Below are notable changes in the amended Law on PIT, which shall be applied from 1 July 2013:
Family circumstance deductions
- Personal deduction is increased from the current VND 4 million per month to VND 9 million per month.
- Tax deduction for a qualified dependent increases from the current VND 1.6 million per month to VND 3.6 million per month.
Duration of housing rental contract in Vietnam to determine tax residency increases from 90 days to 183 days, which is in line with international practice
Accumulated fees for life insurance, other non-compulsory insurance contributions, and accumulated fees for voluntary pension funds purchased by the employer or contributed for employees, will not be added into periodic taxable income subject to PIT withholding of individuals. PIT on such benefits shall be withheld once the employees actually receive money on settlement from the insurance organizations;
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