What personal income that must be included:
According to Circular 111/2013 / TT-BTC guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles on Personal Income Tax Law and Decree No. 65/2013 / ND-CP of the Government regulations detailing a number of articles of the Law on Personal Income tax, the Law Amending and supplementing a Number of articles of the Law on Personal Income tax regulations kinds of taxable income include:
1. Income from business:
Income from business income derived from production, business in the following areas:
+ Income from production and trading of goods and services from all sectors of business in accordance with law, such as manufacturing, commodity trading; construction; transport; catering business; business services, including rental housing, land use, water and other assets.
+ Income from independent professional practice of individuals in the field, profession licensed or practicing certificate under the provisions of law.
+ Income from manufacturing operations, agribusiness, forestry, salt making, aquaculture, fishery does not meet the exemption eligibility guidelines at point e, Clause 1, Article 3 of this Circular .
2. Income from salary, wages:
Income from salaries, wages are income workers receive from employers, including:
a) Salaries, wages and wage-related payments, wages in the forms of cash or non-cash.
b) allowances, subsidies, excluding allowances, subsidies follows:
+ Allowance, monthly allowances and subsidies once prescribed by law for persons with public preferences.
+ Monthly subsidies, subsidies for one participant resistance, homeland security, international duty, youth have completed the task.
+ Allowance defense and security; subsidies to the armed forces.
+ Allowance toxic, dangerous to the lines or work in workplaces where toxic elements, danger.
+ Allowance attract allowances area.
+ Subsidies unexpected difficulties, grants a labor accident or an occupational disease, the lump in childbirth or adoption, maternity benefit levels, benefit levels convalescence, recuperation after pregnancy production subsidies by capacity decrease labor, pension once monthly allowance, severance allowance, allowance for loss of employment, unemployment and other benefits under the provisions of the Labour Law and social Security Law.
+ Allowance for objects of social protection as prescribed by law.
+ Service allowances for senior leaders.
+ Time allowance for working individuals moving to areas with socio-economic conditions particularly difficult time assistance for civil servants working in the maritime sovereignty under the provisions of law law. Once roaming allowance for foreigners residing in Vietnam, the Vietnam go to work abroad.
+ Allowance for medical staff village.
+ Special allowance trades.
Allowances, subsidies and the subsidies, subsidies not included in taxable income guidance at Point b, Clause 2 of this Article, the State agency authorized regulations.
Where the guidelines on allowances, subsidies, subsidy rates, subsidy applies to the state sector, the other economic sectors, other business establishments are based on list and the level of allowance, allowance guidelines for the state sector to the exclusion.
Where allowances, subsidies received higher levels of allowances, subsidies under the above guidelines, the excess must be included in taxable income.
Private pension once roaming for foreigners residing in Vietnam, the Vietnam working abroad is deducted at the rate specified in the labor contract or collective bargaining agreement.
c) Remuneration received in various forms such as commissions of sales agents, brokerage commissions; money to participate in scientific research, engineering; money to participate in projects and schemes; royalties under the provisions of the law on the royalty regime; money to participate in teaching activities; money involved cultural performances, art, physical education and sport; advertising service charges; other service fees, other remuneration.
d) Cash received from participating business associations, corporate board, corporate board control, project management, management councils, associations, professional associations and other organizations.
e) benefits in cash or in cash in addition to the salary paid by the employer to pay that taxpayers are entitled in all its forms:
+ Money, electricity, water and ancillary services (if any).
+ In case of individuals working at the headquarters of the taxable income based on the rent or depreciation costs, electricity, water and other services as a proportion of the area used to present personal area office.
+ Terms rent by unit household employers pay on taxable income calculated according to the number of households actually paid but not exceeding 15% of total taxable income (excluding rent) at the unit.
+ The amount of life insurance premiums, other optional insurance, retirement contributions voluntarily by employers who purchase or contribution for employees for insurance products have accumulated about premiums.
+ Membership fees and expenses for other services cater to individuals as required, such as health care, entertainment, sports, recreation, aesthetics, specifically as follows:
Membership fee (such as golf memberships, tennis courts, club card activities arts and culture, sports ...) if the card can specify the names of individuals or groups of individuals to use. In cases where the card is used collectively, individual bearer or group of individuals shall not be used in taxable income.
Expenses other services to individuals serving in health care, entertainment, entertainment aesthetic ... if you paid content clearly enjoying personal name. Where the payment of service charges bearer individuals that enjoy spending overall collective workers are not included in taxable income.
