What income is taxed?

Reply:Income subject to personal income tax includes the following types of income, except for tax-exempt income specified in Article 4 of the 2007 Law on Personal Income Tax.

1. Business income, including:

a) Income from production and trading of goods and services;

b) Income from independent practice of individuals with a license or practice certificate as prescribed by law.

2. Income from salaries and wages, including:

a) Salaries, wages and amounts of the nature of salaries and wages;

b) Allowances and subsidies, except for allowances and subsidies prescribed by law on preferential treatment for meritorious people, national defense and security allowances, toxic and dangerous allowances for industries, occupations or jobs in workplaces with toxic and dangerous factors, attraction allowances, regional allowances prescribed by law, sudden hardship allowances, occupational accident and disease allowances, one-time allowances for childbirth or adoption, allowances for reduced working capacity, one-time retirement allowances, monthly death benefits, severance allowances, unemployment allowances prescribed by the Labor Code, other allowances paid by Social Insurance, allowances for resolving social evils;

c) Remuneration in various forms;

d) Money received from participation in business associations, boards of directors, supervisory boards, management boards and organizations;

d) Other benefits that the taxpayer receives in cash or non-cash;

e) Bonuses, except for bonuses accompanying titles conferred by the State, bonuses accompanying national awards, international awards, bonuses for technical improvements, inventions and discoveries recognized by competent state agencies, bonuses for detecting and reporting violations of the law to competent state agencies.

3. Income from capital investment, including:

a) Loan interest;

b) Share dividends;

c) Income from capital investment in other forms, except income from government bond interest.

4. Income from capital transfer, including:

a) Income from transfer of capital shares in economic organizations;

b) Income from securities transfer;

c) Income from capital transfer in other forms.

5. Income from real estate transfer, including:

a) Income from transfer of land use rights and assets attached to land;

b) Income from transfer of ownership or right to use housing;

c) Income from transfer of land and water surface lease rights;

d) Other income received from real estate transfer.

6. Income from winnings, including:

a) Lottery winning;

b) Winning prizes in promotional forms;

c) Winning prizes in betting and casino;

d) Winning prizes in games, contests and other forms of winning prizes.

7. Copyright income, including:

a) Income from transfer and assignment of rights to use intellectual property objects;

b) Income from technology transfer.

8. Income from franchising.

Income that individuals receive from franchise contracts, including the case of franchise sub-franchise.

9. Income from inheritance is securities, capital in economic organizations, business establishments, real estate and other assets that must be registered for ownership or registered for use.

10. Income from receiving gifts
Is the income an individual receives from domestic and foreign organizations and individuals, specifically as follows:

- For receiving gifts in the form of securities including: stocks, stock purchase rights, bonds, promissory notes, fund certificates and other types of securities as prescribed by the Law on Securities; shares of individuals in joint stock companies as prescribed by the Law on Enterprises.

- For receiving gifts that are capital in economic organizations and business establishments, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual businesses, capital in associations and funds permitted to be established under the provisions of law or the entire business establishment if it is a private enterprise or individual business establishment.

- For receiving gifts of real estate including: land use rights; land use rights with assets attached to land; home ownership rights, including future housing; infrastructure and construction works attached to land, including future construction works; land lease rights; water surface lease rights; other income received from inheritance of real estate in any form (*).

- For gifts of other assets, ownership or usage rights must be registered with the State management agency such as: cars; motorbikes, motorcycles; ships, including barges, canoes, tugboats, push boats; boats, including yachts; airplanes; hunting guns, sports guns.

(*) Taxable income from inheritance and gifts does not include the following tax-exempt income:

Income from receiving inheritance or gifts of real estate (including houses and future construction works according to the provisions of law on real estate business) between: husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandchild, maternal grandfather, maternal grandmother and grandchild; siblings with each other.