Chương 2: Nghị định 65/2013/NĐ-CP Căn cứ tính thuế đối với một số loại thu nhập của cá nhân cư trú

Chapter 2.

TAXED GROUNDS FOR A NUMBER OF KINDS OF INCOME OF RESIDENT INDIVIDUALS

SECTION 1. INCOMES FROM BUSINESS ACTIVITIES AND INCOMES FROM SALARIES OR WAGES

Article 6. Taxed incomes from business activities, salaries or wages 

1. Taxed incomes from business activities, salaries or wages are determined to be equal to taxable incomes from business activities, salaries or wages specified in Articles 7 and 11 of this Decree minus (-) the following amounts:

a) Premiums of social insurance, health insurance, unemployment insurance, professional liability insurance for some professions subject to compulsory insurance, voluntary retirement fund

The maximum premium level of  the voluntary retirement fund  that is deducted from taxed incomes specified in this clause does not exceed one million VND/month (12 million VND/year) in acordance with guide of the Ministry of Finance; 

In case where individuals residing in Vietnam but working abroad and having incomes from business, wages, salaries abroad have participated in buying compulsory insurances as prescribed by countries where individuals pay these insurance types such as social insurance, health insurance, unemployment insurance, professional liability insurance for some professions subject to compulsory insurance, individuals are entitled to deduct these premiums in the taxable income when defining taxable incomes from business, wages, salaries.  

b) Reduction based on family circumstances specified in Article 12 of this Decree;

c) Contributions to charity funds, humanitarian funds and study promotion funds specified in Article 13 of this Decree.

2. Taxed incomes of individuals who earn taxable incomes from both business activities and salaries or wages will be the total of their taxable incomes from business activities plus (+) their taxable incomes from salaries or wages minus (-) the amounts specified at Points a, b and c, Clause 1 of this Article.

Article 7. Taxable incomes from business activities

Taxable incomes from business activities are determined to be equal to turnover for calculation of taxable incomes specified in Article 8 of this Decree minus (-) reasonable expenses specified in Article 9 of this Decree.

Article 8. Turnover for calculation of taxable incomes from business activities

1. Turnover for calculation of taxable incomes from business activities means the total of sales, processing remuneration, commissions, goods or service provision charges generated in a tax period.

The time of determination of turnover is the time of transfer of ownership of goods or completion of services or the time of making goods sale or service provision invoices, regardless of whether such turnover has been collected or not.

2. In some cases, turnover for calculation of taxable incomes is specified as follows:

a) Turnover of goods sold by installment payment is determined according to selling prices of goods sold by lump-sum payment exclusive of deferred payment interest;

b) Turnover of goods or services used for exchange or donation is determined according to the selling price of the same or equivalent product, goods or service at the time of exchange or donation;

c) Turnover from goods processing means sums of money earned from processing activities, covering remuneration, costs of fuel, power and auxiliary materials and other expenses for the goods processing;

d) Turnover from lease of assets means rents periodically paid by lessees under lease contracts.  In case lessees pay rents in advance for many years, turnover for calculation of taxable incomes may be allocated to the number of years of advance rent payment or determined according to lump-sum rent payment;

e) Turnover for calculation of taxable incomes in other cases shall be specified by the Ministry of Finance.

Article 9. Reasonable expenses related to the generation of taxable incomes from business activities

1. Reasonable expenses specified in this Article must be actually paid amounts involving individuals’ production and business activities, accompanied with sufficient invoices and vouchers under law.

