Is kết quả bóng đá trực tiếp personal exemption applicable to Vietnamese non-residents' business income?
Is kết quả bóng đá trực tiếp personal exemption applicable to Vietnamese non-residents' business income?
Based on Article 19 of kết quả bóng đá trực tiếpLaw on Personal Income Tax 2007, as amended by clause 4, Article 1 of kết quả bóng đá trực tiếp2012 Amended Law on Personal Income Tax, Article 1 ofResolution 954/2020/UBTVQH14, and clause 4, Article 6 of kết quả bóng đá trực tiếp2014 Amended Laws on Tax, specific regulations on personal exemption are as follows:
personal exemption
1. personal exemption is an amount deducted from taxable income before tax calculation for income from business, salary, wages of resident taxpayers.kết quả bóng đá trực tiếp personal exemption includes kết quả bóng đá trực tiếp following two parts:
a) kết quả bóng đá trực tiếp deduction for kết quả bóng đá trực tiếp taxpayer is 11 million VND/month (132 million VND/year);
b) kết quả bóng đá trực tiếp deduction for each dependent is 4.4 million VND/month.
- kết quả bóng đá trực tiếp determination of kết quả bóng đá trực tiếp personal exemption for dependents follows kết quả bóng đá trực tiếp principle that each dependent is only entitled to one deduction from a taxpayer.
- Dependents are those whom kết quả bóng đá trực tiếp taxpayer is responsible for supporting, including:
a) Minor children; children who are disabled, unable to work;
b) Individuals without income or with income not exceeding kết quả bóng đá trực tiếp prescribed level, including adult children studying at universities, colleges, vocational schools; spouse unable to work; parents who are beyond working age or unable to work; other people without any support whom kết quả bóng đá trực tiếp taxpayer must directly support.
kết quả bóng đá trực tiếp Government of Vietnam stipulates kết quả bóng đá trực tiếp income level and declaration to determine dependents for personal exemption.
Therefore, according to kết quả bóng đá trực tiếp above regulations, business income of Vietnamese non-residents is not entitled to personal exemptions.
Is kết quả bóng đá trực tiếp personal exemption applicable to Vietnamese non-residents' business income? (Image from Internet)
How to determine kết quả bóng đá trực tiếp business income tax for Vietnamese non-residents?
According to Article 25 of kết quả bóng đá trực tiếpLaw on Personal Income Tax 2007, there are specific regulations on kết quả bóng đá trực tiếp business income tax base for Vietnamese non-residents:
[1]Tax on business income of Vietnamese non-residents is determined by kết quả bóng đá trực tiếp revenue from production, business activities specified in clause 2, Article 25 of kết quả bóng đá trực tiếpLaw on Personal Income Tax 2007multiplied by kết quả bóng đá trực tiếp tax rate specified in clause 3, Article 25.
[2]Revenue is kết quả bóng đá trực tiếp total amount arising from kết quả bóng đá trực tiếp supply of goods, services, including costs paid by kết quả bóng đá trực tiếp purchaser in lieu of kết quả bóng đá trực tiếp Vietnamese non-resident that is not reimbursed.
If kết quả bóng đá trực tiếp contract agreement does not include personal income tax, kết quả bóng đá trực tiếp revenue for tax calculation must be converted to kết quả bóng đá trực tiếp total amount received by kết quả bóng đá trực tiếp Vietnamese non-resident in any form from kết quả bóng đá trực tiếp supply of goods, services in Vietnam, irrespective of kết quả bóng đá trực tiếp location of business activities.
What tax rate applies to business income of Vietnamese non-residents?
According to Article 25 of kết quả bóng đá trực tiếpLaw on Personal Income Tax 2007, there are specific regulations on tax for business income as follows:
Tax on Business Income
....
- kết quả bóng đá trực tiếp tax rate for business income is specified for each field, industry of production, and business as follows:
a) 1% for goods trading activities;
b) 5% for service business activities;
c) 2% for production, construction, transportation, and other business activities.
Therefore, according to kết quả bóng đá trực tiếp above regulations, kết quả bóng đá trực tiếp tax rates for business income of Vietnamese non-residents are specifically divided as follows:
- Goods trading activities will be subject to a 1% tax rate.
- Production, construction, transportation activities will be subject to a 2% tax rate.
- Other business activities will be subject to a 2% tax rate.
- Service business activities will be subject to a 5% tax rate.
What income of Vietnamese non-residents is subject to personal income tax?
According to point b, clause 1, Article 2 ofDecree 65/2013/ND-CP, specific regulations on individuals are as follows:
Taxpayers
- Personal income taxpayers include resident and Vietnamese non-residents with taxable income stipulated in Article 3 of kết quả bóng đá trực tiếp Law on Personal Income Tax and Article 3 of this Decree. kết quả bóng đá trực tiếp scope of taxable income determination for taxpayers is as follows:
a) For Vietnamese residents, taxable income is kết quả bóng đá trực tiếp income arising within and outside kết quả bóng đá trực tiếp territory of Vietnam, regardless of kết quả bóng đá trực tiếp place of income payment;
b) For Vietnamese non-residents, taxable income is kết quả bóng đá trực tiếp income arising in Vietnam, regardless of kết quả bóng đá trực tiếp place of income payment.
- A Vietnamese resident is someone who meets one of kết quả bóng đá trực tiếp following conditions:
a) Present in Vietnam for 183 days or more in a calendar year or 12 consecutive months from kết quả bóng đá trực tiếp first day of presence in Vietnam;
Individuals present in Vietnam as per this point are within kết quả bóng đá trực tiếp territory of Vietnam.
b) Having a regular place of residence in Vietnam under one of kết quả bóng đá trực tiếp following cases:
- Having a registered permanent residence according to residence law;
- Having a rented house to stay in Vietnam as per housing law, with lease contracts of 183 days or more during kết quả bóng đá trực tiếp tax year.
If an individual has a regular place of residence in Vietnam but is physically present in Vietnam for less than 183 days during kết quả bóng đá trực tiếp tax year and cannot prove residency in another country, that individual is deemed a resident in Vietnam.
- A Vietnamese non-resident is someone who does not meet kết quả bóng đá trực tiếp conditions prescribed in Clause 2 of this Article.
Therefore, according to kết quả bóng đá trực tiếp above regulations, kết quả bóng đá trực tiếp taxable income for Vietnamese non-residents is kết quả bóng đá trực tiếp income arising in Vietnam, regardless of kết quả bóng đá trực tiếp place of income payment.
