Tiếng Việt- 1 Decree no. 78/2001/ND-CP of October 23, 2001 detailing the implementation of the ordinance on income tax on high-income earners
- 2 Decree of Government No.147/2004/ND-CP of July 23, 2004 detailing the implementation of the ordinance on income tax on high-income earners
- 3 Official Dispatch No. 1318-TC/TCT of February 1, 2005, on implementation of the ordinance on income tax on high-income earners
| THE STANDING COMMITTEE OF NATIONAL ASSEMBLY | SOCIALIST REPUBLIC OF VIET NAM |
| No: 35/2001/PL-UBTVQH10 | Hanoi, May 19, 2001 |
ON INCOME TAX ON HIGH-INCOME EARNERS
In order to contribute to realizing social justice and to mobilize part of incomes of high-income earners for the State budget;
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;
Pursuant to the Resolution of the Xth National Assembly at its eighth session on the 2001 law- and ordinance-making program;
This Ordinance prescribes income tax on high-income earners.
Article 2.- Incomes subject to income tax include:
1. Regular incomes in the forms of salaries, wages, allowances, bonuses; incomes outside salaries and wages, which are paid for engagement in production, business and services activities not subject to enterprise income tax, except for those incomes specified in Article 3 of this Ordinance.
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a/ Gifts, presents in kind sent from abroad;
b/ Technology transfer, copyright over inventions, marks, technical know-hows, construction technical designs, industrial designs and other services, except cases of donation thereof;
c/ Lottery prizes.
2. Incomes not subject to income tax include:
a/ Night-shift allowances; allowances for hazardous and dangerous occupations; region allowances; seniority allowances for armed force personnel; special allowances for those working in a number of offshore islands and border areas with exceptionally difficult living conditions; job attraction allowances; working trip allowances; food ration expenses and special allowances for a number of branches and occupations according to the State-prescribed regime; various allowances for State officials and employees, and other allowances from the State budget;
b/ Monetary rewards for technical modifications, inventions and innovations, national and international prizes, monetary rewards accompanying the State-conferred titles, monetary rewards or other preferential treatments from the State budget;
c/ Social allowances, insurance indemnities, severance allowances, and allowances for transfer to work at production units as provided for by law;
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e/ Incomes earned in Vietnam by foreigners who are considered not residing in Vietnam for less than 30 days;
f/ Social insurance and medical insurance premiums paid from salaries and wages according to law provisions.
Article 7.- All State agencies, social organizations, people�s armed force units and citizens shall have to supervise and assist tax offices and tax officials in their task of collecting income tax.
BASES FOR TAX CALCULATION AND TAX RATES
Article 8.- Bases for tax calculation are the taxable incomes and the tax rates.
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Foreigners shall be considered as residing in Vietnam if they stay in Vietnam for 183 days or more in the period of 12 months from the date they arrive in Vietnam; and shall be considered as not residing in Vietnam if they stay in Vietnam less than 183 days in the same period.
Article 10.- The partially progressive tax rates applicable to regular incomes are prescribed below:
1. For Vietnamese citizens and other individuals residing in Vietnam:
Calculation unit: VND 1,000
Level
Average monthly income/person
Tax rates (%)
1
Up to 3,000
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2
Over 3,000 to 6,000
10
3
Over 6,000 to 9,000
20
4
Over 9,000 to 12,000
30
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Over 12,000 to 15,000
40
6
Over 15,000
50
For individuals who, after paying income taxes at the rates prescribed in this table, still have a remaining average income of over VND 15,000,000/month, they shall have to pay a surtax of 30% of the amount exceeding VND 15,000,000.
2. For foreigners residing in Vietnam and Vietnamese citizens laboring or working abroad:
Calculation unit: VND 1,000
Level
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Tax rates (%)
1
Up to 8,000
0
2
Over 8,000 to 20,000
10
3
Over 20,000 to 50,000
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4
Over 50,000 to 80,000
30
5
Over 80,000 to 120,000
40
6
Over 120,000
50
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Calculation unit: VND 1,000
Level
Income for each time of earning
Tax rates (%)
1
Up to 2,000
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2
Over 2,000 to 4,000
5
3
Over 4,000 to 10,000
10
4
Over 10,000 to 20,000
15
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Over 20,000 to 30,000
20
6
Over 30,000
30
2. Income from technology transfer, which is over VND 2,000,000 for each transfer, shall be taxed at the rate of 5% of the total income.
3. Income from lottery prizes, which is over VND 12,500,000 for each winning, shall be taxed at the rate of 10% of the total income.
4. Income in the forms of gifts and presents in kind sent from abroad, which is over VND 2,000,000 per sending, shall be taxed at the rate of 5% of the total income.
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The incomes in foreign currencies shall be calculated at the average exchange rate on the inter-bank foreign currency market announced by the State Bank of Vietnam at the time of their generation.
Article 14.- Income tax on regular incomes shall be calculated on the average monthly basis for the year. Temporary tax declaration and payment shall be made every month. At the year�s end or upon the expiry of the contractual term, all taxable incomes must be summed up and the final settlement thereof must be carried out with the tax offices not later than February 28 of the subsequent year or 30 days as from the expiry of the contractual term.