Part exchange costs of stationery, per diem, telephone, clothes, ... higher than current regulations of the State. Expenditure limits are not included in taxable income for the following cases:
- For officials, civil servants and people working in the business and administrative offices, Party, unions, societies, associations: expenditure limits applied under guidelines of the Ministry of Finance.
- For employees working in the business organization, the representative office: expenditure limits applied in accordance with the determination of income subject to corporate income tax in accordance with the guiding documents Tax Law corporate income.
- For employees working in international organizations, the representative offices of foreign organizations: expenditure limits comply with the provisions of international organizations, representative offices of foreign organizations.
+ For expenditures on vehicles shuttle employees from collective place to work and back is not included in the taxable income of the employee; Where only individual private shuttle must be included in the taxable income of individuals shuttle.
+ For cash payments of households improve their training, skilled laborers work in accordance with professional services of the employee or unit plan of the employer shall not be taken into income workers.
+ All other benefits.
+ The other benefits that the employer expenses for employees such as expenses during holidays, holidays; hire the consulting services, hire a tax return for the names of individuals or groups; costs for domestic help such as driving, cooking people who do other work in the home under contract ...
e) The cash bonus in cash or in any form, including stock bonus, except the following bonuses:
+ Bonus together with the title conferred by the State, including bonuses attached to the title of emulation and commendation forms prescribed by law on emulation and commendation, namely:
- Bonus accompanying emulation titles as emulated nationwide; Emulation soldiers ministries, central mass, provinces and centrally; Emulated basis, Labor advanced, cutting-edge fighter.
- Accompanying bonus reward form.
- Cash rewards accompanying the title conferred by the State.
- Cash rewards accompanying the award by the Society, the organization of political institutions, political organizations - social, Social Organization, Social Organization - Central profession and local matches granted with the organization's charter and in accordance with the provisions of the Law on Emulation and Commendation.
- Cash bonus awards attached to Ho Chi Minh City, State Award.
- Cash rewards accompanying the medal, badge.
- Merit bonuses attached, Certificate of Merit.
- Competence to decide reward bonuses attached to the title of emulation and commendation forms listed above must be consistent with the provisions of the Law on Emulation and Reward.
+ Bonus together with national awards, awards internationally recognized State Vietnam.
+ Bonus of technical innovations, patents, inventions State agencies competent recognition.
+ Bonus of detection, declared legal violations with state agencies having jurisdiction.
g) Not included in the taxable income for the following:
+ The support of employers for health care coverage for the poor and the workers themselves relatives of employees.
- Relatives of the employees in this case are: biological children, legally adopted children, illegitimate children, stepchildren of the spouse; their spouses; father and mother; her father, mother and wife (or husband's father, mother); stepfather, stepmother; adoptive father legally adopted.
- The support is not included in taxable income is the actual amount paid by documentation fees paid but not exceeding the amount of the fees paid to employees and family workers after deduction of payments of insurance organizations.
- The employer support payment shall: keep copies of vouchers to pay hospital bills certified by the employer (in the case of employees and relatives of employees paying the rest after the insurer paid directly to the medical facility) or copies of vouchers to pay fees; copies of payment vouchers health insurance certified by the employer (in the case of employees and relatives of employees to pay the full fees, insurance organizations pay a premium for the employee and family workers) along with proof of payment support to employees and employee relatives suffering from dangerous diseases.
+ Proceeds received under the provisions of the vehicles used in State agencies, public non-business units, party organizations and unions.
+ Proceeds received under the regime of duty in accordance with law.
+ Cash received in addition to salary or wages due consulted, evaluation and verification of legal documents, resolutions and political reports; join teams monitoring; to voters, to citizens; costumes and other work related to direct service activities of the Office of the National Assembly, the Ethnic Council and the Commission of the National Assembly, the delegation of the National Assembly; Central Office and the Committee of the Party; Office of the Municipal Party Committee, Provincial Committee and the Committee of the Party Committee, Provincial Committee.
+ Amount mid-shift meal, lunch by employer organizations meal between lunch shifts for workers in various forms such as direct cooking, buying meals, food stamps.
Where the employer is not held mid-shift meal, lunch and paying for workers not included in the taxable income of the individual if the costs in accordance with the guidance of the Ministry of Labour - Invalids and Social Affairs. Where spending is higher than the guidance of the Ministry of Labour - Invalids and Social Affairs, the expenditures must exceed the taxable income of the individual.
Specific spending levels applicable to State enterprises and organizations, units of the business and administrative offices, the Party, mass organizations, the Association shall not exceed the guidelines of the Ministry of Labour - Invalids and Social Affairs. For non-state enterprises and other organizations, spending levels and heads of units consistent with union president but decided not exceed the maximum applicable to State enterprises.