2. Deductible reasonable expenses include:

a) Salaries, wages, allowances, remunerations and other payments to laborers;

Salaries or wages of individuals who are heads of business households are not accounted as deductible reasonable expenses.

b) Expenses for raw materials, materials, fuels, energy and goods actually used for the production and trading of goods or provision of services related to the generation of turnover and taxable incomes in a period, which shall be calculated according to their reasonable consumption rates and actual ex-warehousing prices determined by business households or individuals themselves that shall be held responsible before law;

c) Expenses for depreciation, regular repair and maintenance of fixed assets used for the production and trading of goods or provision of services.  The fixed asset depreciation level is determined based on the value of fixed assets and depreciation duration as specified by the Ministry of Finance.

d) Paid interests on loans for production and business activities directly related to the generation of turnover and taxable incomes;

dd) Management expenses;

e) Taxes, charges, fees, land rents payable under law for production, business or service activities except for personal income tax and other taxes, charges, fees and revenues not be counted in expenses as prescribed by relevant law;

g) Other expenses related to the generation of incomes.

The Ministry of Finance shall specify other reasonable expenses which are deductible upon calculation of taxable incomes.

Article 10. Taxable incomes and taxed incomes of business individuals who fail to strictly comply with regulations on accounting, invoices and documents

1. For business individuals who fail to strictly comply with regulations on accounting, invoices and documents and cannot calculate turnover, expenses and taxable incomes, competent tax offices shall assess turnover and the ratio of taxable incomes in order to determine taxable incomes suitable to each production or business line.

2. For business individuals who may make accounting only for turnover, fail to make accounting for expenses, turnover for calculation of taxable incomes is determined according to provision in Article 8 of this Decree.  Taxable income shall be determined according to the fixed level by tax offices.

3. The Ministry of Finance shall specify determination of turnover and the determined level of taxable income on turnover.

Article 11. Taxable incomes from salaries or wages

1. Taxable incomes from salaries or wages are determined according to Clause 2, Article 3 of this Decree.

2. Time of determination of a taxable income from salary or wage is the time when an employer pays income to a taxpayer or when a taxpayer receives income.

Article 12. Reduction based on family circumstances

Resident individuals who earn incomes from salaries or wages or business activities enjoy reduction based on family circumstances from their taxable incomes before tax calculation as follows: 

1. Levels of reduction based on family circumstances:

a) Level of reduction for a taxpayer himself/herself is VND 9 milion/month (which is VND 108 million/year);

b) Level of reduction for each dependant of a taxpayer is VND 3.6 million/month given from the month the taxpayer's obligation to nurture the dependant arises.

If the National Assembly Standing Committee adjust the levels of reduction based on family circumstances as prescribed in clause 4 Article 1 of the Law amending and supplementing a number of articles of the Law on personal income tax, the levels as regulated by the National Assembly Standing Committee will be applied for the next tax period.

2. Each dependant may be counted only once for tax reduction for a taxpayer in a tax year.  In case several taxpayers share a dependant they are obliged to nurture, they shall reach agreement on registration of this dependant for family circumstance-based reduction for one among them.

3. Persons and grounds to be identified as dependants of taxpayers to have the nurture obligation specified in clause 1 this Article are as follows:

a) Under-18 children (including blood children, legally adopted children, step children of spouse); 

b) Disabled children (including blood children, legally adopted children, step children of spouse) who are aged 18 years or older and incapable of working;

c) Children (including blood children, legally adopted children, step children of spouse) who are studying at universities, colleges, professional secondary schools or job-training schools, including children who are aged 18 years or older and are studying at general education level and have no income or have incomes not exceeding the level specified in Clause 4 of this Article;

d) Persons who are beyond the working age or persons who are at the working age prescribed by law but are disabled and incapable of working or have no income or have incomes not exceeding the level specified in Clause 4 of this Article, including:

- Spouses of taxpayers;

- Blood parents or stepfather, stepmother, legally adopted parents, spouse's parents of taxpayers;

- Other helpless individuals whom taxpayers are obliged to directly nurture.

4. The income level serving as a basis for identification of dependants to be counted for reduction based on family circumstances is an average monthly income of VND 1,000,000 or less in a year from all income sources.

5. Taxpayer shall themselves declare the number of their dependants evidenced by lawful papers and be held responsible before law for the accuracy of their declaration.

