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NA passes PIT amendments

Released at: 21:01, 17/12/2014

NA passes PIT amendments

Amendments to certain articles take effect from January 1.

by Yen Thanh

The National Assembly (NA) has passed amendments to certain articles of the Personal Income Tax (PIT) law that will take effect from January 1.

Sole traders with revenue of less than VND100 million per annum are not required to pay corporate income tax, according to Paragraph 1 and 4 of Article 2 of Law No. 71/2014/QH13, which amends and supplements existing tax laws.

From January 1 sole traders will pay PIT based on revenue in the industry and products where they conduct business. Distribution and logistics will pay 0.5 per cent, services and construction excluding supply of materials 2 per cent, leasing, insurance agents, lottery agents and multi-level sales 5 per cent, manufacturing, transportation, and construction including supply of materials 1.5 per cent, and other sectors 1 per cent.

The Ministry of Finance (MoF) has proposed additional amendments whereby sole traders who hire more than ten permanent employees must register as a business and be subject to a suitable accounting regime. Sole traders running restaurants, hotels, and entertainment services must connect with tax authorities via the internet if the business can adopt the relevant technology.

From January 1 PIT is exempt on all incomes of Vietnamese who work for foreign maritime transport companies, Vietnamese maritime companies conducting international transport, and ship owner and members who fish offshore.

Individuals who earn income from stock trading will not be subject to PIT but a 0.1 per cent tax will be imposed on each trade. Income from selling personal real estate will be subject to a tax rate of 2 per cent of the sale price for each piece of real estate transferred.

  • TAGS
  • PIT
  • MoF
  • NA

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