First-Half Income Tax Exemption Proposed
May 8 – Vietnam’s Ministry of Finance has sent a proposal that taxpayers be exempt from paying the Personal Income Tax (PIT) during the first half of the year.
PIT collection was originally set to begin at the start of the year but was deferred to back taxes being paid when collection began.
The new proposal argues that PIT be paid starting July onwards. Under the draft proposal that is set to be presented to the National Assembly for consideration, tax exemption will also be granted from July 1 through January 1, 2010 for capital investments and transfers, including that of securities, copyrights and franchises, reports Thanh Nien News.
The ministry released the draft of the proposal during the National Assembly’s Financial and Budgetary Committee’s three-day session this week.
Under the proposal wage earners will begin paying tax from July 1 and will also be qualified for a tax break of VND200,000. Persons owing tax worth less than VND200,000 will be excluded from PIT until January 1, 2010.
The new proposal while making it easier for wage earners will decrease state earnings by between VND6.5 – 6.8 trillion for the year.
A committee member, Cao Ngoc Xuyen, told Thanh Nien News that up to 80 percent of taxpayers will be exempted from personal income tax if the draft is approved.
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