Foreigners liable to income tax shall have to produce receipts for payment of income taxes before leaving Vietnam.
Article 15.- Income tax on irregular incomes shall be paid for each time of income generation.
Organizations and individuals that pay incomes and withhold income tax therefrom shall enjoy from 0.5% to 1% of the tax amount already paid into the State budget according to the regulations of the Ministry of Finance.
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1. Fully declare to the tax offices the number of tax payers in their units, and their taxable regular and irregular incomes;
2. Keep accounting books and records related to the taxable incomes of those to whom the units pay incomes, and produce them at the request of the tax offices;
3. Receive the tax payers declarations and submit them to the tax offices;
4. Withhold the payable income taxes, inform each tax payer thereof, and pay them into the State budget according to regulations.
Article 19.- The tax offices shall have the following tasks and powers:
1. Guiding, inspecting and urging the income tax declaration, calculation and payment.
2. Opening tax books, collecting income tax and issuing receipts for the payment thereof.
3. Making written records of, administratively sanctioning according to competence or proposing the penal liability examination of, violations of the Ordinance on Income Tax on High-Income Earners.
4. Considering and settling complaints and denunciations about income tax.
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2. Tax payers shall be considered for income tax reduction or exemption in a number of special cases prescribed by the Government.
The Government shall specify the income tax reduction and exemption.
HANDLING OF VIOLATIONS AND COMMENDATION
1. Individuals and organizations that fail to observe the regulations on the income tax declaration procedures and on the opening of accounting books as well as making records on income tax, and fail to withhold income tax amounts as prescribed, shall be sanctioned for tax-related administrative violations;
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3. Individuals and organizations that pay tax or fines later than the prescribed payment date or the date determined in the tax-related handling decisions shall, apart from having to pay the full tax or fine amounts, have to pay a fine of 0.1% of the delayed amount for each day of delayed payment;
4. Individuals and organizations that fail to pay tax or fines according to tax notices or tax-related handling decisions shall be dealt with as follows:
a/ Deductions shall be made from their money deposited at the treasuries or credit institutions for payment of the tax or fines. The treasuries or credit institutions shall have to make such deductions from the deposit accounts of the concerned organizations or individuals for payment of tax or fines into the State budget before recovering debts;
b/ Inventory of their assets according to law provisions to ensure the payment of outstanding tax and/or fine amounts.
1. The heads of the tax offices that directly manage the tax collection shall have the right to handle the tax payers violations specified in Clauses 1, 2 and 3, Article 21 of this Ordinance.
2. The directors of the provincial/municipal Tax Departments and district Tax Sub-Departments that directly manage the tax collection may apply the handling measures specified in Clause 4, Article 21 of this Ordinance and, for cases of violation specified in Clause 2, Article 21 of this Ordinance, transfer the dossiers to competent bodies for handling according to law provisions.
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2. Tax officials or other individuals who abuse their positions and powers to cover up violators, deliberately act contrarily or lack responsibility in the implementation of this Ordinance shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability according to law provisions.
3. Tax officials who, due to their lack of responsibility or deliberate wrong handling acts, cause losses to tax payers or handled persons, shall have to pay compensation to the loss sufferers.
Article 25.- The Government shall prescribe the commendation and reward regime for:
1. Tax offices and tax officials that have well fulfilled their assigned tasks.
2. Those who make merits in discovering cases of violation of the Ordinance on Income Tax on High-Income Earners.
COMPLAINTS, STATUTE OF LIMITATIONS
Written complaints must be sent to the tax offices that directly manage the complainants or have decided on the handling measures within 30 days after the date of receipt of the deduction notices, tax notices, collection orders or handling decisions.
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The agencies that receive the written complaints shall have to consider and settle them within 15 days after the date of receipt of the complaints; for complicated cases, such time limit may be prolonged but must not exceed 30 days as from the date of receipt of the complaints; if the cases do not fall under their handling competence, they shall have to transfer the dossiers thereof or report them to the competent bodies for settlement and inform the complainants thereof within 10 days as from the date of receipt of the complaints.
ORGANIZATION OF IMPLEMENTATION
In case of a market price fluctuation of 20% or more, the Government shall propose the Standing Committee of the National Assembly to adjust the monetary levels in the income tax rate table to appropriate levels.
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Article 33.- This Ordinance takes effect as from July 1, 2001.
This Ordinance replaces the May 19, 1994 Ordinance on Income Tax on High-Income Earners, which was amended by the February 6, 1997 Ordinance Amending a Number of Articles of the Ordinance on Income Tax on High-Income Earners and the June 30, 1999 Ordinance Amending a Number of Articles of the Ordinance on Income Tax on High-Income Earners.
All the previous provisions contrary to this Ordinance are hereby annulled.
Article 34.- The Government shall detail and guide the implementation of this Ordinance.
ON BEHALF OF THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY
CHAIRMAN
Nong Duc Manh
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- 1 Decree of Government No.147/2004/ND-CP of July 23, 2004 detailing the implementation of the ordinance on income tax on high-income earners
- 2 Decree no. 78/2001/ND-CP of October 23, 2001 detailing the implementation of the ordinance on income tax on high-income earners
- 3 1992 Constitution of the Socialist Republic of Vietnam