6. The Ministry of Finance shall specify procedures and dossiers for declaration of dependants to be counted for reduction based on family circumstances under this Article.

Article 13. Reduction for charity or humanitarian donations 

1. Resident individuals who earn incomes from business activities, salaries or wages enjoy their charity or humanitarian donations deductible from their taxable incomes, including:

a) Donations to organizations or establishments that care for or nurture children in special plights, disabled people and helpless elderly people;

b) Donations to charity funds, humanitarian funds or study promotion funds.

2. Organizations, establishments and funds specified at Points a and b, Clause 1 of this Article must be those licensed or recognized by competent state agencies and operating for charity, humanitarian, study promotion and non-profit purposes.

3. Charity or humanitarian donations made in a year are deductible from taxable incomes of that year and must not be carried forward for deduction from taxable incomes of the subsequent tax year.

Article 14. Partially progressive tariff

1. The partially progressive tariff applies to taxed incomes from business activities, salaries or wages.

2. The partially progressive tariff is specified below:

Section 2. INCOMES FROM CAPITAL TRANSFER

Article 15. Taxed incomes from transfer of contributed capital amounts 

1. Taxed income from the transfer of a contributed capital amount is determined to be equal to the transfer price minus (-) the buying price of the contributed capital amount and reasonable expenses related to the generation of capital transfer income.

2. Transfer price means a sum of money receivable by an individual under a capital transfer contract.

3. Buying price of a transferred capital amount means the value of that contributed capital amount at the time of capital transfer to be equal total value of the initial contributed capital and value of the contribution or supplementation purchase times.

4. Reasonable expenses related to the generation of capital transfer income are actually paid expenses with lawful invoices and vouchers, including:

a) Expenses for completion of legal procedures necessary for the transfer;

b) Charges and fees paid by the transferor into the state budget under law;

c) Other expenses.

Article 16. Taxed incomes from securities transfer 

1. A taxed income from a transfer of securities is determined to be equal to the selling price minus (-) the buying price of securities and expenses related to the transfer.

2. Selling prices of securities are determined as follows:

a) Selling prices of securities allowed trading at the Stock Exchanges are prices of actual transfers at the Stock Exchanges;

b) Selling prices of securities not falling in case specified in point a this clause are prices of actual transfers inscribed in transfer contract or prices according to accounting books of units possessing the transferred securities at time of transfer.

3. Buying prices of securities are determined as follows:

a) Buying prices of securities allowed trading at the Stock Exchanges are prices of actual purchases at the Stock Exchanges;

b) Buying prices of securities not falling in case specified in point a this clause are prices of actual purchases inscribed in transfer contract or prices according to accounting books of units possessing the transferred securities at time of purchase.

4. Expenses related to the securities transfer are actually paid expenses with lawful invoices and vouchers, including:

a) Charges for securities transfer and receipt of transferred securities;

b) Securities trust expense;

c) Other expenses.

Article 17. Tax rates

1. The tax rate for incomes from transfer of contributed capital is 20% of taxed income from each transfer.

2. The tax rate for incomes from securities transfer is 20% of taxed income of a whole year and applies only to taxpayers that have documents, can determine their taxes incomes under Article 16 of this Decree.  For taxpayers other than those specified above, the applicable tax rate is 0.l% of the price of each securities transfer.

Section 3. INCOMES FROM REAL ESTATE TRANSFER

Article 18. Taxed incomes from land use rights transfer 

1. Taxed income is determined to be equal to the price of a land use right transfer minus (-) the cost price and related reasonable expenses.

2. Land use rights transfer prices are determined as follows: 

a) Transfer prices are actual prices stated in transfer contracts at the time of transfer;

b) In case actual prices are unidentifiable or prices stated in transfer contracts are lower than land prices stipulated by provincial-level People's Committees at the time of transfer, transfer prices shall be determined according to land price brackets set by provincial-level People's Committees.

