together.
  2. Incomes from the transfer of dwelling houses, residential land use rights and assets attached to residential land of an individual in case the assignor has only one house or right to use residential land in Vietnam.
16 Incomes Are Exempt From Personal Income Tax In 2021
16 Incomes Are Exempt From Personal Income Tax In 2021

Transferring individuals who have only one house or residential land use right in Vietnam as prescribed in this Clause must satisfy the following conditions:

    • At the time of transfer, an individual only has the right to own or use a house or a residential land plot (including the case of having a house or construction work attached to that land plot);
    • The minimum period of time for an individual to have the right to own or use a house or residential land up to the time of transfer is 183 days;
    • The house, the right to use residential land are completely transferred;

The determination of the right to own and use houses and residential land is based on the certificate of ownership and use right of the house or residential land. Individuals whose houses and residential land are transferred shall have to make declaration and take responsibility before law for the accuracy of their declaration. If the competent authority detects the false declaration, it shall not be exempt from tax and be handled according to the provisions of law.

  1. Incomes from the land use right value of individuals assigned land by the State without having to pay or reduce the land use levy according to the provisions of law.
  2. Incomes from inheritance, gifts being real estate (including houses, future construction works in accordance with the law on real estate trading) between: Wife and husband; natural father, mother with natural child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother with grandchildren; maternal grandfather, grandmother and grandchild; brothers and sisters together.
  3. Incomes of households and individuals directly engaged in agricultural production, forestry, salt making, aquaculture or fishing that have not been processed into other products or have only been preliminarily processed. usually, common, normal.
    • Households and individuals directly participating in production activities specified in this Clause must satisfy the following conditions:
    • Having the right to use land and water surface for production and directly participating in agricultural, forestry, salt-making and aquaculture production. With regard to fishing, it is required to have the right to own or use the ships, boats or fishing means and to be directly involved in the fishing;
    • The reality of residing in the locality where the agricultural, forestry, salt-making or aquaculture activities take place in accordance with the law on residence.
  1. Income from the conversion of agricultural land of households and individuals assigned by the State for production.
  2. Income from deposit interests at banks, credit institutions, income from life insurance contract interests.
  3. Income from remittances.
  4. Salaries for night work and overtime work are paid higher than daytime and overtime wages as prescribed by law.
  5. Retirement pensions paid by the Social Insurance Fund in accordance with the Law on Social Insurance, monthly pensions received from the Voluntary Pension Fund. Individuals living and working in Vietnam are exempt from tax on pensions paid by foreign countries.
  6. Scholarship income includes:
    • Scholarship received from the state budget;
    • Scholarships received from domestic and foreign organizations under that organization’s study promotion support program.
  1. Compensation for life, non-life insurance, health insurance, labor accident indemnity, state indemnity and other indemnities as prescribed by law.
  2. Income received from charitable funds established or recognized by competent state agencies, operating for charitable or humanitarian purposes, not for profit-making purposes.
  3. Income received from foreign aid for charitable and humanitarian purposes in the form of government and non-government approved by competent state agencies.
  4. Incomes from salaries and wages of Vietnamese seafarers working for foreign shipping lines or Vietnamese shipping lines for international transportation.
  5. Incomes of individuals who are ship owners, individuals having the right to use ships and individuals working onboard ships from the provision of goods and services directly serving offshore fishing and fishing activities .

 

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