Personal income tax exemption begins.
The Ministry of Finance has just requested the implementation of tax exemptions from August 1st for individuals with income in the first tax bracket, i.e., below 9 million VND per month if they have no dependents. Some income from securities trading will also be exempted.
According to the Ministry of Finance's request, local tax authorities need to inform businesses, households, and individuals that they are not required to deduct tax on dividend payments from August 1, 2011 (except for dividends paid to individuals by joint-stock banks, financial investment funds, and credit institutions). At the same time, the tax deduction rate for securities trading on the stock exchange will be reduced by 50% compared to the previous rate. Accordingly, the deduction rate applied to these transactions will decrease from 0.1% as before to 0.05%.
The implementation of personal income tax exemptions has begun. Photo: Hoang Ha.
In addition, from August 2011, a provisional deduction of 0.05% will be applied to securities transactions on exchanges, replacing the previous rate of 0.1%.
Also at the request of the Ministry of Finance, from August 2011 to the end of December 2011, personal income tax will be exempted for salaried individuals and self-employed individuals whose taxable income falls within the first bracket of the progressive tax rate schedule. This tax exemption was approved by the National Assembly in its July session to support salaried workers amidst rising prices...
Accordingly, the following incomes are exempt from tax: individuals with no dependents earning from over 4 million VND to 9 million VND per month; individuals with one dependent earning from over 5.6 million VND to 10.6 million VND per month; and individuals with two dependents earning from over 7.2 million VND to 12.2 million VND per month…
Furthermore, the Ministry of Finance also requested the People's Committees of provinces and cities to direct tax departments to coordinate with relevant ministries, departments, and localities to encourage businesses, lodging house operators, households and individuals providing childcare and babysitting services, and meal providers for workers, laborers, and students... to maintain stable rental prices for lodging, meal services, and childcare services at the same levels as at the end of 2010, and to implement a 50% reduction in lump-sum taxes starting from August 1, 2011.
(According to VnExpress)