3. Land use rights transfer cost prices are determined in some specific cases as follows:

a) For land areas allocated by the State with the collection of land use levy, land use rights transfer cost prices are based on receipts of land use levy collected by the State;

b) For land areas transferred use rights from organizations and individuals, land use rights transfer cost prices are based on transfer contracts at time of receiving land use right transfer (upon buying);

c) In case of land use rights auction, land use rights transfer cost prices are winning bids;

d) For land areas with origin not falling in cases stated in points a, b and c this clause, the land use rights transfer cost prices are based on dossier of performing financial obligations with State when being granted certificate of land use rights.

4. Reasonable expenses related to the transfer of land use rights are actually paid expenses with lawful invoices and vouchers, including:

a) Charges and fees prescribed by law and related to the grant of land use rights;

b) Expenses for land revamp and ground leveling (if any);

c) Other expenses directly related to the transfer of land use rights.

Article 19. Taxed incomes from transfer of real estate being land use rights associated with construction works on land, including construction works formed in future 

1. Taxed income is determined to be equal to the transfer price minus (-) the cost price and related reasonable expenses.

2. Transfer prices are specifically determined as follows: 

a) Transfer prices are actual prices stated in transfer contracts at the time of transfer;

b) In case where transfer prices are not inscribed in contracts or the transfer prices inscribed in contracts are lower than the prices stipulated by provincial-level People's Committees, transfer prices are determined as follows:

- The value of transferred land is determined according to land price brackets set by provincial-level People's Committees at the time of transfer;

- The value of houses, infrastructure works and architectures attached to land is determined under the prices to calculate the registration fees of houses that are set by provincial-level People's Committees.  If the provincial-level People's Committees fail to have regulations on prices to calculate the registration fees of houses, the value is determined under the Construction Ministry's regulations on house classification; capital construction standards and norms; the actual residual value of works on land.

For construction works formed in future, the value is determined under the rate of capital contribution on total value of contract multiplied (x) with the price to calculate the registration fee of construction works that are set by provincial-level People's Committees.  If the provincial-level People's Committees fail to have regulations on unit prices, the value is applied according to the capital portion of investment in works construction announced by the Ministry of Construction and being applied at time of transfer.

3. Cost prices are determined to be prices stated in transfer contracts at the time of purchase.  In cases where a real estate has no origin from receiving transfer, the cost prices are determined under the dossier of performing financial obligation with State at time of being granted certificate of ownership and use right of real estate.

4. Related reasonable expenses are actually paid expenses with lawful invoices and vouchers, including:

a) Charges and fees prescribed by law and related to the grant of land use rights;

b) Expenses for land revamp and ground leveling;

c) Expenses for repair or renovation of construction works on land;

d) Other expenses directly related to the transfer.

Article 20. Taxed incomes from transfer of the right to own or use residential houses  

1. Taxed income is determined to be equal to the selling price minus (-) the buying price and related reasonable expenses.

2. Selling prices are actual transfer prices determined according to market prices and stated in transfer contracts.

In case where a house transfer price stated in the transfer contract is lower than the price to calculate the house registration fee set by the provincial-level People's Committees at time of transfer or the transfer price is not stated in the transfer contract, the transfer price will be determined under the price to calculate the house registration fee set by the provincial-level People's Committees.  For transfer of residential houses formed in future, the transfer price is determined to be equal to the rate of contributed capital on total value of contract multiplied (x) with the price to calculate the house registration fee set by provincial-level People's Committees.

3. Buying prices are determined to be those stated in purchase contracts.   For residential houses which have no origin from receiving transfer or re-purchase, the buying prices are determined under the dossier of performing financial obligation with State at time of being granted certificate of ownership and use right of residential houses.

4. Related expenses are actually paid expenses with lawful invoices and vouchers, including:

a) Charges and fees prescribed by law and related to the grant of house ownership;

b) Expenses for house repair, renovation and upgrading;

c) Other expenses directly related to the transfer of residential house.