+ Sum of money to buy round-trip airfare from the household employers pay (or pay) for foreign laborers working in Vietnam, the Vietnam laborers working abroad on leave once a year.
+ Based on the amount determined is a plane ticket and contract labor payments fares from Vietnam to foreign countries of nationality or the country where the family live abroad and vice versa ; payments fares from Vietnam country where people are working in Vietnam and vice versa.
+ Tuition amount of foreign laborers working in Vietnam studying in Vietnam, the Vietnam of employees working abroad in foreign countries by level of education, from pre-school to high school information by employers who pay protection.
+ The personal income received from the Council, not the sponsoring organizations included in taxable income personal income individuals receive financial assistance if a member of the Society, the organization; funding is used from State funds or managed under the provisions of the State; the creation of literary and artistic works, scientific research ... to perform the tasks of the State or political program activities in accordance with the Charter of the Association, that organization.
+ The payment that the employer paid to serve on that rotation, the foreign laborers working in Vietnam as stipulated in labor contracts, labor standards compliance schedule according to international practices of some sectors such as oil and gas, mining.
Pursuant to determine the labor contracts and payments fares from Vietnam to foreign countries where they reside and vice versa.
Example 1: Mr. X is the foreign oil and gas contractors Y transferred to work at the rig on the continental shelf of Vietnam. As stipulated in the labor contract, the period of his work in X rig is 28 consecutive days, then 28 days off. Contractor X Y paid for his ticket money from abroad to Vietnam and back again each time shift, the cost of providing helicopter transportation from the mainland Mr. X stages out drilling Vietnam and vice versa , stay in the case of Mr. X waiting helicopter flight made rig work, this does not count the amount of taxable income on his personal income X.
3. Income from capital investment:
Income from capital investments, income received by an individual under the form:
a) Interest received from organizations, businesses, families, business individuals, business groups and individuals to borrow under the loan contract or loan agreement, except for interest income received from organizations credit, foreign bank branch under the guidance in Paragraphs G.1 and g, Clause 1, Article 3 of this Circular.
b) Dividends received from capital contribution or share purchase.
c) Income received from capital contribution to a limited liability company (including a limited liability company member), partnerships, cooperatives, joint ventures, business cooperation contracts business and other business forms prescribed by the Law on Enterprises and the Law on Cooperatives; income received by contributing capital to credit institutions established under the provisions of the Law on Credit Institutions; contribute capital to fund investments in securities and other investment funds established and operating under the provisions of law.
d) The value added of capital received as dissolved enterprise operating model transformation, separation, merger, amalgamation or when withdrawn.
e) Interest income received from bonds, treasury bills and other valuable papers by the issuing institution in the country, except for income under the guidance of Item G.1 and G.3 and g, Clause 1 Article 3 of this Circular.
e) The income received from investment capital in other forms even where capital contribution in kind, by reputation, by land use rights, patents and inventions.
g) Income from dividends paid in shares, income from capital increase profits.
4. Income from capital transfer:
Income from transfer of capital, income received by an individual include:
a) Income from transfer of contributed capital of a limited liability company (including a limited liability company member), partnerships, business cooperation contracts, cooperative credit funds people, economic organizations and other organizations.
b) Income from transfer of securities, including income from the transfer of shares, stock options, bonds, treasury bills, treasury certificates and other securities in accordance with the provisions of the Securities Act; Income from transfer of shares of the private joint-stock company in accordance with the Law on Enterprises.
c) Income from transfer of capital in other forms.
5. Income from real estate transfer:
Income from transfer of property, income received from the transfer of real estate including:
a) Income from transfer of land use rights.
b) Income from transfer of land use rights and assets attached to land. Assets attached to land include:
+ Housing, including housing form in the future.
+ Infrastructure and buildings attached to land, including buildings forming in the future.
+ Other assets attached to land, including the property's agricultural, forestry and fishery (such as plants and animals).
c) Income from transfer of ownership of housing, including housing form in the future.
d) Income from transfer of land, water rights lease.
e) income as capital contribution in real estate business to establish or increase their production and business capital of the business as prescribed by law.
e) Income from authorized management of real estate which authorized the transfer of property rights or rights as owners of real estate in accordance with law.
g) other income received from the transfer of real estate in any form.
Regulations on housing construction in the future formation referred to in paragraph 5 of this Article shall comply with the law on real estate business.
