Personal Income Tax
The Law on Personal Income Tax aims to create fairness in all incomes of society.
E-commerce platforms must be electronically connected with tax management agencies from the beginning of next year, not from next month, as the tax watchdog aims to better collect taxes from sellers operating on the platforms.
More and more Vietnamese individuals with businesses online have declared tax and paid personal income tax.
The Cau Giay district taxation agency in Hanoi has reported that a 28-year old woman earned revenue of VND330 billion, or $14 million, in 2020 and paid personal income tax of VND23.4 billion.
A 28-year-old girl from Hanoi last year paid VND23.4 billion (over US$1 million) in income taxes from her app development job, according to the Hanoi Tax Department.
The Ministry of Planning and Investment has asked for corporate income tax (CIT) to be cut for small and medium-sized enterprises (SMEs) by half this year in an effort to boost growth when the COVID-19 pandemic eases.
The Ministry of Finance has submitted to the Government a five-month extension of value-added tax (VAT), personal income tax and land rent fee payments for those affected by the COVID-19 epidemic.
A higher disposable income as a result from the adjustment would boost household spending and economic growth, said the Ministry of Finance.
Taxation agencies struggle to find individuals who have income from YouTube and Facebook, but have had some recent success.
The Ministry of Finance (MOF) says that personal income tax (PIT) rates have become out of date after six years of application and need amendment.