Vietnam’s MoF Proposes Personal Income Tax Reductions

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Jun. 20 – Vietnam’s Ministry of Finance will propose that the government consider the National Assembly Standing Committee’s report covering a number of urgent solutions to help taxpayers awaiting repairs to the personal income tax law.

With the stock market down sharply recently, many investors are seeing almost no income, and some are even experiencing losses. Therefore, the Ministry of Finance has proposed tax exemptions for stock investors from August 1, 2011 to 2012. Income received from dividends will be exempt from personal income tax to make it fair to persons who have money in bank savings accounts.

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Accordingly, the Ministry of Finance consulted the National Assembly in July for personal income tax exemption for employees without dependents and an income from VND5 million per month or less, with one dependent and an income no more than VND6.6 million per month, with two dependents and an income of no more than VND8.2 million per month.

The Finance Ministry also said that a new circular is being drafted at this time, increasing the starting current income deduction of VND500,000 to VND1,000,000. It is expected that the new circular will be issued next July or August.

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