CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Vietnam Finalizes Income Tax Threshhold Increases

Vietnam Finalizes Income Tax Threshhold Increases

by Mary Swire, Tax-News.com, Hong Kong

28 November 2012


In an effort to provide relief to taxpayers who have suffered from the increase in commodity prices, Vietnam’s National Assembly has passed legislation that will substantially increase personal income tax thresholds with effect from July 1, 2013, instead of January 1, 2014, as had previously been expected.

From July 1 next year, the present starting threshold for individual taxpayers of VND4m (USD192) per month, and deduction of VND1.6m per month for each dependant, are to rise to VND9m per month and VND3.6m per month, respectively.

At the beginning of the exercise to increase tax allowances, it had been suggested that the threshold should rise to only VND6m per month, with an additional VND2.4m for each dependant, but that view was overridden by the government’s recognition that, with thresholds not having been changed since 2009, they had been overtaken by the subsequent increase in commodity prices and inflationary pressures, reducing consumption in the current difficult economic conditions.

It has been estimated that some 75% of Vietnam's present 3.8m individual taxpayers will drop out of paying personal tax after the threshold changes, and that the cost to the country’s tax revenues will be around VND5 trillion in the second half of next year and over VND13 trillion in 2014.

TAGS: tax | law | tax thresholds | legislation | tax breaks | individual income tax | Vietnam

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »