Implementing contents in amended laws on taxation
The Ministry of Finance sent Office Notice 17526/BTC-TCT to provincial and municipal people’s committees, departments of finance and departments of taxation on implementing some contents in the amended laws and supplementing a number of articles in laws on taxation adopted in the eighth session of the 13th National Assembly (NA). Some contents need to be implemented in December 2014 in order to create favorable conditions for the deployment on January 1, 2015.
Firstly, amending and supplementing contents in personal income tax for individual business households: According to the current regulations (before December 31, 2014) implemented based on the Law on Personal Income Tax 04/2007/QH12, the amended Law on Personal Income Tax 26/2012/QH13 stipulates that personal income tax for individual business households is calculated based on taxable incomes according to the percentage of sales. Individual business households are subject to family allowances when determining taxable incomes.
From January 1, 2015, individual business households will pay personal income tax based on the percentage of sales for each sector as follows: 0.5 percent for distribution and supply of goods; 2 percent for services and building contracts excluding raw materials; 5 percent for assets lease, insurance agents, lottery agents and multi-level sales agents; 1.5 percent for production, transport and services related to building contracts including raw materials; and 1 percent for other business activities.
Secondly, amending and supplementing some contents in personal income tax: From January 1, 2015, personal income tax will be exempted for incomes from salaries and wages of Vietnamese crews working on foreign carriers or Vietnamese carriers specializing in international transport; for ship owners and individuals who have the right to use ships in providing goods and direct services serving fishing.
As for income from transferring securities of individuals: From January 1, 2015, a tax rate of 0.1 percent on the prices of each stock transfer will be applied. In addition, there will be no settlement of personal income tax on income from securities transactions. As for income from transferring real estate of individuals: From January, 1, 2015, a tax rate of two percent on the prices of each property transfer will be applied.
Thirdly, amending and supplementing the value-added tax (VAT): Adding objects that are not subject to VAT for activities related to building new offshore-fishing ships; changing three groups of goods that are subject to five-percent VAT to untaxed objects, including fertilizers, animal feed, and machinery and equipment serving agricultural production.
Fourthly, amending and supplementing the resources tax: Changing from free-tax objects to those who are not subject to the resources tax on using natural water serving agriculture, forestry and salt production.
To understand more contents in amended laws and articles in laws on taxation, a notice office states that individual business households with revenues of more than VND100 million per year pay taxes based on the fixed method in a year as follows: One-month payable tax = (One-month personal income tax-based revenues x the percentage of personal income tax) + (One-month VAT-based revenues x the percentage of VAT)./.