Tiếng Việt| THE NATIONAL ASSEMBLY | SOCIALIST REPUBLIC OF VIET NAM |
| No. 33-L/CTN | Hanoi, May 19, 1994 |
ON INCOME TAX OF HIGH INCOME EARNERS (AMENDED)
To contribute to implementing social equality, mobilizing a part of income of individual earning high income to the state budget,
Based on Article 91 of the 1992 Constitution of the Socialist Republic of Vietnam,
Based on the Resolution of the National Assembly 9th legislature, 4th session on the 1994 state budget estimates,
The present Ordinance governs the income tax of high income earners.
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1. Regular income in the form of: salaries, wages, allowances and bonuses; incomes other than salaries, wages received from conducting business, service which are not subject to profit tax, except incomes provided for by Article 3 of this Ordinance.
2. Irregular income in the form of:
- Money or other items sent by overseas residents.
- Income derived from the transfer of technology, copyright, patent, trade mark, know-how, construction and engineering design, industrial design and other services.
- Lottery winnings.
2. Income tax shall not be levied on the following:
a/ Allowance for work at night, allowance for noxious or dangerous working conditions, allowance paid with respect to different zones in the country, allowance for working in off shore islands or frontier areas where living conditions are difficult; allowance for the purpose of promoting Labour force; other allowances for the state officers; allowance for expenses of commission; feeding-up allowance or particular allowance for various branches and occupations as stipulated by the Government and other allowances from the state budget.
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c/ Social and unemployment benefits, insurance compensation, allowance for dismissal from work, benefits paid as consideration for being moved to another production unit in accordance with regulations of the State.
d/ Profits earned by the owner of a private business which profits are already subject to tax pursuant to the law relating to profits tax.
e/ Income by a foreigner in Vietnam who resides in the country for a period not exceeding 30 days.
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THE BASE FOR INCOME TAX CALCULATION AND THE INCOME TAX TARIFF.
The Base for tax calculation is the in come and tax rate.
A foreigner shall be deemed to be a resident in Vietnam if he resides in the country for a period exceeding 183 days within 12 months; Such a period is counted from the date of his coming in Vietnam. A foreigner shall not deemed to be a resident in Vietnam if he reside in the country for a period less than 183 days.
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1. As for Vietnamese residents and other individuals in Vietnam.
Partially progressive tariff
Unit: 1,000d
Grade Average income per man/month Tax Rate
01 up to 1,200 0
02 1,200 - 2,000 10
03 2,000 - 3,000 20
04 3,000 - 4,000 30
05 4,000 - 6,000 40
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07 over 8,000 60
With respect to those individuals who have an average income of over 5,000,000 dong per month, then apart from the maximum tax rate described in the above tariff, they shall have to pay surcharge tax of 30 per cent to the income exceeding 5,000,000 dong.
2. With respect to foreigner residing in Vietnam and Vietnamese citizens working abroad.
Partially progressive tariff
Unit: 1,000d
Grade Average income monthly/head Tax rate
01 up to 5,000 0
02 5,000 - 12,000 10
03 12,000 - 30,000 20
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05 50,000 - 70,000 40
06 over 70,000 50
3. With respect to foreigners not residing in Vietnam, a unified rate of 10% of total income shall apply.
Article 12. The partially progressive tariff for the irregular income is stipulated as follows:
Unit: 1,000d
Grade Each earning Rate (%)
1 up to 2,000 0
2 2,000 - 4,000 5
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4 10,000 -20,000 15
5 20,000 -30,000 20
6 over 30,000 30
Particularly, with respect to:
+ Income derived from the transfer of technology in a sum higher than 2,000,000 shall be subject to a unified fixed rate of 5 per cent.
+ Income derived from a lottery wining in a sum higher than 12,500,000 shall be subject to a unified fixed rate of 10 per cent.
+ Money or other items sent by overseas residents in a sum higher than 2,000,000d shall be subject to a unified fixed rate of 5 per cent.
Income received in kind shall be calculated in accordance with the market price at the time when the income received in kind is generated.
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With respect to the foreign currency the exchange rate of which has not been published by the State Bank of Vietnam, it shall be calculated according to the exchange rate provided by the Ministry of Finance.
DECLARATION AND PAYMENT OF INCOME TAX
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The delegated organization which extracts the income tax shall be titled to enjoy 0.5 per cent to 1.0 per cent of the income tax already paid to the State budget in accordance with regulations of the Ministry of Finance.
