Exemption and reduction of personal income tax for 4 subjects

The General Department of Taxation has just issued a document guiding the exemption and reduction of personal income tax.

This agency said: According to current legal regulations, the preferential exemption and reduction of personal income tax (PIT) is only applied to 4 subjects.

Tax reduction for individuals facing difficulties due to natural disasters, fires, accidents, and serious illnesses that affect their ability to pay taxes (stipulated in Article 4 of Personal Income Tax Law No. 04/2007/QH12).

Tax exemption under international treaties (as prescribed in Article 9 of Personal Income Tax Law No. 04/2007/QH12).

Tax exemption for individuals working for ODA projects (Joint Circular No. 12/2010/TTLT-BKHĐT-BTC dated May 28, 2010 of the Ministry of Finance), non-governmental projects (Circular No. 55/2007/TT-BTC dated May 29, 2007 of the Ministry of Finance), and United Nations employees in Vietnam (Circular No. 57/2007/TT-BTC dated June 11, 2007 of the Ministry of Finance).

50% tax reduction for individuals working in Economic Zones (Circular No. 128/2014/TT-BTC dated September 5, 2014 of the Ministry of Finance).

Based on the above regulations and instructions, individuals working for high-tech projects and enterprises are not eligible for personal income tax exemption or reduction. The taxable income of the above individuals must pay personal income tax according to current law.

The above content is mentioned in Official Dispatch 2977/TCT-TNCN dated July 23, 2015 of the General Department of Taxation./.

According to VOV.VN