Do I have to pay personal income tax when receiving remittances?

The end of the year is the time when many people receive money from relatives abroad to help their families and support their loved ones... so is this money subject to personal income tax?

According to Clause h, Article 3 - Tax-exempt income of Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance: Tax-exempt income from remittances is the amount of money an individual receives from abroad by relatives who are Vietnamese residing abroad, Vietnamese people working, working, studying abroad sending money to relatives in the country.

The basis for determining tax-exempt income from remittances is documents proving the source of money received from abroad and payment vouchers from the paying organization (if any).

In addition, Decision No. 170/1999/QD-TTg dated August 19, 1999 of the Government on encouraging overseas Vietnamese to transfer money back to the country stipulates:

“Article 1. The Government encourages and creates conditions for Vietnamese people living abroad to transfer foreign currency back to the country in accordance with Vietnamese law and the laws of the countries where Vietnamese people live and have the need to send money back to the country.

Foreigners who transfer money from abroad to Vietnam for the purpose of helping family, relatives, or for other charitable purposes are also encouraged and implemented as for Vietnamese people abroad according to the provisions of this Decision.

In Clause 3, Article 6 - Rights of the Beneficiary: "No income tax is payable on foreign currency transferred from abroad".

Thus, based on the above regulations and instructions, Vietnamese and foreigners who transfer money from abroad to Vietnam for the purpose of helping family, relatives, or for other charitable purposes, the beneficiaries do not have to pay income tax on foreign currency transferred from abroad.

» Multiplying the value of remittances

According to baotintuc