The organization delegated to extract the income tax shall be responsible for:
1/ Making a full declaration with the Tax Office the number of people of the taxable unit, its regular and irregular incomes under taxation.
2/ Keeping the accounting books and documents in relation to the taxable incomes of the income earners who are paid by the unit concerned and submit them to the Tax Office once required to do it.
3/ Receiving the declarations of the tax payers and submit them to the Tax Office.
4/ Extracting and informing the number of payable taxes of each person, and paying it to the state budget as stipulated.
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1/ Guide, examine, supervise and speed up the declaration calculation and payment of income tax.
2/ Make the tax book, collect the income tax and give the receipt of tax collection.
3/ Make a report and impose administrative penalties in accordance with its authorization or propose to prosecute criminal responsibility against the breaches of the ordinance on Income Tax for High Income Earners.
4/ Consider and revolve the claims, denunciations concerning the income tax.
EXEMPTION, REDUCTION OF INCOME TAX
2/ Exemption, reduction of Income tax shall be considered in a number of special cases provided for by the Government.
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HANDLING OF BREACHES AND REWARDS
a/ Any individual or organization that does not follow the provisions on the procedures concerning declaration, the making of accounting books and documents on the income tax does not extract the payable income tax as stipulated shall depending on the degree of much or less seriousness, give warning or impose fine up to 500,000 dong.
b/ Any individual or organization that has an act of false declaring or evading the tax payment shall, apart from the full payment of income tax as stipulated in the Ordinance, be fined from one to three times of the defrauded tax.
- For the first breach: one penalty.
- For the second breach: two penalties.
- For the third breach: three penalties.
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c/ Any individual or organization that delays the payment of taxes or fines described in the tax collection order on the penalty decision shall, apart from the full payment of the taxes or the fines as stipulated in this Ordinance, be fined with 0.2 per cent of the delayed payable sum for each day of delay.
d/ Any individual or organization that drags on their feet in the payment of taxes or fines shall be handled as follows:
+ The deposited money of that individual or organization at the bank shall be extracted to pay the tax and fine. The Bank is held responsible for executing the priority regime in extracting money of that individual or organization deposited at the bank to pay the taxes and fines to the State Budget in accordance with the order of tax collection and the Decision made to handle the case by the Tax Office:
+ Make an inventory of the assets as stipulated by the law so as to ensure the collection of the taxable money and the fines that are still lacking.
2. Any individual that evades paying tax in a great quantity or has already been handled administratively in accordance with points a, b, c, and d paragraph 1 of this Article still violates or evades paying taxes in a very great quantity or committed breaches and crimes in other serious cases, then he/she shall be executed for criminal responsibility in accordance with the stipulation in Article 169 of the Criminal Code.
1. With respect to the breaches stipulated at point a:
a/ The head of a tax collection station is empowered to impose fines up to 100,000dong.
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c/ The head of the provincial Tax collection Department or the similar level is authorized to impose fines of up to 1,000,000 dong.
2. With respect to the breaches stipulated in point b:
a/ The head of the district Tax Collection sub-depart ment or the similar level is authorized to impose one time of the fine against the defrauded tax.
b/ The head of the provincial Tax Collection Department or the similar level is authorized to impose up to three times of the fine against the defrauded tax.
3. The head of the Tax collection Sub department directly controlling income tax payers is authorized to impose the fines against the delayed tax payment as stipulated in point c and d, paragraph 1, Article 21 of this Ordinance.
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Any tax collector who lacks the sense of responsibility or intentionally mishandled the case, causing damage to the tax payers or the handled person shall compensate the damage-inflicted person.
The Government shall stipulate the reward regime for:
1. The tax offices, the tax collectors for their satisfactory performance of the assigned task.
2. The person who has discovered the breach of the Ordinance on Income Tax for High Income Earner.
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Sending the resolution, the claimant shall have to pay all and in time the tax and fines already informed.
The claim receiving agency shall consider and solve the issue within 15 days after the date of receipt of the claim. With respect to the complicated cases, the time limit may be extended, but not exceeding 30 days after the date of receipt of the claim.
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The Government shall issue detailed provision for the implementation of this Ordinance.
FOR THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY
CHAIRMAN
Nong Duc Manh