6 . Income from winning:
Income from cash prizes are cash or in kind received by individuals under the following forms:
a) Lottery winnings from the lottery company issuing compensation.
b) prizes in the form of promotion for purchase or sale of goods or services under the provisions of the Commercial Law.
c) prizes in the form of betting, betting is permitted by law.
d) Winnings from the casino are permitted by law to operate.
e) Winnings from games, contests and prizes other forms of economic organization, administrative agencies, business, unions and other organizations, other private organizations.
7. Income from copyright:
Income from license income received from transfer, transfer of ownership, or use of objects of intellectual property rights in accordance with the provisions of the Intellectual Property Law; income from technology transfer under the provisions of the Law on Technology Transfer. Specifically as follows:
a) The subject matter of intellectual property rights shall comply with the provisions of Article 3 of the Law on Intellectual Property and the related guidance documents, including:
Object copyrights including literature, art, science; its subject matter related to copyright include: recording, recording broadcasts, satellite signals carrying coded programs.
+ Objects of industrial property rights including patents, industrial designs, layout designs of semiconductor integrated circuits, trade secrets, trademarks, trade names and geographical indications.
Object rights to plant varieties as propagating material and harvested material.
b) The subject matter of the technology transfer carried out under the provisions of Article 7 of the Law on Technology Transfer, including:
+ Transfer of technical know-how.
+ Transfer of technical knowledge about the forms of technology technology, process technology, engineering solutions, formulas, specifications, drawings, technical diagrams, computer programs, information data.
+ Transfer solution to rationalize production and technological innovation.
Income from transfer, transfer of objects of intellectual property rights and technology transfer mentioned above include the transfer case.
8 . Income from franchise:
Franchising is a commercial operation, which enables the franchisor and the franchisee required to conduct themselves on the sale of goods, provision of services under the terms of the franchisor in the franchise agreement trade.
Income from franchise is the income that individuals receive from the franchise agreement mentioned above, including the right to transfer the case under the provisions of trade law on franchising.
9. Income from inheritance:
Income from inheritance, income that individuals receive by will or under the provisions of the law on inheritance, as follows:
a) For the inheritance of securities including stocks, stock options, bonds, treasury bills, treasury certificates and other securities in accordance with the provisions of the Securities Act; personal stake in the joint-stock company under the provisions of the Enterprise Law.
b) For the inheritance of the capital in economic organizations, business establishments including equity in a limited liability company, cooperative, partnership, business cooperation contracts; capital in the private sector, the business basis of the individual; capital associations, funds may establish in accordance with law or the entire business establishment if it is a private enterprise, the basis of personal business.
c) For the inheritance of real estate including land use rights; land use rights and assets attached to land; home ownership, including those formed in the future; infrastructure and buildings attached to land, including buildings formed in the future; land lease rights; lease of water rights; other income received from the property inheritance in all its forms; excluding income from property inheritance is guided at Point d, Clause 1, Article 3 of this Circular.
d) For the inheritance of the other assets to register ownership or rights to use the state management agencies such as the automobile; motor vehicles, motorcycles; ships, including barges, boats, tug boats, push boats; boats, including yachts; aircraft; hunting rifles and sporting guns.
10. Income from gifts:
Income from gifts, income received by individuals from organizations and individuals in and outside the country, as follows:
a) For the gifts being securities including stocks, stock options, bonds, treasury bills, treasury certificates and other securities in accordance with the provisions of the Securities Act; personal stake in the joint-stock company under the provisions of the Enterprise Law.
b) To receive gifts is the capital of the economic organizations, business establishments including the capital of a limited liability company, cooperative, partnership, business partnership agreement, which in the private sector, the business basis of the individual, which in the association is allowed to establish the fund as prescribed by law or the entire business establishment if the private sector, the business basis of individuals.
c) To accept gifts of real estate including land use rights; land use rights and assets attached to land; home ownership, including those formed in the future; infrastructure and buildings attached to land, including buildings formed in the future; land lease rights; lease of water rights; other income received from the property inheritance in all its forms; excluding income from real estate gifts are guided at Point d, Clause 1, Article 3 of this Circular.
d) For the gift recipient's other assets have to register ownership or rights to use the state management agencies such as the automobile; motor vehicles, motorcycles; ships, including barges, boats, tug boats, push boats; boats, including yachts; aircraft; hunting rifles and sporting guns
2.Cach taxable personal income: Personal income tax is calculated according to the following general formula: Personal Income Tax = Taxable income Tax rate *
Where: Taxable Income = Gross Income - Deductions
Thus, according to the law, individuals with taxable income shall be responsible for declaring and paying taxes to the state budget and tax settlement for any earnings under the provisions of the law on tax administration .
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