Start exempting personal income tax

The Ministry of Finance has just requested to implement tax exemption from August 1 for individuals with income in the first level of the tax schedule, that is, under 9 million VND per month if they have no dependents. Some securities income is also exempted.

At the request of the Ministry of Finance, local tax departments need to notify businesses, households and individuals not to deduct dividends from payments from August 1, 2011 (except for dividends paid by joint stock banks, financial investment funds and credit institutions to individuals). At the same time, at this time, securities trading activities on the floor are subject to a tax deduction rate, reduced by 50% compared to the old rate. Accordingly, the deduction rate applied to these trading activities will be reduced from the previous rate of 0.1% to 0.05%.

Starting to implement personal income tax exemption. Photo: Hoang Ha.

In addition, from August 2011, a temporary deduction rate of 0.05% will be applied to securities transactions on exchanges, replacing the previous rate of 0.1%.

Also according to 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 business individuals with taxable income in the first step of the progressive tax schedule. This tax exemption was approved by the National Assembly in its session last July to support salaried employees in the context of rising prices...

Accordingly, incomes that are exempt from tax include individuals without dependents, with income from over 4 million VND to 9 million VND per month. Individuals with 1 dependent with income from over 5.6 million VND to 10.6 million VND per month and individuals with 2 dependents with income from over 7.2 million VND to 12.2 million VND per month...

In addition, the Ministry of Finance also requested the People's Committees of provinces and cities to direct the tax departments to coordinate with ministries, branches, and localities to mobilize enterprises, boarding house business households, households, and individuals providing childcare, providing meals for workers, laborers, and students... to maintain stable rental prices for boarding houses, meals, and childcare at the same level as at the end of 2010, and to implement a 50% reduction in lump-sum tax rates from August 1, 2011.

(According to VnExpress)