Article 21. Taxed incomes from transfer of the right to lease land or water surface 

1. Taxed income from transfer of the right to lease land or water surface is determined to be equal to the sublease rate minus (-) the lease rate and related reasonable expenses.

2. Sublease rates are determined according to actual rates stated in contracts.

In case sublease unit rates stated in contracts are lower than lease rates prescribed by provincial- level Peoples Committees by the time of sublease, rates shall be determined according to lease rate brackets set by provincial-level People's Committees.

3. Lease rates are determined based on lease contracts.

4. Related expenses are actually paid expenses with lawful invoices and vouchers, including:

a) Charges and fees prescribed by law and related to the right to lease land or water surface;

b) Expenses for land or water surface revamp;

c) Other expenses directly related to the sublease.

Article 22. Tax rates

1. The tax rate for incomes from transfer of real estate is 25% of taxed income.

2. In case taxpayers fail to identify or fail to have dossier to determine cost prices and lawful documents for determining related expenses, which serve as a basis for determining taxed incomes, the tax rate of 2% of transfer prices is applied.

Section 4. INCOMES FROM INHERITANCES OR GIFTS

Article 23. Taxed incomes from inheritances or gifts

1. Taxed incomes from inheritances or gifts is the value of an inherited asset or a gift, including:  real estate, another asset subject to compulsory registration of ownership or use rights, including also securities or capital holding in an economic organizations or business establishments, which exceeds VND 10 million received by a taxpayer upon each time of inheritance or gift receipt.

2. The determination of taxed incomes from various inherited assets or gifts must be based on the conformity with market prices of these assets at the time of income generation, of which:

a) For securities being the inherited assets or gifts:

- Taxed incomes are determined under prices quoted at the Stock Exchanges on the date of receipt of inheritances or gifts or the preceding date;

- For securities not allowed trading at the Stock Exchanges, taxed incomes are determined under value stated in the accounting books of company having securities on the date of receipt of inheritances or gifts or the preceding date;

b) For capital holdings in economic organizations or business establishments:  The determination of taxed incomes must be based on the holding capital value stated in accounting books of these economic organizations or business establishments at the time of receipt of inheritances or gifts or the preceding date;

c) For real estate:

- The value of land is determined according to land price brackets set by provincial-level Peoples Committees by the time of receipt of inheritances or gifts;

- The value of houses, infrastructure works and architectures attached to land is determined under the prices to calculate the registration fees of houses that are set by provincial-level People's Committees.  If the provincial-level People's Committees fail to have regulations on prices to calculate the registration fees of houses, the determination of taxed incomes must be based on the Construction Ministry's regulations on house classification; capital construction standards and norms; the actual residual value of works on land.

d) For other assets: The determination of taxed incomes must be based on prices of these assets or assets of the same kind (if any).

Article 24. Time of determination of taxed incomes

1. Time of determination of taxed incomes from inheritances is the time when individuals do procedures for register of the rights to own and use the inheritance assets which they have received.

2. Time of determination of taxed incomes from gifts is the time when individuals do procedures for register of the rights to own and use assets being gifts which they have received.

Article 25. Tax rates

The tax rate applicable to incomes from inheritances or gifts is 10% of taxed incomes.

Section 5. INCOMES FROM WON PRIZES

Article 26. Taxed incomes from won prizes and time of determination of taxed incomes

Taxed incomes from won prizes and time of determination of taxed incomes from won prizes shall comply with Article 15 of the Law on personal income tax. Organizations paying prizes are responsible for withholding of personal income tax from the winner before paying prizes to the individuals winning prizes. If organizations paying e-games with prizes, casino fail to identify the taxed incomes of individuals won prizes to withhold tax, these organizations shall pay tax on behalf of the won person according to the fixed level on total amounts returned to individuals.

Based on provisions of law on tax management, the Ministry of Finance shall provide the fixed level on total amounts returned to individuals specified in this Article.